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2 Things That Are Happening Right Now That Have Never Happened Outside Of A Recession

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Question Dollar - Public DomainIf we are not heading into a recession, why does our economy continue to act as if that is precisely what is happening?  As you will see below, we learned this week that factory orders have declined year over year for six months in a row.  That is something that has never happened outside of a time of recession.  We have also seen new orders for consumer goods fall dramatically.  In fact, the only time we have seen a more dramatic decline in that number was during the last recession.  And when you add these two items to what I have written about previously, the overall economic picture becomes even more disturbing.  Corporate profits have fallen for two quarters in a row, our exports fell by 7.6 percent during the first quarter of 2015, and U.S. GDP contracted by 0.7 percent during Q1.  Even though Barack Obama and the mainstream media are willingly ignoring them, the truth is that these numbers are absolutely screaming that we are going into a new recession.

Sometimes, a picture is worth more than a thousand words, and I believe that is certainly the case with the chart that I have posted below.  It comes from Zero Hedge, and it shows that factory orders have declined year over year for six months in a row.  The only times when this has ever happened before have been when the U.S. economy has been in recession…


Factory Orders 2015

When we look at new orders for consumer goods, we see a similar thing happening.  This next chart comes from Charles Hugh Smith, and it really doesn’t need much explanation…

New Orders For Consumer Goods - Charles Hugh Smith

Here is another chart from Charles Hugh Smith.  This one shows the percentage change in new orders for consumer goods on a year over year basis…

New Orders For Consumer Goods 2 - Charles Hugh Smith

These charts that I just shared with you are rather compelling.  How anyone can see them and still believe that we are in an “economic recovery” is beyond me.

When the economy starts to turn, there are certain things that we look for.  As I have written about over and over on my website, so many of the exact same patterns that we have seen emerge just prior to previous economic downturns are happening again right now.

Yes, the stock market is still sitting pretty for the moment.  But almost everyone can see that it is massively overvalued and could start tanking at any time.  And when the market does start crashing it is just going to cause our economic problems to accelerate even more.

Sadly, most Americans are totally oblivious to all of this.

Most Americans just continue to do the same things that they have always done.  That includes going into ridiculous amounts of debt.  For instance, this week we learned that the percentage of auto loans that are being stretched out for periods of greater than 6 years is at an all-time high

The average new car loan has reached a record 67 months, reports Experian, the Ireland-based information-services company. The percentage of loans with terms of 73 to 84 months also reached a new high of 29.5% in the first quarter of 2015, up from 24.9% a year earlier.

Long-term used-vehicle loans also broke records with loan terms of 73 to 84 months reaching 16% in the first quarter 2015, up from 12.94% — also the highest on record.

But you know what?

Even though most Americans are being exceedingly foolish and are living paycheck to paycheck, that still isn’t good enough for the boys and girls on Wall Street.

Just consider the following excerpt from a recent Wall Street Journal piece entitled “A Letter To Stingy American Consumers”…

Do you know the American economy is counting on you? We can’t count on the rest of the world to spend money on our stuff. The rest of the world is in an even worse mood than you are. You should feel lucky you’re not a Greek consumer. And China, well they’re truly struggling there just to reach the very modest goal of 7% growth.

The Federal Reserve is counting on you too. Fed officials want to start raising the cost of your borrowing because they worry they’ve been giving you a free ride for too long with zero interest rates. We listen to Fed officials all of the time here at The Wall Street Journal, and they just can’t figure you out.

Please let us know the problem. You can reach us at any of the emails below.


The Wall Street Journal’s Central Bank Team

-By Jon Hilsenrath

They just want all of us to keep borrowing and spending our way into oblivion.  But of course when things do fall apart and millions of Americans can’t pay their debts, they will be there to foreclose on our homes and repossess our vehicles without any hesitation.

And when the next major economic downturn does strike, don’t expect the rest of the planet to feel sorry for us.  We like to think that the rest of the world looks up to us, but the exact opposite is actually true.  At this point, much of the globe is pointing fingers at us and mocking us.  Just consider the following excerpt from an article that appeared in Pravda

The land of illusion; the land of entertainment producing songs and movies to warp reality. People pretending to be something they are not. Likewise, Washington DC has people who pretend to represent the people’s interests. Pretending to bring hope and a change for the better. Pretending to bring unity and peace among all races. Lying through their teeth and laughing like clowns behind closed doors. Setting up a consumer based economy forcing the once mighty middle class to shrink and work at customer service jobs. “Ya want fries with that?

It would be easy to dismiss that paragraph as “Russian propaganda”, but the cold, hard reality of the matter is that there is nothing in that quote that is not true.

