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Our Disneyland Economy July 16, 2017

Disneyland is known as a place “where dreams come true” and where every story always has a happy ending.  But there is going to be no happy ending for the U.S. economy.  Wishful thinking has resulted in one of the greatest stock market rallies in history in recent months, but like all childhood fantasies, it won’t last.  The real economy continues to deteriorate, and we can see this even right outside of the gates of Disneyland.  Every night growing numbers of homeless people sleep on the pavement just steps away from “the happiest place on Earth”.  It can be fun to “play make believe” for a while, but eventually reality always catches up with us.

Without a doubt, the stock market has been on a tremendous run.  Since Donald Trump’s stunning election victory in November, the market has been setting record high after record high, and it is now up a total of 17 percent

The Dow Jones Industrial Average recorded its 23rd all time high of 2017 yesterday closing at 21,532.  There have been a total of 120 days where the markets have closed since President Trump’s inauguration on January 20th.  The ‘DOW’ has closed at all time highs 23 of those days for nearly 20% or one-fifth of the days the market has been open.  The market is up 9% since the inauguration. 

Since the election on November 8th the DOW has closed at record highs an amazing 40 times!   Nearly one-fourth or 24% of the 168 days the markets have closed have been record highs since the November 8th election.  The market is up 17% since the election!

If this surge was supported by hard economic data, that would be something to greatly celebrate, but that has not been the case at all.

Instead, stock prices have become completely disconnected from economic reality, and now we are facing one of the greatest stock bubbles of all time.  As Graham Summers has pointed out, stocks are now trading at price to sales ratios that we haven’t seen since the very height of the dotcom bubble…

Earnings, cash flow, and book value are all financial data points that can be massaged via a variety of gimmicks. As a result of this, valuing stocks based on Price to Earnings, Price to Cash Flow, and Price to Book Value can often lead to inaccurate valuations.

Sales on the other hand are all but impossible to gimmick. Either money came in the door, or it didn’t And, if a company is caught faking its sales numbers, someone is going to jail.

So the fact that stocks are now trading at a P/S ratio that matches the Tech Bubble (the single largest stock bubble in history) tells us that we’re truly trading at astronomical levels: levels associated with staggering levels of excess.

There is no possible way that this is sustainable, and just like before the 2008 crisis a whole host of experts are warning that disaster is imminent.  One of them is John Mauldin

Looking with fresh eyes at the economic numbers and central bankers’ statements convinced me that we will soon be in deep trouble. I now feel that it’s highly likely we will face a major financial crisis, if not later this year, then by the end of 2018 at the latest. Just a few months ago, I thought we could avoid a crisis and muddle through. Now I think we’re past that point. The key decision-makers have (1) done nothing, (2) done the wrong thing, or (3) done the right thing too late.

Having realized this, I’m adjusting my research efforts. I believe a major crisis is coming. The questions now are, how severe will it be, and how will we get through it?

And even though the stock market has been surging deeper and deeper into bubble territory in recent months, the middle class has continued to shrink and poverty has continued to grow all over the country.  In fact, because so many homeless people have been sleeping at bus shelters across from Disneyland lately authorities decided to completely remove the benches that they had been sleeping on

The vanishing benches were Anaheim’s response to complaints about the homeless population around Disneyland. Public work crews removed 20 benches from bus shelters after callers alerted City Hall to reports of vagrants drinking, defecating or smoking pot in the neighborhood near the amusement park’s entrance, officials said.

The situation is part of a larger struggle by Orange County to deal with a rising homeless population. A survey last year placed the number of those without shelter at 15,300 people, compared with 12,700 two years earlier.

But simply removing benches will not make the problem go away.

Homelessness has been growing so rapidly in Los Angeles that the the L.A. City Council actually asked Governor Jerry Brown to formally declare a state of emergency.

And in New York City, street homelessness is up 39 percent over the past year.

This is where the real economy is heading, but a rising stock market makes for much happier headlines.

Many major cities around the nation are passing laws to essentially make it illegal to be homeless.  Forcing homeless people to go somewhere else may mask the problem for a while, but it certainly doesn’t do anything to solve it.  In my new book entitled “Living A Life That Really Matters”, I talk about how real love is not just about loving those that are just like us.  Rather, real love is about caring for people no matter what they look like and no matter what they are going through.

Unfortunately, the economic suffering that we are seeing right now is just the beginning.

Just like in 2008, the major financial crisis that is coming is going to greatly accelerate our economic problems.  And just like last time, millions of people are going to lose their jobs, and millions of people are going to lose their homes.

Homelessness is already worse in many parts of the nation that it was during the depths of the last recession, and what we are going to see during the next economic downturn is going to be absolutely unprecedented.

