The Rise Of The Temp Economy: More U.S. Employers Than Ever Want A "Disposable Workforce"

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

In this day and age it seems like almost everything is disposable, and many employers have found that they can make a lot more money if they have a workforce that can be turned on and off like a faucet. In America today, there are more than 17 million “independent workers”, and they represent a bigger share of the workforce than ever before.

Federal laws give a lot of protection to “full-time workers”, but for temporary and contract employees it is a much different story. Temp workers don’t get health insurance, vacation time or retirement benefits. They are simply paid for the limited amount of time that they are needed and then they are disposed of immediately. There has always been a role for such workers in our economy, but these days some of the biggest corporations in the entire country are getting rid of “full-time workers” and replacing them with temp workers just so that they can make a few extra bucks. As a result, the ranks of the “working poor” continue to expand, and the decline of the middle class is accelerating.

Steven Hill, a senior fellow with the New America Foundation and the author of “Raw Deal: How the Uber Economy and Runaway Capitalism Are Screwing American Workers“, says that the rise of the “1099 economy” is fundamentally shifting the balance of power between employers and employees

This practice has given rise to the term “1099 economy,” since these employees don’t file W-2 income tax forms like any regular, permanent employee; instead, they receive the 1099-MISC form for an IRS classification known as “independent contractor.” The advantage for a business of using 1099 workers over W-2 wage-earners is obvious: an employer usually can lower its labor costs dramatically, often by 30 percent or more, since it is not responsible for a 1099 worker’s health benefits, retirement, unemployment or injured workers compensation, lunch breaks, overtime, disability, paid sick, holiday or vacation leave and more. In addition, contract workers are paid only for the specific number of hours they spend providing labor, or completing a specific job, which increasingly are being reduced to shorter and shorter “micro-gigs.”

Yes, there have always been temp agencies. And there has always been a need for workers that can come in and do a job on a short-term basis. But today, many of the largest and wealthiest corporations in America are purposely getting rid of “full-time workers” and instead are bringing in “independent contractors” to do the exact same jobs.

In some instances, the full-time workers that get fired are actually brought back as the new “temp workers”

Merck, one of the world’s largest pharmaceutical companies, was a vanguard of this underhanded strategy. When it came under pressure to cut costs, it sold its Philadelphia factory to a company that fired all 400 employees—and then rehired them back as independent contractors. Merck then contracted with the company to carry on making antibiotics for them, using the exact same workers.


An Arizona public-relations firm, LP&G, fired 88 percent of its staff, and then rehired them as freelancers working out of their homes, with no benefits. Even Outmagazine, the most-read gay monthly in the U.S., laid off its entire editorial staff and then rehired most of them as freelancers, without benefits and with salary cuts.

All of those companies should be absolutely disgusted with themselves.

How can the executives responsible for those decisions even sleep at night?

Don’t they understand what they are doing to people?

When you go from being a full-time worker to being on “temp status”, the changes can be quite dramatic. If this has ever happened to you, then you know what I am talking about. Having to pay “the other half” of the payroll tax or having to find your own much more expensive health insurance are just two of the big negatives that “independent contractors” have to face…

Suddenly I was responsible for paying for my own health care, arranging for my own IRAs and saving for my own retirement. I also had to pay the employer’s half of the Social Security payroll tax, as well as Medicare — nearly an extra 8 percent deducted from my income. The costs for my health-care premiums zoomed out of sight, since I was no longer part of a large health-care pool that could negotiate favorable rates.

The decline in the quality of our jobs is a theme that I have revisited repeatedly in my writing. In order for us to have a thriving middle class, we need lots of good paying middle class jobs.

But our economy is not producing many of those jobs. Instead, most of the growth has been in low paying service jobs. The Middle class in the United States is being slowly but surely shredded, and our politicians don’t seem to care. If you doubt that the middle class is falling apart, just check out the following numbers which come from my previous article entitled “Sayonara Middle Class: 22 Stunning Pieces Of Evidence That Show The Middle Class In America Is Dying“…

#1 This week we learned that for the first time ever recorded, middle class Americans make up a minority of the population. But back in 1971, 61 percent of all Americans lived in middle class households.

#2 According to the Pew Research Center, the median income of middle class households declined by 4 percent from 2000 to 2014.

#3 The Pew Research Center has also found that median wealth for middle class households dropped by an astounding 28 percent between 2001 and 2013.

