The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

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19 Signs Of Very Serious Economic Trouble On The Horizon

Most Americans have no idea how much economic trouble is heading our way.  Most of them just assume that everything will eventually "return to normal" just like it always has before and that those running our economy "know what they are doing" and that we should trust them to do their jobs.  Unfortunately, these beliefs are being reinforced by the bubble of false hope that we are experiencing right now.  For example, it is being reported that weekly unemployment claims in the United States have fallen to a four-year low.  That is a very good thing.  Let us hope that unemployment claims go even lower and that the current period of stability lasts for as long as possible.  We should enjoy these last fleeing moments of tremendous prosperity for as long as we can, because when they are gone they won't be coming back.  As I noted the other day, all of this false prosperity in the United States has been financed by the 15 trillion dollar party that we have been enjoying.  We are adding about 150 million dollars to our debt every single hour so that we can continue to enjoy an inflated standard of living.  Unfortunately, nobody in the history of the world has ever been able to keep a debt spiral going indefinitely, and our debt bubble will burst eventually as well.

Sadly, when you attempt to end (or even slow down) a debt spiral the consequences can be extremely painful.  Just look at what is happening in Greece.  Several waves of austerity measures have been implemented, the Greek economy has been plunged into a full-blown depression and Greek debt is still going up.

The rest of the nations of the eurozone are also now implementing austerity measures, and most of them are also starting to fall into recession.  The economic pain in Europe is just beginning and it will go on for quite a long time.

And eventually the United States is going to join the pain.  Right now the U.S. government can still borrow trillions of dollars at super low interest rates thanks to games being played by the Federal Reserve.  But it is simply not possible for this Ponzi scheme to last too much longer.  When it ends, the pain will be extremely great.

And even in the short-term there are some extremely troubling signs for the U.S. economy.

The following are 19 signs of very serious economic trouble on the horizon....

#1 According to one new survey, approximately one-third of all Americans are not paying their bills on time at this point.

#2 The U.S. housing industry is bracing for another huge wave of foreclosures in 2012.  The following is from a recent Reuters article....

"We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group with 10 offices in Ohio.

#3 The Citigroup Economic Surprise Index, a key indicator watched by many economists, is on the verge of heading into negative territory.

#4 We are supposed to be in the middle of an economic recovery in the United States, but bad news just keeps pouring in from major companies.  For example, Yahoo is firing thousands of workers and Best Buy is closing dozens of stores.

#5 Richard Russell says that the "big money" is starting to quietly exit from the financial markets....

"My guess is that this is the big money that has been holding off as long as it decently can -- and then dumping their goods just before the close. I don't think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can."

#6 Goldman Sachs is projecting that the S&P 500 will fall by about 11 percent by the end of 2012.

#7 All over the country, local governments are going into default and we have not even entered the next recession yet.

#8 The U.S. government will add more to the national debt in 2012 than it did from the time that George Washington became president to the time that Ronald Reagan became president.

#9 The Federal Reserve is desperately trying to control interest rates.  The Fed purchased approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011.  This is the only thing that is keeping interest rates in the United States from soaring dramatically.

#10 German industrial production is falling at a pace that is far faster then expected.

#11 Italy's debt-to-GDP ratio is now up to 120 percent.

#12 The Spanish government admitted on Tuesday that Spain's debt-to-GDP ratio will rise by more than 11 percent this year alone.

#13 Yields on Spanish bonds are rising to dangerous levels.

#14 The Spanish government is projecting that the unemployment rate in Spain will exceed 24 percent by the end of the year.

#15 Unemployment in the eurozone as a whole has risen for 10 months in a row and is now at a 15 year high.

#16 In the aftermath of a 77-year-old retiree killing himself in front of the Greek parliament in protest over pension cuts, the economic rioting in Greece has flared back up dramatically.

#17 At this point, Greece is experiencing an economic depression with no end in sight.  Some of the statistics coming out of Greece are really hard to believe.  For example, one port town in Greece now has an unemployment rate of approximately 60 percent.

#18 The IMF is asking the United States to contribute more money for European bailouts.

#19 At this point, even some of our top scientists are projecting economic trouble.  For example, researchers at MIT are projecting a "global economic collapse" by the year 2030 if current trends continue.

But the truth is that we will experience a "global economic collapse" long before 2030 comes rolling around.