They are mocking us, and they are dead on.  We are the land of illusion.  We do have a shrinking middle class.  And we are definitely addicted to entertainment.  If you doubt this, just check out what one study recently found

If you weren’t reading this article, you would probably be scanning something else on the internet, watching TV, or maybe—just maybe—reading a newspaper or magazine. In short, you would be consuming media.

On average, people spend more than 490 minutes of their day with some sort of media, according to a new report by ZenithOptimedia. Television remains dominant, accounting for three hours of daily consumption—an hour more than the internet, in second place.

Other studies have actually discovered that the amount of time that Americans spend connected to media is even greater.  This is something that I discussed in a previous article entitled “How Much Time Do Americans Spend Plugged Into The Matrix Every Day?

For the moment, the mainstream media is assuring everyone that everything is going to be just fine and that they should go out and spend lots and lots of money.

But instead of spending your money on frivolous things like boats, electronic toys and expensive vacations, I believe that now is the time to get prepared for the great economic crisis which is currently starting to unfold.

Right now, I know that most people don’t actually believe that life in America is about to dramatically change.

So many of the things that people (including myself) have been warning about for so long are about to happen.  Our politicians and national leaders have turned a deaf ear to all of the warnings and have continued to conduct business as usual.  Soon, the error of their ways will be apparent to all.

We are heading into the greatest economic crisis in U.S. history, and there is going to be no coming back to the false, debt-fueled “prosperity” that we are enjoying today.


  • DJohn1

    You are right. There is a great depression coming.
    A great American writer once wrote that 15% of the population can be in non-productive jobs at any one time. When it reaches 50% the entire system collapses in on itself. Then the balance of 85% workers to 15% non-productive people re-establishes itself.
    This was all in a book called: “The Screwing of the Average Man” back in the 80s. The subject was all the “professionals” out there that stole their living from the working population. I say “stole” because these professions do not earn the pay they rip the public off for.
    This book actually designated how they did it.
    The one thing the author did not get straight was the percentages. Because we have long since arrived at more than 15% non-productive professionals out there.
    The entire system is written into the game rules by the U.S. Congress.
    So they are the ones to blame. 99% of which have a law degree.
    We now have a system where a great majority of people are not working. I refer to the welfare/food stamp programs/rental programs, and the great number of pensioners out there. All those pensioners were supposed to die off but didn’t with advances in medicine.
    I refer to the heat programs to aid people in winter time that are poor yet leave the working people high and dry at the same time with enormous utility bills. I refer to medicaid vs people working that have to foot the bill.
    Well it has now gotten worse as penalties are enacted to people that do work for health insurance.
    It is only my opinion. I think the entire house of cards is so fragile that almost anything might set it off crashing the entire thing back to zero.

    • Liberty First

      As one who has practiced law for many years, I can pretty much tell you that you are correct. With exceptions, there are some great lawyers trying to make it out there in what has turned into a sleazy, vile, profession. You would not believe how hard it is to find honest colleagues and judges, etc. They exist, but are hard to find. Thankfully I have been able to take a break from it for a while. But it is not just lawyers – overpaid professors getting rich on student loans, nonprofit chiefs making a fortune – there are millions of non-producers who are going to take a major hit. If there is any solace, the odds are that govt. pension plans are not going to survive.

    • autofixer

      The Feds QE is papering over the 15% and allowing the system to continue on. Minus QE we would already have seen the effects. It’s QE forever or pay the piper. Which do you think the political class will choose?

      • WhySoSerious?

        Even though I have the IQ of a dog! I am not screwed up like America with fractional reserve banking greed! I can’t believe that! is it like they roll the dollar over 9 times to create nine dollars and all collateralized by thin air and then create a thousand in credit all again collateralized by thin air? Or am I speaking crazy talk?

      • DJohn1

        It isn’t 15%. It is closer to 40-50% and the Feds QE won’t be able to cover it for much longer.

    • AzDi

      I agree with you … partly. I am one of those “pensioners” you refer to. And I am pretty ticked at your comment!

      I retired 2 years ago. I have paid into the Roosevelt socialist system since I started working in the 70’s. So why are all of you people crying about this. We had no choice! Just like Medicare when another liberal socialist started that. So, yes, I paid my dues even though I did not want to. However, now I am where I am and I am fine. No debt because I worked all my life, money in my “own” retirement annuity because I saved all my life.

      I’m a person who struggled all my life to get to this point. I am not a rich person, far from it, I have no degree. But I have worked all my life. So stop complaining about what the government forced on us and take care of yourselves however you can. I am ready for this depression. Food storage, living in a rural area, no debt!

