by David DeGraw
August 10, 2011
Over 1 Million Deaths Annually, 62 Million People With Zero Net Worth, As
the Economic Elite Make Off With $46 Trillion.
AmpedStatus Editor’s Note:
The following report includes adapted
excerpts from David DeGraw’s book, “The Road Through 2012: Revolution or
World War III.” Release Date: 9.28.11
Abstract - Welcome to World War III
Despite increasing personal financial hardship, most Americans remain
unaware of the economic world war currently unfolding.
corporate and government propaganda campaign has effectively obscured this
blatant reality. After extensive analysis, it is evident that World War III
is a war between the richest one-tenth of one percent of the global
population and 99.9 percent of humanity.
Or, as I have called it,
The Economic Elite Vs. The People of The United States
of America .
This war has been a one-sided attack
thus far. However, as we have seen throughout the world in recent months,
the people are beginning to fight back.
The following report is a
statistical analysis of the systemic economic attacks against the American
The American public has sustained intensive economic attacks across broad
segments of the population.
While the attacks have been increasingly severe
in scale over the past four years, they have been implemented with
technocratic precision. They have been incrementally applied thus far,
successfully keeping the population passive and avoiding any large-scale
civilian unrest, while effectively reducing living standards for the
majority of the population.
As you will see in this report, the 55 million
Americans that have been hit the hardest have thus far acquiesced due to
temporary financial assistance, such as food stamps and extended
The Global Economic Elite have been much more strategic in handling the
American public, as they are potentially the greatest threat to their
continued consolidation of wealth, resources and power.
that are not as powerful, and on the periphery of the Economic Elite’s
global empire, have been dealt with in much harsher fashion. In many smaller
and less powerful countries the dramatic rise in food prices and costs of
living have led to all-out revolt - Tunisia, Algeria, Albania and Egypt
among the first to rebel.
While the contagion of rebellion has rapidly
spread throughout Northern Africa and the Middle East, it is also spreading
in a decentralized manner throughout most of the world, now threatening
popular rebellion throughout Europe.
Like the U.S. population, the
geographically clustered European nations represent a potentially powerful
countervailing force to the Economic Elite’s continued domination.
Within the United States, the technocratic suppression of the population has
been extensive. Increasingly severe economic and governmental policies have
systematically eroded civilian wealth, power and rights. Intensive
propaganda has effectively distracted, confused, isolated, marginalized and
divided the U.S. population.
Despite the success of these efforts thus far,
given the severe, prolonged, unsustainable and escalating level of economic
suffering, outbreaks of civil unrest are inevitable.
The U.S. population, if a
critical mass is reached, represents the greatest threat to the Economic
Elite. In this regard, the American people are their primary adversary.
In writing this report, I will clearly demonstrate the severity and scale of
the deliberate systemic economic attacks against the U.S. population, in hope
that we can urgently build a critical mass of aware and engaged citizens.
Part One - The Economic Devastation
According to most recent Census Bureau data, from 2005-2009,
average U.S. household wealth declined by 28% .
This represents a loss of
$27,000 per household. Currently, at least 62 million Americans, 20%  of
U.S. households, have zero or negative net worth.
The Census figures cited above are based on statistics that have been
consistently proven to be lowball estimates. The government and corporate
media spread propaganda on vital economic statistics that mask the severity
of our economic crisis.
Deceptive inflation, unemployment, poverty and GDP
measures, which cast the illusion of recovery, are easily exposed with some
research and a closer look at the data.
Throughout this report, we will
explore significant examples of government economic propaganda. In several
cases, the government has been forced to revise their numbers due to proven
inaccuracies. The government’s “revisions” are most always for the worse,
and are usually just a footnote correction that the public is rarely ever
All that being said, for many statistics we are forced to use
government data, as there are not any other extensive data sets available
from alternative sources.
I - Record Breaking Poverty
The Census Bureau poverty rate is a horribly flawed measurement that uses
The Census measures poverty based on costs of living
metrics established in 1955-56 years ago. They ignore many key factors,
such as the increased costs of medical care, child care, education,
transportation, and many other basic costs.
They also don’t factor
geographically-based costs of living. The National Academy of Science
measure, which gets little if any corporate media coverage, gives a much
more accurate account of poverty, as they factor in these vital cost of
The most current Census data revealed that 43.6 million Americans, 14.3% of
the population, lived in poverty in 2009. While that is a staggering number
that represents the highest number of American people to ever live in
poverty, and a dramatic increase of four million people since 2008, it
significantly under-counted the total.
Last year, in my analysis ,
extrapolating data from 2008 National Academy of Science findings, I
estimated that the number of Americans living in poverty in 2009 was at
least 52 million .
Recently, the National Academy of Science released
their latest findings, backing up my claim by revealing that 52,765,000 
Americans, 17.3% of the population, lived in poverty in 2009.
The poverty rate for children is even worse.
According to Census data, a
total of 15.5 million  American children lived in poverty in 2009, which
is 20% of all children. The number of children in poverty increased 28%
since 2000, and jumped 10% from 2008 to 2009.
Extrapolating data from the
2009 National Academy of Science poverty rate, in relation to the Census
childhood poverty data, the number of American children living in poverty in
2009 is more accurately 18.8 million, which is 24%, or nearly one in four.
Other than this rapidly increasing number children who are in families that
have recently fallen into poverty,
“every day in America 2,573 babies 
are born into poverty.”
