America's Debt Slaves Are In Trouble

The average American household is in a very precarious state.
The average American household is in deep trouble, and by "deep" I mean in debt.
The average American is so deeply in debt that they may as well stop pretending that they are free.

Some 40% of Americans with debt are spending up to half of their monthly income paying it back. And that may not even be enough to cover how much they owe....
The survey found that nearly half of Americans are carrying at least $25,000 in debt, with an average debt of $37,000, excluding mortgage payments. About one in 10 surveyed said their debt was more than $100,000.

When you are that deeply in debt there are a lot of things you can't do, such as quit your job and pursue your dream.
However, there is one thing you can still do - you can fall behind.

More than one in three Americans are living with debt in collections, according to a newly released study from the Urban Institute. The credit of 77 million Americans could be severely impacted, preventing them from reaching their financial goals.
The national average of debt reported in collections is $5,187; held by 35% of the population with credit files. This debt does not include delinquent mortgage payments, but is instead made up of debt like unpaid medical bills, overdue credit card balances and even outstanding utility statements.

One in three means chances are that more than one person you know is in over their head right now.
40% means more than one person you know is hanging on by the skin of their teeth.
For an increasing number or working Americans, it is already too late.

Synchrony, Capital One, and Discover – a gauge of how well over-indebted consumers are managing to hang on – have together increased their Q1 provisions for bad loans by 36% year-over-year. So this is happening.

The precarious state of today's American household extends beyond that.

Some 50% of people is woefully unprepared for a financial emergency, new research finds. Nearly 1 in 5 (19%) Americans have nothing set aside to cover an unexpected emergency, while nearly 1 in 3 (31%) Americans don’t have at least $500 set aside to cover an unexpected emergency expense, according to a survey released Tuesday by HomeServe USA, a home repair service. A separate survey released Monday by insurance company MetLife found that 49% of employees are “concerned, anxious or fearful about their current financial well-being.”

The MetLife survey actually dramatically underestimates the stress and financial burden that working families are undergoing.
A Pew Research Center study gave a much more revealing report.

The American dream has inspired generations to work hard with an eye toward climbing the socioeconomic ladder. But when the Pew Research Center asked Americans whether they would rather have more money or economic stability, 9 out of 10 choose stability.

That in itself is a shocking finding, but further into the study you find out why that is.

The findings are startling. For instance, the researchers discovered that even middle-income families are spending part of each year in poverty.
“Many people who are middle class nevertheless have the experience of being poor over the course of the year,” said Rachel Schneider, a co-author of “The Financial Diaries,”...
“It’s not being able to pay all their bills,” Schneider added, “not being able to afford their groceries, having to think about putting gas in the car, having to think about whether to cancel their cable. When you work full time and still have that experience, it feels unfair.”

It is unfair.

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If it's one in three, or even 40%, why the Hell have we not thrown these bums out?!? Seems to me, all we have to do is start Talking TO each other, instead of At each other.
I do believe that if I were to run for office, I would have to get Mr. Hedges' permission to use that quote that joe posted in the eb for a stump speech.
Now THAT'S a rallying cry if I've ever heard one!

peace

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Ya got to be a Spirit, cain't be no Ghost. . .

Explain Bldg #7. . . still waiting. . .

If you’ve ever wondered whether you would have complied in 1930’s Germany,
Now you know. . .
sign at protest march

@Tall Bald and Ugly The vote for Trump was a vote to "throw the bums out" and elect the guy who said he cared about them and would do things for them, while the other gal called them names and said she liked to see people out of work.

Some 90% of voters do not analyze issues. They vote either based on "team" or promises. When their team has a bad coach, they tend to not bother going to the game.

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I've seen lots of changes. What doesn't change is people. Same old hairless apes.

Bollox Ref's picture

to your mortgage payment, the bank will cut you some slack. Even a refund.

Honest.

/s

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Gëzuar!!
from a reasonably stable genius.

@Bollox Ref

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CB's picture

I need to go shopping to cheer myself up.

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Pricknick's picture

having to think about whether to cancel their cable

What a challenge. Do I cut off reality, news or just the daily crap? Reality or news doesn't come from cable or even the antenna anymore. Crap? That's what I can see every day without the boob.
Do you need it? Buy it.
Do you want it? Save for it or forget it.

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Regardless of the path in life I chose, I realize it's always forward, never straight.

@Pricknick

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@Pricknick
Going to internet + Hulu/Sling/antenna
It's a trend.

