MIT ALPHA PHI OMEGA delta Overseas: Depression, Food Riots, Tax Rebellions By 2012

The U.S. Is Broke But Somehow Finds $1 Trillion To Operate New F-35 Fighter, China Makes A Killing On Gold, Muni Default Chart, Wall Street Pay Watch, Nil Baby Nil (LINKS)

The global economy is doomed to implosion, and here are four charts which explain why.

Though the complexities may appear endless, the global economy's coming implosion is really fairly easy to understand: here are four charts which do the heavy lifting. It boils down to these basics:

1. When money is dear and difficult to borrow, then productivity and capital accumulation are encouraged, speculation, malinvestment and debt-based consumption are discouraged.

2. When money is "free" (zero-interest rate policy) and liquidity is unlimited, then the opposite conditions hold: speculation in risk assets, malinvestment and debt-based consumption are all encouraged, and productivity and capital accumulation are heavily discouraged.

3. When debts exceed the value of the underlying assets, the only way out of the Tyranny of Debt is to write off the debt on both the borrower and lender's balance sheets, wiping out their capital via liquidation and bankruptcy.

4. The "extend and pretend" policy pursued by all major nations is simply transferring the impaired debt from private hands to the taxpayers (public debt), crippling the economy with higher taxes and higher debt service.

5. The Central State's "extend and pretend" policy requires heavy borrowing every year to prop up the status quo, pushing the Central State (or equivalent, i.e. the Eurozone) in an inescapable double-bind: either continue increasing public debt and cripple the economy with high taxes and high public-debt servicing costs, or let the financial status quo of "profits are private, losses are public" implode.

The first path leads to default, as the Tyranny of Debt cannot be masked for long, while the second path wipes out the Financial Power Elite which feeds the politicians.

Here are the charts. Note how the speculative economy created the illusion of rising wealth for the bottom 90%, an illusion stripped away by the Default Economy.

In essence, the Financial Power Elites profited immensely from creating this illusory wealth which gave the bottom 90% the false sensation that their declining earnings and purchasing power were being offset by the "magic" of asset bubbles.

Then, when the bubble popped, the Financial Power Elites transferred the impaired assets to the taxpayers, a process which is still underway. The politicos of both parties are complicit; behind the simulacra of toothless "reforms," this process proceeds in myriad ways (Bank of America transferring toxic debt to Fannie/Freddie, etc.) Behind the smokescreen of conjuring a "wealth effect" to foster more consumption, the Fed's purchase of Treasuries (QE2) serves this transfer-of-debt-to-the-public process.

chart

This same process is playing out throughout the global economy: Greece, Ireland, the U.S., and eventually, in China when its monumental property bubble pops.

These images, by photographers of the Farm Security Administration /Office of War Information, are some of the only color photographs taken of the effects of the Depression on America’s rural and small town populations. By 2012, the photographs and captions will haunt this generation as the cyclical downturn worsen due to high unemployment and huge tax burden.

With this background of Hard Times the Federal Debts, Celente Predicts Revolution, Food Riots, Tax Rebellions By 2012

The man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions – all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.
Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
“We’re going to see the end of the retail Christmas….we’re going to see a fundamental shift take place….putting food on the table is going to be more important that putting gifts under the Christmas tree,” said Celente, adding that the situation would be “worse than the great depression”.
“America’s going to go through a transition the likes of which no one is prepared for,” said Celente, noting that people’s refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.
Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.

Official Gerald Celente Media Blog | Forecasting, Tracking and Analyzing Global Trends | Trends Research Institute

Increase is on top of £12.5bn Britain has already committed to Eurozone
MP Douglas Carswell accuses government of being 'caught out' over plans detailed in low-key order
Treasury insists IMF increase was agreed by Labour government in 2009
Greek PM's plans to reshuffle government in disarray after spate of resignations
Violent clashes in Athens see 60 injured - including 36 police
Stock markets across Europe fall sharply and euro slumps to $1.4072
Sarkozy calls on Euro governments to put national fights behind them

Britain's Treasury has been accused of sneaking through an extra contribution to the International Monetary Fund of £9.2billion.