As the chart to the right shows, even with the lower Census numbers, nine
major American cities have a poverty rate over 25%.
It is important to note, based on many key indicators, as you will see
throughout this report, the overall poverty totals have increased since
2009. Also consider that the recent deficit reduction plan is going to cut
“anti-poverty” programs that currently assist tens of millions of Americans.
A study by the National Bureau of Economic Research estimates that,
poverty rate would double  without these programs.”
It is predicted that
the new deficit deal will cut the funding for these programs in half ,
which, based on these estimates, would bring the total number of Americans
living in poverty up to 80 million people, 26% of the population.
II - Record Breaking Food Insecurity
For another revealing statistic, which has been quickly increasing, we can
look at the number of Americans currently surviving off of food stamps.
2005, 25.7 million  Americans needed food stamps, currently 45.8 million
people  rely on them. As the chart to the right shows, the number of
people in need of food stamps has been rapidly increasing year-over-year.
Meanwhile, Congress is cutting the funding  for the food stamp program
at a time when the Department of Agriculture estimates that an additional
22.5 million  people will need them, bringing the total number of
Americans in need of food assistance to a stunning 68.3 million people.
III - Record Breaking Unemployment
While the “official” unemployment rate hovers around 9%, 14 million people,
the government’s numbers are deceptively low once again.
The only reason
unemployment has stayed below 10% for the past few months is because
millions of long-term unemployed, and part-time workers who are looking for
full-time work, are not included in the baseline government unemployment
John Williams, from ShadowStats.com , has a consistently proven
method of tracking unemployment that provides a much more accurate view of
the overall situation. As shocking as it may sound, when you apply his SGS
method, counting the total number people in need of employment, you get a
current unemployment rate of 22.5%, which is an all-time record total of 34
million people currently in need of work.
Here is how the SGS rate is
“The seasonally-adjusted SGS Alternate Unemployment Rate reflects current
unemployment reporting methodology adjusted for SGS-estimated long-term
discouraged workers, who were defined out of official existence in 1994.
That estimate is added to the BLS estimate of U-6 unemployment, which
includes short-term discouraged workers.
The U-3 unemployment rate is the monthly headline number. The U-6
unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest
unemployment measure, including short-term discouraged and other
marginally-attached workers as well as those forced to work part-time
because they cannot find full-time employment.”
On top of these shocking figures, the labor force participation rate, which
measures the percentage of the total population currently working, has
fallen to a 27-year low of 63.9%.
Currently, an all-time record 6.3 million  people have been unemployed
for over six months. As the chart to the right shows, the average time it
takes for a person to find a job has also just hit an all-time high of 40.4
As companies continue to downsize and shift jobs overseas, unemployment is
once again accelerating. Private-sector job cuts in July surged 60% to a
16-month high .
When accounting for population growth within the total
labor force, from December 2007 to present, we have lost 10.6 million 
With the implementation of state and federal budget cuts, public-sector
unemployment is accelerating as well.
According to the Center on Budget and
Policy Priorities, since August 2008, state and local governments have cut
577,000  jobs. The Economic Policy Institute estimates that cuts in the
new deficit deal will lead to an additional 1.8 million  job losses.
Of the new jobs that have been added in 2010, 60%  of them are in
low-wage fields. Since December 2007, the official unemployment rate has
masked the fact that 2.8 million  of the news jobs created have been
Breaking down the data, over the last 12 months , the National
Employment Law Project found that well-paying jobs are rapidly decreasing,
while low-paying jobs are helping to mask an increasingly dire employment
Lower-wage industries constituted 23% of job loss, but fully 49% of recent
Mid-wage industries constituted 36% of job loss, and 37% of recent growth
Higher-wage industries constituted 40% of job loss, but only 14% of recent
IV - Declining Income
While the cost of living from 1990-2010 increased by 67%, worker income
According to the most recent available IRS data, covering the
year of 2009, average income fell 6.1%, a loss of $3,516 per worker, that
year alone. Average income has declined 13.7% from 2007-2009, representing
a $8,588  loss per worker.
The decline in worker income is due to the dramatic increase in CEO pay. CEO
pay has consistently increased year-over-year since the mid-1970s. From 1975-2010, worker productivity increased 80%. Over this time frame, CEO pay and
the income of the economic top 0.1% (one-tenth of one percent) of the
population quadrupled .
The income of the top 0.01% (one-hundredth of
one percent) quintupled .
To understand the affect CEO pay increases have had on workers’ declining
share of income on an annual basis, after analyzing 2008 tax data, leading
tax reporter David Cay Johnston summed up  the situation with these
“Had income growth from 1950 to 1980 continued at the same rate for the next
28 years, the average income of the bottom 90 percent in 2008 would have
been 68 percent higher...
That would have meant an average income for the
vast majority of $52,051, or $21,110 more than actual 2008 incomes. How
different America would be today if the typical family had $406 more each
As shocking as that is, over the last two years, workers have lost an even
higher share of income to CEOs. In the last year alone, CEO pay skyrocketed
by 28% .
Looking at 2009, according to a recent Dollars & Sense report
, workers lost nearly $2 trillion in wages that year alone:
“In 2009, stock owners, bankers, brokers, hedge-fund wizards, highly paid
corporate executives, corporations, and mid-ranking managers pocketed - as
either income, benefits, or perks such as corporate jets - an estimated $1.91
trillion that 40 years ago would have collectively gone to non-supervisory
and production workers in the form of higher wages and benefits.”