      But, yes, the liberal democrat socialism in our country has done this to us. But where are the people who fight back? A whole lot of us have tried all our lives, but here we are again with people in Washington destroying our country.

      • john

        take it easy. we are not against you, we explain you that there are 2 workers for 1 retired instead of 6 or 8 workers several years ago. the trend is not to your advantage regrettably. it s a fact.

        enjoy your retirement.

      • laura m.

        Banks pay no interest for retirees, only income is a 401k, SS and investments. I suggest in your state tax free muni’s rated A or AA I got mine at Edward Jones and they pay interest every six months. Also stay away from utilities as interest rates could go up, get div paying stocks like at&t, gen mills, Dupont, J&J, etc.

      • Gay Veteran

        the problem with high medical costs is not due to liberal democrat socialism, it’s due to the entire medical field not being subject to anti-monopoly laws (not surprising in a fascist state).
        Libertarian Karl Denninger notes that with such laws medical prices would fall EIGHTY percent

    • Nemnor

      DJohn1, much of what you stated are symptoms (more or less) of the DECADENT world-wide Capitalist economic system – which is now at a “dead end”, and is NOT able to generate long-term recovery by economic means alone.

      Hence, the reason, no amount of “interventions” by Governments and Central Bank can prevent the continuous decline of the system (and the system will continue to decay even if there was no “intervention” by Governments and Central Banks).

      The real and ONLY solution begins with a fundamental change towards a sustainable alternative economic system, that involves (among many other things) reorienting production of goods and services to meet the needs of society, and with that being the primary end-purpose of production – as this is the only way we can even begin to address the abundant needs of every “rational” individual (and not just of “a 1%”).

      • 35wormhole

        so you do want communism

  • WhySoSerious?

    War is fun! This fake society that has been driven by artificial money is about to end! I am going to start a society of anarchist! We will be called The league of extraordinary gentleman! Great name Hun? Want to join?

    • Mike Smithy

      I like your sense of humor and affection for the absurd. Isn’t it funny how the government comes up ridiculous names for their programs and legislation that in reality are just the opposite of their namesake. For example:
      The Affordable Care Act should really be called the Unaffordable Care Act. The Bank Secrecy Act should actually be called the Bank Blabbermouth Act. The Patriot Act should be called the Treason & Oppression Act. I could go on, but I think you know where I am coming from.

      • WhySoSerious?

        There now the freedom act! Hehe it’s the patriot act 2.0 and take the NDAA and the freedom act is on steroids! Friend I will see you In a fema camp! I hope I have the honor of pressing the buttons to the gas chambers! Ohh ohh too much!

        • Mike Smithy

          You never know how things may pan out. Perhaps I will receive the honor of pushing the gas chamber button on you. Good times await us all, party on Joker.

          • WhySoSerious?

            I am gonna stick with my new society of anarchist! See how that works! Lol

      • Infidel51

        It’s kabuki theatre for the brain dead fools.

      • watchmanonthetower

        Everything they say or do is exactly the opposite; it’s hard-wired into their code of conduct as a form of mockery and expression of contempt. It’s actually a reliable ‘tell’ that marks them brightly…

        …but if you’re an inbred elitist bent on tyrannical global governance – it’s what you do.


    • watchmanonthetower

      WSS, if you’re going to use LXG as your banner, you’ll have to set a couple of extra places at the table for Moore and O’Neill; they own it!
      Of course, it the midst of a global catabolic collapse, Allan and Kevin will probably be fairly flexible on terms.

      Good luck storming the castle and setting up your new society. Remember to drink plenty of water; anarchy is thirsty work.


      • WhySoSerious?

        Dear watchman
        Thank you for the advice! I have to tell if someone is going to take my LXG from my society, and I quote, “THEY WILL HAVE TO TAKE IT FROM MY COLD DEAD HANDS!”

        • watchmanonthetower

          You’ll be getting a call from Heston’s estate lawyers right real soon, I reckon.

          • WhySoSerious?

            Are you going to tell? Plus lawyers don’t scare me! And if they do come Hestons estate lawyers will hear from my guns and that will be the last thing they hear! So tell em I am drooling for an old western shootout!

  • Liberty First

    I know. This is real stuff. Jim Rogers, the great investor, has just stated that he expects that we will see a temporary rise in the dollar as the rest of the world starts to collapse, but that it will be short lived and that within a year or two the real fun will start. Things seem to be crystallizing.

    We have sold a house in Florida that we have rented for some time. The value finally rose to where we can break even, and it just makes sense to dump it asap. This cheap mortgage money, within three years – barring a miracle – is going to soon evaporate. Not good at all.