The IMF increase, detailed in a low-key government order, is on top of the £12.5billion Britain has already committed to protecting the Eurozone.

The figures were discovered by Conservative MP Douglas Carswell, who accused Chancellor George Osborne of going back on assurances that bailouts would not cost taxpayers.

Clean up: Tourists walk past a shattered window in Athens' Syntagma Square after violent protests yesterday

Unrest: More than 60 people were injured during violent clashes between riot police and protesters in Athens yesterday

Riots: Protesters aim laser beams at police officers in Syntagma Square, Athens, last night

'Caught out': Tory MP Douglas Carswell accused the Government of trying to sneak through a £9.2billion increase in Britain's contribution to the IMF

They emerged on a day that violent riots broke out in Greece over anti-austerity measures being debated by the country's parliament.

Thousands of protesters took to the streets in Athens, sparking clashes with riot police that left more than 60 people injured and at least fifteen arrested.

Up to 5,000 riot police used stun grenades and tear gas during running battles through the streets of the capital.

The people are unhappy over plans to introduce new austerity measures that Greece needs to comply with the terms of the 110billion euro bailout package it signed in May 2010.

Greece's ailing economy could be in line for another £18billion bailout from the EU and IMF amid concerns it could default on the first deal.

It is not known how much of that figure Britain is liable for, but the money would come from the extra contribution made to the IMF.

Debt: Opposition parties are calling for early elections to renegotiate the terms of the 110 billion euro bailout last year

Policemen throw tear gas at protesters during riots in Athens

A protester throws stones at policemen during clashes around Constitution

Protesters wearing gas masks on the frontline of the protest

Ms Osborne has already overseen £7billion given to Ireland during its bailout, along with £4.3billion handed to Portugal.

Britain is also liable for around £1.2billion of the original Greece bailout - a total of £21.7billion, including the increased IMF contribution, to help prop up the Eurozone.

Mr Carsell, MP for Harwich, told The Sun: 'The Government has given us cast-iron assurances that bailouts would not cost British taxpayers.

'Now they've been caught out trying to sneak through plans that will cost the UK an extra £9.2billion.

'This money could be funding tax cuts for hard-working families or more police on our streets.'

Threat: A poster sounds a defiant message to the Greek government. Unemployment in the country now stands at 16 per cent

Fury: Riot police grapple with a protester during angry scenes outside the Greek parliament in Athens

Stand off: A female protesters tries to push way an officer's riot shield in Athens

Crisis: Greek Prime Minister George Papandreou will today reshuffle his government as he tries to force through austerity measures

But the Treasury rejects the claims, saying the increased contribution to the IMF was first announced by the Labour government in 2009.

A spokesman told the newspaper: 'This gets all the facts wrong on the UK's membership of the IMF and seems to suggest that we should not be part of the IMF, which the Government totally rejects.

'Moves to increase the IMF's resources were first agreed by the G20 in April 2009, before any Eurozone support packages.'

It comes as Greek Prime Minister George Papandreou is set to reshuffle his government today in a desperate bid to force through austerity measures and prevent the country descending into economic chaos.

The embattled politician is attempting to win support for tax hikes and service cuts that sparked the violent clashes yesterday.

But he faces strong opposition from within his own party over the measures and rival politicians calling for an early election.

Mr Papandreou has said the formation of a unity government requires agreement from all opposition parties on the cuts and privatisations.

He said: 'The country is facing critical times. Today I made new proposals to the leaders of all parties to achieve the necessary national consensus.

'I clarified that my responsibility has no dependence on official posts.'

Crowds: Protesters throw rocks at policemen as thousands marched through Athens to protest against austerity measures

That's ruff: Even this dog joined in the anti-austerity protests as riot police watch on

Clash: An officer prepares to throw a tear gas canister in Syntagma square, Athens

The main opposition party - New Democracy - has repeatedly demanded that he quit and that a cross-party coalition renegotiate the terms of the bailout package.

