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mick silver
14th December 2015, 10:23 AM
The Bitter, Crushing Poverty Of Appalachia Is A Preview Of What Is Coming To The Rest Of The Countryhttp://theeconomiccollapseblog.com/wp-content/uploads/2015/11/Appalachia-Photo-from-the-Appalachian-Regional-Commission-460x472.png (http://theeconomiccollapseblog.com/archives/the-bitter-crushing-poverty-of-appalachia-is-a-preview-of-what-is-coming-to-the-rest-of-the-country/appalachia-photo-from-the-appalachian-regional-commission)What do you say to people that have completely lost all hope that things will ever get any better? The mountains of Appalachia stretch all the way from southern New York to northern Mississippi, and nestled within those mountains are dozens upon dozens of little towns that are so impoverished that they look like they have been through a war. Thanks to Barack Obama’s relentless assault on the coal industry (http://endoftheamericandream.com/archives/obamas-war-on-coal-is-going-to-kill-jobs-and-sent-electricty-rates-skyrocketing) and the ongoing collapse of our industrial infrastructure, Appalachia has lost millions of good paying jobs over the past several decades. Today, more than 40 percent (http://www.nytimes.com/newsgraphics/2014/01/05/poverty-map/?ref=us) of the population is living in poverty in some areas of eastern Kentucky, and addiction to “hillbilly heroin” (Oxycontin) is absolutely out of control throughout the region. Yes, poverty is on the rise all over America (http://theeconomiccollapseblog.com/archives/21-facts-about-the-explosive-growth-of-poverty-in-america-that-will-blow-your-mind), but it has especially been cruel to those that make the mountains of Appalachia their home.
An article that was published in the Guardian on Thursday (http://www.theguardian.com/us-news/2015/nov/12/beattyville-kentucky-and-americas-poorest-towns?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+USA+-+Version+A&utm_term=137013&subid=8413184&CMP=ema_565a) profiled the deeply impoverished town of Beattyville in eastern Kentucky. Life is very hard in Beattyville today, and it seems to be getting harder all the time…

The town’s poverty rate is 44% above the national average. Half of its families live below the poverty line. That includes three-quarters of those with children, with the attendant consequences. More than one-third of teenagers drop out of high school or leave without graduating. Just 5% of residents have college degrees.
Surrounding communities are little better. Beattyville is the capital of Lee County, named after the commander of the Confederate army of Northern Virginia in the civil war, General Robert E Lee.
Five of the 10 poorest counties in the US run in a line through eastern Kentucky and they include Lee County. Life expectancy in the county is among the worst in the US, which is not unconnected to the fact that more than half the population is obese. Men lived an average of just 68.3 years in 2013, a little more than eight years short of the national average. Women lived 76.4 years on average, about five years short of national life expectancy.
Because life can be so bitter in little towns like Beattyville, many have chosen to turn to alcohol and drugs in an attempt to escape reality. The following description of what life is like in the region today comes from Kevin D. Williamson (http://www.nationalreview.com/article/367903/white-ghetto-kevin-d-williamson)…

Thinking about the future here and its bleak prospects is not much fun at all, so instead of too much black-minded introspection you have the pills and the dope, the morning beers, the endless scratch-off lotto cards, healing meetings up on the hill, the federally funded ritual of trading cases of food-stamp Pepsi for packs of Kentucky’s Best cigarettes and good old hard currency, tall piles of gas-station nachos, the occasional blast of meth, Narcotics Anonymous meetings, petty crime, the draw, the recreational making and surgical unmaking of teenaged mothers, and death: Life expectancies are short — the typical man here dies well over a decade earlier than does a man in Fairfax County, Va. — and they are getting shorter, women’s life expectancy having declined by nearly 1.1 percent from 1987 to 2007.
Many of you that are reading this article know exactly what Williamson is talking about, because you are living in one of those communities. It can be absolutely soul crushing to look into the hollow eyes of those that have long since given up on life day after day. There are some communities in America where you can feel the bitterness the moment that you drive into them. It is almost as if all of the life has been sucked out of the entire town. If you have ever experienced this, you know what I mean.
If there is hope, most people can endure just about anything. But when there is no hope, that is when deep depression sets in. And for many of those living in Appalachia, hope has long since departed. Just consider the words of long-time Beattyville resident Ed Courier (http://www.theguardian.com/us-news/2015/nov/12/beattyville-kentucky-and-americas-poorest-towns?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+USA+-+Version+A&utm_term=137013&subid=8413184&CMP=ema_565a)…