#4 In 1970, the middle class took home approximately 62 percent of all income. Today, that number has plummeted to just 43 percent.

#5 There are still 900,000 fewer middle class jobs in America than there were when the last recession began, but our population has gotten significantly larger since that time.

#6 According to the Social Security Administration, 51 percent of all American workers make less than $30,000 a year.

#7 For the poorest 20 percent of all Americans, median household wealth declined from negative 905 dollars in 2000 to negative 6,029 dollars in 2011.

#8 A recent nationwide survey discovered that 48 percent of all U.S. adults under the age of 30 believe that “the American Dream is dead”.

#9 At this point, the U.S. only ranks 19th in the world when it comes to median wealth per adult.

#10 Traditionally, entrepreneurship has been one of the engines that has fueled the growth of the middle class in the United States, but today the level of entrepreneurship in this country is sitting at an all-time low.

#11 If you can believe it, the 20 wealthiest people in this country now have more money than the poorest 152 million Americans combined.

#12 The top 0.1 percent of all American families have about as much wealth as the bottom 90 percent of all American families combined.

#13 If you have no debt and you also have ten dollars in your pocket, that gives you a greater net worth than about 25 percent of all Americans.

#14 The number of Americans that are living in concentrated areas of high poverty has doubled since the year 2000.

#15 An astounding 48.8 percent of all 25-year-old Americans still live at home with their parents.

#16 According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month, and nearly 47 million Americans are living in poverty right now.

#17 In 2007, about one out of every eight children in America was on food stamps. Today, that number is one out of every five.

#18 According to Kathryn J. Edin and H. Luke Shaefer, the authors of a new book entitled “$2.00 a Day: Living on Almost Nothing in America“, there are 1.5 million “ultrapoor” households in the United States that live on less than two dollars a day. That number has doubled since 1996.

#19 46 million Americans use food banks each year, and lines start forming at some U.S. food banks as early as 6:30 in the morning because people want to get something before the food supplies run out.

#20 The number of homeless children in the U.S. has increased by 60 percent over the past six years.

#21 According to Poverty USA, 1.6 million American children slept in a homeless shelter or some other form of emergency housing last year.

#22 The median net worth of families in the United States was $137, 955 in 2007. Today, it is just $82,756.

So is there a solution?

Is our transition to a “1099 economy” inevitable?

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LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Dec 30, 2015 8:14 PM

Thank the gubmint for 99.9% of these problems.

Hitlery_4_Dictator's picture

Looks like Obama is going to help: 

TOMORROW: Obama new executive action will be printed as 'rule' in federal register. Allows for huge expansion in number of alien work permits issued annually... Developing...

NoPension's picture

Sucks, don't it?

"Why do they do it?" For real? Try to keep up with government mandates. It's tough, when you're trying to run a for profit company. And if your competition is China, illeagal Invader fucks, or H1b visa holders, try to compete. You will go broke.

Businesses today are simply collection agencies for Federal, State and Local governments. They take the cash, and fill their ranks with others that have the same political view and skin color. Platinum salaries and benefits, gold plated defined benefit pensions.

It's good to be in the "party". Just like old school Soviets. The regular population had scraps and a gray life. The Party members, who organized the shitshow, lived high on the hog, shopped in special stores, traveled.

At some point, the pissed off contingent will reach a tipping point.

I like piano wire.

Quasi's picture

Temp workers are a necessity in manufacturing and many other businesses.  You might have a short-run contract, or some other job that is only a month or three long (think seasonal work) and a full-time employee is just way too much.  

My solution, rather using than using the current slave camps that temp agencies are (biggest scum in the industry IMHO), is that we should reform and have ACTUAL FREAKING UNIONS! Not the current type we are all accustomed to.

Under this system, you would choose among multiple, competing Unions for each laborer type (Welder, Autoworker, Pipe Fitter, etc.).  These Unions (either regular corporations, or my personal favorite, employee owned corporations) would be your employer, giving you full benefits workers are used too. Other companies Such as Ford, or Choate, would then go to these Unions when they need extra help for a contract or season and "rent" the workers.  Once done, you go back to your Union and wait for your next job, and since it is in their benefit to "rent" you out you wont be idle very long. Even if you are they will still keep money in your pocket to live, like what a Union is supposed to be.

It sounds a lot like the current Temp Agency setup except for a few major differences.

First, you will be a full employee the whole time, not a contractor working for a contractor who can be terminated and blackballed at a moments notice.