U.S. cable and satellite-TV providers suffered their worst first quarter of subscriber losses in history, raising fresh concerns that cord-cutting will accelerate and drag down media stocks.

Charter Communications Inc., Dish Network Corp., AT&T Inc.’s DirecTV and Verizon Communications Inc. combined to lose almost half a million video subscribers in the period, as more consumers spurned the cost and clutter of traditional pay-TV packages for cheaper online alternatives. Only Comcast Corp. added customers.

The results indicate that consumers may be growing more aware of on-demand streaming services like Netflix and Amazon and the increased depth their content offerings -- and that may be spurring more cord-cutting in 2017. Major pay-TV operators lost 1.4 million subscribers last year, according to Bloomberg Intelligence.

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gulfgal98's picture

@gjohnsit over seven years ago. Missed some things at first, but traded mindless noise for peace and quiet. Hubby likes movies so he checks them out from the library. I am a cycling fan, so I buy an online subscription every July to watch the Tour de France on my computer sans commercials too! Otherwise, we do not miss the tv at all.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

Pluto's Republic's picture

Half of all Americans have less than $47 to their names, taking into account their assets and debts.

(The majority of those are in negative territory. I guess that's why the Dem elites call them the "throwaway people." Keeping them alive costs more money than they are worth.)

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____________________

The political system is what it is because the People are who they are. — Plato
Phoebe Loosinhouse's picture

as it used to be.

So here goes, the story of my in-laws, members of the Greatest Generation. THIS is what used to be possible in the US:

They were both the children of immigrants, one first generation, one second, one of Finnish descent and the other of Italian descent. They knew each other as children in the same tenement housing in a Northeastern city and grew up and got married. He was drafted and served in the Army in WWII. He graduated from high school and she went as far as eighth grade before dropping out to take care of her sick mother. While in the Army in North Africa, my father-in-law worked in the oilfields and learned his trade. My mother-in-law worked in retail, waitressing, etc. while waiting his return.

After the war, my father-in-law was employed by an American oil company, a job he retained for the next close to forty years. He had steady employment, great benefits, regular pay raises, a defined pension, and after retirement healthcare. My mother-in-law worked as a blue collar worker in the jewelry industry with no benefits, no retirement, but decent pay and flexible/good working hours which kept her employed for close to twenty years.

Within the scope of their working lives my in-laws were able to - buy a modest but nice home in a modest yet nice neighborhood, have two paid for in cash cars at all times, save for retirement, send two children to college (one a private college and one a state university)lead an active social life which involved a lot of entertaining and going out, buy a second retirement/vacation home and retire comfortably. Yes, two blue collar workers managed to have a great life and a great retirement simply by working at two completely normal jobs for their place and time.

Who has that opportunity today? They had wonderful lives and their kids had mostly great lives, although the kids (the Boomers, my generation) got to see the dismantlement of the dream as the jobs and the security and the affordable education costs evaporated for the third generation in the sequence. There once was a comfortable and secure middle class in America, believe it or not. It seems like a fairy tale now.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

detroitmechworks's picture

they quite rightly are afraid that unless they spend their money, their old debt will eat it.

Doesn't matter how old it is, all it takes is one bank officer deciding that that pesky law protecting funds of a given person is "burdensome" and lo and behold make a "Clerical Error" that results in the money going to a debt collector. Of course, said debt collector is of course 100% certain that the debt is legitimate... except when they're not.

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I do not pretend I know what I do not know.

enhydra lutris's picture

@detroitmechworks
savings is less than the rate of increase in the cost of living. Saving loses you money (buying power), while buying long lived consumables and utilitarian durable goods currently saves money over the long haul.

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That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

karl pearson's picture

Debtors' prison was outlawed in 1833 and bankruptcy laws have existed for over a century. The Supreme Court has ruled that courts cannot jail indigent debtors. So why are the courts reverting to jailing debtors?

Alec Karakatsanis, a lawyer who last year brought one of the only lawsuits to successfully challenge a local court system for jailing indigent debtors, says that the first step was the normalization of incarceration.
“In the 1970s and 1980s,” he says, “we started to imprison more people for lesser crimes. In the process, we were lowering our standards for what constituted an offense deserving of imprisonment, and, more broadly, we were losing our sense of how serious, how truly serious, it is to incarcerate. If we can imprison for possession of marijuana, why can’t we imprison for not paying back a loan?”