Let us hope that we still have at least several more months of economic prosperity in the United States before things really fall apart.

The truth is that the vast majority of Americans need more time to prepare for what is coming.

Sadly, most Americans are not preparing.  Most Americans have blind faith that those in positions of power are going to fix everything and set us on the path to even greater prosperity than ever before.

Unfortunately, all Federal Reserve Chairman Ben Bernanke and Barack Obama have been doing is kicking the can down the road and making our eventual collapse much worse.

As many of us have painfully learned, you can run from debt for a while, but you can't hide from it forever.  Eventually debt catches up with you, and when it does it can be very cruel.

The 15 trillion dollar party is coming to an end, and the consequences of decades of very foolish decisions are going to fall on this generation.

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  • SamColt

    And the 20th sign: The United States of America in 72 years becomes a nation of consumers and NOT producers. Manufacturing drops from 23.4% to 10.4% of the workforce.

    http://news.yahoo.com/blogs/lookout/1940-census-graphics-show-dramatic-change-education-economy-135944654.html

  • Deborah

    The unemployment numbers do not reflect the people that cant get unemployment or the ones that have exhausted there unemployment benefits. If all those were added up with the people who are getting unemployment it would show the true amount of people that are unemployed.

  • Proftel

    Michael:

    In 1985 I bought my first personal computer was expensive and there was no network.

    Used the network of the University and by that time there was talk of Echelon.

    Today I am not surprised with anything, there are wars and rumors of war (probably the one that will put us back with bludgeon in hand).

    You can see by my e-mail (“@ msn” – Microsoft Network – Hotmail’s grandfather) was talking about Jurassic in Brazil.

    They are very serious problems that lie ahead not only here in the U.S..

    For me, a moratorium on military spending for five years, the world should follow.

    That no cartridge, no pump, no aircraft or ship were produced for five years, what is working that give service.

    Perhaps a moratorium on well rid of misfortune.

    Michael, I’m telling you that the height of my meager 50 years of age thanking you the information you provide on the Web.

    Him I am grateful, very grateful.

    I apologize for the google translation of that is bad but lets through the ideas.

    :-)

    • Michael

      It is okay – I can tell what you are saying even though the translation is not perfect. :)

      Michael

  • a lot more trouble coming

    The unemployment numbers are about to surge in the coming months and years and there is no sign of relief from either party elected in November, get ready for Zombie nations.

    Sony to Cut Estimated 10,000 Jobs
    Updated April 9, 2012, 6:05 a.m. ET
    http://online.wsj.com/article/SB10001424052702303772904577333162194832288.html

    Yahoo Announces Layoffs: 2,000 Jobs Cut
    04/ 4/12 06:45 PM ET
    http://www.huffingtonpost.com/2012/04/04/yahoo-layoffs-2000-jobs-cut_n_1402470.html

    Big Layoffs For J.C. Penney, PPG Industries
    April 6, 2012 10:50 AM EDT
    http://www.ibtimes.com/articles/324940/20120406/big-lay-offs-j-c-penney-ppg.htm

    450 to 500 layoffs announced for division at Lockheed Martin
    Updated: 4/08 12:40 am
    http://www.9wsyr.com/news/local/story/450-to-500-layoffs-announced-for-division-at/kIOqtLz_tkmFoBtoEybYJg.cspx

    Oprah Winfrey characterizes OWN job layoffs as ‘rightsizing’
    April 7, 2012
    http://www.examiner.com/entertainment-industry-in-national/oprah-winfrey-characterizes-own-job-layoffs-as-rightsizing

    Ford to Layoff 1,200 Workers During Claycomo Retooling
    Posted on: 7:50 am, April 2, 2012
    http://fox4kc.com/2012/04/02/ford-to-layoff-1200-workers-during-claycomo-retooling/

    Dow Chemical to cut jobs
    April 3, 2012
    http://www.freep.com/article/20120403/BUSINESS01/204030337/Dow-Chemical-to-cut-jobs?odyssey=mod|newswell|text|FRONTPAGE|s

    will you be next? Get ready and be prepared, emotionally, physically and spiritually.

    The stimulus was not a cure and never could be. It was just a pain killer, while the patient is nearing death.

    • Alasha

      Excellent research – a lot more trouble coming. Very impressed!!!!

