[P2P-F] Fwd: <edu-factory> College Bubble Set to Burst in 2011

Wed Jan 19 10:37:27 CET 2011

---------- Forwarded message ----------
From: Dante-Gabryell Monson <dante.monson at gmail.com>
Date: Mon, Jan 17, 2011 at 11:48 PM
Subject: Fwd: <edu-factory> College Bubble Set to Burst in 2011
To: Michel Bauwens <michelsub2004 at gmail.com>

excerpt :
*
*
*College is the only thing in America that never declined in price during
the panic of 2008. It actually rose in price substantially.*

---------- Forwarded message ----------
From: Gigi Roggero <conricerca at hotmail.com>
Date: Mon, Jan 17, 2011 at 3:52 PM
Subject: <edu-factory> College Bubble Set to Burst in 2011
To: "edufactory at listcultures.org" <edufactory at listcultures.org>

 *
http://www.inflation.us/collegebubble.html

College Bubble Set to Burst in 2011*

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.

NIA's advice to the youth of America today is to think for yourselves. Don't
get suckered into overpaying for a college degree that is worthless because
everyone else has one. College is only worth attending if you plan on
actually learning something there. If you are only going to college because
you think a piece of paper is going to help you find a job, you would be
much better off skipping college and entering the workforce right now at any
entry level job. Your experience will benefit you more than any piece of
paper.

The median U.S. home price is currently $170,600, down 26% from its peak of
$230,200 in July of 2006. The Dow Jones is currently 11,672, down 18% from
its peak of 14,198 in October of 2007. Oil is currently $91 per barrel, down
38% from its peak of $147 per barrel in July of 2008. 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. The annual tuition
for a private four-year college was $21,235 in the 2005-2006 school year.
Despite Real Estate beginning to collapse in late-2006, college tuition rose
by 4.6% in the 2006-2007 school year to $22,218. Despite the stock market
beginning to collapse in late-2007, college tuition rose by 6.7% in the
2007-2008 school year to $23,712. Despite oil and other commodities
collapsing in late-2008, college tuition rose by 6.2% in the 2008-2009
school year to $25,177. Even after the Dow Jones crashed to a low in
early-2009 of 6,469, college tuition still rose by 4.4% in the 2009-2010
school year to $26,273.

Annual tuition for a private four-year college in America is now $27,293, up
29% from five years ago. 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.

All across America, thousands of students are graduating law school each
year with $250,000 in debt, but with no jobs at law firms available to them.
15,000 attorney and legal staff jobs have disappeared since 2008, yet 43,000
law degrees are being handed out each year. Law degrees are losing their
value faster than the U.S. dollar is losing its purchasing power. Lawyers
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
society.

The service sector currently makes up 76.9% of the U.S. GDP. Agriculture,
which in 1933 made up 28% of GDP, currently makes up only 1.2% of GDP. 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.

During the past decade, an unprecedented number of Americans went to school
to become lawyers, because they thought if they became a lawyer they would
immediately become rich. 60% of the U.S. Senate and 37% of the House of
Representatives are lawyers. The reason we have so many lawyers in
Washington is so that they can pass as many new harmful laws and regulations
as possible, in order to provide enough work for all of their lawyer
friends. 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
their profits.

Many law students got suckered into going to law school due to deceptive
marketing practices. 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.)

Most Americans today are sheep who believe that the key to success and
happiness in life is following the same career paths as everybody else.
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.

The college tuition bubble has been fueled by the U.S. government's
willingness to give out easy student loans to anybody who applies for them.
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.

College students borrowed $106 billion in total student loans for the
2009-2010 school year, up from $96 billion in 2008-2009, $94 billion in
2007-2008, $87 billion in 2006-2007, and $83 billion in 2005-2006. 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. By
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.

Over a year ago when NIA was filming 'The Dollar Bubble' in Los Angeles,
violent riots broke out at UCLA over a 32% increase in college tuitions
(from $7,788 to $10,302). 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.

With all of the technological advancements taking place around the world
today, the cost for a college education should be getting cheaper. Americans
today can purchase just about any type of product they want over the
Internet for substantially less than they can find it in a retail store.
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.

Later this year, NIA is going to be producing a documentary about America's
college education crisis and the college tuition bubble that is about to
burst. In the weeks ahead, NIA is going to begin searching for people who
deserve to be featured in our documentary. 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 collegebubble at inflation.us. We would
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
to collegebubble at inflation.us.

This will truly be one of the most important documentaries NIA has ever
produced. We need to change the mindset in America that only those with
college degrees have any chance of becoming successful. 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
intrinsic value.

NIA believes that any recent high school graduate with $30,000 saved for
college who invests that money into silver and becomes a minimum wage
apprentice for the next 4 years, will likely have enough money in 4 years to
buy a median priced U.S. home. Not only that, but they will have work place
experience that is far more valuable than the worthless college degrees of
any of their friends. 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.

It is important to spread the word about NIA to as many people as possible,
as quickly as possible, if you want America to survive hyperinflation.
Please tell everybody you know to become members of NIA for free!

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