As bad as these numbers are, consider that the attack on American workers
has increased significantly since 2009. From 2009 to the fourth-quarter of
2010, 88% of income growth  went to corporate profits (i.e. CEOs), while
just 1% went to workers.
As the NY Times reported in an article entitled, “Our Banana Republic,” from
“more than four-fifths of the total increase in American
incomes went to the richest 1 percent.”
Again, as bad as that was, since
2005 it has gotten even worse, as Zero Hedge recently reported , labor’s
“share of national income has fallen to its lowest level in modern
This chart shows how workers’ percentage of income has been
The bottom line, as statistics clearly demonstrate, these trends are getting
worse and the attacks against us, as severe as they have been over the past
four years, are dramatically escalating.
Part Two - The Economic Elite
“There’s class warfare, all right, but it’s my class,
the rich class, that’s making war, and we’re winning.”
– Warren Buffett
Chairman and CEO of Berkshire Hathaway
V - How Much Wealth Do The Economic Elite Have?
While 68.3 million Americans struggle to get enough food to eat and wages
are declining for 90% of the population, U.S. millionaire household wealth has
reached an unprecedented level.
According to an extensive study by auditing
and financial advisory firm Deloitte, U.S. millionaire households now have
$38.6 trillion  in wealth. On top of the $38.6 trillion that this study
reveals, they have an estimated $6.3 trillion  hidden in offshore
In total, U.S. millionaire households have at least $45.9 trillion in wealth,
the majority of this wealth is held within the upper one-tenth of one
percent of the population.
If all this isn’t obscene enough, to further demonstrate how the global
economy has now been completely rigged, Deloitte’s analysis predicated,
based on current trends, that U.S. millionaire households will see a 225%
increase in wealth to $87.1 trillion by 2020.
Accounting for wealth hidden
in offshore accounts, they are projected to have over $100 trillion in total
within the next decade.
Most people cannot even comprehend how much $1 trillion is, let alone $46
trillion. One trillion is equal to 1000 billion, or $1,000,000,000,000 .
To put it in perspective, last year the entire cost of feeding all 40
million Americans on food stamps was $65 billion .
Now consider, according to the latest IRS data, only 0.076% of the
population, less than one-tenth of one percent, earned over $1 million 
The graph below, based on data from the Tax Policy Center, shows how much
income is earned by a household at any given percentile in income
The highest bracket for annual income is $50 million or more.
Americans are in this elite group. The average income within this category
was $91.2 million  in 2008.
As astonishing as that is, in 2009 they
averaged $518.8 million  each, or about $10 million per week. This
means, in the depths of the recession, the richest 74 Americans increased
their income by more than 5 times within this one year.
These 74 people made
more money than 19 million  workers combined.
In context, overall, the richest 400 people  in the U.S. have as much
wealth as 154 million Americans combined, that’s 50% of the entire country.
The top economic 1% of the U.S. population now has a record 40% of all wealth
, and have more wealth than 90%  of the population combined.
VI - Who Rules America? Revealing The Economic Top 0.1%
Here is an analysis  from an investment manager with mega-wealthy
clients breaking down the economic top 0.5% of the population, recently
published by William Domhoff, sociology professor and author of Who Rules
“Unlike those in the lower half of the top 1%, those in the top half and,
particularly, top 0.1%, can often borrow for almost nothing, keep profits
and production overseas, hold personal assets in tax havens, ride out down
markets and economies, and influence legislation in the U.S..
They have access
to the very best in accounting firms, tax and other attorneys, numerous
consultants, private wealth managers, a network of other wealthy and
powerful friends, lucrative business opportunities, and many other benefits.
Folks in the top 0.1% come from many backgrounds but it’s infrequent to meet
one whose wealth wasn’t acquired through direct or indirect participation in
the financial and banking industries... Most of the serious economic damage
the U.S. is struggling with today was done by the top 0.1% and they benefited
greatly from it…
For example, in Q1 of 2011, America’s top corporations
reported 31% profit growth and a 31% reduction in taxes, the latter due to
profit outsourcing to low tax rate countries... The year 2010 was a record
year for compensation on Wall Street, while corporate CEO compensation rose
by over 30%.…
In 2010 a dozen major companies, including GE, Verizon, Boeing, Wells Fargo,
and Fed Ex paid U.S. tax rates between -0.7% and -9.2%. Production,
employment, profits, and taxes have all been outsourced….
I could go on and on, but the bottom line is this: A highly complex and
largely discrete set of laws and exemptions from laws has been put in place
by those in the uppermost reaches of the U.S. financial system. It allows them
to protect and increase their wealth and significantly affect the U.S.
political and legislative processes.
They have real power and real
wealth. Ordinary citizens in the bottom 99.9% are largely not aware of
these systems, do not understand how they work, are unlikely to
participate in them, and have little likelihood of entering the top
0.5%, much less the top 0.1%…
…the American dream of striking it rich is merely a
that keeps the bottom 99.5% hoping for better and prevents social and
political instability. The odds of getting into that top 0.5% are very slim
and the door is kept firmly shut by those within it.”
To get into the top economic 0.01% (one-hundredth of one percent) of the
population, you have to have a household income of over $27 million  per
If you look at some of the central players who caused this economic crisis,
you will see that they are among this Economic Elite group.
