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16 Signs That The Economy Has Stalled Out And The Next Economic Downturn Is Here

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Get Prepared NowIf U.S. economic growth falls any lower, we are officially going to be in recession territory.  On Wednesday, we learned that U.S. GDP grew at a 0.2 percent annual rate in the first quarter of 2015.  That was much lower than all of the “experts” were projecting.  And of course there are all sorts of questions whether the GDP numbers the government feeds us are legitimate anyway.  According to John Williams of shadowstats.com, if honest numbers were used they would show that U.S. GDP growth has been continuously negative since 2005.  But even if we consider the number that the government has given us to be the “real” number, it still shows that the U.S. economy has stalled out.  It is almost as if we have hit a “turning point”, and there are many out there (including myself) that believe that the next major economic downturn is dead ahead.  As you will see in this article, a whole bunch of things are happening right now that we would expect to see if a recession was beginning.  The following are 16 signs that the economy has stalled out and the next economic downturn is here…

#1 We just learned that U.S. GDP grew at an anemic 0.2 percent annual rate during the first quarter of 2015…

The gross domestic product grew between January and March at an annualized rate of 0.2 percent, the U.S. Commerce Department said, adding to the picture of an economy braking sharply after accelerating for much of last year. The pace fell well shy of the 1 percent mark anticipated by analysts and marked the weakest quarter in a year.

#2 If you strip a very unusual inventory buildup out of the GDP number, U.S. GDP would have actually fallen at a -2.5 percent annual rate during the first quarter…

The only good news: the massive inventory build, the largest since 2010, boosted GDP by nearly 3.0%. Without this epic stockpiling of non-farm inventory which will have to be liquidated at some point (and at a very low price) Q1 GDP would have been -2.5%.

#3 Our trade deficit with the rest of the planet is absolutely killing our economic growth.  According to the Reality Chek Blog, U.S. economic growth would have been a total of 8 percent higher since the end of the last recession if we actually had balanced trade with other nations…

As of the new first quarter figures, the worsening of the trade deficit has reduced the cumulative real growth of the U.S. economy by 7.99 percent since the current recovery began in the second quarter of 2009.

#4 According to numbers that were just released by the Bureau of Labor Statistics, in one out of every five American families nobody has a job.  So how in the world can the “unemployment rate” be sitting at “5.5 percent” when everyone is unemployed in 20 percent of all families in the United States?  It doesn’t make any sense.

#5 The rate of homeownership in the United States has just hit a brand new 25 year low.  How can anyone claim that the middle class is “healthy” when the percentage of Americans that own a home is the lowest that it has been in more than two decades?

#6 Back in 2013, 31 percent of all Americans said that they did not anticipate buying a home “for the foreseeable future”.  Just two years later, that number has risen to 41 percent.

#7 The student loan bubble is clearly bursting.  According to Bloomberg, only 37 percent of all student loan borrowers are actually up to date on their payments and reducing their balances…

With borrowers increasingly struggling to repay their student loans, Moody’s Investors Service is warning it may take investors longer than promised to get their money back. The credit grader said this month it may lower rankings on $3 billion of top-rated debt as investors face the threat of slowing principal payments or even receiving no interest.

The concern underscores the fallout from a record $1.2 trillion in U.S. student loans that’s spreading to everything from the housing market and consumer spending to taxpayers. As a sluggish economic recovery forces borrowers to miss payments or tap relief programs, only 37 percent are current and reducing their balances, according to a Federal Reserve Bank of New York presentation this month.

#8 Procter & Gamble has announced that it will be cutting up to 6,000 more jobs from their payroll.  Why would they be doing this if the economy is “getting better”?

#9 McDonald’s plans to permanently shut down 700 “poorly performing” restaurants over the course of 2015.  Why would they be doing this if the economy is “getting better”?

#10 It is being projected that half of all fracking companies in the United States will be either “dead or sold” by the end of 2015.

#11 Retail sales in the U.S. have not dropped this rapidly since the last recession.

#12 Wholesale sales in the U.S. have not dropped this rapidly since the last recession.

#13 Factory orders in the U.S. have not dropped this rapidly since the last recession.

#14 Credit requests are being declined at a rate that we haven’t seen since the last recession.

#15 U.S. export growth has gone negative for the first time since the last recession.

#16 As the U.S. economy begins to head into another downturn, most Americans are completely unprepared for it.  In fact, one recent survey discovered that 62 percent of all Americans are currently living paycheck to paycheck.

Don’t let this next recession take you by surprise.