Second, You will be in a Union with other skilled members of your profession who are looking out for you and vice-versa, no sleazy suits half a continent away who can't tell the difference between a wrench and a TIG torch.

Third, and most important, all of your wages, taxes, healthcare will be dealt with in a single place (the Union's HR Dept.)  So no more 1099 horseshit. As an added benefit, the company "renting" you doesn't have to deal with this stuff either, so they can spend more on actually paying your ass. Don't worry, your Union employer wants as much as he can get too so he won't rent you out for peanuts.


It's not perfect and probably has more than a few flaws, but it should work within the current system of over-regulated bullshit. It has to be better than the current Temp Agencies at least.

Vendetta's picture

Things like the "European Union" are the corporatist/globalists' union against national sovereignty and workers.

Richardk888's picture

What you speak of is a temp agency.  I have worked for many in the past, although higher end to manage large telecommunications project in different capacities.  I have had contracts that have lasted from months to years. 

These companies give you the option of being W-2, or an independent contractor.  If you go the W-2 route, then you get the benefits any other employer would offer.

I always pull 40 plus percent more in pay then I would as a direct employee for a company, plus get to choose what projects and locations I wish to work.

I have all the control and have always been in high demand.

I have been an employee with a company for the past three years becuase I saw a softness in the demand side but would gladly jump back into a temp agency.

Each person controls their destiny.  Aquire neccessary skills that add value to your line of work.

Unions are for the weak!

East Indian's picture

India had such labour unions hundreds of years ago... in the third - sixth centuries; they solidified into castes! Google it!

Quasi's picture

Indeed. Everyone wants to blame employers for the Temp Worker mentality, but the reason they want temp workers is because the cost of hiring/maintaining/firing employees is astronomical with the numerous State and Federal regulations imposed on them. When half of the cost of having an employee is complying with Uncle Sam's idiotic regulations you would want to go to all temp (highly unregulated) as well. 


New World Chaos's picture

Companies also don't have to play the lawsuit / 99 week lotteries with temps.  That, and other taxes and regulations that fall away, mean that companies pay significantly more to the temp agency than they do for regular employees.  However, temps generally make minimum wage.  The agency middlemen eat up over half of the payments from the company.  Add taxes on top of that and it hardly makes sense to work at all.  Might as well just do odd jobs for cash.  Fuck the bastards.

Perverse incentives have led to the rise of "permatemping".  This is where a company will only hire people as temps, never as actual employees, even though both sides would end up with more money!  Such jobs are also a guaranteed dead end. 

Why can't an individual set up his own temping company and keep the spoils, while the company gets the flexibility of letting people go during the off season, if they do a crappy job, whatever.  I guess some tech people do this but it never happens at the lower levels? 

East Indian's picture

Reducing costs will be acceptable if the resultant savings are passed on to the consumer; the resultant savings are gobbled up by the companies.

Reduce the costs; outsource production to China; in the long run your workers will become poorer, and where will you find the market for your products? The Chinese consumers wont buy from you - their manufacturing costs are much cheaper. They will simply produce a duplicate item for their own consumption - they dont believe in patents, you see. (Their inventions were made available to you without royalty, why should they pay you for your inventions?)

This policy will result in impoverisation of the American workers, and in the long run, weaken the strongest consumer market for your own goods. Who will buy the iphone 10 if most of you are poor?

May be this is how you are enriching the capitalists of China!

two beers's picture

You mean the gubmint curently owned by the bankers, i.e. the .01%?

How do you propose to fight Wall St if not by using the gubmint, a gubmint we take back and make ours again?

What power do you have over any Wall St entity? The only way to fight them is collectively, with _our_ government.

You seem to understand that there's a problem, I'm just curious how you propose to deal with this problem? Eliminate gubmint, I suppose? Good luck taking on the billionaires on your own, buddy.








ebworthen's picture

If the bailouts and ensuing insanity taught us anything -it is that the entire populace is disposable.

When they steal your labor (your life) to enrich themselves, have you not been "disposed of"?

inosent's picture

Actually, a productive little guy is indispensable. All these uber rich oligarchs need somebody to build their mansions, water their lawn, prepare their food, manufacture all the mechanical crap they use, whatever it is, pilots to fly their planes, goons to guard them. guns to protect them and so on. And each person from the top of the pyramid down needs others to support them, and so do they, and on and on. The uber rich cannot have their groovy life if they subvert the economy of those that serve them depend upon to exist - otherwise they wont show up for work.

