As deflation continues to romp its way into our economic lives we are seeing an unprecedented flow of news all pointing to further economic strain. What's important to keep in mind as the deflationary spiral sinks in deeper and deeper is that this is just the beginning. Take a look at the third quarter bankruptcy filings, which are the highest since 2005:
Bankruptcy Filings Up 20 Percent in June
"Bankruptcy filings rose 20 percent in the 12-month period ending June 30, 2010, according to statistics released today by the Administrative Office of the U.S. Courts.
"Third quarter filings, the 3-month period ended June 30, 2010, totaled 422,061. Filings for the June quarter are the highest of any quarter in fiscal year 2010 (October 1, 2009 – September 30, 2010) and the highest for any April-June quarter since the 2005 third quarter filings. For fiscal year 2010, filings for the first quarter (October 1, 2009 – December 31, 2009) totaled 372,203 and second quarter filings (January 1, 2010 – March 31, 2010) totaled 388,148."
By the time we've hit bottom, the over 422,000 third-quarter-2010-bankruptcy filings will be a very small number. The credit contraction will continue and more people and businesses will find it extremely difficult to locate sources of additional credit to pay off debt, which in turn will lead to more bankruptcies.
Michigan Oil Spill Among Largest In Midwest History: Kalamazoo Spill SOAKS Wildlife (VIDEO)
As the Gulf Coast deals with the worst environmental disaster in U.S. history, the Midwest is now facing an oil spill of its own.
A state of emergency has been declared in southwest Michigan's Kalamazoo County as more than 800,000 gallons of oil released into a creek began making its way downstream in the Kalamazoo River, the Kalamazoo Gazette reports.
Watch local coverage:
Oil is spewing from a damaged well north of a bay where officials have been fighting the spill from the BP disaster in the Gulf of Mexico.
China: Oil Spill Contained in Coastal Waters
Authorities in China say one of the country's worst oil spills has been contained before any of the oil could reach international waters.
Oil Spill: Unending Saga Between Oil Firms, Vandals and Illegal Bunkerers
The cause of the oil spill in the Gulf of Mexico may be due equipment failure and as such could be classified as human error. But in Nigeria, oil spill occur almost on a bi-weekly basis in the Niger Delta due to corroded pipeline facilities, willful acts of illegal oil bunkering and pipeline vandalism.
Investigations have revealed that High Pour Fuel Oil (HPFO) and Low Pour Fuel Oil (LPFO) used for firing burners and heavy-duty engines in factories have both become great allures for greedy people to try to break the pipeline facilities to scoop crude oil to make quick money.
Australian Oil Spills Cause US$15 Bn Losses
15,000 fishermen and seaweed farmers living on the coasts of Rote Ndao, Kupang, Sabu Raijua, and some other regions lose their jobs in months due to lesser productions.
EPA Whistleblower Accuses Agency of Covering Up Effects of Dispersant in BP Oil Spill Cleanup
But with BP having poured nearly two million gallons of the dispersant known as Corexit into the Gulf, many lawmakers and advocacy groups say the Obama administration is not being candid about the lethal effects of dispersants.
Lisa Hamler-Fugit, Executive Director of Ohio Assoc. of Second Harvest Foodbanks:
We've have see poverty continue to increase in this state as the economy has continued to decline. This didn't just happen overnight. It certainly didn't just happen as a result of the Great Recession. It has been happening for quite some time as our high wage manufacturing based economy has just eroded away. In fact, the food bank that serves this part of the state now feeds 44 percent of the residents of the 10 counties that make up the Appalachian region. 44 percent.
Apparently what's happening in Ohio is also occurring in other parts of the country:
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But there is hope:
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A look at the graphic above, from The Rouge Treasury, tells all: the bailout has not accomplished anything.
Is it to early to tell? Only time will tell but given the prognosis for continued economic deterioration, as the deflationary spiral digs deeper and deeper, the odds are not good that the last bailout worked and that future bailouts will work.
Another example of deflation taking its toll on the economy as reflected by what Mayor Booker said during an emergency press conference Wednesday:
Every single contract that does not go to the core function of our city in providing safe streets, providing fire protection, or other things to keep our city afloat will now be cut.
Watch the press conference:
On the other side of the table, Newark Councilwoman-at-large Mildred Crump said during a press conference:
It appears the mayor is a Pontius Pilate. In other words, his hands are clean. The blood of the residents of Newark will be on our heads.
So what happens when city or state governments shut down? Will there be more finger pointing and bickering or will there be cooperation?