Back in 2008 and 2009, millions of Americans suddenly lost their jobs or businesses because of the sharp economic downturn.  Because most of them were living paycheck to paycheck, all of a sudden a whole lot of Americans could not make their mortgage payments and foreclosures surged to unprecedented heights.  Millions of families that thought they were operating on a solid foundation saw their middle class lifestyles evaporate in just a matter of a few months.

That is why it is so vital to prepare yourself financially, mentally, emotionally, physically and spiritually for the great storm that is coming ahead of time.  Over the past couple of years, I have been working on a new book entitled “Get Prepared Now” which talks about how to make these preparations.  On Wednesday, it was finally released to the public.  I hope that you will check it out.

The past few years have been a period of relative stability for the U.S. economy.  A lot of people have been lulled into a false sense of security during that time.  These people have become convinced that our problems have been fixed.  But they haven’t been fixed at all.  In fact, our problems are far, far worse than they were just prior to the last financial crisis.

When the next great financial crisis strikes, we are going to see a spike in the suicide rate just like we did during the last one.  Millions will be blindsided by what is coming and will give in to depression and despair.  But that doesn’t have to happen to you.  It is empowering to know what is coming and to understand why it is coming.  It is empowering to get prepared in advance for turbulent times.  It is empowering to have a plan for the years ahead.

Even though I write about all of the horrible things that are coming to this country every day, I live my life with no fear, and that is what I want for all of you as well.

Do you want to know who will be giving in to fear and panic when things start to go really crazy?

It will be the people that had no idea what was coming and made no preparations whatsoever.

Yes, the times ahead are going to be extremely challenging, but they can also be the best times of your life.

It is all going to come down to how you respond to a world that is going completely insane.

The choice is up to you.

 

  • Kim

    Thank you so much for the encouragement. I really needed it tonight. I’ll check out your book too. Stay strong and thank you for what you do. Kim.

    • MichaelfromTheEconomicCollapse

      It is good to know that my words are actually encouraging people. I spend so many hours in front of the computer every day, and it is always so hard to gauge how people are receiving what I am trying to say.

      Michael

      • Mari

        Scared, at least partially prepared, and encouraged, Michael. I know it is coming but I will survive. I worry more for my daughter and her friends who are now in college. She has no loans and that is due in large part to people like you and Karl Denninger who continually discuss the economy, debt, etc. There are things we can’t do because I am paying about $24K a year for her education. I told her at the beginning of college that she may not appreciate the sacrifices we are making to get her through school without debt but she would some day. She looked at me and said she already understood and appreciated it and was amazed at some of the loans her friends were taking out. Hopefully she can get a job when she gets out of school with her marine science major.

        Thanks again for all the work you do.

        • Sean Thomas Taeschner

          She’ll be able to restore marine life killed by Fukushima radiation.

          • T.

            That will be accomplished Only the Lord Jesus Christ – After He destroys those who destroy the earth, Revelation 11:18.

        • Priszilla

          We just got two of our nieces through college resp. University in the Philippines. Their parents as rice farmers could never afford it, so aunties and uncles provide the money for tuition, and living expenses. No loan from a bank.

          People say saving money doesn’t bring any interest now. I hold that savings help to avoid overdraft charges and interests for loans.

          • retired22

            If you don’t have the money to pay your bills you are a slave,…..a wage slave!
            You are owned to some degree by your creditors!

          • Nemnor

            And Capitalism, as an economic system that is generally based on the exploitation of (low-wage) Workers, IS indeed a form of slavery.

            Though with Capitalism, along with having a minority “high paid” Workers, the slavery would be less direct and less intense than the “raw” slavery upon which the USA was built. But slavery it is nevertheless.

      • WK

        The problem is you never seem to change your theme no matter what.

        • T.

          TRUTH Never changes. TRUTH will Always stand on its own. It is People who are Fickle and Reject TRUTH – To their own Demise.

        • retired22

          What is he supposed to change his theme to?
          He is dealing in what he thinks are facts.
          If you want different themes go to Amazon Books & check out the fiction section!

        • MichaelfromTheEconomicCollapse

          What should my “theme” be?

          • My10cents

            hmmm, perhaps a basket of paper currencies on fire, or falling paper dollars/euros/etc. floating down on fire? From what I am learned from your great reporting and some other sources, that is pretty much what is now happening and will be happening. There is a javascript program for falling snowflakes, maybe animated falling burning cash could be in the margins/backdrop instead of snowflakes? Your theme is fine though as it is – the information is what people should really be paying attention too anyhow. Just my 2c, well now accounting for inflation, my 10c. Thank you!

          • My10cents

            just one more simpler idea – maybe just a portrait of George Washington instead of the gold globe, as printed on the dollar, but his portrait adjusted with a sad frown. otherwise, your theme is just fine and your reports should be what is perceived as strictly most important. you have made the world a better place, significantly, already. it would only be worse that it will be without your daily research and reporting.