Former Goldman Sachs CEO and Bush Treasury Secretary Hank Paulson had
already amassed at least $700 million prior to moving to the U.S. Treasury in
Current Goldman Sachs CEO Lloyd Blankfein and a few other top
executives at Goldman Sachs just received $111.3 million in bonuses.
Blankfein just took home $24.3 million, as part of a $67.9 million bonus he
Goldman’s President Gary Cohn took home $24 million, as part of
a $66.9 million bonus he was awarded.
Goldman’s CFO David Viniar and former
co-president Jon Winkelried both took home over $20 million in bonuses.
Citigroup CEO Vikram Pandit just took home $80 million, in what may
eventually total more than $200 million in compensation and bonuses.
in at the top of the list is JP Morgan Chase CEO Jamie Dimon, who just took
home $90 million.
If you think people in this income level don’t
control the U.S. political process, you are not paying attention.
After they caused this economic
crisis, they got the government to give them trillions of dollars in
taxpayer support, and then, after taking our tax dollars, they gave
themselves all-time record-breaking bonuses.
2009 was an all-time
record-breaking year for Wall Street executives bringing in a total of $145
billion . And then, in 2010, they raised the bar even higher, breaking
the all-time record set the year before by pulling in another $149 billion
. The audacity of it all is stunning.
Finding people more grotesquely greedy than Wall Street executives would
seem to be impossible. However, health insurance CEOs are giving them a run
for their money.
As the LA Times reported: 
“Leaders of Cigna, Humana, UnitedHealth, WellPoint and Aetna received nearly
$200 million in compensation in 2009, according to a report, while the
companies sought rate increases as high as 39%….
H. Edward Hanway, former chief executive of Philadelphia-based Cigna, topped
the list of high-paid executives, thanks to a retirement package worth
$110.9 million. Cigna paid Hanway and his successor, David Cordani, a total
of $136.3 million last year….
Ron Williams, the CEO of Hartford, Conn.-based Aetna Inc., earned nearly
$18.2 million in total compensation, down from $24.4 million in 2008.”
Aetna CEO Ron Williams has recovered from his down year in 2009 by making
$72 million  in 2010.
Given this level of obscene profiteering within the health care industry, it
is not surprising that Americans pay more for medical care than any other
nation in the world. In fact, Americans are forced to pay twice as much as
most nations, and get lower quality care in return.
As health insurance
companies admitted, they have been reaping windfall profits because people
with health insurance plans still cannot afford to go to the doctors and
have stopped going unless it is an absolute emergency.
With well over 50
million people unable to afford health insurance and the skyrocketing costs,
it is not surprising that over 60% of all personal bankruptcies are the
result of medical bills. In fact, 75% of the medical bankruptcies filed are
from people who have health insurance.
Within this Economic Elite group, you also have the war profiteering 
oil companies, which themselves are in large part owned by the big Wall
The biggest five oil companies, while gas prices have been
skyrocketing, reaped $36 billion  in profit last quarter.
companies also receive an average of $6 billion  per year in tax
VII - Tax Breaks For The Rich, Budget Cuts For The Rest Of Us
To further demonstrate how the mega-wealthy have seized control our
political process, consider that the richest 400 Americans paid 30% of their
income in taxes in 1995, but they now pay only 18% .
In fact, 1,470 Americans  earned over $1 million in 2009 and didn’t pay
The average tax rate for millionaires was 22.4% in 2009, down from 30.4% in
1995. The average millionaire saves $136,000  a year due to reduced tax
Looking at the tax rate from a long-term perspective, the amount of money
the richest people and most profitable corporations pay in taxes has fallen
dramatically since 1955. Corporate tax accounted for 27.3% of federal
revenue in 1955. In 2010, corporate tax accounted for only 8.9% 
Corporate taxes accounted for 4.3% of overall GDP in 1955,
in 2010 they accounted for only 1.3% .
Part Three - The
Perfect Storm Overhead
(Inequality = Debt = Austerity = Civil Unrest = Inflation + Deflation =
The cuts in taxes for the mega-wealthy have led to record wealth inequality
and resulted in a record national deficit.
Meanwhile, to make up for the
deficit that the richest one-tenth of one percent of the population has
created, Democrats and Republicans are committed to making draconian budget
cuts to vital social services, which target the poor, middle class, elderly
and sick, while handing out billions more in corporate welfare annually.
(Inequality = Debt = Austerity)
Just as the government has done, to make up for tax revenue lost to the
mega-wealthy, Americans have made up for the decline in income by taking on
large amounts of debt as well. (Inequality = Debt)
In a severely unequal society, massive debt will always be created, thus
forming a vicious cycle of increasing inequality and increasing debt, until
the fragmentation of society reaches a breaking point when those in debt
cannot afford to pay back their debts without starving to death.
We are now
reaching that breaking point. (Inequality = Debt = Austerity = Civil Unrest)
VIII - Debt Slavery -The Indentured Servant Has Become The Indebted Citizen
As for statistics on Americans being buried in financial debt, the
indentured servant has evolved into the indebted citizen.
before, from 1990-2010 costs of living have increased 67%, while wages
have stagnated and declined. As the national debt has reached a record $14.6
trillion, total personal debt is now over $16 trillion . Consumer debt
is $2.5 trillion. Credit card debt is $805 billion and student debt now
exceeds $1 trillion .