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earthling1's picture

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Neither Russia nor China is our enemy.
Neither Iran nor Venezuela are threatening America.
Cuba is a dead horse, stop beating it.

reflectionsv37's picture

@earthling1 I began to realize the long term effect of trying to exist in America. Have a job, buy a house and you are suddenly in debt for the next 30 years. Add a car or two to the debt pile and before long you owe so much money you began to wonder how you will ever pay it off. Add in the expenses of working, clothes, gas, tires and near mandatory payments for phone, electricity, water, sewer, cable and insurance and you have just reduced your net take home pay to zero leaving very little left over for food or entertainment.

The goal of the 1% was a pretty simple theory, get you in debt and keep you there! It's far worse today. By the time you get a college degree, you're already 10's of thousands in debt and you don't even have a job yet. In the past, your student loan debt could have purchased a home. I don't see how these young people ever have a hope of escaping that debt short of a winning lottery ticket. They will be slaves to that debt for their entire lives and very likely die with most of that debt still unpaid.

It was back in those early 90's that I made a commitment to myself that I was not going to live my life according to the "American Dream". I began paying off all debt, credit cards first, then cars and then started on the house. I started making principal payments on my home to bring down the balance. When an extra $100-200 a month doubles the amount of principal you pay per month, the balance comes down pretty fast. I refused to purchase anything that couldn't be paid for with cash.

But I also had a plan. By the late 90's, I'd eliminated all credit and consumer debt. Cars were paid for and the balance on my mortgage had reduced significantly. I had substantial equity in my home and cars and other assets that had cash value.

I started shopping for my future home and escape vehicle. I found the perfect sailboat for the two of use. One that would provide a comfortable home and be able to take us anywhere in the world. I actually took out a loan on the boat to hold on to the cash I'd saved to make improvements on the boat. After a couple years of refitting the boat and making other preparations, we sold our house, paid of the boat liquidated our other assets and in August of 99, we cut the dock lines and sailed south for Mexico and beyond. We've never looked back.

By the time we left in 99, I was so disgusted with the United States, in particular the impeachment of Bill Clinton, that I never wanted to step foot in the country again. Somewhat sadly, I feel even worse about the US today and I will never come back. I can honestly say that I hate what the US has become. I see the photos of military police, the number of people incarcerated, the numbers that live in poverty, those without healthcare and it sickens me. I view the US as one of the most dangerous places in the world. I fear the police as much as I do the criminals. What I found intolerable 25 years ago is 10 times worse today. The greed of the 1% has become insatiable. They now dream up new ways to get you in debt and keep you there. Hard to believe a graduating student could be saddled with $50k of debt or more before they ever start a job. They'll never be able to do what we have done.

And now, with Trump president, the US will sink only further and much, much faster. If you're young and you're reading this, get out of the US while you can. The longer you stay the more difficult it will ever be to leave.

Okay, time for me to quit ranting! In 4 months I start collecting my Social Security. For whatever time the republicans allow me to collect it!

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“Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we.”
George W. Bush

earthling1's picture

@reflectionsv37
Wish I could follow you guys. But we have many grandkids to help through college. We are committed to them graduating without any student debt.
To that end, we have paid everthing off, including the mortgage.
Would love to have a sailboat but don't know anything about sailing. Especially blue water sailing. Have bought and paid off a small four wheel drive motorhome that is very comfortable to live in and are looking at moving to Canada, as it is only four hours away from kids and grandkids (Vancouver, Wa.). Want to buy some property to farm and create a future life for them.
Have a decent 401 that I want to get cashed out and removed from America before it's stolen from me and buying property in Canada would help in that endeavor.
This country has gone to Hell. We've waited for decades for the people to wake up. Occupy Wall Street ignited hope in me, only to plummet in despair.
We're getting older and tired of waiting. The American people are not going to fight back and we understand that now.
Debt Slaves is the future of their children and grandchildren and great-grandchildren. They have forfeited their lives to the plutocrats through inaction and grotesque apathy. Comfortably numb, they are.
Don't get me wrong, the folks here and a few other sites, both on the right and left, understand what is happening. But there are way to few, and IMHO, way too late.
Good luck to you and yours and happy sailing. I envy you much.

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Neither Russia nor China is our enemy.
Neither Iran nor Venezuela are threatening America.
Cuba is a dead horse, stop beating it.

Pluto's Republic's picture

@earthling1

...I would title it, "The Last of the Americans."

Every phrase is an icon — a tableau — of an American family against the backdrop of the turn of the Millennium.

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____________________

The political system is what it is because the People are who they are. — Plato
earthling1's picture

@Pluto's Republic
Will the last American to leave America please bring the flag.