  • Jake

    The difference between the last depression and what is coming is: This time it will be a complete failure of all global currencies leading to one world currency under one world government (the UN), ultimately culminating in the great tribulation Matt 24:21.

    Welcome to the NWO!

  • http://www.wakeupnews.de Holger Jahndel

    More disturbing Facts:

    15 Mind-Blowing Facts About Wealth And Inequality In America. Information Clearing House, Grafiken über Einkommens- und Vermögensverteilung in den USA

    http://www.informationclearinghouse.info/article25399.htm

    http://www.pauljorion.com/blog/?p=11384

    http://elboheme.blogspot.com/2010/05/die-wahren-ursachen-der-krise_12.html

    http://www.china-intern.de/page/wirtschaft-hintergrund/1318019478.html

    100 Mal Niedergang
    [07.10.2011] 100 Zahlen und Fakten über den Niedergang der US-Ökonomie.

    China kommt natürlich auch darin vor, unter Nr. 65, 67, 68 und 69.

    #100 A staggering 48.5% of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.

    #99 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

    #98 Since Barack Obama was sworn in, the share of the national debt per household has increased by $35,835.

  • DB200

    The #1 reference gives an interesting conclusion:

    “Keating said the survey shows that Americans are saving less, spending more and failing to understand basic financial steps required to build a stable future.”

  • Sarah

    Michael,

    I was recently turned on to your blog and I love it. I too see economic disaster ahead. But a question – why do you think it’s imminent? I found this article recently (http://www.cnbc.com/id/30308959/The_World_s_Biggest_Debtor_Nations) that shows that we if you use a debt to GDP ratio, we are in much better shape than many countries. The worst offenders have a debt to GDP ration about four times that of ours, and their economies haven’t collapsed yet. Just curious to get your thoughts.

    Thanks!
    Sarah

    • Michael

      Sarah:

      I actually don’t think a full-blown collapse is imminent. I believe that it is going to play out over time.

      And you are right – there are some other nations that have worse debt to GDP ratios than we do. In that list you will notice that most of them are in Europe, and I believe that Europe will be the epicenter of the next wave of the financial crisis.

      But it is not just about government debt. Our financial system is a giant pyramid of debt, risk and leverage and I believe that a derivatives crisis is rapidly approaching. When the derivatives fail, it is going to make the 2008 crisis look like a picnic.

      Michael

  • Ghulam

    America almost single handedly gave the world a deadly nuclear mess that will plague all life on this planet for millennia. They are the worst polluter of the environment by far. They have ravaged one nation after another ever since destroying the South, stealing much of Mexico, faking an incident giving them the right to take Spain’s remaining colonies, dropped more bombs on Southeast Asians than were dropped in all of WWII. The list of American atrocities goes on and on. They have far more of their own people in prison than any other nation. How can the crash of the American dollar and the destruction of the USA as a nation not be a blessing for all life on earth?

  • chris

    More doom and gloom, they’ve been predicting economic collapse for donkeys years, it’s all fear mongering just to keep the public glued to fear. That’s all it’s fear mongering.

    • mondobeyondo

      Umm… try not to rush things any faster than they’re already happening.

  • http://www.wakeupnews.de Holger Jahndel

    100 Facts

    http://www.china-intern.de/page/wirtschaft-hintergrund.html

    http://www.china-intern.de/page/wirtschaft-hintergrund/1318019478.html

    15 Mind-Blowing Facts About Wealth And Inequality In America. Information Clearing House, Grafiken über Einkommens- und Vermögensverteilung in den USA

    http://www.informationclearinghouse.info/article25399.htm

    http://www.pauljorion.com/blog/?p=11384

    http://elboheme.blogspot.com/2010/05/die-wahren-ursachen-der-krise_12.html

    http://juergenelsaesser.wordpress.com/buchinfo-bye-bye-usa/

    Buchinfo BYE BYE, USA
    Heiner Karuscheit

    BYE BYE, USA

    Aufstieg und Fall von Finanzkapital und Militärmacht

    Ein Buch in der Reihe COMPACT, hrsg. von Jürgen Elsässer

    Am 7. Juni 2010 erscheint der neue Titel in der von mir herausgegebenen Reihe COMPACT:

    Heiner Karuscheit

    BYE BYE, USA

  • http://www.wakeupnews.de Holger Jahndel

    Peak Oil and 9.11. – Michael C. Rupperts daily Peak Oil Blog

    http://www.fromthewilderness.com

    See also: Running short of Gas and Uran, Copper and Phosphor and Helium

  • http://venuscow.com Holly

    Thank you for this dose of brutal truth. And please keep saying it.