Obviously, the more severe your debts are, the more you have to cut back in
spending and the less money you have to buy new items. (Debt = Austerity)
Meanwhile, a perfect storm circles overhead as society breaks down and falls
into an economic death spiral-health care, food and gas costs are
skyrocketing, while income and home values are plummeting. (Inflation +
Deflation = Stagflation)
Given these conditions, it is not surprising that over 250 million
Americans, another record-breaking number, are currently living
paycheck-to-paycheck struggling to make ends meet.
IX - Inflation
The following charts, from Advisor Perspectives, show the increase in costs
of living since 2000:
As you can see, the price of basic necessities are consistently increasing,
only clothing (apparel) has declined. The second chart highlights the
crucial skyrocketing cost of energy:
The third chart highlights the pernicious skyrocketing cost of education:
The cost of education essentially buries a young person in a debt that they
will spend a significant portion of their life attempting to get out of.
Given the increasing costs of living, and the decreasing ability to make an
expected income from such an expensive level of education, this young
demographic will most likely live an entire life locked into spiraling
levels of debt that they will never be able to get out of.
When reporting on inflation, the Bureau of Labor Statistics has twice, since
1980, revised their methodology to mask the severity of inflation, similar
to how they mask the severity of unemployment.
In their Consumer Price Index
(CPI), which measures inflation, they have heavily discounted the
measurement weight of energy, food and education-three of the most
significant costs for most American households.
To understand the significance in their revised methodology, current
“official” CPI is at a 3.6% annual rate. However, if calculated the way it
was before former Federal Reserve Chairman Alan Greenspan altered it in
1980, it would be 11.1% , three times worse than officially stated.
So while the government and the Federal Reserve claim that inflation is low,
at 3.6%  over the past year, food prices have increased 39%  and
gas prices have increased 34%  over the same time frame.
The increase in gas cost over the past one-year masks the severity of total
gas price inflation, which is currently 125% more  expensive since
December 2008, increasing from $1.67 per gallon to $3.75.
The Hidden Tax
The Federal Reserve’s strategic policy known as
Quantitative Easing (QE) has
been a significant factor in the rising cost of basic necessities by
deliberately stimulating inflation, while decreasing the value of the
Looking at their recent QE2 program, the dollar lost 7.5%
its value from January 2010 through March 2010. From August 2010 through
March 2010, the dollar lost 17%  of its value. To understand how this
acts as a hidden tax, consider if you had $10,000 in the bank, over this
time frame you would have lost $1700 in purchasing power. So your $10,000
would now be worth $8300.
At the same time, the cost of gas and food
The Phantom Recovery
By decreasing the value of the dollar,
the Federal Reserve
is also inflating
the stock market by creating the impression that stock prices are rising,
which, when measured in dollars, they have.
However, in real terms, their
overall value has decreased.
To understand how deceptive this strategy has
been in giving the appearance of a rising market, instead of measuring
overall stock value in dollars, let’s look at their overall value when
measured in terms of gold:
Dow/Gold Chart from January 1, 2003-August 8, 2011
As investor Michael Krieger explains:
“You can see from the chart above the downtrend of stock prices in real
terms is completely intact and they have now hit a new low, below the
previous low point in March 2009.
In fact, although stocks did temporarily
rise in real terms from the low in 2009 for the year as a whole, they were
still down 5% in real terms.
Then last year, stocks were 14% lower in terms
of gold. Finally, despite a brief rally early in 2011, stocks in terms of
gold are down 23% year-to-date.”
Dollar Vs. Gold
When comparing the value of the dollar to the value of gold, the dollar has
lost a stunning 84% of its value since 2000. In 2000, gold was worth $279
per ounce, as of August 8, 2011, gold is $1,725 per ounce.
In fact, the
dollar continues to fall in value while gold continues to rise.
All these factors together create a perfect storm of
As 90% of
Americans experience income declines, and the value of the dollar declines,
the price of necessities are rising, while the one major asset many
Americans have, a house, is also declining in value. Already, thanks to
declining home values, 28% of U.S. homeowners owe more on their mortgages than
their home is currently worth.
With 10.4 million American families having
lost their homes to foreclosure since 2007, Amherst Securities, a leading
broker/dealer focused on mortgage-related investments, estimates that
another 10.8 million  homes are at risk of default over the next six
This will obviously continue downward pressure on home values.
X - The Beaten Masses - Confronted With Severe
Financial Hardship, Why Do Americans Remain Passive?
With an unprecedented sum of wealth, tens of trillions of dollars, held
within the top one-tenth of one percent of the U.S. population, we now have
the highest and most severe inequality of wealth in U.S. history.
Not even the
Robber Barons of the Gilded Age were as greedy as the modern day Economic
As famed American philosopher John Dewey once said,
“There is no such thing
as the liberty or effective power of an individual, group, or class, except
in relation to the liberties, the effective powers, of other individuals,
groups or classes.”
In The Economic Elite Vs. The People , I reported on the strategic
withholding of wealth from 99% of the U.S. population over the past
Since the mid-1970s, worker production and wealth creation has
exploded. As the statistics throughout this report prove, the dramatic
increase in wealth has been almost entirely absorbed by the economic top
one-tenth of one percent of the population, with most of it going to the top
one-hundredth of one percent.
If you are wondering why a critical mass of people desperately struggling to
make ends meet are still not fighting back with overwhelming force and
running the mega-wealthy aristocrats out of town, let’s consider two
People are so busy trying to maintain their current standard of living
that their energies are consumed by holding on to the little that they have
People have very little understanding of how much wealth has been
consolidated within the top economic one-tenth of one percent.