      • Valdemar II

        Thousands of them, at least!

  • Kim

    I’m sure I will not be the only encouraged by your words tonight

    • Kim

      Sorry posted in wrong spot

  • Wizard of Aus

    The Australian economy is really struggling due to the downturn in China. Here in Adelaide, the nightly news continually shows the desperation of people struggling to survive due to the increase of cost of living.

    • alan

      You just need some American news and you’ll see just how good the economy is.

      • Lex loathar

        Indeed. Nowhere in the world are things better than right here in the good old USA. We’ve really got it made and we need to make some monuments to Chimpie Bush and Bath House Barry.

        • jhowell882

          out of toilet paper would be the right thing

          • Mondobeyondo

            Stock up on Charmin. One roll will be the equivalent of $2.00 someday. Maybe more than that.

      • Orac4Prez

        Hi Wizard,

        I’m here in Adelaide too. These poor Americans don’t know how good they’ve got it. In Adelaide, we have are definitely near the top when it comes to utilities charges. We amongst the world’s highest electricity cost, highest natural gas price and the petrol(gas) is way more expensive that the US. Water is expensive. I pay about $4500 per year for power alone. Having said that it is far more expensive than any other state in Australia. We don’t have Barry Sotoro (we would have knicknamed him Bazza by now) or Bush, but we have sycophants in politics who absolutely adore your politicians. We have the “privilege” of waiting for a policy to be announced in the US and if its a real crock, our politicians will implement it….

        • hon788

          Adelaide, the city in Colombia…drug territory
          man.

      • Mondobeyondo

        Sing along now… “Everything’s Coming Up Roses” by Ethel Merman…

    • Horiboyable .

      Mortgages??

    • Lex loathar

      We can send you boatloads of Messycans. We’re told here in the US that they “help” the economy. So, how many do you want?

      • Orac4Prez

        Hey Lex, your Messycans would be welcome. They work pretty hard. Most of our (illegal) arrivals from the Asian area get very generous allowances. Their skills are woeful, but they expect and get the same salaries.

  • MrMaker

    Michael, I agree with your blogs and your book. You said the world is going insane, but it has long been that way. The world has been operated in an insane way for over 100 years – see: www threeworldwars com/warnings.htm World history has been numerically serial patterned by the psychopathic elite at least since world war 1 was ended on 11.11.1918 at 11am everyone has been living under delusion of a serial patterned world history since by the use of multiples of 3s and 11s and 13s primarily 33s and 39s and a handful of other numbers in the serial patterning of major dates of history. The link above lead to the most frightening truth about history I ever noticed on the internet. I read it years ago, but it appears only a very tiny amount of people care to comprehend it. Everytime I told people about it, they instantly argued against what that book has long exposed. The book was apparently shared out on the internet since 2005. The author said he wasn’t going to promote the book himself, he said in the book that if the readers don’t share the message there was no point in just 1 person promoting it. The author of that website also named Michael was somebody that read it and accurately predicted a big event months in advance, precisely to the minute of it occurring. It looks like he hasn’t updated that website since. Thank you Michael for your brilliant analysis’s too.

    • MrMaker

      Micael, for instance, you read alot of system spun stats in news articles across the board all the time. You may have noticed the dramatic overuse of the number 47 in all those made up stats, often expressed as 47%; compared to 48% or 46%which you probably feel you have seen a completely obvious amount less use of in print. I juse reviewed that book quickly to summarize it here a bit. Likewise that is why WTC Building 7 was built 47 stories high, and the big 11 towers both 110 stories high, and the UN building 39 stories high, the space shuttle launchpads are numbered 39a and 39b and the runway between them is numbered runways 33. Dates with 11s are most significant, such as JFK epic date of 11/22. Apollo 11. Apollo 13. 9/11 Flight 11, Flight 1+7+5=13, Flight 7×11(77), and the reverse of Flight 93 is a mirror of 39, the triple 13. 3/11, 7/7 So the psychopathic elite have serial patterned the entire course of world history in their building dimensions, events of history, and in bogus establishment news reporting at least since they timed the official end of WW I on 11/11 – the holiday we have celebrated for 113 years since, at 11am was the official endpoint of that world war. There was a big event in India on a 7/11 too. 7/22 was the event the threeworldwars dot com webmaster predicted in advance based on the patterning and signals in the press he saw before that Cairo Egypt event at 22:07GMT on 7/22/2005, staged soon after the London 7/7/2005 event it seems. I wrote that researcher or historian once or twice but I never got a response. I guess I would just be quiet after discovering that too. You can check all those facts easily, when I read that ebook in 2010, my jaw dropped as there were many dozens more examples than these – then I just saw history further unfold after that with clear vision. the only event i am speculative about if it was an oceanic earthquake or a device on the ocean floor in the ocean, the 3/11 Japan tsunami. That book was written before that and there appears to have been no sequel to that book after that event. Perhaps others have already heard of this? To me that has explained most everything very clearly. It seems I never seen a mention of that discovery in the truth movement anywhere since.