That is why a purposeful 'crashing' of the economy is counter-productive for the 'enlightened' ones at the top w/ the deep pockets. This is also why you will not likely see an all out nuclear war. Nuclear winters put a clamp on your summer vacation plans at the exclusive resort in the Caribbean.

ebworthen's picture

A brutal hanging for anyone who sees me as "disposable".

"Bank" on it Banksters...

WOAR's picture

The robots are coming for that, buddy.

Pretty soon, workers really will be disposable.

If you haven't seen these, you really need to:

Humans Need not Apply

Will Robots Make us More Human?

Xiuhcoatl's picture

@inosent - I'm with you except for the nuclear winter part. Nuclear winter was a propaganda ploy put into play by the Soviets in the 1980's, part of their program for nuclear disarmament of their main enemy. The theory has been debunked from a number of angles, although it's still accepted as fact by many. It's picturesque, easy to grasp, and environmentally friendly.


inosent's picture

just as you said, I am no expert on the subject.  If it is not true, the ppl who pull the trigger might be more inclined then.  I have done some reading on it. My sources seemed credible, but I'll take another look.

live free's picture

Use it to your advantage.  I became an independent engineering consultant and make more money, have more time for vacation (randomly took off and skiied today ect...), less stress and spend more time with my daughter, and work from home. 

Now, my profession works well for this type of thing.  But not matter what your profession is, find a niche, do it well and charge extra for being the expert at it.  If you try it and it works out, you'll freaking love it.  Screw the corporate life sucking cubicle/commuting for an hour or more life.

Frankie Carbone's picture

Yet the morons that still vote seem to think that .gov is going to solve all of their problems for them. 

Barnaby's picture

Teach a man to hold up a sign and he'll eat indefinitely.
Instruct a man how to construct the words on said sign and he might eat for a week.

~ every English major

Freddie's picture

Did the creator of Debian LINUX just get Michael Hastings treatment by the cops in San Fran?


7:12pm: I am a white male, make a lot money, pay a lot of money in taxes, and yet their abuse is equally doned out. DO NOT CROSS THEM!
7:08pm: This was right after the female officer ripped off my underwear.. I guess that’s not considered rape if you’re not a woman being raped.
7:03pm: “We’re the police, we can do whatever the fuck we want..”
6:49pm: What does one have to get education wise to become a police officer.. asking for a friend.
6:42pm: The rest of my life is to fight against the police.. they are NOT friends, so don’t ever ever believe otherwise.
6:41pm: The police are uneducated, evil, and sadistic. Do not trust them.
6:33pm: (2/2) They are uneducated, bitter, and and only interested in power for its own sake. Contact me if you can help. -ian
6:31pm: (1/2) The rest of my life will be devoted to fighting against police abuse.. I’m white, I made $1.4 million last year,
6:07pm: i’m hoping coming from a successful white guy it will help everyone
6:06pm: i’m going to post my case on my blog.. if anyone can post it on hacker news or wherever i would apprieciate it
6:00pm: @jacksormwriter wants me dead
5:48pm: Writing up my experience for others to hopefully prevent others from police abuse then you won’t hear from me again
5:45pm: where they put you in a cell with absolutely no instructions whatever aside from the spell on the floor in piss?
5:45pm: shall i post pictures for all my bruises from my against the police officers?
5:38pm: they said no
5:38pm: i asked if they had cameras
5:37pm: then followed my home from there
5:37pm: i had to have swtitches
5:36pm: then they pulled me out of my house and did it again
5:36pm: they followed me home
5:36pm: i had to go to the hospital
5:35pm: they beat the shit out of me twice, then charged me $25,000 to get out of jail for battery against THEM
5:34pm: if anyone wants to come over and see what the police did to me i would be more than happy for that
5:30pm: I’m not committing suicide today. I’ll write this all up first, so the police brutality ENDEMIC in this so call free country will be known.
5:27pm: Maybe my suicide at this, you now, a successful business man, not a NIGGER, will finally bring some attention to this very serious issue.
5:25pm: My career is over now, so I’ll be gone soon.
5:23pm: Quote: “We’re the police, we always win.”
5:22pm: I’ll write more much later. They still don’t have cameras on all police so I’m going to use my somewhat celebrity to hopefully stop this.
5:21pm: My bail for “assault against a police officer” are all that: $25,000.
5:20pm: Then beat me up some more.
5:20pm: I’ll write more on my blog later. But the police here beat me up for knowing on my neighbor’s door.. they sent me to the hospital.
5:14pm: watch my blog later
5:13pm: i’m committing suicide tonight.. do not intervene as i have many stories to tell and do not want them to die with me #debian #runnerkristy67