Considering the first factor, it is obvious that people have become beaten
down psychologically and financially.
A report in the Guardian entitled,
“Anxiety keeps the super-rich safe from middle-class rage,” suggests that
people are so desperate to hold on to what they have that they are too busy
looking down to look up:
“As psychologists will tell you, fear of loss is
more powerful than the prospect of gain. The struggling middle classes look
down more anxiously than they look up, particularly in recession and
Considering the second factor, people do not understand how much wealth has
been withheld from them.
The average person has never personally experienced
or seen the excessive wealth and luxury that the mega-rich live in. Wealth
inequality has grown so extreme and the wealthy have become so far removed
from average society, it is as if the rich exist in some outer stratosphere
beyond the comprehension of the average person.
As the Guardian report
mentioned above also states:
“…having little daily contact with the rich and little knowledge of how
they lived, they simply didn’t think about inequality much, or regard the
wealthy as direct competitors for resources.
As the sociologist Garry Runciman observed:
‘Envy is a difficult emotion to sustain across a broad
Even now most underestimate the rewards of bankers and
executives. Top pay has reached such levels that, rather like interstellar
distances, what the figures mean is hard to grasp.”
In fact, the average American vastly underestimates the severe wealth
disparity that we currently have.
This survey, featured in the NY Times,
reveals that Americans think our society is far more equal than it actually
“In a recent survey of Americans, my colleague Dan Ariely and I found that
Americans drastically underestimated the level of wealth inequality in the
While recent data indicates that the richest 20 percent of
Americans own 84 percent of all wealth, people estimated that this group
owned just 59 percent-believing that total wealth in this country is far
more evenly divided among poorer Americans.
What’s more, when we asked them how they thought wealth should be
distributed, they told us they wanted an even more equitable distribution,
with the richest 20 percent owning just 32 percent of the wealth.
true of Democrats and Republicans, rich and poor-all groups we surveyed
approved of some inequality, but their ideal was far more equal than the
Here is a chart showing the results from their survey:
The fact of the matter is that the overwhelming majority of
U.S. population is
unaware of the vast wealth at hand.
An entire generation of unprecedented
wealth creation has been concealed from 99% of the population for over 35
years. Having never personally experienced or known of this wealth, the
average American cannot comprehend what is possible if even a fraction of it
was used for the betterment of society as a whole.
In fact, given modern technology and wealth, not a single American citizen
should live in poverty.
The statistics clearly demonstrate that we now live
in a Neo-Feudal society. In comparison to the wealthiest one-tenth of one
percent of the population, who are sitting on top of tens of trillions of
dollars in wealth, we are modern day serfs, essentially propagandized
The fact that the overwhelming majority of Americans are struggling to get
by, while tens of trillions of dollars are consolidated within a small
fraction of the population, is a crime against humanity.
The day the average American fully comprehends how much wealth is
consolidated within just the top one-tenth of one percent of the population,
there will be a massive uprising and all the paid off politicians will be
run out of town.
The next time you are stressed out, struggling to make ends meet and pay off
your debts, just think about the trillions of dollars sitting in the
obscenely bloated pockets of one-tenth of one percent of the population.
first step in overcoming your peasant status is to understand that you are
indeed a peasant. This is a bitter pill to swallow and most will prefer to,
as they have been conditioned to do, continue on their path of media-induced
delusion, denial, apathy and ignorance.
However, I still cling to the hope that once enough people become aware of
this hidden and obscured fact, we can have the non-violent revolution we so
Until then, the rich get richer as a critical mass with
increasingly dire economic prospects desperately struggles to make ends
Part Four - Fascism in America
Other than driving large segments of the American population into poverty,
and pushing the majority into massive debt and a state of financial
desperation, there is an ever darker side to what is unfolding today.
Economic Elite have turned America into a modern day fascist state.
Fascism is a very powerful word which evokes many strong feelings. People
may think that the term cannot be applied to modern day America.
Benito Mussolini once summed it up:
“Fascism should more properly be called
corporatism, since it is the merger of state and corporate power.”
early 1900s, the Italians who invented the term fascism also described it as
“stato corporativo,” meaning: the corporate state.
Very few Americans would argue the fact that corporations now control our
government and have the dominant role in our society. Through a system of
legalized bribery-campaign finance, lobbying and the revolving door
between Washington and corporations-the most power global corporations
dominant the legislative and political process like never before.
Huey Long had it right when he warned:
“When fascism comes to America, it
will come in the form of democracy.”
As President Franklin D. Roosevelt once described fascism:
“The liberty of a
democracy is not safe if the people tolerate the growth of private power to
a point where it comes strong than their democratic state itself. That, in
its essence, is fascism - ownership of government by an individual, by a
group, or any controlling private power.”
The most blatant modern example of this was the bailout of Wall Street, when
the “too big to fail” banks got politicians to promptly hand out trillions
of tax dollars in support and subsidies to the very people who caused the
crisis, without any of them being held accountable.
XI - Modern Day Slavery
Another shocking example of how far we have descended into fascism is the
American Legislative Exchange Council (ALEC), which is a group of corporate
executives who literally write government legislation.
They have gone as far
as setting up a system that imprisons the poor and then puts them to work,
instead of paying living wages to non-imprisoned workers. Make no mistake,
this is a modern day system of slavery unfolding before our eyes.