      • df NJ

        The problem with numerology is you see meaning in everything by superstition. Correlation does not prove causation. You whole way of thinking is flawed.

        • CoffeeLover2

          Amazing, I just woke up to this during my morning coffee. So for the past hour this morning I did look at that that on the ThreeWorldWars-com site mentioned above. Then I searched for any other reports of this and found lots of links and supportive articles. It looks that the original researcher created that book a decade ago also wrote two reprinted versions called Top UNSecret and The Cryptocracy Book in 2007, and since it is a free download on lulu I just downloaded a copy. The publish date on lulu says 2007 and on the front cover of Top UNSecret it states a then future date of December 11th, 2010. lulu(dot)com/spotlight/ericrainbolt So I looked I googled that date to see if anything did actually happen and amazingly that was the exact day of the scary Stockholm attack that was reported around the world – I recall seeing it on tv back then. cnndotcom/2010/WORLD/europe/12/11/sweden.explosion Lulu says the book was put on their site in October 2007 and the bookpage says ” Everyone should find out, and then perhaps mass freedom can occur worldwide. You and your friends are definitely much safer with everyone knowing about how we are being deceptively governed today!!! This is the only book you would ever need to prove this to yourself and others. Know in advance before the December 11th, 2010 event! What a conversation piece! ” So… that is unbelievable! This is a incredibly fascinating aspect of what has been going on. Somebody actually predicted the future with precision that came precisely true on the date printed on the cover of a book published in 2007, 3 years in advance based off what the poster above called this numberology, but is is obviously not just numbers or superstition – it is much more and clearly part of reality. I verified also the threeworldwars-com webmaster also accurately predicted the Cairo event event in 2005 as described in the post above based of this same knowledge of this historical patterning. I haven’t gone through this whole book yet, but already I can tell this is the most amazing book about history, a real history book that really tells the truth about things, that I have ever seen. This would be a next good and hairraising blog topic for Michael’s blog website and some other truthful websites. Since I already have a copy of this history book, I am just going to order Michael’s new book this later today.

      • T.

        You are absolutely CORRECT about the number 11 and also these others 13,18, 22, 29, 33, 36, 38, 39, and 47. However, the number 11 is the favorite, especially those that They add together and total 11. This is the satanic power that is behind the elites who run the present evil world. They are moving U.S. toward what the book of Revelation 13 calls the Beast government. The year 2018 is Their goal to achieve this one world system of government, economic and religious system – Where the Beast will be worshipped by all or they will Die. I have noticed that numerology in the stock market closings and other markets for over 10 years. During the last downturn – the S&P 500 closed in March 2009 at 666 on one day that month and that was the bottom.

  • Priszilla

    Germany news just pointed out that the US economy is very strong, the prices are stable, the people enjoy their strong dollar and cheap oil. Especially the dollar is very strong and the fed is reluctant to increase interest rates because it doesn’t want a strong dollar (problem for export).

    • alan

      The Won has been getting stronger against the dollar lately.

      • df NJ

        The Yuan pegged 6:1 against the dollar means CEO gets six Chinese workers for every one American worker. No worker in any country can compete against six. Eff it, let the petro-dollar crash. That’s the only reason why they want to bomb Iran anyway.

        • Priszilla

          That’s a bit rubbish.
          for US$1 you get 130 Iceland Krona. or 44 Philippine Pesos.
          or 3 Brazilian Real.
          The minimum wage for a Chinese factory worker is about 1200 Yuan per month. A McDonalds Burger is about 10 Yuan.

    • Orange Jean

      Would that be the “cheap oil” that just went up 30 cents a gallon in the past few days?

      • df NJ

        Best thing about cartels and monopolies is you can charge whatever you want, not advertise, and people will still buy your products! It’s really awesome!

    • df NJ

      In Germany they are appreciating their free healthcare courtesy of revenue generating by US military bases. Even though WWII has been over for some time the CIA must have bases in Germany to make sure the drug trade flows from Afghanistan cheaply and without interruption. We are a nation of organized criminals and thugs, uh, I mean the government.