    Though we had a chance to move to New Zealand last month, we declined and figure it best to ride it out at home and perhaps look to Latin America as a possible residence in a few years if possible. New Zealand is a great place with wonderful people, but we are one of its biggest trading partners and they do have heavy tax rates for residents with overseas investments. If we were 20 years younger, maybe.

    Just be smart, stay spiritual, and start looking for the real, lasting values of our parents and grandparents. We will need them. I think one can be happy by doing this, and associating with those who think the same way. Though I am no “prepper” in the traditional sense, we are in fact locked and loaded and aware that tough times are coming.

    Praying that things turn out differently, but truly, it would take some miracle that I don’t see.

    Michael is performing a great service no matter what happens, because even if this crash does not occur, following his suggests will redound to one’s benefit no matter what things look like.

    • WhySoSerious?

      Friend if you have a chance to get out of America! Take and never look back! It would be the greatest investment of your life! You would be investing in a longer life! Hehe! With all we know about our debt crisis, our inflated dollar, our stock market bubbles and our never ending QE! This can’t go on and America will look like post WW1 Germany soon! If we keep it up!

      • Liberty First

        It was a grueling decision. But there are opportunities in Latin America that offer real possibilities for relocation. Gotta look between the lines, avoid the banana republics, but there are other alternatives out there.

        • df NJ

          What do you think of Costa Rica?

          I don’t think QE will ever stop. Heroin addicts generally do not decide to stop taking heroin on their own volition.

          • Liberty First

            Costa Rica is interesting, Chile, perhaps Columbia. Check out International Man, it has some great ideas on the topic.

    • sue

      What exactly are those values of our parents and grandparents that you are talking about? They raised the current generation to be slaves to money and the system.

      Is this the same generation that did not want women to vote or continue with segregation?

      • Liberty First

        Red herring. Though I agree that there is something to the point re being a slave to the matrix. The point re minorities is lost on me.

  • True Grit

    Ok, so the Fed has printed apx 4 trillion dollars which went through the banksters and into the stock market. Economists say that if that money made it into the economy it could cause hyper-inflation. Wont the Fed crash the stock market to evaporate that money and avoid the hyper-inflation? Can any one shed some light on this?

    • MichaelfromTheEconomicCollapse

      Don’t forget that I never warned of imminent hyperinflation. I always warned that a deflationary depression was coming first.

      Yes, someday we will see inflation that is wildly out of control. But the great financial crash comes first.

      • Liberty First

        There will be a deflationary depression first. Then politicians will freak out and print, print, print, print and print some more money. What happens then is anybody’s guess.

        • df NJ

          It’s when the blood and tanks are really hitting the streets that we will see hyper-printing.

        • Mike Smithy

          It won’t be long before Mr. Yellen is throwing fiat from helicopters in an effort to stimulate spending. At that juncture, hyperinflation will be manifested.

      • Infidel51

        And of course it will all be hidden behind a war or false flag to provide a straw man or straw group to blame for the entire thing. The American sheeple will believe every word and will send their sons and daughters to die in another needless war. Meanwhile anyone who doesn’t willingly bend over and take it like a man as our economy crashes and burns will be labeled, at best unpatriotic, or at worst a terrorist. People are beginning to wake up to the giant lie that has been heaped on them by the monied owners of our entire system of institutionalized thievery. But unless a lot more people wake up a lot faster there won’t be enough of us to matter once the wheels come off. Best case scenario we fight a foreign war and worst case scenario we fight a domestic war. Either way the losers will be you and me. End rant.

        • Gay Veteran

          good points!

          I agree with Gerald Celente:
          bring the troops home
          seal the borders
          rebuild America
          NO foreign entanglements

          • Infidel51

            Absolutely. The world will find a way without our meddling.

  • fyi

    The Pravada article you linked to was from May 2014.

  • Bill

    If we make it until September it will be a miracle. I talk to more people every day who believe we are over the cliff. Someone today told me he didn’t expect his children or grandchildren to ever see the good times enjoyed by those of us now over 50. This same gentleman said his son recently quit after only one year of teaching 7 yr olds who were repeatedly telling him to f-off, you can’t touch me. This is not good. The financial depression is bad enough, we don’t need a moral depression with it. Like the financial depression already in progress the moral one started years ago with the parents of the 7 year olds who condone their behavior.

    • df NJ

      7 year olds learn by example. Maybe their parents parents are to blame.

      People in poverty become desperate. People have always been sinners. Pay workers higher wages and the world will be a better place. Poverty equals death and despair.

      • algol2000

        It is not higher wages that people need, it is land for food and gas to cook it. And decent work as a member of the family that owns the land. And the gas.

  • df NJ

    I have a novel idea. Raise worker salaries and save the World.