At the leadership of ALEC and various other Economic Elite organizations,
poverty has essentially become a crime.
To demonstrate these attacks against
the poor, there was $17 billion cut from public housing programs, while
there was an increase of $19 billion in programs for building prisons,
“effectively making the construction of prisons the nation’s main housing
program for the poor .”
Before laws began to be rewritten in 1980, with
direct input from ALEC , we had a prison population of 500,000 citizens.
After laws were rewritten to target poor inner city citizens with much more
severe penalties, the U.S. prison population skyrocketed to 2.4 million
We now have the largest prison population in the world. With only 4% of the
world’s population, we have 25% of the world’s prison population.
reported previously, in a report entitled, “American Gulag
- World’s Largest
Prison Complex“: 
“The U.S., by far, has more of its citizens in prison than any other nation on
earth. China, with more than a billion citizens, doesn’t imprison as many people as
the U.S., with only 308 million American citizens.
The U.S. per capita
statistics are 700 per 100,000 citizens. In comparison, China has 110 per
100,000. In the Middle East, the repressive regime in Saudi Arabia imprisons
45 per 100,000.
U.S. per capita levels are equivalent to the darkest days of
the Soviet Gulag.”
XII - The Death Toll
The dramatic increase in poverty has obviously torn many families apart and
caused a devastating psychological toll, but consider the increase in deaths
as a result of poverty and severe wealth inequalities.
This is a very
difficult statistic to accurately measure, but Columbia University’s School
of Public Health  conducted an intensive examination of mortality and
medical data and estimated that,
“875,000 deaths in the U.S. in 2000 could be
attributed to a cluster of social factors bound up with poverty and income
As a report by Debra Watson sums up 
“There is no reason to
believe, after a decade that has seen sustained attacks on social programs
and consistently high unemployment rates, that the social mortality rate has
declined. On the contrary, it has likely risen.”
Indeed, poverty and income
inequality have skyrocketed since 2000.
Now, let’s consider the fact that, according to the Census Bureau, 31.1
million  people lived in poverty in 2000, and according to Columbia’s
study 875,000 deaths came as a result. This means that 1 out of every 35.5
people living in poverty die annually as a result of their impoverishment.
If you extrapolate this data to the 2009 total of 52.8 million people living
in poverty, you get an estimate of 1,486,338 deaths within that year.
if you use the lower poverty totals from the Census Bureau, 43.6 million
people, you get an estimate of 1,228,169 deaths in 2009.
XIII - Deliberate Systemic Attacks
The dramatic increase in economic inequality and poverty, along with the
unprecedented rise in wealth within the top one-tenth of one percent of the
population has not happened by mistake. It is the designed result of
deliberate governmental and economic policy.
It is the result of the richest
people in the world, and the “too big to fail” banks, using the campaign
finance and lobbying system to buy off politicians who implement policies
designed to exploit 99.9% of the population for their financial gain. To
call what is happening a “financial terrorist attack” on the United States,
is not using hyperbole, it is the technical term for what is currently
Compare the million people who die annually as a result of these economic
attacks, to the 2,977 that died on 9/11. As someone who lived three blocks
from the World Trade Center, as tragic as
9/11 was, these
economic attacks are much more severe and damaging to us as a nation, albeit
a much slower and unseen death toll.
Nonetheless, the result is of genocidal proportions.
One can statistically compare the economic attacks on the U.S. to the invasion
of Iraq, which some estimate as leading to one million deaths. Once again,
many of those deaths came in brutal and spectacular fashion in bombing
campaigns known as “shock and awe.”
However, the death toll compares to the
hidden brutality of a four-year campaign of economic “shock and awe.” Just
as Iraq was invaded, the U.S. has been invaded by a
global banking cartel.
As shocking as that is to realize, consider that this is happening
throughout the world.
While the U.S. poverty death rate is probably higher
than in most European countries,
the Federal Reserve’s economic policies
 - along with policies from the
International Monetary Fund,
and Bank of International Settlements - have caused rioting and uprisings
over skyrocketing food prices and costs of living throughout the world.
fact of the matter, and very harsh and unfortunate reality of this crisis,
is that the global economic central planners are deliberately carrying out
genocidal economic policies.
As Che Guevara, a man who took on the global financial elite, once said,
“The amount of poverty and suffering required for the emergence of a
Rockefeller, and the amount of depravity that the accumulation of a fortune
of such magnitude entails, are left out of the picture, and it is not always
possible to make the people in general see this.”
When tens of trillions of dollars deliberately flow to the top economic
one-tenth of one percent of the global population, while large percentages
live in poverty, you have to conclude, in technical terms, that a
Neo-Feudal-Fascist state is upon us.
The rich have never been richer, while
their paid off politicians make budget cuts for the poor and middle class,
and cause the cost of basic necessities to skyrocket.
You can call me extreme, but the reality of this is extreme, these people,
the global economic top one-tenth of one percent, are genocidal fascists
carrying out a holocaust. Fascism has evolved...
There is no need to get blood
on your hands while rounding up people and putting them into concentration
camps when you can do it through economic policy while sitting in a jacuzzi
on a corporate jet, or in a three-piece custom-made Armani, completely
detached and insulated from the world in which you plunder.
However, as what happens with all empires, greed and arrogance makes them
overreach. The beaten down masses get to a point where they literally can’t
live under these conditions.