“It’s bad. I don’t think rural America has a future,” said Courier. “The advantage rural areas had in the past of cheap labour is gone. We used to have a lot of little factories in this area but they’ve gone to Mexico or China. In rural areas housing is cheap but everything else costs more. Utility rates are higher. Food and transport are higher. Management doesn’t want to live in rural areas. Education is horrible here. This is a third-world county. My kids grew up here until they were eight or nine, then they went to school in Louisville [a 145-mile drive away]. I wouldn’t send them to school here.”
Sadly, what has already happened in Appalachia is slowly happening to the rest of the country as well. There is a chronic lack of good jobs (http://endoftheamericandream.com/archives/goodbye-middle-class-51-percent-of-all-american-workers-make-less-than-30000-dollars-a-year), poverty is exploding (http://theeconomiccollapseblog.com/archives/21-facts-about-the-explosive-growth-of-poverty-in-america-that-will-blow-your-mind), and more Americans than ever are giving into depression (http://endoftheamericandream.com/archives/21-signs-that-americans-are-the-unhappiest-people-in-the-entire-world).
As economic conditions continue to deteriorate, people are starting to become more desperate. In many large cities, crime rates are already up by double digit percentages in 2015, and the thin veneer of civilization that we all take for granted is beginning to disappear. For example, down in Tampa it is being reported that there is an epidemic of house squatting (http://wfla.com/2015/11/10/squatters-turn-to-the-internet-to-learn-how-to-take-over-homes/) going on right now…

Crooks find empty houses all over Tampa Bay and make themselves at home. And now, 8 On Your Side uncovered training manuals on the internet. They teach how to get away with squatting.
The handbooks are brazen. A pamphlet for sale on Amazon for $61.20. An entry on Wiki-How entices tells squatters how to “take a whole house from someone if you’re willing to take the risk.”
It points out the best areas to squat and even advises to spruce up the home to throw off suspicious neighbors.
And a tragic incident that just happened in Indianapolis really touched my heart. The following comes from ABC News (http://abcnews.go.com/US/indianapolis-pastors-pregnant-wife-dies-alleged-home-invasion/story?id=35145807)…

A family in Indianapolis was torn apart when Amanda Blackburn, 28, died after being shot in the head by a mystery gunman.
Her husband, Pastor Davey Blackburn, returned to their home from the gym Tuesday and found his home broken into and his wife on the ground, officials said.
She died Wednesday, 12 weeks pregnant.
The couple, who have a child, appeared to be madly in love, posting YouTube (http://abcnews.go.com/topics/business/companies/youtube.htm) videos on the way to a “romantic getaway” in Chicago (http://abcnews.go.com/topics/news/chicago.htm) and Amanda even offering marriage advice: “You can lead your wife best, by just being a really, really good Godly example to her.”
Please pray for Pastor Davey.
I can’t even imagine the pain that he must be going through right now.
Meanwhile, there are more signs that this new economic downturn that we are experiencing is about to get even worse…
-Four large U.S. energy companies with combined debt of 4.8 billion dollars (http://www.zerohedge.com/news/2015-11-11/energy-credit-risk-spikes-back-above-1000bps-no-one-putting-new-capital-here) have been warned that they are all on the verge of totally collapsing and falling into bankruptcy.
-Unfortunately for all energy companies, the price of oil is not likely to go up significantly any time soon. The amount of oil being stored offshore has approximately doubled from earlier this year, and more supertankers full of unsold oil are joining the party almost every day (http://www.zerohedge.com/news/2015-11-12/something-very-strange-taking-place-coast-galveston)…

