The financial tipping point of peak debt – Total credit market debt owed increased from $28 trillion in 2001 to over $52 trillion in 2011. Household debt contracting while Fed juices up the banking sector with more debt.

MyBudget360.com
April 26, 2011

At the dark heart of our financial dilemma is debt.  Too much debt was used to bolster households during the real estate bubble and now too much debt is being used by the government to bail out the financial sector.  Is there a tipping point in the amount of debt the American economy can shoulder?  I believe there is and looking at the data carefully we begin to see unusual patterns not seen in a generation. 

The mosaic of tools used for this financial crisis would have worked if the problems we faced were merely issues of confidence.  Of course the problems were very real and dealt with more than just perception and instead of confronting the reality of an over leveraged debt addicted machine we have only stepped on the accelerator.  Yet this time instead of credit flowing to households for added game rooms or a trip to Hawaii credit is being extended to Wall Street courtesy of the Federal Reserve.  Total credit market debt owed jumped from $28 trillion in 2001 to over $52 trillion today.  During this time GDP went from $10 trillion to $14 trillion.  You do the math where the growth is occurring.


Peak debt
total credit market debt

I find the above chart startling because it shows how heavily our society relies on debt.  Atlas can only support so much even in a myth.  There is no doubt that credit serves a very useful purpose in society.  Yet when debt begins to over shadow actual GDP or serves as a substitute for income, then we have a serious problem on our hands. 

During the real estate bubble many families started to rely on their home equity as if it were normal for homes to throw off $50,000 or $100,000 a year in appreciation like some money tree.  Households enjoyed this because wages went stagnant and surely pulling money from a home is easier than saving money for a rainy day and living within a budget.  However all of it was a charade and American households are now paying the bill.
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Ron Paul on The View: Whoopi Goldberg Frustrated When Audience Cheers Ron Paul

Infowars.comApril 25, 2011
Whoopi appears to be incapable of understanding that big government destroys liberty and eventually impoverishes everybody.

Scientists Abuzz Over Controversial Rumor that God Particle Has Been Detected

A rumor is floating around the physics community that the world's largest atom smasher may have detected a long-sought subatomic particle called the Higgs boson, also known as the "God particle."

The controversial rumor is based on what appears to be a leaked internal note from physicists at the Large Hadron Collider (LHC), a 17-mile-long particle accelerator near Geneva, Switzerland. It's not entirely clear at this point if the memo is authentic, or what the data it refers to might mean — but the note already has researchers talking.

The buzz started when an anonymous commenter recently posted an abstract of the note on Columbia University mathematician Peter Woit's blog, Not Even Wrong.

Some physicists say the note may be a hoax, while others believe the "detection" is likely a statistical anomaly that will disappear upon further study. But the find would be a huge particle-physics breakthrough, if it holds up.

"If it were to be real, it would be really exciting," said physicist Sheldon Stone of Syracuse University.

Hunting for the Higgs
The Higgs boson is predicted to exist by prevailing particle-physics theory, which is known as the Standard Model. Physicists think the Higgs bestows mass on all the other particles — but they have yet to confirm its existence.

Huge atom smashers — like the LHC and the Tevatron, at Fermilab in Illinois — are searching for the Higgs and other subatomic bits of matter. These accelerators slam particles together at enormous speeds, generating a shower of other particles that could include the Higgs or other elemental pieces predicted by theory but yet to be detected. [Wacky Physics: The Coolest Little Particles in Nature]

The leaked note suggests that the LHC's ATLAS particle-detection experiment may have picked up a signature of the elusive Higgs. The signal is consistent, in mass and other characteristics, with what the Higgs is expected to produce, according to the note.

However, some other aspects of the signal don't match predictions.
"Its production rate is much higher than that expected for the Higgs boson in the Standard Model," Stone told SPACE.com in an email interview. So the signal may be evidence of some other particle, Stone added, "which in some sense would be even more interesting, or it could be the result of new physics beyond the Standard Model."

Too soon to tell
Stone was quick to point out that the note is not an official result of the ATLAS research team. Therefore, speculating about its validity or implications is decidedly preliminary.

"It is actually quite illegitimate and unscientific to talk publicly about internal collaboration material before it is approved," Stone said. "So this 'result' is not a result until the collaboration officially releases it."
Other researchers joined Stone in urging patience and caution before getting too excited about the possible discovery.