So don’t look down on those that need a helping hand, because in the not too distant future you may find yourself needing some help.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District.  His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

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It Is Becoming Illegal To Be Homeless In America As Houston, Dallas And Dozens Of Other Cities Pass Draconian Laws April 30, 2017

Should we make homelessness against the law and simply throw all homeless people into prison so that we don’t have to deal with them?  Incredibly, this is actually starting to happen in dozens of major cities all across the United States.  It may be difficult to believe, but in many large urban areas today, if you are found guilty of “public camping” you can be taken directly to jail.  In some cities, activities such as “blocking a walkway” or creating any sort of “temporary structure for human habitation” are also considered to be serious crimes.  And there are some communities that have even made it illegal to feed the homeless without an official permit.  Unfortunately, as the U.S. economy continues to slow down the number of homeless people will continue to grow, and so this is a crisis that is only going to grow in size and scope.

Of course the goal of many of these laws is to get the homeless to go somewhere else.  But as these laws start to multiply all across the nation, pretty soon there won’t be too many places left where it is actually legal to be homeless.

One city that is being highly criticized for passing extremely draconian laws is Houston.  In that city it is actually illegal for the homeless to use any sort of material to shield themselves from the wind, the rain and the cold

Houston Mayor Sylvester Turner is taking a similar approach—his anti-encampment ordinance makes it illegal to use “fabric, metal, cardboard, or other materials as a tent or temporary structure for human habitation.” This ensures that the Houstonian homeless are vulnerable not just to the elements, but also to the constant threat of the police. Officials cite one of the most common justifications for crackdowns on the homeless: neighborhood safety (a more socially acceptable way of talking about the not-in-my-backyard mentality).

With all of the other problems that we are facing as a nation, it stuns me that there are politicians that would spend their time dreaming up such sick and twisted laws.

According to one news report, the homeless in Houston are now officially banned from doing all of the following things…

1. They can’t block a sidewalk, stand in a roadway median or block a building doorway. (AKA they can’t panhandle).

2. They also can’t do any of these things — blocking walkways — under state law that already existed.

3. They can’t sleep in tents, boxes or any other makeshift shelter on public property.

4. They also can’t have heating devices.

5. They can’t carry around belongings that take up space more than three feet long, three feet wide, three feet tall.

6. People can’t spontaneously feed more than five homeless people without a permit.

If I was a homeless person in Houston, I would definitely be looking to get out of there.

But where are they going to go?

Things are almost as bad in Dallas.  In fact, it is being reported that the police in Dallas “issued over 11,000 citations for sleeping in public from January 2012 to November 2015.”

When you break that number down, it comes to 323 citations per month.

Of course some people have tried to challenge these types of laws in court, but most of the challenges have been unsuccessful.  For example, just check out what recently happened in Denver

Three people who were contesting Denver’s urban-camping ban were found guilty on Wednesday, April 5, at the Lindsey-Flanigan courthouse. The defendants — Jerry Burton, Randy Russell and Terese Howard — were determined to have unlawfully camped on November 28, 2016, and to have interfered with police operations at one location. All three were sentenced with court-ordered probation for one year and between twenty and forty hours of community service.

The case challenged Denver’s unauthorized-camping ordinance, which has been divisive ever since Denver City Council approved it in 2012.

Since the courts are generally upholding these laws, this has just emboldened more communities to adopt anti-homelessness ordinances.  According to one report, dozens of major cities have now passed such laws…

City-wide bans on public camping (PDF) have increased by 69 percent throughout the United States. What used to be seen as an annoyance is now prohibited, forcing fines or jail time on those who certainly can’t afford it. The only nationwide nonprofit devoted to studying this, the National Law Center on Homelessness and Poverty, has been tracking these changes since 2006. Their findings? There are a scary number of laws passed that ironically make it costly to be homeless.

For example, in 33 of the 100 U.S. cities they studied, it’s illegal to publicly camp. In 18, it’s illegal to sleep in public. Panhandling is illegal in 27 cities.

In 39 cities, it’s illegal to live in vehicles.

As I have warned repeatedly, we are seeing hearts grow cold all around us.  Instead of doing everything that they can to try to help those in need, communities are trying to make them go some place else, and those that try to feed and help the homeless are being harshly penalized.

Sadly, all of this comes at a time when homelessness is on the rise all over America.  In a previous article I pointed out that in New York City the number of homeless people recently hit a brand new all-time high, and things have gotten so bad in Los Angeles that the L.A. City Council has formally requested that Governor Jerry Brown declare a state of emergency.

We tend to think of the homeless as bearded old men with drinking problems, but the truth is that many of the homeless are children.

In fact, the number of homeless children in the United States has risen by about 60 percent since the end of the last recession.

If this is how we are going to treat some of the most vulnerable members of our society while things are still relatively stable, how are we going to be treating one another when the economy completely collapses?