As many as 30,000 protesters flooded Athens' streets yesterday, hurling firebombs, stones and even yoghurt at buildings and police.

Protester Christos Miliadakis, 35, told CNN: 'When will we be able to get out of this vicious circle?

'My wife lost her job. I had a 12 per cent pay cut as a result of the first bailout. The new measures want to cut another 20 per cent of jobs in the public sector.

'So if no one has money and we are just more in debt, who is going to drive the economy? We will live like slaves paying all our lives.'

Student Maria Iliadi, 23, added: 'The future in this country has been erased.

'There will be no big public projects, and no one will be building for a long time. Sometimes, finishing my degree seems totally pointless.'

Confrontations: Greek riot police block off protesters in front of the parliament building in Athens ahead of a day of national strikes

Unrest: A protester is arrested after trying to block the road to the parliament building

Labour unions were holding a 24-hour strike over the proposed cuts, bringing public services to a halt and affecting transport networks.

Unemployment in Greece has soared to more than 16 per cent - a 40 per cent rise on last year.

The European Commission has said Greece's economy was expected to shrink by 3.5 per cent this year and credit rating agency Standard & Poor's cut its rating to 'CCC' - among the lowest in the world.

Experts fear the country may end up defaulting on its debts which could set off a financial chain reaction described as potentially catastrophic.

Greece has until the end of the month to pave the way for cuts demanded by the EU and IMF if it wants to receive the final installment of last year's bailout package.

French President Nicolas Sarkozy today called on other EU leaders to stop squabbling over how to help Greece.

He said: 'What we need most today, is unity. We have to leave the national fights behind us to find our sense of common destiny again.'

Over the last few weeks, policymakers have been at loggerheads over how to get the private sector to make a substantial contribution in any new package.

A mother who just a year ago was a millionaire with a booming business has blamed the recession after she was reduced to living in a garden shed.
Mother-of-two Anyta Crossley, 45, had a healthy bank balance just 12 months ago as her ladies-only gym business went from strength to strength.
She lived a luxury lifestyle in a £450,000 seven-bedroom home, drove a Hummer and had assets of more than a million pounds.
But after the credit crunch savaged her business, her home was sold for just a third of its worth and she went bust.
Enlarge

Riches to rags: Anyta Crossley now lives at the bottom of her sister's garden after she lost her business during the recession

Misery: The 45 year old former business woman now receives £135 in income support every two weeks to make ends meet
Her riches-to-rags year means she has been living a humiliating existence in her sister's garden shed with her son and two dogs.
She also now receives £135 in income support every two weeks to make ends meet.
Bitter Anita blames the bankers for her woes, saying they failed to offer her help as the downturn crippled her.
Ms Crossley, of Leeds, said: 'I used to live in a seven bedroom house. Now I am living in a shed.
'I was an entrepreneur with a busy gym. I had a big detached house and a cottage, a 1/4 acre garden and I drove a Hummer.

'The gym was worth £600,000 at one point, the house £450,000. I was a millionaire on paper.
'I have worked so hard since I was 17, and been through so much. There are people out there milking the system and I am living in a shed.
'My house has been sold to a developer for just £160,000 and the gym is sitting empty.
'It just doesn't make sense. I have never been so degraded as I have been in the last few months.'

Gone bust: 1st step Gym which used to be owned by Anyta Crossley, who has now lost everything and lives, in a shed at the bottom of her sister's garden
Ms Crossley ran First Step and lived in the upmarket Whitecote area, but the recession destroyed her once successful business.
Her mortgage repayments more than tripled so her house was repossessed, and the previously successful business soon went under.
She has now asked the financial ombudsman to review the processes which led her to lose her home, and is adamant that the bank did not offer her the help and information she was legally entitled to.
Her first application for council housing was rejected but she has now finally been offered temporary accommodation.
A Leeds City Council spokeswoman said: 'After reviewing Miss Crossley's personal circumstances, we have made her an offer of self-contained temporary accommodation for herself, her two children aged 18 and 20 and her two dogs.
'We believe that this offer of accommodation will address Miss Crossley's immediate housing needs and will continue to work with her to explore longer-term housing options.'