Barnaby's picture

Whoa they totally yellow-dogged his ass.

inosent's picture

how are things at the neocon, establishment republican, jew lovin' I got banned for saying the then proposed Home Land Security would just as a massive new bureaucracy, would not eliminate any alphabet agencies and end up costing more tax d0llars, another classic trojan horse delivery system for the growing police state in America.

but they are down with their 'free republic' :)

Freddie's picture

Free Republic does generally suck.  Filled with lots of Ted Cruz from Calagary and Goldman Sachs lovers.

Rev. John Hagee and Bibi lovers akak Johnathan Pollard "conservatives."

I saw a video with that piece of shit Hagee with the IDF near Golan talking about Islamic terrorists etc etc.  Meanwhile, ISri-hell is caught with video saving and treaing ISIS members and taking them to hospitals.

Hagee never mentions how his friends support ISIS who are killing Christians in Syria.   A evangelical TV pastor supporting the murder of Christians in Syria!   Search Christmas in Damacus Syria to see the pictures of the city and country at Christmas.   Syria and Pres Assad have done a good job treating all religions fairly.




Everyman's picture

Yeah and the GOP helped fund this shit too.  Remember that when eviscerating these pukes!


Vote for neither the GOP or the Dems.


Normalcy Bias's picture

The U.S. Govt is waging war on it's own people.

Everything is upside down now.

Normalcy Bias's picture

Yeah, who didn't see that coming, right? Hundreds of thousands of new Democrat voters...

I don't blame the people, it's the system that's rotten.

medium giraffe's picture

"How can the executives responsible for those decisions even sleep at night?"

See Dodge vs. Ford Motor Co.

i_call_you_my_base's picture

The problem starts when taxes, deductions, and other fees are managed and controlled through the employer paycheck. If everyone was responsible for their own finances equally things would change significantly:

- People would better recognize how high taxes are and would be outraged
- They would more acutely feel the burden of healthcare and would be outraged. It would force people to find their own insurance, and insurance companies would have to compete on an individual level.
- They would be responsible for their own investments and retirement and wouldn't be trapped into a 401k that forces people to hold certain investments, is illiquid, and can't be appropriately managed.

Hyjinx's picture

Absolutely.  We've created so many convoluted systems that screw anybody that acts independently we have made it nearly impossible to do so.  Independent contractor = maximum freedom and maximum responsibility but our current system has made it nearly impossible to cope.

Jack Burton's picture

Many new jobs created in the UK are what are called Zero Hours contracts. You sign up as an employee, and agree to be available to work a full week, or any amount less than that. This means you are on call to work all week, but only do work when called in to do so, or you can be sent home at any time. So basically you have a job, but zero hours are guarnateed, you simply work when they want you. This is part time work, but even worse because you don't have a schedule to follow, you simply stand by the phone to come in when called. Employers love it, I leave it to you if you would like to be a zero hours employee.

i_call_you_my_base's picture

This practice is illegal in most parts of the US.

Peak Finance's picture

This is so widespread that I find it hard to believe it's illegal in most states.  On the other hand, I mean there is no rule of law anymore so maybe the companies are doing it anyway knowing its a bullshit fine if they are caught?


CHoward's picture

It's NOT illegal in the United States.

i_call_you_my_base's picture

I think you hit the mark on your last statement. It's also against the law to employ illegals, but you know how that goes.

Everyman's picture

Not for long.  It is supposed to be illegal to make up 34 million green cards and give them out with out congress paiing a law to allow it.

Quasi's picture

Sounds like the stupidest, most one-sided "contract" I have ever heard of.  No wonder it is conisdered illegal in most places, contracts require both sides to have Consideration (i.e. a benefit) and this benefits the "employee" in no way.  Sit at home and wait for them to call? You can't even go look for another, better job because you would be breaking the contract! It's like slavery with fewer benefits.

Raging Debate's picture

That is how a lot of temp agencies operate in the US. Your called in for a day then maybe not for a couple others. They dont make you sign that kind of contract in the UK but it amounts to the same thing. 