  • Richard

    Another excellent article, Michael. I really admire you for sidestepping the cliches of the past. I can absolutely see the effort you’ve made and it will pay off in spades. Your writing is now serious and lucid and extremely hard-hitting. Thanks again.

    • Infidel51


    • Mike

      This guy has this comment ready to copy and paste for every article. I think Michael gets your point. However, I enjoy all of the subjects that he writes about. Thanks for the hard work Michael.

      • df NJ

        Serious man love.

  • Genada

    Were already in the greatest economic crisis not in United States history but world history. We have been there for the last eight years.

    The stats and everything else is on your side but I disagree with you on how this plays out. This isn’t going to end in a boom, it’s going to go whimpering on and on. Slow boil kills the frog and he doesn’t know it, doesn’t attempt escape.

    None of this is said to say do not prepare for crisis. One should always prepare themselves but avoiding the market due to the belief it’s about to crash can be a terrible mistake as well.

    The great debate is about is this going to be a deflationary crash or a inflationary crash. So place your bets and see how it plays out. It’s going to be one or the other.

    • Avner

      Those who don’t prepare will be plowing the fields for those that do

      • Rob W

        Got enough ammo to secure the field hands you’re gonna need?

  • Bob Anderson

    Check this out patriots….. Our day has finally arrived….. Google this…. Wellaware1.

  • Hans

    When I was younger, I seriously thought it would be wonderful to get a green card and an opportunity to make a living in the “land of the free”. Strange as it might seem, I would prefer to rather stay where I am in South Africa at this stage.

    In spite of our own problems with corruption and so on, we actually seem to have more freedom. Our economy is based on manufacturing, mining and farming.

    Our Competition Commission is currently investigating collusion between big banks artificially driving down our currency (the usual suspects, including the biggest US banks!).

    I have read on more than one occasion about the perception of American exceptionalism. The day before yesterday, an American woman was pulled from a car and killed here in a lion park. Our one local newspaper reported “she just wouldn’t listen”, as she kept the window open in spite of repeated warnings. All acts have consequences and it will be good if your political and financial “leaders” take heed of this principle.

    I can see that a massive economic collapse is coming and we are all going to feel the pain. I actually feel sorry for individual Americans caught up in the political and financial system you have to deal with.

  • K2

    Spending like the fed or wall street journal asks, is not bad in itself. Spend on things like useful education, ”healthier” food and drinks, fixing repairs, spend on good quality items/clothes, shoes, ‘necessary’ and good quality gadgets (that dont get torn or break down after a year). I suppose thats what they mean when they ask people to spend. They are not asking you to go bankrupt. Just asking you not to be stingy.

    Of course this applies to people in all countries, not just in the states.

    And michael, for gods sake dont qoute zerohedge, the comment section/some articles are anti-semitic. By qouting it…you are unwittingly driving more web traffic there. I used to visit that site but the comments put me off.

    • Gay Veteran

      why would you not read the excellent articles on Zerohedge just because of the comments section?!?!?!?

    • FortuneSeek3rz

      There is no shortage of websites that are fielding off color comments. And by no shortage I mean 98%. You’d be more aligned if you boycotted the entire world wide web.

  • Cal Wayback

    What a shame. JFK had this figured out in June 1963 when he bypassed the central bank with an executive order to print debt free US Treasury notes backed by silver in lieu of debt ridden federal reserve notes backed by nothing intrinsic in value. If he had lived the FED would have disappeared the national debt paid off and the country in rock solid financial condition. Then came Dallas and the country has been in stark decline ever since. Kennedy’s speech in Dallas, never delivered mentioned how Americans feared an army of bureaucrats in DC more than a foreign army invading our shores echoing Lincoln’s destruction from within. Americans in 1963 were thinking clearly they saw the future and it all came true in diamonds, hearts, clubs and spades in particular a spade named Barak Hussein Obama.

    • df NJ

      Every president who has gone against the private fractional reserve banking system has been as_sas_sinated.

    • SunnyFlaSnotress

      You know the initial primary election that put Obama in presidential running, was a horrible one. In Florida, where I live, the Democratic votes, mine included, were literally discarded on a date technicality. I still can’t believe that was legal.
      If more of you boys had voted Hillary in the first place, this all wouldn’t have happened. Fight with it all you want, but those are the facts.

    • GSOB

      Use of deadly force. Simple as that.
      It holds it all together even to this moment.

  • Ricardo

    The pope arrives in September. Just in time to save everyones sorry arses…..and I mean that with the greatest tongue in cheek comment. Go and google the Jesuit Oath. Google the coming National Sunday Law and most of all read your Bible for the persecution that is soon to befall Gods people firstly in America and then the rest of the world. By G ods people I mean those who keep His commandments. have the faith of Jesus Christ and the Spirit of Prophecy.