      • Priszilla

        There is no free healthcare in Germany. Mandatory healthcare insurance eats about 8% of wages/salaries, while the employer has to pay another 7%. There is a cap for high income earners.
        Pension insurance is about 19% of wages/salaries.
        And there is a ton of other insurances you need.
        Legal insurance in case you ever want to sue your employer to pay your salary or the insurance company to pay your pension.
        Liability insurance for anything and everything, like if someone breaks a leg while slipping in the snow in front of your house.
        Accident insurance, as accidents are not covered by health insurance.
        Property insurance because of the abundance of thugs and thieves and burglars.
        And from what’s left you pay 20% VAT on anything you buy.

  • alan

    Any down turn can now be blamed on the riots. I think though window stocks will go up.

    • df NJ

      Police batons and riot gear cleaning services.

  • Annette Smith

    You know, there have been some restaurant closings here in Phoenix that really surprised me. One was a landmark bar and grill, and the other was Hooters. Now, if business is so good, why are they going under?

    • df NJ

      When hooters don’t sell that’s a signal.

    • Horiboyable .

      Where do you look at Hooters now?

      • Mondobeyondo

        IHOP?

    • Orange Jean

      Sometimes with a restaurant or small business that happens because it’s family owned (obviously not Hooters, but maybe the other one?) and the family running gets too old, wants to retire, or gets sick. The parents who started it, but their kids don’t want to continue the business… it’s a LOT of work, from what I understand.

      Maybe they tried to sell it to someone, but no one was interested for some reason.

    • Rob Andover

      I’m in Phoenix, too. Which bar and grill closed? The closed Hooters ,was it at the Arizona Center downtown?

      • Mondobeyondo

        I believe it was in Cave Creek. The name of the bar and grill escapes me.. it definitely wasn’t downtown though.

        • Marty

          It was the one on Mill Ave in Tempe

  • Genada

    The shadow of crisis has now passed. Those are going to be some of the most mocked words in history.

    It’s always best to prepare for the worst and hope for the best. I really see this playing out more like Japan and being a slow grinding of the middle and lower classes, not enough to get them too upset but always downward. That’s what the plan is at least, in my opinion but it’s always subject to unseen events and could be quick disaster.

    Last year we saw pretty much the same thing as far as the first quarter. They managed to keep the economy going last year but have to think that this game can not go on forever.

    One thing is for sure now, the Fed has to either admit we have a serious problem or raise rates. If they raise rates bet would be on September and oddly enough seems to be a large meeting of the minds as September being the month of some disaster unfolding.

    • df NJ

      Raising rates would cause higher unemployment and deflation. Once the Fed panics it will respond by increasing the money supply until we have hyperinflation. That’s when the price of gold will go up to $50,000 per ounce. The world has over $200 trillion in debt. And over $700 trillion in derivative debt. When the currency bubble pops it’s going to be an event unlike any the world has ever seen. It will probably be masked by a false flag nuclear attack to allow the bankers to point the finger as they give us the finger.

  • DJohn1

    Technology is changing the world.
    It is only a matter of time before most factories are run by robotics.
    So where do an entire class of people find work when they have been replaced by machines?
    That is not just here it is world wide.
    From 1970 on, the computer has evolved to do a lot of things.
    At first they were clunky and often malfunctioned.
    Microsoft Windows and Apple led the way.
    I remember re-installing windows 3.11 for work groups about once every 2 to 3 weeks as it stumbled over this program or that.
    The first great depression of the 30s was also world wide. It was caused by the invention of the assembly line.
    All of a sudden many sophisticated machines were cheaply produced with an assembly line. Thousands of trades were destroyed in that they were no longer necessary to produce a product.
    Part of this evolution was bringing 3rd world poverty stricken people into the assembly line process over the last 30 years. They produced goods far cheaper than anyone here could do it.
    The weakness in all of this was transportation costs to the people that bought the products.
    Eliminating the need for the cheap labor with automation is the next step.
    The solutions are not so easy. We as a people have to lower the hours worked to be considered full time employment on a federal level. The idea is to distribute the work among the most people available.
    Movements to up the minimum wage are all ready being considered.
    We have to maximize the efficient production of food for everyone in a way to keep food cheap and affordable for everyone.
    The medical industry has to change with it.
    Even a national health insurance for everyone will not be a complete solution to what is happening now.
    We have to offer free training to anyone willing to learn new ways of doing things.
    Overtime has to be at least double wages. It has to be unprofitable to work more hours than to hire more people to do the work.
    Michael states the problem very well.
    What doesn’t happen is finding solutions to the problems stated.

    • df NJ

      The bankers contracted the money supply 31% between 1929 and 1933 causing unbelievable amounts of human suffering. If the Federal Reserve wants to keep us in poverty we the people need to get the government to print its own legal tender so we all have enough money for products and services. Until the American people ask for more they will never get it. We need to return to Lincoln’s greenbacks. It’s obscene that as a people we cannot generate enough wealth to take care of each other. This is not by accident.

