42 million Americans were in receipt of food stamps

Albert Edwards of Societe Generale thinks U.S. citizens are on the brink of a political revolt, based on a declining standard of living brought on by an inefficient economic relationship with China.

Here’s why, according to Edwards:

This would happen in any nation where a vision of prosperity has been shown to be a Ponzi sham, engineered by the authorities to help disguise the fact that the rich have been getting a whole lot richer.

What Edwards sees is the depressed state of the U.S. citizen getting worse. He sees unemployment rising and another recession near.

From Albert Edwards:

The latest US poverty data is staggering. Some 42 million Americans were in receipt of food stamps in July, up some 18% yoy (see chart below). Make no mistake, the government isn’t throwing money at people willy-nilly those in receipt of stamps are on the poverty line, currently defined as a 2 adult and 2 children household having a net income of $22,056 p.a. (£14,000, 16,000)

So how are the two linked? China continues to amass more reserves and experience an advantageous exchange rate with the U.S. The country is « hooked on » an investment led economy, and is now only making small moves, like trying to grow consumer spending, to counter, according to Edwards.

China just isn’t moving fast enough for the U.S. public.

Edwards is confident what is next for the U.S. is an even more inflamed populace that targets tariff actions against China in a spiraling upwards of the current currency war.

http://www.businessinsider.com/socgens-albert-edwards-says-the-us-public-is-about-to-revolt-2010-10

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