While the crude oil tanker backlog in Houston reaches an almost unprecedented 39 (with combined capacity of 28.4 million barrels), as The FT reports that from China to the Gulf of Mexico, the growing flotilla of stationary supertankers is evidence that the oil price crash may still have further to run, as more than 100m barrels of crude oil and heavy fuels are being held on ships at sea (as the year-long supply glut fills up available storage on land).
-The amount of goods being shipped by rail, freight and air inside the United States continues to decline. For the month of October, the Cass Shipping Index was down 5.3 percent (http://wolfstreet.com/2015/11/12/us-freight-plummets-worst-october-since-2011/) on a year over year basis.
-And it also looks like a new housing crisis is beginning to emerge. From September to October, the number of newly initiated foreclosures in the United States rose by 12 percent (http://www.cnbc.com/2015/11/12/why-did-foreclosures-spike-in-october.html).
-Of course the elite understand what is happening, and they are working hard to get prepared. According to Bloomberg (http://www.bloomberg.com/news/articles/2015-11-12/central-banks-snapping-up-gold-at-near-record-pace-council-says), global central banks are buying up gold “at a near-record pace”…

Central banks and other institutions boosted gold purchases to the second-highest level on record in the quarter to September as countries including China and Russia sought to diversify their foreign-exchange reserves.
Net purchases were 175 metric tons, nearing the record 179.5 tons in the same quarter a year earlier, and up from 127.9 tons in the preceding three-month period, the World Gold Council said in a report on Thursday. Still, over the first nine months central banks’ net purchases dropped 6.7 percent to 425.8 tons, according to the council.
When you add these items to the list that I shared with you yesterday (http://theeconomiccollapseblog.com/archives/4-harbingers-of-stock-market-doom-that-foreshadowed-the-2008-crash-are-flashing-red-again), a very disturbing picture begins to develop.
We are clearly heading into an extremely difficult economic period, and that means that the suffering in Appalachia and elsewhere in America is about to get even worse


http://theeconomiccollapseblog.com/archives/category/economic-despair

mick silver
14th December 2015, 10:27 AM
I have seen this first hand in eastern ky the lose of coal jobs and plants moving have killed that part of ky , endless yard sales with people trying to hold on to there homes an small farms feed the kids . and they people are strong and proud hard worker .

mick silver
14th December 2015, 10:30 AM
take the time and look at this site , see were this country headed ...http://theeconomiccollapseblog.com/archives/category/economic-despair

Horn
14th December 2015, 01:05 PM
I had a chance to pickup employment towards the lower end of that map in Northern Alabama at a subcontractor to food processing plants at one point. Thing was I had no idea the low payscale, me trying to move in there with any preexisting bills at their payrate didn't work in my calcs. was way too low.

madfranks
14th December 2015, 01:39 PM
Thanks to Barack Obama’s relentless assault on the coal industry and the ongoing collapse of our industrial infrastructure, Appalachia has lost millions of good paying jobs over the past several decadesDang, I didn't know Obama's policies carried back that far.

mick silver
14th December 2015, 01:41 PM
your right mad it did not , but he at it hard at closing down the mines . all the power plants here are going to natual gas . force to do so by Obama EPA

Cebu_4_2
14th December 2015, 02:24 PM
I had a chance to pickup employment towards the lower end of that map in Northern Alabama at a subcontractor to food processing plants at one point. Thing was I had no idea the low payscale, me trying to move in there with any preexisting bills at their payrate didn't work in my calcs. was way too low.

Cost of living is much lower there too. The trick is to have your property paid off. Property taxes are 1/12th what they were when I was in the north. If you need a mortgage you wont make it on low wages. With a paid off property 1 person working 40 hours ($10.00 an hr) a week can easily pay all the bills with a bunch left over, that's why most people have brand new vehicles down south.

palani
14th December 2015, 02:45 PM
The value of the dollar is not uniform across the U.S. Take an area that is booming and you will find wages sky high as are the taxes. In areas that are depressed wages are low and merchants have found that to move merchandise it all needs to be competitively priced.