      • df NJ

        “An old English judge once said: ‘Necessitous men are not free men.’ Liberty requires opportunity to make a living – a living decent according to the standard of the time, a living which gives man not only enough to live by, but something to live for.

        For too many of us the political equality we once had won was meaningless in the face of economic inequality. A small group had concentrated into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor – other people’s lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.

        Against economic tyranny such as this, the American citizen could appeal only to the organized power of government. The collapse of 1929 showed up the despotism for what it was. The election of 1932 was the people’s mandate to end it. Under that mandate it is being ended.”

        Speech before the 1936 Democratic National Convention

        • Valdemar II

          Too bad Roosevelt did not live up to his stated ideals and move against the federal reserve.

      • jox

        Americans should support American Monetary Institute

      • retired22

        The whole deal is a gigantic scam!
        supposing for moment that we wanted to keep this absurd fractional reserve system…..marinated in Keynesian hogwash,…there is an alternate ways of doing it.
        As far as I know there isn’t a thing that the Federal Reserve does that couldn’t be done by the Treasury Department without for profit bankers taking a substantial cut off of the process!

      • DJohn1

        Money represents the consumer goods. So if a dozen eggs can be had by spending a dollar then that is the value that dollar has in the money supply.
        Of course it doesn’t represent a dozen eggs because eggs are more expensive than that.
        There was a reason to contract the money. The farmers were failing right and left in the 20s and the money supply no longer represented the consumer goods. Something had to bring that back into line with the amount of goods out there.
        SO one of two things had to happen. Either the value of a dollar had to become more or the dollar had to inflate based on available goods.
        The Roosevelt solution was to inflate how many dollars we actually had against the supply of consumer goods. In other words you have to pay more for a dozen eggs in dollars.
        Just like every other currency, the dollar had to become less valuable under the Keynesian Theory of Economics.
        This system is taught as valid all over the capitalist world.
        The second foundation of all of this was negotiating the price of wages in respect to the price of commodities.
        Translated: Short term workers could go on strike and extort higher wages from an employer who in turn raised the cost of goods to compensate for the higher wages.
        But the end result was lower wages no matter what you do in real commodities.
        The third foundation of all of this was to have wages capable of buying things like cars and houses in a constant fight between dollars and commodities.
        As near as I can determine all three foundations have collapsed with the collapse of organized labor’s ability to negotiate higher wages for anyone.
        And that is what will bring the entire system down soon.

    • apeiron

      When AI & robotics automate most jobs, there won’t really be any reason to have that many people around, will there?

      • DJohn1

        I suspect they will cull the herd.
        But then we are set up for whatever “they” want to do.
        There are over 400 genetic based diseases in the current human species on this planet.
        I think it is important to know just exactly whom “they” are.
        Every culture on this planet worshipped “gods” in the past including references in the Bible to “gods” we are forbidden to worship as Christians and also Jews.
        There is reference to a “Living God” vs. what?
        You shall have no other “gods” in the ten commandments of Moses.
        Seems to me, the Bible and other documents are referring specifically to a group of “unknown” species called “gods” both intelligent and alive.
        IF that is so, where are they?
        The real question is who are they and will they return? IF they do, I suspect those “gods” will have little use for Christians and Jews worshipping just one god.
        Culling the herd is spelled out in something called “Agenda 21″ from the UN.

  • grumpyhillbilly

    The education industry has been brilliantly successful in making stupid from the Ivy Leagues down to Head Start. I’m not sure many will panic til the legal and illegal drug pipeline dries up. Not to say everyone is taking, but many are to numb their fears. Other words I think many have an inkling of what is coming, they can’t be stressed to care. Plus government will take care of everything. That is what worries me. Economic collapse – doable. Punitive government trying to survive in all its presumed glory – yikes! However I plan to enjoy the elites versus the monster government of their creation. Well… not really enjoy, but it will be fascinating to watch.

    • df NJ

      Education makes you stupid. The history skool books from Texas not good. Until students start learning about false flag operations, psyops, and public relations methodologies for controlling the masses education is on hold. Students need to understand the history of money and causes of war. And students need to learn the history of labor issues like Ludlow Massacre. So much death and suffering destined to repeat itself.

      • none

        And of course the good news is that the recession is finally here!
        It reminds me of the movie, The longest day.
        Where the commander was complaining that the men where becoming to sharp “over sharpening” a blade.
        Now we can finally have an invasion of Normandy.

    • Horiboyable .

