Top 1% Own 39% Of All Global Wealth: Hoarding Soars As We Hurtle Toward Economic Oblivion Michael Snyder Economic Collapse June 1, 2013
According to a study that was just released by Boston Consulting Group, the wealthiest one percent now own 39 percent of all the wealth in the world. Meanwhile, the bottom 50 percent only own 1 percent of all the wealth in the world combined. The global financial system has been designed to funnel wealth to the very top, and the gap between the wealthy and the poor continues to expand at a frightening pace. The global elite continue to hoard wealth and heap together enormous mountains of treasure in these troubled days even though the economic suffering around the planet continues to grow. So exactly how have the global elite accumulated so much wealth? Well, one of the primary ways is through the use of debt. As I have written about previously, there is about 190 trillion dollars of debt in the world but global GDP is only about 70 trillion dollars. Our debt-based global financial system systematically transfers wealth from us and our governments into the hands of the global elite. And of course the gigantic banks and corporations that the elite control are constantly gobbling up everything of value that they can find: natural resources, profitable small businesses, real estate, politicians, etc. Money, power, ownership and control are becoming very, very tightly concentrated at the top of the food chain, and that is a very dangerous thing for humanity. When too much money and power gets into too few hands, it almost always results in tyranny. What will eventually happen when the global elite have ALL the wealth? Will the rest of us work as serfs in a system that they have iron-fisted control over? And what if they decide that they donâ€™t really need billions of people working for them? Will they
decide to implement population control measures in order to reduce the number of “useless eaters”? It is already happening in China and other highly centralized societies. When all of the economic rewards of a society go to a very small handful of people, it tends to be very destabilizing. We have seen this again and again throughout history. When people have everything taken away from them and they have nothing left to lose, they tend to become very desperate. And right now we are rapidly hurtling toward a time of great global instability. Anger and frustration are growing all over the globe, and the rate at which the gap between the wealthy and the poor is widening seems to be accelerating. Just check out these numbers… -The wealthiest 1 percent of the global population now owns 39 percent of all the wealth on the planet. -According to a report that was released last summer, the global elite have up to 32 TRILLION dollars stashed in offshore banks around the planet. -According to a study conducted by Credit Suisse, the bottom two-thirds of the global population owns just 3.3% of all the wealth. -A study by the World Institute for Development Economics Research discovered that the bottom half of the world population ownsapproximately 1 percent of all global wealth. -It is estimated that the entire continent of Africa only ownsapproximately 1 percent of the total wealth of the world. -Approximately 1 billion people throughout the world go to bed hungry each night. -If you can believe it, more than 3 billion people currently live on less than 2 dollar a day. In the world that we live in, money equals power. And the more money that the top one percent accumulate, the more power they will accumulate as well. So exactly who are the top one percent? I discussed this at length in my previous article entitled “Who Runs The World? Solid Proof That A Core Group Of Wealthy Elitists Is Pulling The Strings“. The global elite are absolutely obsessed with power and control and they have been working to implement their agenda for a very long time. In the end, they hope to unite the entire planet under a monolithic global system that they control. They are actually quite open about this – it is just that most people do not want to believe it. The gap between the wealthy and the poor is rapidly growing in the United States as well. Sadly, this means that the middle class is steadily disappearing as the ranks of those that are living in povertycontinues to increase. But of course not everyone is doing badly in the U.S. right now. In fact, those that own stocks have had lots of reasons to celebrate in recent months. So who owns stocks? Well, the wealthy do of course. In fact, approximately 60 percent of all individually held stocks are owned by the top 5 percent of all Americans. During the last recession, Americans lost 16 trillion dollars of wealth. Since then, about 45 percent of
that wealth has been “recovered”, but the vast majority of that “recovery” has been due to rising stock prices. The following comes from a recent Washington Post article… From the peak of the boom to the bottom of the bust, households watched a total of $16 trillion in wealth disappear amid sinking stock prices and the rubble of the real estate market. Since then, Americans have only been able to recapture 45 percent of that amount on average, after adjusting for inflation and population growth, according to the report from the St. Louis Fed released Thursday. In addition, the report showed most of the improvement was due to gains in the stock market, which primarily benefit wealthy families. That means the recovery for other households has been even weaker. “A conclusion that the financial damage of the crisis and recession largely has been repaired is not justified,” the report stated. Once upon a time, the United States had the largest and most thriving middle class in the history of the world. That was a great thing. But now the middle class is being destroyed and government dependencehas surged to an all-time high. The following are some of the incredible statistics that show how wide the gap between the wealthy and the poor in America is becoming… -The wealthiest 1 percent of all Americans now own more than a thirdof all the wealth in the United States. -In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined. -According to Forbes, the 400 wealthiest Americans have more wealth than the bottom 150 million Americans combined. -The six heirs of Wal-Mart founder Sam Walton have as much wealth as the bottom one-third of all Americans combined. -On average, households in the top 7 percent have 24 times as much wealth as households in the bottom 93 percent. -Between 2009 and 2011, the wealth of the bottom 93 percent of all Americans declined by 4 percent, while the wealth of the top 7 percent of all Americans increased by 28 percent. -The poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States. -The top 0.01% of all Americans make an average of $27,342,212. The bottom 90% make an average of $31,244. For much more on how poverty is rising and the middle class is being destroyed, please see my recent article entitled “22 Facts That Prove That The Bottom 90 Percent Of America Is Systematically Getting Poorer“. Obviously we have a huge problem here. With each passing day, poverty is rising and more people are becomingdependent on the government. So what is the solution to this mess?