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Neither Russia nor China is our enemy.
Neither Iran nor Venezuela are threatening America.
Cuba is a dead horse, stop beating it.

Take up a hobby and be creative. I'll change your life. You might even not want to go to Disney World anymore.

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"Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies." - Groucho

gulfgal98's picture

@the_poorly_educated in the United States do not occur from keeping up with the Joneses. Medical expenses are the primary factor behind 62% of all individual bankruptcies in the US.

Interestingly, the study also showed that 72 percent of those who filed for bankruptcy due to medical expenses had some type of health insurance...

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

not be able to pay off in my lifetime. This isn't negativity, just simple math.
I've always paid on it when I could and it was always easy to get another period of forebearance when I needed it but that was when I was able to deal with someone at the department of education. Those days are gone. Since Obama privitized student loan collection I can't talk to the DOE who I took the loans from, but a ruthless, heartless private debt collector. They dgaf what my problems are or how garnishments might affect my family, they get paid commission based on how much they can squeeze from me, period.
Yes, there are income-based programs but they are set up so that one slip up puts you right back into garnishment.
This is my life now and nothing but a lottery win or inheritance from a rich relative I didn't know I had will change it. I'll go back and forth between making payments, having a huge percentage of my paychecks garnished, and grovelling to some glorified telemarketer about the details of my failure in life and the depths of my poverty (please sir, may I have another sliding scale payment plan?) FOR. THE. REST. OF. MY. LIFE.
There's no light at the end of the tunnel. This will continue through the rest if my working life, then when I start collecting social security they will garnish that too. I won't just be eating cat food, I'll have to settle for generic cat food.
I wish there was a debtors prison (as long as it's not a life sentence). I'd be glad to spend 10 years away from my family fighting to not get raped if it allowed me to finally put the mistake of trying to get an education I couldn't afford behind me.

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@Dopeman My daughter is struggling with her student loans which her rate is based on her income. But they don't take into consideration her cost of living in NYC (tiny apartment in bad neighborhood). She keeps saying if she makes the minimum payment they will be "forgiven" after 20 years. I don't believe that. I would like to be able to help her more but we are trying to save for when we are unable to work because our Pension plan is going belly up and can no longer count on that. We probably shouldn't count on social security either. This country is FUBAR.

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O.k. When is the next meeting for the revolution?
-FuturePassed on Sunday, November 25, 2018 10:22 p.m.

gulfgal98's picture

@Dopeman Congress privatized the student loan system and then made it the only type of debt that cannot be discharged via bankruptcy. It is one of the worst scams going on in this country of scams. My heart goes out to you Dopeman.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

PriceRip's picture

@Dopeman

... if it allowed me to finally put the mistake ...

          Several years ago I pointed out to a gymnasium filled with farmers that the conflict at the time was not their fault. The conflict was do to the mechanizations of the others involved. When one gets set up to get swindled it is clear where the fault lies.

          We live in a society where "blaming the victim" has become the norm. There is too much at stake to buy into the lie.

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Pluto's Republic's picture

@PriceRip

That's what set it all in motion — the reactions and counter-reactions; the entanglements.

Dopeman wants to take back his "mistake" of taking a gamble on getting an education in America. And you want to absolve him of blame:

"But, you did not make a mistake ...

When the odds are outrageous and the casino is corrupt; when its victims are scattered throughout society and are referred to as "losers" — what sort of person would walk in through the front door ready to wager their life?

True, Americans are afflicted with a terminal case of "Denial." They worship an obsolete Constitution written to benefit slave-owners, and somehow think that won't work against them. (All evidence to the contrary, aside). What Dopeman now knows in hindsight is no different from what due diligence revealed when he placed his bet.

Denial is the terrible tax most Americans willingly pay so they can sleep at night, and to permanently silence their moral compass. It's a deal they each, individually, make with the Devil.

You say:

Several years ago I pointed out to a gymnasium filled with farmers that the conflict at the time was not their fault. The conflict was due to the mechanizations of the others involved. When one gets set up to get swindled it is clear where the fault lies.

But, PriceRip, it's not clear to me.

Fraud is a serious crime. Those farmers should have walked away with triple damages, set for life. Since they didn't, I suspect that they were in denial about a deal too good to be true and had already signed off on the disclosures.

I'm not blaming the victims. I'm just saying if they haven't been moving heaven and earth to expatriate from the rigged and corrupt US plantation, then they have chosen to dance with the devil.