    I hope you don’t mind me sharing this link, a short inspirational film and true story.

    Shirley Yanez and her free life coaching

  • Betty

    I am an 88 yer old woman. Just how do I prepare for this economic collapse?

  • SMASH THE CONTROL MACHINE

    You know Michael, if you keep on saying things are Bad you have a good chance of becoming a prophet!

  • pault

    As David said about Abner – “Abner died as a fool”. That will be America’s epitaph.

  • David Heyer

    And the Republicans say they can solve the problem by destroying our government. Why does no one say what Romneys economic experience was? He was a corporate raider!!! They used heavily leveraged funds to buy up 50% (+) of companies, used the companies assets to pay off their loans and then liguidated what was left and put the money in their pockets. They did not make jobs and they did nothing to help the economy. They only increased their own wealth.

  • Brent

    Although I don’t own a computer, I check this website a couple of times a week at the library, and find it fascinating. Despite all media proclamations to the contrary, I intuit that there is no significant financial recovery right now. However, news reports say that cars are flying off lots, people are dining out, (and the restaurants in my area do appear to be full)the Easter season was a huge retail success, etc. etc. My question is: (and I would like to read the comments of the bloggers here on this)…What’s actually going on right now? People seem to be in a spending mode, but what lays behind the change in attitude? It would appear the masses actually do feel more confident, but can they actually, (I mean really ACTUALLY) absorb over $4.00 a gallon gas, rising grocery prices ad infinitum etc? And I can’t help but wonder if a great deal of this is going on credit cards. Your comments, personal observations, and reactions to the consumer confidence boom. Many thanks.

    Brent

    • Michael

      Brent:

      It is an honor that you go out of your way to check this site at the library. :)

      Michael

      • Brent

        Thank you. Perhaps you can expound on the everythings rosy mind view in a future article. Personally, I think it’s a propoganda campaign to re-elect Obama.

        An interesting article could perhaps focus on whether or not the new spending is indicative of real prosperity or whether it is a sham.

        I find myself amazed that people seem to eat out all the time, and buy the latest electronic gimmicks. I saw a flat screen TV in an apartment in the projects one day recently as I was exiting my car at church to attend mass !

        Moreover, a woman in my office, (on food stamps) showed me her new government provided cell phone! Now, I’m not jealous, (I possess neither a flat screen TV nor a cell phone and don’t wish either) but I ask you–what goes on here?

        As for me, I feel like it’s time to act like Noah building the ark. Your column is most informative and I admire the strength of your convictions.

        Brent.

        • Mustard Seeds

          People don’t think anymore.

          They react.

          The stock market takes a nosedive a few years ago, and people react with amazement. They are leary for a few days, but the sky doesn’t fall….so back in they go….with both feet. Now 200-300 point dips really don’t bother people.

          A couple of years ago $4 a gallon gas scared people. But the sky didn’t fall. Life went on. This time, they don’t like it….but life continues on.

          It’s not just the economy.

          Look at the Zimmerman case. People on both sides are commenting about this case based on assumptions and rumors. Totally reactionary.

          Pretty soon, people just become sheep. They react quickly to the concern of the moment, but they lose interest quickly and go back to grazing.

          Sheep herders know how to control the flock. Our handlers know how to control the sheeple.

          People are numb to all the signs of the slowly eroding economy. Just like they were numb to the changes that slowly eroded the quality of schools, communities, government, entertainment….everything.

          There is a lot of propaganda out there for certain. And it’s not just coming from democrats. Maybe for bigger reasons than just our next presidential election.

          • Brent

            Interesting Comment. I live in a sort of trendy/Yuppie neighborhood, and while I don’t go–the restaurants all seem packed, as do the night clubs, and I am amazed at the pricey items the people ahead in line of me at the supermarket are getting, (oganic this-organic that). Now am I to believe that all these people have substantial savings and enjoy iron clad job security? Am I to believe the late model cars they drive are paid for. If nothing else, the impression of prosperity if legion at the moment. And yet I can’t help believing that many of them are living paycheck to paycheck, and are in reality, no way prepared for a major economic reversal. Would love to hear others thoughts/reactions, or are the citzenry in your locales behaving more prudently???