Faro and Doris Caudill, homesteaders. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Now:

The Economist: Global Debt Clock Now $42T And Ticking

The clock is ticking. Every second, it seems, someone in the world takes on more debt. The idea of a debt clock for an individual nation is familiar to anyone who has been to Times Square in New York, where the American public shortfall is revealed. Our clock shows the global figure for all (or almost all) government debts in dollar terms.

Does it matter? After all, world governments owe the money to their own citizens, not to the Martians. But the rising total is important for two reasons. First, when debt rises faster than economic output (as it has been doing in recent years), higher government debt implies more state interference in the economy and higher taxes in the future. Second, debt must be rolled over at regular intervals.

Connecticut town on the sea. Stonington, Connecticut, November 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Now:

Farm auction. Derby, Connecticut, September 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Children gathering potatoes on a large farm. Vicinity of Caribou, Aroostook County, Maine, October 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Trucks outside of a starch factory. Caribou, Aroostook County, Maine, October 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Headlines posted in street-corner window of newspaper office (Brockton Enterprise). Brockton, Massachusetts, December 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Children in the tenement district. Brockton, Massachusetts, December 1940. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Going to town on Saturday afternoon. Greene County, Georgia, May 1941. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Chopping cotton on rented land near White Plains. White Plains, Greene County, Georgia, June 1941. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Barker at the grounds at the state fair. Rutland, Vermont, September 1941. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Backstage at the "girlie" show at the state fair. Rutland, Vermont, September 1941. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

At the Vermont state fair. Rutland, Vermont, September 1941. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Couples at square dance. McIntosh County, Oklahoma, 1939 or 1940, Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Orchestra at square dance. McIntosh County, Oklahoma, 1939 or 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Children asleep on bed during square dance. McIntosh County, Oklahoma, 1939 or 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Jack Whinery, homesteader, and his family. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

The Faro Caudill family eating dinner in their dugout. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Saying grace before the barbeque dinner at the New Mexico Fair. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Homesteader and his children eating barbeque at the New Mexico Fair. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

School children singing. Pie Town, New Mexico, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Garden adjacent to the dugout home of Jack Whinery, homesteader. Pie Town, New Mexico, September 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Mill at the Camp Bird Mine. Ouray County, Colorado, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Distributing surplus commodities. St. Johns, Arizona, October 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Hauling crates of peaches from the orchard to the shipping shed. Delta County, Colorado, September 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Hay stack and automobile of peach pickers. Delta County, Colorado, 1940. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

On main street of Cascade. Cascade, Idaho, July 1941. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Road cut into the barren hills which lead into Emmett. Emmett, Idaho, July 1941. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Shasta dam under construction. California, June 1942. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Boy building a model airplane as girl watches. Robstown, Texas, January 1942. Reproduction from color slide. Photo by Arthur Rothstein. Prints and Photographs Division, Library of Congress

Grand Grocery Company. Lincoln, Nebraska, 1942. Reproduction from color slide. Photo by John Vachon. Prints and Photographs Division, Library of Congress

Young African American boy. Cincinnati, Ohio, 1942 or 1943. Photo by John Vachon. Prints and Photographs Division, Library of Congress

Wisdom, Montana, April 1942. Reproduction from color slide. Photo by John Vachon. Prints and Photographs Division, Library of Congress

A Fourth of July celebration. St. Helena Island, South Carolina, 1939. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

Planting corn along a river. Northeastern Tennessee, May 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

African Americans fishing in creek near cotton plantations. Belzoni, Mississippi, October 1939. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

Bayou Bourbeau plantation, a Farm Security Administration cooperative. Vicinity of Natchitoches, Louisiana, August 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

African American's tenant's home beside the Mississippi River levee. Near Lake Providence, Louisiana, June 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

A crossroads store, bar, "juke joint," and gas station in the cotton plantation area. Melrose, Louisiana, June 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

Boys fishing in a bayou. Schriever, Louisiana, June 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