Actually the poor areas are in better condition for a depression than the booming areas. These so called 'depressed' areas bring with them a realism of what it takes to survive with little or nothing. An analogy would be falling off a cliff. When a depression hits a booming area people have to take a plunge off a 1,000 foot high cliff. When a depression hits an already depressed area it is like falling off a 3 foot high step ladder.

hoarder
14th December 2015, 03:50 PM
The Scots-Irish of that region are tough survivors. I bet Jews are the principal manufacturers of oxycontin. Give Whitey all the rope he needs to hang himself with.

mick silver
14th December 2015, 03:57 PM
my mom side is Scots-Irish of that region

hoarder
14th December 2015, 04:17 PM
I'm only 3/16 Celtic. I didn't get the bravery, fighting disposition or badass gene.
Most people don't know that the Scots-Irish won the West.

During colonial times, the Anglo-Saxons had populated and developed the Eastern region East of the Appalachians. Efforts to expand Westward was met with too much resistance from Injuns. Some got the idea to allow Scots-Irish to immigrate, knowing their eagerness to fight, bravery and poverty would make it easy to get them to compete for land with the Injuns. Others said no, they will just hang around the pubs, fight and get loud. Maybe they were both right, as the push westward was mostly done by the Scots-Irish, who, like the Injuns, had an obsession with bravery and instinctively knew how to deal with them in war and peace. The motive was adventure and free land. Their payment for their services was the opportunity of first grab at the best land to homestead and grazing lands. Many of the cattle barons were Scots-Irish.

mick silver
16th December 2015, 05:40 PM
This Is What A Financial Crisis Looks Like
http://theeconomiccollapseblog.com/wp-content/themes/atahualpa/images/icons/user.gif By Michael Snyder, on December 14th, 2015

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http://theeconomiccollapseblog.com/wp-content/uploads/2015/12/Financial-Crisis-2015-Public-Domain-460x325.jpg (http://theeconomiccollapseblog.com/archives/this-is-what-a-financial-crisis-looks-like/financial-crisis-2015-public-domain-2)Just within the past few days, three major high yield funds have completely imploded, and panic is spreading rapidly on Wall Street. Funds run by Third Avenue Management and Stone Lion Capital Partners have suspended payments to investors, and a fund run by Lucidus Capital Partners has liquidated its entire portfolio. We are witnessing a race for the exits unlike anything that we have seen since the great financial crash of 2008, and many of those that choose to hesitate are going to end up getting totally wiped out. In case you are wondering, this is what a financial crisis looks like. In 2008, other global stock markets started to tumble, then junk bonds began to crash (http://theeconomiccollapseblog.com/archives/guess-what-happened-the-last-time-junk-bonds-started-crashing-like-this-hint-think-2008), and finally U.S. stocks followed. The exact same pattern is playing out again, and the carnage that we have seen so far is just the tip of the iceberg.
Since the end of 2009, a high yield bond ETF that I watch very closely known as JNK has been trading in a range between 36 and 42. I have been waiting all this time for it to dip below 35, because I knew that would be a sign that the next major financial crisis was imminent.
In September, it closed as low as 35.33 at one point, but that was not the signal that I was looking for. Finally, early last week JNK broke below 35 for the very first time since the last financial crisis, and since then it has just kept on falling. As I write this, JNK has plummeted all the way to 33.42, and Bloomberg is reporting (http://www.bloomberg.com/news/articles/2015-12-14/investors-see-more-carnage-as-third-avenue-spurs-contagion-risk) that many bond managers “are predicting more carnage for high-yield investors”…