            Brent

  • patriot alice

    If we continue to borrow and spend we will end up like Greece…Sooner or later significant austerity will have to be implemented, we just can’t continue to borrow and spend, like a bunch of drunken sailors/politicians ….

  • Pierce

    “Who is in charge of the clattering train,
    The carriages creak and couplets strain.
    And the pace is fast and points are near,
    But sleep has deadened the driver’s ear.
    And the whistle shrieks through the night in vain,
    For death is in charge of the clattering train.”

  • Crazee J

    To the 88 year old woman who wants to know how to prepare for the economic collapse?
    You are 88 years old. if you are normal you should be having plenty of children and grand children to support you financially and take care of you in the final days of your life. However, if you are a single feminist femanadzi independent type woman that most American women today are and living alone with your seven cats, and short on funds/money, then sorry to let you know that preparing for an economic collapse now is a mathematical impossibility. You have dug your own grave and your independent lifestyle is coming back to haunt you, and once the money runs out you’ll soon die of mal-nutrition and bad health. It will most certainly be a sad day in your life!

  • Vote4Americans

    The unemployment rate is “down” because more people have given up looking for jobs. This is NOT a very good thing!

  • http://toast Richard

    Reading the above comments I understand why America is in trouble, it sounds like a bunch of escapees from an insane asylum. people keep saying vote for this or that political party Ha.Ha.Ha. after the last 100 years we have not learned that ALL political partys are the same. and who counts the votes?, you say we don’t trust the government but you let them count the votes anyway. and we have had how many instances of legalizing Hispanic peoples in the last 100 years? Now we have about 22 million Americans without jobs and about 22 million illegal Hispanics in our nation….. Da

  • ManAboutDallas

    I’m reminded of that great line from the 1973 version of “The Three Musketeers” when Aramis and Porthos have this exchange:
    Porthos: “Where are we going now?”; Aramis: “Porthos?! When the King says “Fight!” do we not fight?”; Porthos: (hesitatingly)”Well, yes.”; Aramis: “Then let us go and be killed where we’re told! Is life worth so many questions?”; Porthos: “No, I suppose not.”

  • Stephan Larose

    Perhaps an all out collapse is a blessing in disguise that will force people to really think about how the financial system works, who it benefits, and whether it is a logical and moral system or not.

    I would submit that a financial system based on legal counterfeit by private central banks and fractional reserve lending by commercial banks is a terribly immoral and illogical system on which to build a nation’s economy. It should be no surprise to anyone that the founders fought tooth and nail against the establishment of a private central bank. Said Thomas Jefferson:

    “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)”

    And the bankers won’t deny they are legal counterfeiters. Said William Paterson founder of the Bank of England: “The bank hath benefit of interest on all moneys which it creates out of nothing.”

    The solution, as Jefferson put it, is to restore the power of issuing money, debt-free, to the people of the country on whom the supposed value of the money is based. Thus, when government spends money into the economy, it incurs no debt. To control inflation, one needs only limit the supply of money and of money supply growth, something we can see today the Fed has done a terrible job doing, with the value of the US dollar falling over 96% since the Fed came into being.

    The problem of debt is the same the world over. Banks create money out of thin air then lend it at interest. The vast majority of all debt in the world is based on nothing, thus a coordinated default by all nations on their debts would be a blessing. No material wealth, no skill, or resource would be lost, and liquidity could be provided by new debt-free currencies which are regulated to prevent predatory speculation.

    Any shrill cries about the sanctity of the “free market” should be measured against the reality of the markets we’ve enjoyed these past hundred years. They have not been free in any sense of the word, they’ve been controlled by monopolies of the richest most powerful people who have done nothing but create chaos and injustice. With the proper rule of law, enacted and supervised by democratic citizens, we can have a free market regulated to ensure justice, fairness and plentiful opportunity. But it’s up to citizens to demand change, the media, and certainly not those profitting from this usurious system, will not do it for you.

  • Brent

    And yet the AP has just today reported that retail sales soared in March ! There does definately seem to be a lot of buying where I live and restaurants are packed. Is this just a case of collective denial or mass hypnosis? Are people charging again? Would love to hear if people are observing this puzzling display of (sham?) prosperity in their localities.

    Brent

  • Colin

    Legalize drugs! Everything’s better with a bag of weed.

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