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War On The Homeless: Cities All Over America Are Passing Laws Making It Illegal To Feed And Shelter The Homeless December 6, 2016

homeless-man-public-domainIf you want to be a “Good Samaritan” to the homeless in your community, you might want to check and see if it is legal first.  All over the country, cities are passing laws that make it illegal to feed and shelter the homeless.  For example, in this article you will read about a church in Maryland that was just fined $12,000 for simply allowing homeless people to sleep outside the church at night.  This backlash against homeless people comes at a time when homelessness in America is absolutely exploding.  In a previous article, I shared with my readers the fact that the number of homeless people in New York City has just set a brand new all-time high, and the homelessness crisis in California has become so severe that the L.A. City Council has formally asked Governor Jerry Brown to declare a state of emergency.  Sadly, instead of opening up our hearts to the rapidly growing number of Americans without a home, way too many communities are trying to use the law to force them to go somewhere else.

For nearly two thousand years, churches have been at the forefront of helping the poor and disadvantaged, but now many communities are trying to stop this from happening.  Earlier today, I was absolutely stunned when I came across an article that talked about how a church in Dundalk, Maryland has been fined $12,000 for allowing the homeless to sleep outside the church at night…

“I showed up Wednesday morning to find a citation on the door that said we’re going to be fined $12,000 and have a court date because we have unhoused homeless people sleeping outside the church at night,” said Reverend Katie Grover with the Patapsco United Methodist Church.

Grover added that the men and women who sleep outside their doors do so because they have nowhere else to go and because they feel safe there.

“We feel we here as a church that it’s scriptural mandate that’s it an imperative to care for the least, the last, the lost, the poor, the hungry,” she said.

The authorities in Dundalk say that the church is running a “non-permitted rooming and boarding house”, and the severity of this fine is likely to put the church in significant financial difficulty if it is forced to pay it.  You can watch a local news report discussing this story on YouTube right here

Of course Dundalk is far from alone.  All across the U.S. laws have been passed that specifically target the homeless.  According to the National Coalition for the Homeless, the following are some of the most typical ways that the homeless are targeted…

  • Carrying out sweeps (confiscating personal property including tents, bedding, papers, clothing, medications, etc.) in city areas where homeless people live.
  • Making panhandling illegal.
  • Making it illegal for groups to share food with homeless persons in public spaces.
  • Enforcing a “quality of life” ordinance relating to public activity and hygiene.

There are some people that have been feeding the hungry for decades that now find that their work has been suddenly made illegal.  For instance, down in Houston a Good Samaritan named Jay Hamberger is outraged that the help that he has been providing to the homeless for 27 years has now made him an outlaw

Jay Hamberger has been bringing food to Houston’s homeless for 27 years. He feels the city is infringing on his right to help others by requiring him to have prior permission to distribute food on public and private property.

“I’ve done it with impunity for 27 years now, and I’m the most law-abiding outlaw, because what I’m doing is illegal,” Hamberger said. “My understanding is that there’s no legal way to make this right with the city.”

This is just another example of how our society is being strangled to death by control freaks.

If I see someone that is desperately hungry and I want to give that person food, then I am going to do it no matter what the law says.

Unfortunately, as the homelessness crisis continues to escalate these types of laws are only going to increase.  Even in supposedly “tolerant” areas of the country we are seeing draconian measures being implemented.  For example, just check out the new ordinance that was just passed in Los Angeles

LA legislators passed an ordinance that would ban people from sleeping in cars and recreational vehicles (RVs) near homes, parks and schools. Advocates see the ordinance as the latest move to criminalize homeless people.

The Los Angeles City Council voted in favor of the ordinance on Wednesday. Banning people from sleeping near homes, schools and parks in their vehicles, would, if signed into law, only make it legal to sleep overnight in cars and RV’s in industrial or commercial districts from 9:00pm to 6:00am.

As millions of Americans have fallen out of the middle class in recent years, we have seen an explosion in the number of people living in cars, trucks and recreational vehicles.  This is something that I addressed in my recent article entitled “Living In A Van Down By The River – Time To Face The True State Of The Middle Class In America“.  During this time of the year many that live in their vehicles head for warmer climates, and cities like Los Angeles are responding to the influx of homeless people by trying to force them to go somewhere else.

And this “war on the homeless” has actually been ramping up for quite a while.  Just check out these numbers from the Washington Post

Cities have enacted a wave of crackdowns and new laws against panhandling, camping and other activities associated with homelessness. They say such efforts help preserve the renewed vitality, curbing crime, health problems and behaviors that bother residents and disrupt business.

Between 2011 and 2014, the National Law Center on Homelessness & Poverty found that bans on sleeping in cars shot up 119 percent, citywide camping prohibitions jumped 60 percent, anti-loitering laws increased 35 percent and anti-begging laws increased 25 percent in a survey of 187 cities.

Homeless people do not have a permanent address, and there is always a temptation to try to force them to go somewhere else so that they become someone else’s problem.

But the truth is that we have a massive national crisis on our hands.  The number of homeless children in this country has increased by 60 percent since the end of the last recession, and the number of homeless people sleeping in shelters has risen to record levels in major cities on both the east and west coast.

And considering the fact that about two-thirds of the country is currently living paycheck to paycheck, how bad will things get once the next major recession strikes?

Poverty is growing all over the nation, and at the same time hearts all over America are growing very cold.

I truly fear for what this country is going to look like just a few years from now.

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