A store with live fish for sale. Vicinity of Natchitoches, Louisiana, July 1940. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

African American migratory workers by a "juke joint". Belle Glade, Florida, February 1941. Reproduction from color slide. Photo by Marion Post Wolcott. Prints and Photographs Division, Library of Congress

Children aiming sticks as guns, lined up against a brick building. Washington, D.C.(?), between 1941 and 1942. Reproduction from color slide. Photographer Unknown. Prints and Photographs Division, Library of Congress

Shulman's market, on N at Union Street S.W. Washington, D.C., between 1941 and 1942. Reproduction from color slide. Photo by Louise Rosskam. Prints and Photographs Division, Library of Congress

House. Washington, D.C.(?), between 1941 and 1942. Reproduction from color slide. Photo by Louise Rosskam. Prints and Photographs Division, Library of Congress

Chapel, Vadito. Near Penasco, New Mexico, Spring 1943. Reproduction from color slide. Photo by John Collier. Prints and Photographs Division, Library of Congress

A welder who works in the round-house at the Chicago and Northwestern Railway Company's Proviso yard. Chicago, Illinois, December 1942. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

View in a departure yard at Chicago and Northwestern Railway Company's Proviso yard at twilight. Chicago, Illinois, December 1942. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Switchman throwing a switch at Chicago and Northwest Railway Company's Proviso yard. Chicago, Illinois, April 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Mike Evans, a welder, at the rip tracks at Proviso yard of the Chicago and Northwest Railway Company. Chicago, Illinois, April 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Putting the finishing touches on a rebuilt caboose at the rip tracks at Proviso yard. Chicago, Illinois, April 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Switch engine in yard near Calumet Park stockyards, Indiana Harbor Belt Railroad. Calumet City, Illinois, January 1943. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

General view of part of the South Water Street freight depot of the Illinois Central Railroad Chicago, Illinois, May 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Mrs. Viola Sievers, one of the wipers at the roundhouse giving a giant "H" class locomotive a bath of live steam. Clinton, Iowa, April 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Women workers employed as wipers in the roundhouse having lunch in their rest room, Chicago and Northwest Railway Company. Clinton, Iowa, April 1943. Reproduction from color slide. Photo by Jack Delano. Prints and Photographs Division, Library of Congress

Children stage a patriotic demonstration. Southington, Connecticut, May 1942. Reproduction from color slide. Photo by Fenno Jacobs. Prints and Photographs Division, Library of Congress

At Beecher Street School. Southington, Connecticut, May 1942. Reproduction from color slide. Photo by Fenno Jacobs. Prints and Photographs Division, Library of Congress

Street corner. Dillon, Montana, August 1942. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Shepherd with his horse and dog on Gravelly Range Madison County, Montana, August 1942. Reproduction from color slide. Photo by Russell Lee. Prints and Photographs Division, Library of Congress

Servicing an A-20 bomber. Langley Field, Virginia, July 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Marine glider at Page Field. Parris Island, South Carolina, May 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

M-4 tank crews of the United States. Fort Knox, Kentucky, June 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Welder making boilers for a ship, Combustion Engineering Company. Chattanooga, Tennessee, June 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Construction work at the TVA's Douglas Dam. Tennessee, June 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Assembling B-25 bombers at North American Aviation. Kansas City, Kansas, October 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Now:

CHART: U.S. Military Spending Vs. The World

The increase in 2010 is almost entirely down to the United States, which accounted for $19.6 billion of the $20.6 billion real-terms increase. Excluding the U.S., the total in the ‘rest of the world’ barely changed in 2010, increasing by a statistically insignificant 0.1 per cent.

Greg Scoblete summarizes the rest of the world:

The Stockholm International Peace Research Institute has a new report out highlighting global military expenditures. As the above chart indicates, the U.S. retains a healthy lead.

Regionally, defense spending in Europe has fallen 2.8 percent while spending in South America has risen by 5.8 percent and in Africa by 5.2 percent. Brazil drove a lot of the South American growth. Asia rose only a modest 1.4 percent, which the Institute said was slower than previous years. Overall, global military expenditures ticked up slightly at 1.3 percent, the slowest growth rate since 2001.

