from NationalInflationAssociation Website
The National Inflation Association believes that the United States has a college education bubble that is set to burst beginning in mid-2011.
This bursting bubble will have effects that are
even more far-reaching than the bursting of the Real Estate bubble in 2006.
College education could possibly be the largest scam in U.S. history.
Your experience will benefit you more than any piece of paper.
After the financial panic of 2008, the U.S. saw a collapse in the prices of just about all assets, goods, services, and commodities.
Between lost stock market and home equity wealth, Americans lost $10.2 trillion in paper wealth in 2008, and have only recouped a fraction of it since then. College is the only thing in America that never declined in price during the panic of 2008.
It actually rose in price substantially.
Meanwhile, the employment situation in the U.S. has deteriorated.
There are currently 130.7 million non-farm jobs in America, down 3% from 134.5 million U.S. non-farm jobs in December 2005. 3.8 million jobs have been lost, while the U.S. population has grown by approximately 14 million people during the same time period.
We would need to have seen the
creation of 6.7 million non-farm jobs just to stay even, but now we are 10.5
million jobs short.
are non-producing workers that do nothing to create any real wealth for
society. The artificially high incomes of lawyers are made possible entirely
by inflation, which steals the wealth from hard working goods producing
middle-class Americans and transfers it to those who add no real value to
The wealth of any country is primarily created at first from the production of food, oil, and precious metals. Secondly, wealth is created from the manufacturing of real consumer goods.
After a country generates wealth by
producing real things and builds a large domestic pool of savings, it can
begin growing a service based economy, just so long as it has enough savings
to support it.
All of the needless legislation that is passed each year in order
to provide work for lawyers, has the devastating unintended consequence of
destroying what little is left of the free market. Small businesses are the
backbone of the U.S. economy, but it is now nearly impossible for a small
businessman with limited financial resources to build a large successful
corporation in any sector, because their legal costs would eat up all of
Some law schools are advertising that 90% of graduates are employed within one year of graduating. Sure, maybe 90% of law school graduates were employed a year later, with half of them working at McDonald's, but no law school degree is required for that. Schools are using dozens of unethical tactics to manipulate their numbers while encouraging alumni to falsify the surveys they fill out about their employment situation.
Just like we are now seeing countless class action lawsuits
against mortgage companies that misled customers about the loans they signed
up for, we will soon see a massive number of lawsuits filed against colleges
that lied about their job placement rates and average starting salaries of
graduates. (At least there will be some work for law school graduates.)
While everybody went to school to become a lawyer, nobody went to school to
become a farmer because Americans didn't see any money in farming. With
prices of nearly all
agricultural commodities soaring through the roof in
2010 and with NIA expecting this trend to continue throughout 2011, the few
new farmers out there are going to become rich while lawyers are standing at
street corners with cups begging for money.
If it wasn't for government student loans, the free market would force colleges to provide the best quality education at the lowest possible price. By the government trying to make colleges more affordable, they have actually driven prices through the roof. Colleges have been encouraged to spend recklessly on wasteful construction projects, building new libraries, gyms, sports arenas, housing units, etc.
Colleges spent $10.7 billion on
construction projects in 2009. Although this is down from an average of
$14.7 billion per year colleges spent on construction projects from 2005 to
2007, colleges are still struggling to pay off their old construction
related debt. When interest rates start to rise, it will add further upside
pressure to college tuition prices.
Total student loan debt in the U.S. currently stands at $830 billion and now exceeds credit card debt. President Obama's new student loan bill that was passed last year now makes the government the primary lender to students.
taking the free market out of the student loan business and allowing
students to receive loans from the government at artificially low interest
rates, colleges will be encouraged to spend more recklessly than ever. None
of this wasteful spending is doing anything to improve the quality of
education in America.
We went to the protest in order to video tape the shocking footage to show you. While we were there we remember thinking to ourselves, why on earth are these students protesting at all? If tuitions are rising by 32% and they are unhappy about it, why don't they quietly and peacefully enroll someplace else for college next semester.
If not enough students enroll into UCLA, the university will be forced to either dramatically cut their costs or shut down. UCLA decided to completely ignore the riots and went ahead with the 32% rise in tuitions.
Did the students
decide to enroll someplace else? Nope, most of them simply took out larger
student loans and went back to UCLA. In fact, UCLA reported that they
received a record amount of freshman applicants for the next semester.
When the U.S. dollar collapses and the college bubble bursts, NIA predicts
we will see a boom in online education where Americans take all of their
courses over the Internet from the comfort of their own home at a fraction
of the cost of traditional college.
If you are a college student, a recent college graduate, or a current or ex-college professor with an extremely shocking, interesting, and important story that the whole world needs to know about in what will be the most viewed college documentary in world history, please send an email to email@example.com.
also love to hear from any NIA member who has any ideas of topics that we
should cover in this new documentary. Please send all ideas and suggestions
Americans have become so brainwashed that even after graduating college with over $50,000 in debt and not being able to find a job, many of them are wasting even more years of their life and getting even deeper into debt to attend a graduate school, for a master's degree that is just as worthless as a bachelor's degree.
It is like comparing a $10 bill (master's degree) to a $1 bill
(bachelor's degree), they are both worthless pieces of paper with no
We must work hard to educate America to the
truth if our country is going to have the wherewithal to survive the
upcoming bursting college bubble and Hyperinflationary Great Depression.