"Don't worry, Higgs boson! I would never spread scurrilous rumors about you. Unlike some people," Caltech physicist Sean Carroll tweeted today (April 22).

While it's still early, some researchers have already begun to cast doubt on the possible detection. For example, Tommaso Dorigo — a particle physicist at Fermilab and CERN, which operates the LHC — thinks the signal is false and will fade upon closer inspection.

Dorigo — who said he doesn't have access to the full ATLAS memo — gives several reasons for this viewpoint. He points out, for example, that scientists at Fermilab didn't see the putative Higgs signal in their Tevatron data, which covered similar ground as the ATLAS experiment.
 
Dorigo feels strongly enough, in fact, to put his money where his mouth is.
"I bet $1,000 with whomever has a name and a reputation in particle physics (this is a necessary specification, because I need to be sure that the person taking the bet will honor it) that the signal is not due to Higgs boson decays," he wrote on his blog today. "I am willing to bet that this is NO NEW PARTICLE. Clear enough?"
 
You can follow SPACE.com senior writer Mike Wall on Twitter: @michaeldwall. Follow LiveScience for the latest in science news and discoveries on Twitter @livescience and on Facebook.

Globalization Crushing Middle Class?



Added On April 22, 2011
Experts Chrystia Freeland and David Frum look at a new report on globalization and the impact on the American middle class

Austerity Psychosis Grips Washington, D. C.

Webster G. TarpleyGuns & Butter
April 21, 2011
 
Obama’s budget speech at George Washington University on April 13th, 2011; the Fiscal 2011 Budget Resolution causes a revolt in DC; the Independent Payment Advisory Board as Death Panel; House Budget Committee Chairman Paul Ryan’s genocidal Budget Resolution for the year 2012; Medicare and Medicaid under bipartisan attack; PIMCO sells the US short; what to do to save the nation in case of US default; and speculators drive up the price of oil.

Guns and Butter - April 20, 2011 at 1:00pm

Click to listen (or download)

Airport passenger screener charged in distributing child pornography

Editor's Note: We've been constantly told that the pictures are not stored!  Hogwash... and here's proof!!

Philly.com
April 23, 2011|By John Shiffman, Inquirer Staff Writer

A passenger screener at Philadelphia International Airport is facing charges that he distributed more than 100 images of child pornography via Facebook, records show.
Federal agents also allege that Transportation Safety Administration Officer Thomas Gordon Jr. of Philadelphia, who routinely searched airline passengers, uploaded explicit pictures of young girls to an Internet site on which he also posted a photograph of himself in his TSA uniform.
Homeland Security agents arrested the TSA officer March 24, and he is being held without bail.
Although the case was unsealed Thursday, neither the indictment nor the news release mentioned Gordon's job searching airline passengers for TSA.

Low wage capitalism – Newly added jobs are coming from lower paying sectors while productivity increases and profits filter to the top of the economic class. 3,500,000 high-wage jobs lost during recession and only 179,000 have been added so far.

MyBudget360.com
April 21, 2011

One of the most troubling aspects of this “recovery” is how it is being achieved.  We keep hearing about the wonderful Wall Street recovery yet a large portion of this is being created by extracting productivity from workers and stifling wages.  Obviously if you scare the working and middle class and give them no job protection then many will retreat to their dark corner.  Yet the reality is, these same companies are borrowing at subsidized rates from the Federal Reserve and using the taxpayer as a safety net.  This economy is operating under a reverse Robin Hood effect where you steal from the poor and working class and redistribute the wealth to the top.  The political class does not represent the people because as things stand, money buys power and many more Americans are losing their voice since they do not have funds to purchase lobbyists.  The below chart is one of the more disturbing confirmations of our disappearing middle class.

The low wage recovery
job growth by industries
Source:  NELP
This chart sums up our current recovery in one picture.  We lost over 3,500,000+ higher-wage jobs during the recession and so far, we have added 179,000. The mid-wage sector has lost over 3,200,000+ jobs but has added 458,000.  More troubling however, is that 2,000,000+ jobs were lost in the lower-wage fields and this is where the bulk of the current economic growth is occurring with 613,000 jobs being added in this sector:
“(Huff Po) While the recovery of the labor market and the broader U.S. economy depend critically on job growth, equally important is the quality of those jobs. During the economic downturn, 40 percent of the jobs lost came from high-wage industries — yet high-wage industries accounted for only 14 percent of the new positions created in the first year of post-downturn job growth, according to a report released in February by the National Employment Law Project.”
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