  • grumpyhillbilly

    C’mon guys! We’ve got Caitlin Jenner, gay marriage, and a black president. What more could any of us ask for? I know a transgender, lesbian president. Living in the world of illusions? How about living in the country of stupid. Tenured union teachers have finally paid off for the elite. Sad thing is that despite being psychopaths, the elite are the ones living in the self esteem created bubble of illusions.

    • df NJ

      You forgot all the death from abortions.

    • 2gary2

      He’s not black; he’s ‘multi-racial’.

      • AZFan

        He is black, half black is the same as being black

        • DW

          It’s not the color that matters, it’s his Muslim ideology.

  • Max

    Digustingly true on all fronts. So the (rhetorical) question I have to pose is: Why is the president and mainstream media willingly ignoring the signs that are clearly in front of our face?

    • T.

      Answer: They are CONTROLLED by TPTB who intend on bring U.S. down.

      • Max

        Why though? Why do those “powers” intend to bring the U.S. down?

        • SAM

          They are bored and want a NWO.

        • T.

          They want to RULE the World Max. They are Megalomaniacs.

          Beyond that – I do not know.

      • laura m.

        We are under a corp fascist gov. where slaves work for cheap wages under corp. rule. Prices go up, wages don’t. Since automation has over taken many jobs now to incl China, etc. many will be killed off (surplus pop.) to make a smaller pop. easier to manage under a new technocratic feudal system. Each country will have an appointed dictator and agenda. The takedown could be any time. Political activity to incl voting is a joke, the politicians are controlled puppets like you said. Patriots have never had results for their efforts over decades starting after ww2, and never will. No sense in joining any group or attending any activity, stay low key.

  • Allan

    Michael thanks for standing up for the truth.

  • jakartaman

    We never left the recession 7 years ago!

    • df NJ

      We live under economic tyranny:

      “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.”

      • Gay Veteran

        We can have concentrated wealth in the hands of a few or we can have democracy. But we cannot have both. (Justice Louis Brandeis)

      • Gay Veteran

        It was Clinton that started dismantling the New Deal laws that protected us, like the Glass Steagall Act which regulated banks. Clinton deregulated the media and now 6 corporations control most of the media.

    • Mondobeyondo

      You are correct. We never truly left it. It got a bit easier about 3-4 years ago. Now it looks like the pendulum is shifting back to “Really Bad” again.

  • Rob W

    Around here, in Flint and Detroit, the water system is falling apart. A pretty significant chunk of the population has been priced out of access to running water with the last rate hike, needed to repair the many main breaks plaguing this hundred plus year old system. Band-aids is all it’s getting currently, and I can only wonder how long it will be before the system’s repair costs start to price middle class households out of access to running water…

    • Gay Veteran

      “Around here, in Flint and Detroit, the water system is falling apart…..”

      well Rob, we DO have plenty of money for war

  • Annabel Smith

    I am in Australia and read your blog Thankyou. We cannot brag our debt is growing daily… but I wanted to agree with you… everyone is talking about Obama and how things are crazy and what is going on???? It’s a subject and I’ve never known that to be the case. My Mother is 76 and said to me today something about Obama and how strange he is. There is a sense something bad is going to happen.
    Once we all thought the U.S. was rich and powerful now it seems like it is in crisis.
    Observations from South Australia.

    • AzDi

      Our country is in crisis, but we have too many brain dead people not paying attention. This article is right on!! Everyone is walking around texting, on their phone or whatever. Very few are paying attention to what Obama has done to destroy our country. The only ones who are paying attention are “ready”. Food storage, debt free or very low, living in a safe area……. America is going down, but the rest of the world may be going the same way.

      • Molon Labe Girl

        Debt free may be a bad move right now. Think about it – borrow $100 today for a $100 order from cheapasdirt, and pay it back during/after hyperinflation when that $100 is now = $10. Something to think about.

        • Rob W

          Yeah, but you won’t be able to find a paying job to save your life. Debtor’s prison, anyone?

          • Molon Labe Girl

            Sell for $1000 what you bought for $100. You just made $900, in relative terms. Pretty good return.

          • Rob W

            Good luck to you…

          • johmill

            Foolish thinking if you think you will be the lucky one who profits off of it. God made it clear in the Bible thousands of years ago when He warned against debt. Even if you did make some money off of it, in the long run debt is a loser. I paid off all my debts years ago, even the house, with lots of hard work and careful living. When the economy went bad I lost a huge portion of what I had in savings and my job. I’ve struggled to find any decent work ever since 2009. The good news is that because everything’s paid for I can work for minimal income and at least cover my expenses and not worry about a place to live. I’ve been very glad the past 6 years that I didn’t have any debt.