Top bond managers are predicting more carnage for high-yield investors amid a market rout that forced at least three credit funds in the past week to wind down.
Lucidus Capital Partners, a high-yield fund founded in 2009 by former employees of Bruce Kovner’s Caxton Associates, said Monday it has liquidated its entire portfolio and plans to return the $900 million it has under management to investors next month. Funds run by Third Avenue Management and Stone Lion Capital Partners have stopped returning cash to investors, after clients sought to pull too much money.
When it says that those firms “have stopped returning cash to investors”, what that means is that many of those investors will be lucky to get pennies on the dollar when it is all said and done.
Like I said, now that the crisis has started, the ones that are going to lose the most are those that hesitate.
And just check out some of the very big names that are “warning of more high-yield trouble ahead” (http://www.bloomberg.com/news/articles/2015-12-14/investors-see-more-carnage-as-third-avenue-spurs-contagion-risk)…

Scott Minerd, global chief investment officer at Guggenheim Partners, predicts 10 percent to 15 percent of junk bond funds may face high withdrawals as more investors worry about getting their money back. He joins money managers Jeffrey Gundlach, Carl Icahn, Bill Gross and Wilbur Ross in warning of more high-yield trouble ahead.
In this type of environment, the Federal Reserve would have to be completely insane to raise interest rates.
Unfortunately, that appears to be exactly what is going to happen (http://theeconomiccollapseblog.com/archives/december-14th-to-18th-a-week-of-reckoning-for-global-stocks-if-the-fed-hikes-interest-rates).
If the Fed raises rates, that is going to make corporate debt defaults even more likely (http://www.politico.eu/article/end-of-transatlantic-affair-central-banks-fed-ecb-interest-rates-united-states-eu-draghi-yellen/) and will almost certainly drive high-yield bonds down even further…

Higher rates could make corporate bond defaults more likely and investors are already bailing out of the sector, pulling $3.8 billion out of high-yield funds in the week ended December 9, the biggest move in 15 weeks. The effective yield on U.S. junk bonds is now 17 percent, the highest level in five years, according to Bank of America Merrill Lynch data.
A whole host of prominent names are warning that the Fed is about to make a tragic mistake. One of them is James Rickards (http://www.politico.eu/article/end-of-transatlantic-affair-central-banks-fed-ecb-interest-rates-united-states-eu-draghi-yellen/)…

“The Fed should have raised interest rates in 2010 and 2011 and if they did that they would actually be in a position to cut them today,” said James Rickards, a central bank critic and chief global strategist at West Shore Funds. “The Fed is on the brink of committing a historic blunder that may rank with the mistakes it made in 1927 and 1929. By raising into weakness, they will likely cause a recession.”
In 2015, we have already seen stocks crash all over the globe. Coming into December, more than half of the 93 largest stock market indexes in the world were down more than 10 percent year to date (http://theeconomiccollapseblog.com/archives/the-global-commodity-crash-tells-us-that-a-major-deflationary-financial-crisis-is-imminent), and some of them were down by as much as 30 or 40 percent. At this point, conditions are absolutely perfect for a frightening collapse of U.S. markets, and the Federal Reserve is about to pour gasoline on to the fire.
Anyone that says that “nothing is happening” is either completely misinformed or is totally crazy.
I like how James Howard Kunstler (http://kunstler.com/clusterfuck-nation/fedpocalypse-now/) summarized what we are currently facing…

Equities barfed nearly four percent just last week, credit is crumbling (nobody wants to lend), junk bonds are tanking (as defaults loom), currencies all around the world are crashing, hedge funds can’t give investors their money back, “liquidity” is AWOL (no buyers for janky securities), commodities are in freefall, oil is going so deep into the sub-basement of value that the industry may never recover, international trade is evaporating, the president is doing everything possible in Syria to start World War Three, and the monster called globalism is lying in its coffin with a stake pointed over its heart.
The financial markets held together far longer than many people thought that they would, but now they are finally coming apart at the seams.
Moving forward, the “winners” are going to be the people that pull their money out the fastest. This is especially true for high risk funds like the three that just imploded. If you hesitate, you could end up losing everything.
And as this rush for the exits accelerates, sellers are going to greatly outnumber buyers, and this is going to push prices down at a very rapid pace. We are going to hear a lot about a “lack of liquidity” in the days ahead, but the truth is that what we will really be looking at is a good old-fashioned panic.