Oliver Jones's picture

I don't have to worry about bullshit like this in the UK, because I voted with my feet and left the UK 11 years ago. I only return for family visits, and my wife and I live in Switzerland, these days.

I have not voted since I left the UK, except with my own feet - and that has brought me more lasting happiness and contentment than any politician is capable of delivering. Yes, I've had to learn German - and yes, I've had to seriously up my game in terms of the skills and experience I offer, but it's been worth it. Had I remained in the UK, I'd be a shadow of myself, today, and I certainly would not have been able to consider emigrating as easily, a decade down the line.

All this is put into perspective when I work alongside banking employees who have been permanently employed at the same institution for 20-30 years, and are scared of being fired and having to find alternative work, because everything they know is only useful to their current employer, they don't know how things work in other organisations - and their skills are limited, because they've been taking it easy, while I have worked hard to keep myself relevant after the dot-com bust, and the crisis of 2008.

I've worked as a contractor for roughly half my career. In general, I prefer it to most permanent jobs, as internal politics don't apply to you. Supplier politics CAN be a bitch, so choose your supplier wisely - and never be afraid to negotiate for changes in your contract (particularly non-compete clauses), as many agencies will try to grab all rights in this regard. There are also ALWAYS firms out there who will try to take the piss - the solution is not to work for them: Doing so only encourages them to get worse.

Shizzmoney's picture

How can the executives responsible for those decisions even sleep at night?

It's called: "hookers and blow" 

bamawatson's picture

nice place. they have an excellent mid day menu

Vendetta's picture

yep, and the hookers and drug dealers are their former employees trying to make a living.

Kreditanstalt's picture

Fact of life.  Get over it without the socialism.

As a consumer, I won't patronize a company whose products cost twice as much as others because their employees have benefits.

Vendetta's picture

It certainly won't affect the usual consumer much, how many retail employees get benefits?

Peak Finance's picture

Actually, being a 1099er is not so bad. You can really "stick it to the man" if you just do some research and tax planning. Form a C Corp, all income goes to the copr, then pay yourself out of that a really tiny wage, write off EVERYTHING, including your car, a portion of your home used for business, save all of your receipts, try to get some side gigs to make sure all your 1099 income is not all from the same place which makes your company look more legimate.  There are some books that cover this well, I think "Inc and grow rich" was one of them but there are others. 


Insurrexion's picture


"The Global Financial Crisis exposed the Fed’s short-comings and moved their power to a higher level. Now the world winces on every word they make.


Yet, the Fed, the SEC and the U.S. Congress have done nothing to cure the financial disease in our country and the pathetic / falsified economic results since 2008 prove the lack of interest.


Another truly disarming fact is the U.S. economy is performing better than the rest of the world. Some say we are the cleanest dirty shirt in the basket. I say we are among several heads slightly above water, the rest are under water drowning.


New Year’s Eve Party talking point #10:

The truly big short, was the Federal Reserve Bank's short-sighted experiment to ignore the structural dislocations of the U.S. economy and by extension, the world economy by taking the easy road and painting the crisis with $4.5 trillion dollars.


But how can we blame them, it was their only real option to avoid rioting in the streets, and guillotines on the sidewalks.


Next year, when we find that the U.S. economy falls into recession, the Fed will inevitably return to ZIRP, launch a QE4, QE5, ad infinitum, or even introduce negative interest rates in a continuation of its bad economic theories and egotistic failures. But we know that adding more fiat money creation to its balance sheet is only cosmetic and will make matters worse for the United States economy. Why?

1.     Ignoring the more politically difficult structural reforms ultimately results in structural failures. Structural failures always result in severe losses and the real question is not if, but when there will be a structural collapse.

2.     Cosmetic Central Bank interventions can extend and cover up the death spiral process, but they also create zombie economies (25 years in Japan). Europe is in zombie decline and the U.S. is in its seventh year of zombie stability, not moving.

3.     The American people could be in economic misery for many years before honest, strong leadership gathers the courage to state the whole truth and nothing but the truth; to prosecute financial crimes, and to restructure our entire financial system from top to bottom.

As 2016 approaches, we must consider where our nation is going.

We have a choice to stand up and take it back, or leave it to the wolves who are cannibalizing our country for short-term gains.

So, with this thought in mind, Happy New Year to you...may your real risks be diminished (liquidated) before the inevitable short-end of the stick gets handed out in 2016."