      It always amazes me the amount of people you talk to about the coming down turn and all they do is ignore it and stick their head in the sand. I am ready and have been ready since 2012, no mortgage, food stacked up in the garage, no debt and cash on hand with south pacific passports. I have been practicing my “Gidday Mate”

  • Igotafeva

    What this Country needs is more cowbell. I need more cowbell.

  • GSOB

    We are the world…
    We are the children….
    We are the ones who make a brighter day….

  • Dave Smith

    Michael,

    Simple question. How much money do you make from this Blog.

    What is your agenda.

    BTW – I know that this comment will produce a load of vitriol.

    Dave

    • Randy Townsend

      Fair question, but assumes that $’s the motivation for doing the blog. Read Michael for several years – his purpose is to open people’s eyes as to what’s coming. The Bible spells it out, but people have turned from God. Listen to what he says, my friend. Remember, passengers on the Titanic thought things were great, until they weren’t.

      • Dave Smith

        Randy,

        I have, myself, assumed for many years that our present economic system is a ‘house of cards’ and that the only true security we will ever have is from God (And I am talking about the OT/ NT God). However, I am concerned about people (not necessarily Michael) stirring up fear and profiting from it. After all ‘ do not worry about tomorrow’.

        BTW – I am a UK resident, not USA.

        RSVP

        • Randy Townsend

          Concur. Several websites preach the doom and gloom message, but want to sell something to enable you to “avoid what’s coming”. Don’t waste my time with those.

          • Dave Smith

            Randy,

            So maybe we are on the same page! I have just re-read Matthew 6 (on consideration) and of course we always focus on verse 33, not the more important bits before it. As to whether I (UK) or you (USA – I assume) are living in an increasingly godless nation is another question.

            I always look at Psalm 37:1-2 when considering this question.

            It would be good to know your thoughts on this.

            Dave

          • Randy Townsend

            2 Peter 3, Knowing this first, that there shall come in the last
            days scoffers, walking after their own lusts, 4 And saying, Where is
            the promise of his coming? for since the fathers fell asleep, all things
            continue as they were from the beginning of the creation.

            Matthew 6: 25 – on, we are told not to worry about the necessaries of life. People that obsess over investments, planning to survive what’s coming, all of that will fail. The relationship with Christ is what’s important. Without that, no point in doing any of it. With that, He will provide.

          • Dave Smith

            Randy,

            Not quite sure why the first verse is relevant to this little dialogue – or maybe I misunderstand the meaning of ‘fathers fell asleep’. Peter here is talking about human nature; verse 9 and 10 are interesting.

            Regarding Matthew 6:25, I do Agee with you as this is a major distinction. If you’re not careful you will have me ranting about prosperity preachers!

            Best left to another time me thinks – of course if you want to respond to my first paragraph (re Peter 2:2;3-4) then you are welcome.

            Otherwise I look forward to another tit-for-tat with you in the future, as I do read this blog and themostimportantnews on a regular basis (starting a few months ago), but I am always careful about negativity.

            Dave

          • Randy Townsend

            It’s relevant because the world is asleep, no idea of what’s coming, continuing to live as they have with no thought of what is on the horizon. Tell people what’s coming, and you are met with incredulity, ridicule, and derision. They are asleep.

          • Dave Smith

            Randy,

            I get your point now. I take it you had a little of this coming up to 2008; even that was just a warning to get your house in order.

            Dave

          • Randy Townsend

            Correct, my friend. I’ve done all that I can do (no debt, other than a mortgage), saved, invested, etc. but it doesn’t really matter. The Bible is clear about what’s going to happen. This world lives like there is no tomorrow. At some point, that will be true.

          • Dave Smith

            Randy,

            Here is a, maybe, unrelated comment, but what do you think about the established church and the Third Commandment.

            Dave

  • tacoma

    I have been saying a fact in this blog revealed by certain economics experts but covered up by the government and elites – America has adopted a form of capitalism that favors the elites at the expense first of the poor, then the middle class. Which is why there were ‘1%’ demonstrations past few years, and at the same time a Tea Party was created by the Republican brain-trust to counter-act the 1% demonstration. The two have since cancelled themselves out.

    The elitist capitalism (some call it corporate fascism economics) is the core reason why the U.S. economy cannot create jobs for a higher and higher percentage of the working class. (Economists call the working class ‘renters’ because they don’t own anything.) While the owner class continue to prosper. But I would go further – I call the ‘renters’ debt slaves. They will never get out of their debt because of continued lower income, continued high price due to inflation of money, further compounded by interest on debt. It’s like the black slaves of pre-Civil War have returned but in 10 times the number. Equal opportunity slavery in America today.