The Student Loan Delinquency Rate In The United States Has Hit A Brand New Record High Michael Snyder Economic Collapse May 30, 2013 37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before. According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. That is a brand new record high, and it is almost double the rate of a decade ago. Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages. The student loan debt bubble has been growing particularly rapidly in recent years. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. That is a staggering figure. Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens. Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt. So why is this happening? Well, a big part of the problem is that the cost of college tuition has gotten wildly out of control. Since 1978, the cost of college tuition has risen even more rapidly then the cost of medical care has. Tuition costs at public universities have risen by 27 percent over the past five years, and there appears to be no end in sight. We keep encouraging our young people to take out all of the loans that are necessary to pay for college, because a college education is supposedly the “key” to their futures. But is that really the case? Sadly, the reality of the matter is that millions of young Americans are graduating from college only to discover that the jobs that they were promised simply do not exist. In fact, at this point about half of all college graduates are working jobs that do not even require a college degree. This is leading to mass disillusionment with the system. One survey found that 70% of all college
graduates wish that they had spent more time preparing for the “real world” while they were still in college. And because so many of them cannot get decent jobs, more college graduates then ever are finding that they cannot pay back the huge student loans that they were encouraged to sign up for. The following is from a recent Bloomberg article. Eleven percent of student loans were seriously delinquent — at least 90 days past due — in the third quarter of 2012, compared with 6 percent in the first quarter of 2003, according to the report by the U.S.Education Department. Almost 30 percent of 20- to 24-year-olds aren’t employed or in school, the study found. Everyone agrees that we are now dealing with an unprecedented student loan debt bubble, but none of our leaders seem to have any solutions. The two charts posted below come from a recent Zero Hedge article, and they are very illuminating. The first chart shows how the amount of student loan debt owned by the federal government has absolutely exploded in recent years, and the second chart shows how the percentage of student loan debt that is at least 90 days delinquent has risen to a brand new record high…
How is the economy ever going to recover if an increasingly large percentage of our young college graduates are financially crippled by student loan debt?
And things are about to get even worse. If Congress takes no action, the interest rate on federal student loans is going to double to 6.8 percent on July 1st. That rate increase would affect more than 7 million students. And debt burdens just continue to increase in size. In fact, according toone recent study, “70 per cent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.” This is one reason why there is so much poverty among young adults in America today. As I mentioned in a previous article, families that have a head of household that is under the age of 30 have a poverty rateof 37 percent. For much more on the student loan debt bubble and how it is crippling an entire generation of Americans, please see my recent article entitled “29 Shocking Facts That Prove That College Education In America Is A Giant Money Making Scam“. And of course delinquency rates remain very high on other forms of debt as well. For example, delinquency rates on home mortgages have typically been around 2 to 3 percent historically. But as you can see from the chart below, the delinquency rate on single-family residential mortgages is currently close to 10 percent…
So are we really having an “economic recovery”? Of course not. Things are good for those that have lots of money in the stock market (for now), but for the vast majority of Americans things continue to get worse. And we continue to forget the lessons that we should have learned from the financial crisis of 2008. Right now, we are seeing a resurgence of cash out financing. But this time, people are leveraging their inflated stock portfolios instead of their home equity. The following is from a CNN report… The recent run-up in the market, financial advisers say, has led to a resurgence of the type of loan not seen since the end of the housing boom — cash out financing. But this time, though, people aren’t tapping their inflated house for money. These days stock portfolios appear to be the well of choice. Financial planners say in recent months clients have taken out so-called margin loans to buy real estate, fund small business acquisitions, or to provide gap financing before a traditional loan could be secured from a bank.
“No one wants to be out of the market for 90 days,” says Mark Brown, a financial planner for Brown Tedstron in Denver. “People just don’t want to sell right now.” We are a nation that is absolutely addicted to debt. We know that it is wrong, but we just can’t help ourselves. We are like the 900 pound man that recently died. He knew that he was eating himself to death, but he just couldn’t stop. In the end, we are going to pay a great price for our gluttony. Everyone in the world can see that we are killing the greatest economy that ever existed, but we simply do not have the self-discipline to do anything about it. The American Dream VIDEO BELOW http://www.youtube.com/watch?v=tGk5ioEXlIM What Is a Gold Standard? VIDEO BELOW http://www.youtube.com/watch?feature=player_embedded&v=LdyHso5iSZI Why Not Print More Money? VIDEO BELOW http://www.youtube.com/watch?v=ZkyBnaYCUhw A History of Economic Booms and Busts VIDEO BELOW http://www.youtube.com/watch?v=83sX8Ent4vo