Social Security Is in Far Worse Shape Than You Think

For years, politicians and policymakers have reassured the American public that the Social Security system, which sends monthly checks out to 53 million beneficiaries, is safely solvent -- and will be for decades to come. But federal spending and income data from the Treasury Department reveal that the Social Security program is already deep in the red, with outlays exceeding payroll tax revenues by $76 billion in 2010 alone.

http://www.dailyfinance.com/story/retirement/social-security-far-worse-shape-than-you-think/19804267/?icid=maing%7Cmain5%7Cdl3%7Csec1_lnk3%7C37184

12 Economic Collapse Scenarios That We Could Potentially See In 2011

So we had all better be getting prepared for hard times. The following are 12 economic collapse scenarios that we could potentially see in 2011....

http://theeconomiccollapseblog.com/archives/12-economic-collapse-scenarios-that-we-could-potentially-see-in-2011

Germany Should Prepare for Greek Default, Adviser Feld Tells Handelsblatt

Germany should set funds aside to prepare for a Greek default, Lars Feld, a designated economic adviser to the German government, was cited as saying in an interview with Handelsblatt newspaper.

“I don’t believe that Greece will manage to deal with its debts without a cut,” Feld, nominated by the Cabinet to a five- member panel of economists who advise the government and a professor at the University of Freiburg, was cited as saying. “And then German guarantees will come due.”

http://www.bloomberg.com/news/2011-01-19/germany-should-prepare-for-greek-default-adviser-feld-tells-handelsblatt.html

Nowhere to Hide" from Rising Food Prices

"Corn is a big one" in the higher prices department, Bloomberg Businessweek Assistant Managing Editor Sheelah Kolhatkar told "Early Show on Saturday Morning" co-anchor Betty Nguyen. "The Agriculture Department released a report a couple of days ago about crop forecasts for the year and predicted corn production is going to go down very significantly, which led to a spike in prices."

http://www.cbsnews.com/stories/2011/01/15/earlyshow/saturday/main7249451.shtml

Doom And Gloom

Most Americans may not care, but the food riots that are starting to erupt around the globe are actually very serious.

http://theeconomiccollapseblog.com/archives/doom-and-gloom

10 American Companies That Will Disappear in 2011

Saab USA
Office Depot
Dean Foods
Frontier Airlines
Sara Lee
Borders
Gateway
DollarThrifty
Answers Corp.
E*Trade

http://www.dailyfinance.com/story/investing/10-american-companies-that-will-disappear-in-2011/19798647/

Why supermarket stocks are getting squeezed

Rising food prices mean grocery store chains must absorb extra costs on items like meat, seafood, and produce, or they try to pass them along to customers. But many of those consumers are unemployed or have less money to spend, even on essentials. For now, the big chains are mostly choosing to absorb. As a result, profits are falling, and so are their stocks, making them one of the few dim lights in the market in 2011.

On Tuesday, Supervalu was the first of the grocers to report quarterly results, and the numbers for its fiscal third quarter were ominous: A loss of $202 million, or 95 cents a share, compared with a profit of $109 million, or 51 cents, in the same period a year earlier. The company, which operates Albertsons, Jewel-Osco, Acme and other chains, also cut its forecast for the year.

http://finance.yahoo.com/news/Why-supermarket-stocks-are-apf-904020854.html?x=0&sec=topStories&pos=5&asset=&ccode

The Black Swan Events of 2011?

Remember the sickening plunge in the stock market last spring, May 6, 2010, the mysterious flash crash?

Remember that day? It felt like the markets were in a massive power blackout.

Can it happen again? What are the Black Swan events of 2011, the unpredictable events that can wreak utter chaos in the markets?

http://www.foxbusiness.com/markets/2011/01/14/black-swan-events/?cmpid=cmty_email_The_Black_Swan_Events_of_2011%3F

China's control of rare-earth metals poses risk to U.S. solar future

China's tight control of rare metals may hurt developing domestic solar industries, according to a research director at the National Renewable Energy Lab.

"Folks are looking at, if we don't get it from China, how will we get it?" said Ryne Raffaele, director of the center for photovoltaics at NREL, the U.S. government's premier energy lab. "Can it easily be mined?"

http://www.denverpost.com/news/ci_17108810?source=rss#ixzz1BJ6R5LVx

Next shock will be high food prices

You will pay for all this water. Unless you are insulated from the normal costs of living, you can expect sticker shock at some point this year, or next, when paying for the weekly food shopping. We've had oil shocks. Prepare for food shocks.