P-51 'Mustang' fighter in flight. Inglewood, California, October 1942. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Now:

An F-35 Lightning II fighter jet makes a test flight over Fort Worth, Texas. Photographer: Lockheed Martin/US Air Force via Bloomberg News

It may cost as much as $1 trillion to operate the military’s fleet of Lockheed Martin Corp. (LMT) F-35 aircraft for several decades, according to a preliminary Pentagon estimate sent to Congress.

The figure is 9.3 percent more than the $915 billion estimate by the Defense Department in its 2009 Selected Acquisition Report to Congress.

The long-term cost estimate, which includes inflation, was submitted to Congress on April 15 in a report obtained by Bloomberg News. It assumes 8,000 hours of flying time for each of the 2,443 aircraft over a 30-year period. The Air Force, Navy and Marine Corps have their own variations of the aircraft, with the last in the fleet to be produced in 2035.

The estimate was calculated by the Pentagon’s independent cost analysis group based on models using historical data from other fighters, David Van Buren, Air Force service acquisition executive, said in an interview today.

“We are taking the challenge” posed by the $1 trillion estimate and “saying we’ve got to drive this down fast,” said Van Buren, who oversees F-35 management. “Do we drive down it down based on reliability projections? Do we drive it down based on technologies that we developed for the F-35” that reflect lessons learned from the F-22, he said?

Older Aircraft

For example, the latest estimate assumes that F-35 components will break more frequently than older aircraft, he said. The Pentagon is trying to develop “a more refined number,” he said.

The $1 trillion estimate is in addition to an estimated $382 billion in development and production costs.

The long-term maintenance estimates were projected based on costs incurred to support the military’s fleet of F-16s, F/A- 18s, and AV-8B Harrier jets, the Pentagon said in its report

Almost all government, analyst and media attention on the Pentagon’s biggest program has focused on cost growth and technical issues in the $54 billion systems-engineering phase.

The Pentagon’s top weapons official, without citing figures, said yesterday that the military must start focusing on controlling the long-range costs.

Sustaining the Fighter

“It’s not too early to think of sustainment for the Joint Strike Fighter,” Undersecretary for Acquisition Ashton Carter said yesterday. “Most of the cost of our programs is in ‘having’ them, not in ‘acquiring them,” he said at the Heritage Foundation in Washington.

“We are at the point with the Joint Strike Fighter where we have wrestled with the development issues,” Carter said. “We are trying to manage down some of the cost associated with the production, and it’s not too early to look at sustainment, because the projected bills also have increased.”

The Pentagon’s Cost Analysis and Program Evaluation group is updating its $1 trillion figure for a major F-35 review next month intended to revise all of the program’s costs, including overrun estimates on the first three low-rate aircraft production and engine contracts, according to the report to Congress.

Woman is working on a "Vengeance" dive bomber Tennessee, February 1943. Reproduction from color slide. Photo by Alfred T. Palmer. Prints and Photographs Division, Library of Congress

Hanna furnaces of the Great Lakes Steel Corporation, stock pile of coal and iron ore. Detroit, Michigan, November 1942. Reproduction from color slide. Photo by Arthur Siegel. Prints and Photographs Division, Library of Congress

Rural school children. San Augustine County, Texas, April 1943. Reproduction from color slide. Photo by John Vachon. Prints and Photographs Division, Library of Congress

Worker at carbon black plant. Sunray, Texas, 1942. Reproduction from color slide. Photo by Worker at carbon black plant John Vachon. Prints and Photographs Division, Library of Congress

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14 Jan 2011

A mother who just a year ago was a millionaire with a booming business has blamed the recession after she was reduced to living in a garden shed.
Mother-of-two Anyta Crossley, 45, had a healthy bank balance just 12 months ago as her ladies-only gym business went from strength to strength.
She lived a luxury lifestyle in a £450,000 seven-bedroom home, drove a Hummer and had assets of more than a million pounds.
But after the credit crunch savaged her business, her home was sold for just a third of its worth and she went bust.
Enlarge