    How does the U.S. government sustain this for-rich-only economics? Two ways: 1. Keep the U.S. currency high, and ability to issue ever more debt with impunity. 2. Establish ever more free trade agreements that favor the corporations. These of course will make the rich even richer, but the hope is a bit of wealth will trickle down to the upper end of the middle class. Every time a bit of this trickle shows up in stats, the president will call a press conference to announce the great success of America, another sign of Exceptionism.

    #2 – the trickling effect to the top end of the middle class, will keep the rest of the same class quiet. Because the argument is they should work harder to taste the trickle. Which will be taxed away but that’s another story.

    What about the poor? This is where #1 comes in. The ability to issue infinite amount of debt means government can finance ever more welfare programs, ever more infrastructure builds, at no cost, consuming no wealth. Just print the money. This why UI payments that never stops, Food Stamps for everybody, vast billions for the Pentagon including $20 billion for a single new carrier, etc. This should keep the poor quiet, in theory. Also keep the military happy – because it is their job to cook up troubles all over the world, create new enemies and fight them. [How many wars America have fought since WW2? No accident. It’s all strategy. Every time a new enemy is created, the big media reaps in ad profits by endless coverage of the new evil.]

    So this is how the U.S. of A has come to. Issuer of infinite debt. Creator of troubles and enemies, creator of crisis, so that its currency will gain in value. In a government strategy to sustain its elitist economy. But I do congratulate government think tanks for coming up with their version of British Empire imperialist and plunder economics for today’s world. I must point out, however, that even during the height of the British Empire, owner of colonies so vast the Sun never set on it, the home country was packed with so many poors that even Queen Victoria couldn’t withstand the sight and stench after a single tour of London’s docklands. The Empire blew up soon after her death.

    • Nemnor

      tacoma, I can agree with much of what you stated. You post (above) shows that you have a better (truer) understanding of what the USA is all about, than some other posters in this blog. You CORRECTLY identified that the USA is one of the key creators of war and strife all over the world.

      However, you stated – “… America has adopted a form of capitalism that favors the elites at the expense first of the poor, then the middle class…”.

      Your statement seem to imply that one can have a “from of Capitalism” that favors the middle class and the poor above the elite. WRONG.

      What is true however, is that there were periods in the history of (US) Capitalism when the system was (a little) less favorable to the elite that other times, and thus, in those times when the system was (a little) less favorable to the elites, the system allowed for the chance of more “trickle DOWN” effect – i.e. allowing (a little) more to go to the middle class and then to the poor.

      However, Capitalism, by it’s INTRINSIC nature, has ALWAYS been a system that favors the Elites at the expense first of the poor, then the middle class. There was NO time during the 500-year history of Capitalism, when it was different. The only thing that varied was how much the system favored the Elites. Or, conversely, what varied was how much the system exploited the poor (the Workers) and then the middle class.

      Finally, the main reason the USA creates (instigates) war and civil instability all over the World is that, this is part of the US strategy to help keep the US empire afloat (they hope), and to prevent (they hope) the USA from sinking into total socioeconomic collapse.

      The USA is “compelled” to do what it is doing, as the world-wide Capitalist system became decadent (for some time now). As long as the world “hangs on” to Capitalism, ultimately, it is really every man (country) for himself (but the world is not yet fully aware of that reality about decadent world-wide Capitalism).

  • Antonio Ossa

    I DON’T BELIEVE THERE IS GOING TO BE A CRASH, IT’S JUST GOING TO BE A SLOW BUT STEADY ROT!

  • SunnyFlaSnotress

    “If U.S. economic growth falls any lower, we are officially going to be in recession territory”
    Standard definition of Recession is 2 consecutive quarters of negative GDP.
    That would be at least 5 months away.
    Let’s not get our knickers in a knot.

  • Mondobeyondo

    The recession never truly completely ended. It is an ongoing event, which started in 2007, led to a near financial catastrophe (the Great Recession), and we are still trying to recover from the massive hangover that caused. You can see the hangover in the jobs numbers, and the overall state of the economy. More jobs, sure. But you’ll need 2 jobs now to earn what you made with 1 job in 2005.

  • Christian Man

    What recession? This is and has been the Second Great Depression. All the numbers coming from the BLS are doctored and printing all that money from thin air inflicted the death blow to the economy. Wait and see.

  • Jerry

    “one out of every five American families nobody has a job”

    Not unexpected since this includes retired couples. Michael seems not to understand that and believes that everyone is unemployed in 20 percent of all families in the United States when that is not really the case.

  • hon788

    Obama says everything is fine. Oh by the way gas is over 4 bucks in Cali, and heading to 5 bucks. Nice Obama one of the few that did not serve in the military either.

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