This desperation spreads throughout the
population until it reaches a critical mass, then, suddenly,
they rise up
 and the empire begins to collapse…
Tunisia, Algeria, Egypt, Israel,
(Northern Africa, the Middle East), Albania, Greece, Spain, Britain
The Economic Elite are overreaching and their empire is collapsing.
The decentralized global rebellion  has begun…
Welcome to World War III.
Which side of history do you want to be on?
As a wise old friend once said ,
“You can’t be neutral on a moving
David DeGraw is the founder and editor of AmpedStatus.com . His
long-awaited book, The Road Through 2012: Revolution or World War III ,
will finally be released on September 28th. He can be emailed at David[@]AmpedStatus.com.
You can follow David’s reporting daily on his new personal website:
The Economic Elite Vs. The People of The United States
 declined by 28%: http://pewsocialtrends.org/files/2011/07/SDT-Wealth-Report_7-26-11_FINAL.pdf
 my analysis: http://ampedstatus.org/census-bureau-poverty-rate-drastically-undercounts-severity-of-poverty-in-america/
 52,765,000: http://www.census.gov/hhes/povmeas/data/nas/tables/2009/web_tab4_nas_measures_historical.xls
 15.5 million: http://www.childrensdefense.org/child-research-data-publications/data/state-of-americas-2011.pdf
 poverty rate would double: http://www.offthechartsblog.org/public-programs-keep-millions-out-of-poverty-new-study-shows/
 in half: http://motherjones.com/politics/2011/08/united-states-of-austerity
 25.7 million: http://www.cbpp.org/cms/index.cfm?fa=view&id=460
 45.8 million people: http://www.fns.usda.gov/pd/29SNAPcurrPP.htm
cutting the funding
 additional 22.5 million: http://www.arcamax.com/health/healthtips/s-917916-690577
 ShadowStats.com: http://ShadowStats.com
 6.3 million: http://news.yahoo.com/blogs/lookout/down-not-voices-long-term-unemployed-125453267.html
 40.4 weeks:
 16-month high: http://www.challengergray.com/press/PressRelease.aspx?PressUid=184
 10.6 million:
 577,000: http://www.thenation.com/blog/162577/after-debt-ceiling-debacle
 60%: http://www.zerohedge.com/article/how-fed-spent-2-trillion-and-exchange-we-got-650000-temp-leisure-and-retail-jobs
 12 months: http://www.huffingtonpost.com/2011/02/23/us-economy-trades-high-pa_n_827360.html
 $8,588: http://www.reuters.com/article/2011/08/04/us-usa-economy-incomes-idUSTRE77302W20110804
 summed up: http://www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8AGMUZ?OpenDocument
 28%: http://www.huffingtonpost.com/2011/06/15/executive-pay-soars-worker-pay-stagnates_n_877519.html
 report: http://dollarsandsense.org/archives/2011/0711cypher.html
 88% of income growth: http://thinkprogress.org/economy/2011/06/30/258388/corporate-profits-recovery/
 recently reported: http://www.zerohedge.com/article/attention-marxists-labors-share-national-income-drops-lowest-history
 $1,000,000,000,000: http://www.pagetutor.com/trillion/index.html
 richest 400 people: http://ourfuture.org/blog-entry/2011020612/understanding-extreme-incomewealth-gap
 40% of all wealth: http://www.vanityfair.com/society/features/2011/05/top-one-percent-201105?currentPage=all
 more wealth than 90%: https://www.youtube.com/watch?v=IykY6WlUIiA
 Who Rules America?: http://www.amazon.com/exec/obidos/ASIN/0078111560
 $27 million: http://washingtonindependent.com/107493/americas-super-rich-continue-to-make-mind-boggling-sums
 $145 billion: http://nymag.com/daily/intel/2010/01/wall_street_pay_for_2009_will.html
 $149 billion: http://www.aflcio.org/corporatewatch/paywatch/ceopay.cfm
 reported: http://articles.latimes.com/2010/aug/11/business/la-fi-insurance-salaries-20100811
 $72 million: http://blogs.courant.com/connecticut_insurance/2011/04/aetnas-former-ceo-ronald-willi.html
 1,470 Americans: http://www.huffingtonpost.com/2011/08/04/irs-incomes_n_918458.html
 $136,000: http://www.commondreams.org/view/2011/08/05-5
 $16 trillion: http://www.usdebtclock.org/
 $1 trillion: http://www.huffingtonpost.com/2011/04/12/student-loan-debt-may-top_n_848093.html
 3.6%: http://www.bls.gov/news.release/cpi.nr0.htm
 increased 39%: http://www.fao.org/news/story/en/item/81577/icode/
 lost 7.5%: http://www.zerohedge.com/article/gold-just-1-record-nominal-high-1444oz-risk-dollar-crisis-increases-day
housing program for the poor
 direct input from ALEC: http://www.justicepolicy.org/uploads/justicepolicy/documents/gaming_the_system.pdf
 Columbia University’s School of Public Health: http://www.wsws.org/articles/2011/jul2011/pove-j13.shtml
Analysis of the Global Insurrection Against
Neo-Liberal Economic Domination and the Coming American Rebellion - We
 once said: https://www.youtube.com/watch?v=Ehc3V1g5pm0
 AmpedStatus.com: http://AmpedStatus.com
The Road Through 2012: Revolution or World War III
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