Ten years ago, the United Nations Food and Agriculture Organisation's composite world food price index stood at 92. For the month of December it was 215.

The most expensive year on record was 2008, when 60 million people slid into poverty because of higher food costs. There were food riots. Over the past three months, the trend in the FAO's food price index was worse than 2008.

http://www.smh.com.au/opinion/society-and-culture/next-shock-will-be-high-food-prices-20110116-19sen.html

World is 'one poor harvest' from chaos

Like many environmentalists, Lester Brown is worried. In his new book "World on the Edge," released this week, Brown says mankind has pushed civilization to the brink of collapse by bleeding aquifers dry and overplowing land to feed an ever-growing population, while overloading the atmosphere with carbon dioxide.
If we continue to sap Earth's natural resources, "civilizational collapse is no longer a matter of whether but when," Brown, the founder of Worldwatch and the Earth Policy Institute, which both seek to create a sustainable society, told AFP.

http://www.breitbart.com/article.php?id=CNG.999426eed38d24123132435f3d303867.31&show_article=1

'Explosive' Food Prices the Biggest Risk

Overheating emerging markets, in China in particular, pose the biggest threat to the market and political situation in 2011 according to Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

“These economies are clearly overheating and governments are putting measures in place to slow them down to fight inflationary pressure. More than anything else, food inflation is a problem," Gijsels told CNBC.com.

http://www.cnbc.com/id/41089972

5 Simple Ways To Prepare For The Coming Food Crisis

The truth is that we are headed for large food production shortfalls, manipulated or not, while middle-class food demand grows massively in the developing world. For decades the world's agriculture community produced more than enough food to feed the planet, yet some now believe we are reaching "Peak Food" production levels. In turn, other experts believe the "food bubble" is about to burst, and not even the biotech companies can save us.

http://www.activistpost.com/2011/01/5-simple-ways-to-prepare-for-coming.html

Higher commodity prices may spur inflation

Rising wholesale prices for food and energy are putting pressure on manufacturers and retailers to pass higher costs to customers. It's a trend that could raise inflation in the United States and slow economies in Asia and Latin America.

U.S. gas prices have topped $3 a gallon, and grain prices have reached a 2 1/2-year high. Some lawmakers say the increases illustrate the need for tighter limits on speculation in commodities markets.

Airlines, clothing manufacturers and some grocery stores have already raised retail prices. And even those companies that have resisted increases because they worry that customers can't afford them may be more reluctant to hire because of the squeeze.

http://news.yahoo.com/s/ap/20110113/ap_on_bi_go_ec_fi/us_economy%3B_ylt%3DAsYHP_zuePdWDreoVGhnWDGs0NUE%3B_ylu%3DX3oDMTFocGwwZ2V2BHBvcwMyNgRzZWMDYWNjb3JkaW9uX3RvcF9zdG9yaWVzBHNsawNoaWdoZXJlbmVyZ3k-

At Least 10 States Have Introduced Gold Coins-As-Currency Bills

Legislators in at least ten states have introduced bills in the past few years to allow state commerce to be conducted with gold and silver.

As we reported, Georgia state Rep. Bobby Franklin (R) recently reintroduced legislation to force his state to conduct all monetary transactions with U.S. gold or silver coins -- including the payment of taxes.

The Georgia bill has a long way to go before become law -- but it's by no means the only state that's considering a future in gold. Lawmakers in Montana, Missouri, Colorado, Idaho, Indiana, New Hampshire, South Carolina, Utah, and Washington have proposed legislation, mostly in 2009, to include gold and silver in its accepted currency forms.

http://tpmdc.talkingpointsmemo.com/2011/01/at-least-10-states-have-introduced-gold-coins-as-currency-bills.php#

Munis Crashing For Third Straight Day, And This Is The Worst Yet

For three days now, munis have tanked, and this is the worst one yet.

http://www.businessinsider.com/munis-crashing-for-third-straight-day-and-this-is-the-worst-yet-2011-1

S&P, Moody's Warn On U.S. Credit Rating

Investors bought Treasury debt nonetheless, ignoring the comments, which echoed prior statements by the companies and may still be months or years away from having any practical meaning.

"The warning on the U.S. rating is well-founded," said Brian Yelvington, chief fixed-income strategist at Knight Capital. "However, it will probably fall on deaf ears until the peripheral Europe story plays out."

Moody's Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its "Aaa" rating.

http://online.wsj.com/article/SB10001424052748703583404576079311379009904.html?mod=WSJ_hp_LEFTWhatsNewsCollection