          • Molon Labe Girl

            I’m merely positing the idea of having debt during a collapse of the economy – not that I support being indebted ( I am not, not even a mortgage). We have to really think through all of this, not just stick to some dogma or repeat what we’ve heard. Think through it.

          • kiki

            I never understand comments like this – the idea you don’t have any debt, when the chosen banks were bailed out by saddling – all – of us with debt. We didn’t have any say and Congress ignored our objections. We are now all very deeply in debt. And we can be made to pay it through any number of mechanisms: banning cash coupled with negative interest rates on savings, putting IRAs and 401Ks into government debt, increasing taxes, tax law changes, pumping up and crashing everything from stocks to real estate to the job market. I read the great fortunes are made not by buying things on the way up, but by buying things for pennies on the dollar after things are crashed. It’s a great mechanism for shearing the sheep. Anyway, my feeling is that not being in debt will isn’t going to save you from anything, but actually may flag you as someone to watch.

        • IsReal

          You’ve got it wrong. The $10 will be multiplied to what what it was worth at the time of the collapse.

          • Molon Labe Girl

            So follow me here: I take a loan for $100 today, and buy a $100 shovel (at today’s prices). Then the currency hyperinflates, so now a shovel costs $1000. I sell my shovel for $1000, pay my original creditor $100, and still have $900. Had I NOT gone into debt, I’d have nothing. Isn’t this how Jamie Dimon would roll?

      • Gay Veteran


  • Lazarovic

    I read the WSJ article; the author needs to be….”French Revolutionized”, if you know what I mean. Get the rope.

    • df NJ

      I wish I was hip enough to understand this post.

  • Preparequickly

    If the banks start having massive foreclosures on houses and have mass repossession of vehicles in america what would be the point? who would they sell them too they would sit there empty and all the wire and anything of value would be stripped from them. Here in the town i live in the town has stopped seizing property for unpaid taxes they are now levying the wages of the owners because they are ending up with to many empty houses that they cannot sell they get vandalized spray painted and stripped out.

    • df NJ

      All the people they would have to hire to do all the work would be like a national jobs program.

  • Nemnor

    You stated – “…these numbers are absolutely screaming that we are going into a new recession…”.

    However, it would not be a “new recession”. Rather, more “accurately” stated – we are going into a deepened period of an on-going recession. The USA and the World still have not truly recovered from the deepened crisis of 2007-2008.

    The truth is, the USA (and the World in general) have been in an on-going economic crisis that began since the late-60s/early-70s – which was the end of the “reconstruction boom” following WW-II, and at a time when most of the leading Capitalist economies began to “catch up” to the USA, and compete for a bigger/better share of the (virtually and practically) LIMITED World “economic pie”.

    The crisis of 2007-2008 was simply a DEEPENED period of the same on-going economic crisis that began late-60s/early-70s.

    That on-going economic crisis (which could eventually change from recession to depression) is rooted in a state of general over-production in the world-wide Capitalist economic system – which is now at the stage of decadence.

    Over-production makes it difficult for the Capitalist to sell their products/services for a (reasonable) profit. Hence, the reason the Capitalists feel “compelled” to (irrationally) engage in massive Share repurchase (or stock buyback) (to artificially raise the value of stocks), or (irrationally) invest in “financial bubbles”, “derivatives” and other exotic “financial instruments” (and with many of these “investments” having little or no relations to the real economy!!).

    Because the on-going world-wide economic crisis is rooted in a state of general over-production, the economic “interventions” of Governments and Central Banks will ALWAYS turn out “wrong” (eventually), as this on-going crisis is NOT fixable by economic means alone (and we will still have an on-going crisis, even if Governments and Central Banks did not “meddle” with the system).

    The USA, and the World in general, will continue to sink towards total economic collapse/chaos (as it is not possible for the world-wide Capitalist system to remove the state of over-production by economic means alone. There can only be a temporary “fix” through MASSIVE DESTRUCTION of Capital).

    The ONLY hope for the Human Race is for sufficient people to become aware that – the main root cause of the major issues facing the World is – the world-wide Capitalist system itself. The real solution begins with a fundamental change towards a sustainable alternative economic system, that involves (among many other things) reorienting production of goods and services to meet the needs of society and with that being the primary end-purpose of production – as this is the only way we can even begin to address the abundant needs of every “rational” individual (and not just of “the 1%”).

    • df NJ

      I’m still waiting to get trickled on by Reagonomics but so far it’s only been a number 2.