Riches to rags: Anyta Crossley now lives at the bottom of her sister's garden after she lost her business during the recession

Misery: The 45 year old former business woman now receives £135 in income support every two weeks to make ends meet
Her riches-to-rags year means she has been living a humiliating existence in her sister's garden shed with her son and two dogs.
She also now receives £135 in income support every two weeks to make ends meet.
Bitter Anita blames the bankers for her woes, saying they failed to offer her help as the downturn crippled her.
Ms Crossley, of Leeds, said: 'I used to live in a seven bedroom house. Now I am living in a shed.
'I was an entrepreneur with a busy gym. I had a big detached house and a cottage, a 1/4 acre garden and I drove a Hummer.

'The gym was worth £600,000 at one point, the house £450,000. I was a millionaire on paper.
'I have worked so hard since I was 17, and been through so much. There are people out there milking the system and I am living in a shed.
'My house has been sold to a developer for just £160,000 and the gym is sitting empty.
'It just doesn't make sense. I have never been so degraded as I have been in the last few months.'

Gone bust: 1st step Gym which used to be owned by Anyta Crossley, who has now lost everything and lives, in a shed at the bottom of her sister's garden
Ms Crossley ran First Step and lived in the upmarket Whitecote area, but the recession destroyed her once successful business.
Her mortgage repayments more than tripled so her house was repossessed, and the previously successful business soon went under.
She has now asked the financial ombudsman to review the processes which led her to lose her home, and is adamant that the bank did not offer her the help and information she was legally entitled to.
Her first application for council housing was rejected but she has now finally been offered temporary accommodation.
A Leeds City Council spokeswoman said: 'After reviewing Miss Crossley's personal circumstances, we have made her an offer of self-contained temporary accommodation for herself, her two children aged 18 and 20 and her two dogs.
'We believe that this offer of accommodation will address Miss Crossley's immediate housing needs and will continue to work with her to explore longer-term housing options.'

In consonant to this scenario unfolding before us, our Country’s debt is spiralling out of control.

There Are No Words To Describe The Following Part II - Home - The Daily Bail

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Friday
Jan282011
There Are No Words To Describe The Following Part II

WHO IS KEEPING TRACK OF THE TRILLIONS?
The Federal Reserve Awareness Project
Special request from the publisher of The Daily Bail. I am asking each and every one of you to send this video to 2 people. This is a rare instance in life where just 60 seconds of your time can help change the course of history in the fight against the Fed. Either we win, or Wall Street wins. It's that simple. For a variety of reasons, this clip resonates with virtually everyone who sees it, and you are the conduit. PLEASE click here to pass it on to the next person. That's all I politely ask. As of last week, 3.8 million people had seen this clip. And it's all because of you.
PLEASE HELP US FIGHT THE FED WITH YOUR EMAILS. WE KNOW IT SOUNDS CORNY BUT IT WORKS. IF YOU TAKE THE TIME TO SEND IT TO JUST 2 PEOPLE, WE WILL WIN THIS WAR.
If we can get this clip in front of 50 million people, it's game over...
Video - Alan Grayson questions the Inspector General of the Federal Reserve

PLEASE email this to just 2 friends - Help us spread the word about stealth Bailouts from the Federal Reserve - With just a few clicks you will be contributing so much more than you know - Thank You!

Help us make a difference! Circulate Far and Wide.
Please share this anywhere and everywhere across the net. Our only hope to stop the heist will come from greater awareness.
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WHO IS KEEPING TRACK OF THE TRILLIONS?
If you're pressed for time, start watching at the 3-minute mark. Alan Grayson questions Elizabeth Coleman, Inspector General of the Federal Reserve about $9 TRILLION in secret Fed bailouts, and exactly who is accounting for all that cash.
Editor's Note: Until the day Bernanke is indicted for crimes against humanity, all we can do is create awareness. Please understand the power of everyone, every single one of you, sending it to just 2 people.