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____________________

The political system is what it is because the People are who they are. — Plato
PriceRip's picture

@Pluto's Republic

          Fraud is a serious crime. Those farmers should have walked away with triple damages, set for life. Since they didn't, I suspect that they were in denial about a deal too good to be true and had already signed off on the disclosures.

          The fraud (aka swindle) involved lies to seduce the neighbors into allowing a multi-state waste dump to be constructed on their property. The inevitable contamination would have been irreparable. But, as the damages were "hypotheticals" no payday was in the cards. Oh, and for the long-con, the compact agreement would have held TPTB blameless as they were acting in good faith. (Yea Right!) Crushing the Compact's plan to foist the dump onto Nebraska was the objective and the ultimate win.

          As a Nuclear Physicist I was invited to speak to a gymnasium filled with local farmers in an effort to convince them that we-all knew better than all-them that this state-of-the-art low-level waste repository would be a (if not good) benign project. The compact promoters were less than pleased with my presentation, as they somehow missed the part of the PhD process wherein the candidate is supposed to adopt certain ethical standards. They actually thought my credentials would place me on their side of the divide.

          No De Nile in the state of Nebraska.

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PriceRip's picture

@Pluto's Republic

But, PriceRip, it's not clear to me.

          If after a few hands you have not spotted the mark, you are the mark. There is always a mark. And, unless they are at the top of their game, the various players can be identified.

[video:https://www.youtube.com/watch?v=PCZ1CVpxq_c align:center]

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orlbucfan's picture

Rec'd!!

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Inner and Outer Space: the Final Frontiers.

Phoebe Loosinhouse's picture

@orlbucfan

I do plan to fire up again. I have just completed the slowest and most inefficient household move ever, but we are now settling in and I have time to read and write once more.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

PriceRip's picture

          Yea, I was told I was an idealist. I have even been told I didn't know what I was talking about. Yep, so what the fuck is new? I have been watching this train wreak unfold in slow motion since (no one gives a shit), but no way can it be avoided. I even voted for a guy (another idealist, I suppose), that exactly like me, knows this is all a manufactured problem. But, who gives a shit about that, because damn idealists, snarl.

          I knew it from that day, in the dark deep past, when this guy said, "This is how we can pay for that." His office was under the stairs in the Administration Building and he had magical powers. (Don't tell anyone, but he knew how the economic system really worked and knew how to "game" the system.)

          Over the years I (and others like me) have been described a leech, or a tick on society, a "welfare drag (like a sea anchor I suppose) on the economy (or society)", and other terms of endearment. Everyone of us (despised disposable scum) has produced far more than we cost. And, Bonus, it was even a larger gain for society because as productive member of society we did not chose the alternative life. So if you subtract a negative from the sum with a positive the result is even more of a positive, wow who would have thought math could actually apply in the real world, funny now that happens.

          I suppose I am just a jerk because, duh, the solution is obvious and when I told people over at TOP what we should be doing I was informed that I was being jerk.

          If every representative (both houses) in Washington perceived a physical threat from their constituents, they would act to preserve their physical integrity. This is a reality. This is the way it works on the streets, okay, on some streets. So, how about a less physical (and criminally insane) approach to force the bloody bastards to do the right things. Reason isn't working, because reason isn't a part of their Weltanshauung. There must be someway to scare them into either stampeding in the direction where something good happens or stampeding in the direction wherein their actions may be neutralized, thereby allowing something good to happen.

          But then I am just a jerk. So, as usual, your mileage may vary.

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@PriceRip

they are too comfortable now.

@RantingRooster

I have noted elsewhere that there are actions short of violence which would make it harder for the swine to enjoy themselves. Specifically members of congress and MSM shills like Maddow & Hayes.

They are so full of themselves- a "here's what we think of you" campaign is the least we owe them. Jimmy Dore has the right idea.

Public ridicule and shaming. Let there be street theater! Videos,etc.

Watching the " nyc elite" suck HRC toes on Broadway was enough to make me vanilla for life.

great post RR, thx.

this sort of thing may not be enough.
but if we are down to violence as our best choice, things are dire indeed.

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does seem to be missing a few rungs. Not to worry though, once America gets Made Great Again, it'll be flat screen TVs all around -- a swimming pool for every McMansion and a monster pick up in every double garage.

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native

Lenzabi's picture

Overdue time there was a major world Jubilee but then, that would make the Banksters poor for a while. Poor boo-boos.

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So long, and thanks for all the fish