      • Nemnor

        The likes of Ronald Reagan and Margaret Thatcher were “tricksters”, that come along, ever so often, to deceive many people into thinking that, there is still hope in maintaining Capitalism.

        They were actually intelligent enough to KNOW that Capitalism is indeed decadent and decaying, but they chose to VAINLY attempt to “revive” Capitalism (in their days) – eventually to see they were DEAD WRONG.

    • FortuneSeek3rz

      Look at it this way. We have more creature comforts than ever thanks to the explosion of technology. Today’s smart phone with all of the diverse apps is nothing short of a modern miracle. The grocery stores are full of food, people are driving more reliable/more advanced automobiles, the poor have access to health care, today’s entertainment whether tv movies or video games is top notch. And the U.S. is still the global economic leader. Things aren’t that bad at all. There’s too much doomsday speak and not enough gratitude.

  • df NJ

    God, I hate this data.

  • Jayme Cupples

    Could you write an article on different ways to prepare for this crisis coming? If it’s going to be much worse than 2008, then it might be nice to know what we’d be dealing with in different areas of our lives and how to preparing for those types of situations. I always read all your articles but none of them ever touch on what we’d actually be experiencing during this event or ways to ready ourselves. 2008 for me was not terrible, so I imagine what’s going to happen will need to be twice as bad.

    In that event, what happens when the economy shrinks dramatically? What will our enemies think/do? What happens to food prices? Gas prices? If we’re sunk, does that mean Russia, n. Korea, Isis and China are dead in the water?

    • df NJ

      Unemployment, deflation, rioting, hyper-printing of money, nuclear war, poverty, and lots of death.

  • SmallerGovNow2

    OT Michael but I think you and your readers would be interested…

    DOD has officially declared this to be Department of Defense Lesbian, Gay, Bisexual, and Transgender Pride Month.

    While this is a distraction from all the bigger problems our Government faces with our budgets, debts, and ever expanding size and scope of Government, it is just another signal that we are on the road to ruin. When LGBT concerns can be shoved in my face but we can’t utter the word “God” in public forum then something is terribly wrong…

    • df NJ

      I think Jade Helm 15 is a bigger threat to our liberty than the Gay.

      • Rob W

        Jade Helm? “Flint residents will be notified as military exercises continue, city says.” – headline in today’s Flint Journal…

      • Gay Veteran


  • Jim Clark

    If you read the comments section of that “Letter to Stingy Consumers” you will see the WSJ describes it as tongue-in-cheek. Which is obvious. FYI “The Onion” is satire too.

    • Sandbagger

      Who’s laughing?

  • Mondobeyondo

    Danger, Will Robinson. Danger. Danger.
    * red lights and sirens beginning to go off *

    Even those who don’t understand charts… can see the above graphs and know this doesn’t look good. It looks like the beginning of a double-dip recession. Yes… two scoops, TWO scoops of misery, in every box of Raisin Green Shoots!

  • Sandbagger

    “…they’ve been giving you a free ride for too long with zero interest rates.”

    More like taking the saver for a ride.

    What gall.

  • df NJ

    We need the president to sign an executive order to get the treasury to print two trillion dollars to be used in infrastructure development. No interest, no debt money. Heck, have the IRS give every worker a $5000 refund. The Fed and the banks will probably get half it right off the bat.

    • Maddog

      What? Did you read the article? My God man wake up. The game is over, the trillions have been spent. Get ready, its time to pay the piper.

  • FortuneSeek3rz

    Remember, the last two quarters that printed negative GDP numbers, people were calling for a recession. But the subsequent three quarters turned out to be all positive each time. Overall the economy in the U.S. is “good” on a relative global scale.

  • Max

    I’ll definitely watch the video however, my question was *rhetorical*

  • Randy Townsend

    Add to that the fact that Americans are saving money at a rate not seen since 2008, and that 70% consumer-spending economy is going nowhere. When the market “corrects” by a factor of 30-40% (probably before the time of the next election), it will be interesting to listen to Her Highness Hillary talk about her “plan to fix the economy”….


    liberals are excrement
    republicans are only wee wee

  • Priszilla

    Tye UK is offically in deflation territory. Only house prices are rising because supply doesn’t keep up with immigration of refugees from Africa, Eastern Europe and the Middle East.

  • TBonePickens

    So basically, don’t spend money on consumer goods that stimulate the economy (if you are a real patriot and buy American made), but instead, spend money on prepping materials, gold, etc. Right…..I love this site for the truth it spreads but the author cracks me up sometimes.

  • Dawn

    One of the most HONEST Articles I have Ever read. thank you so much.

Finca Bayano

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