5 More Signs That The Global Economy Is Careening Toward A Recession

The global economy is already in the worst distress that we have seen since 2008, and it appears that the global slowdown is actually picking up pace as we head into 2020.  And this is happening even though central banks around the world have been cutting interest rates and pumping massive amounts of money into their respective financial systems.  The central bankers appear to be losing control, and it certainly wouldn’t take much of a push for this new crisis to evolve into a complete and utter nightmare.  The U.S. economy hasn’t been hit quite as hard as economies in Asia and Europe have been, but without a doubt things are slowing down here too.  Corporate earnings have been falling quarter after quarter, auto loan delinquencies just hit a record high, the Cass Freight Index has declined for 11 consecutive months, and we just witnessed the largest drop for U.S. industrial production since 2009.  Everywhere around us there is bad economic news, but most Americans are still completely oblivious to what is happening.

In this article, I am going to share even more evidence that a global economic slowdown has already begun.  When you add these numbers to all of the other numbers that I have been sharing in recent weeks, it becomes impossible to deny that something major is taking place.

The following are 5 more signs that the global economy is careening toward a recession…

#1 It is being projected that global auto sales will be down approximately 4 percent this year.  According to CNN, this will be the second consecutive year that global auto sales have fallen…

With only a month left in the year, global auto sales are on track for a 3.1 million drop, about 4%, for the year, according to Fitch. That would be the biggest decline since 2008, when the financial crisis hit, and the second year in a row that sales have fallen. Fitch expects worldwide car sales to total 77.5 million in 2019.

#2 Global trade just keeps falling.  According to Zero Hedge, total global trade has now declined on a year over year basis for four months in a row…

Global trade on a YoY basis contracted by 1.1% in September, marking the fourth consecutive YoY declines and the most extended period of subdued trade since the financial crisis in 2009.

The CPB said supply chain disruptions between the US and China, due mostly to the trade war, were the most significant drag on international trade volumes. US volumes fell 2.1% in September MoM. Though in China, imports plunged 6.9% MoM.

As you can see from those first two examples, we keep witnessing things happen that we haven’t seen since the last financial crisis.  Over the past few months, I have used phrases such as “since 2008” and “since 2009” over and over again.  We literally have not seen economic numbers this bad since the last recession, and we are still in the very early phases of this new downturn.

And in some cases, the numbers are actually even worse than anything that we saw during the last recession, and that brings us to our next sign…

#3 Chinese industrial profits just fell by the largest percentage ever recorded

China Industrial Enterprises total profits collapsed in October to CNY427.5bn from CNY575.6bn in September – a 9.9% YoY plunge, the biggest drop on record.

In fact, China’s Industrial sector has seen annual declines in its profits for 4 of the last 6 months.

The trade war has hit the Chinese economy really hard, but it doesn’t look like a trade deal will happen any time soon.

#4 U.S. consumer confidence has now fallen for four months in a row

Consumer confidence dipped for a fourth straight month in November as economic conditions weaken toward the end of 2019, data released Tuesday by The Conference Board shows.

The board’s consumer confidence index dipped to 125.5 this month. That’s down from 126.1 in October. Economists polled by Dow Jones expected the index to rise to 126.6.

This wasn’t supposed to happen, and if it keeps happening that is going to have important implications for the 2020 election.

#5 Even the wealthy are cutting back on their spending.  According to Yahoo Finance, this is a continuation of a trend that we have been seeing for the past three quarters…

Spending by the top 10% fell 1% in the second quarter from the same period last year, according to an analysis of Federal Reserve data by Moody’s Analytics. And a four-quarter average of outlays by the high earners has slipped on an annual basis the past three quarters, marking the first such declines since the Great Recession of 2007-09.

In recent years, global central banks have engaged in unprecedented intervention in an attempt to stave off another crisis, and for a while their efforts appeared to be successful.

But just because the coming crisis was delayed does not mean that it was canceled.

In fact, over the past few years our long-term financial problems have actually gotten a lot worse.  We are facing the biggest debt bubble in the history of the planet, global financial markets are more primed for a crash than they have ever been before, and civil unrest is breaking out all over the world.  The stage is certainly set for “the perfect storm” that I keep talking about, and most Americans have absolutely no idea what is coming.

In all the time that I have been writing about the global economy, things have never looked more ominous then they do right now.

So buckle up and hold on tight, because it certainly looks like we are in for a very bumpy ride in the months ahead.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

Black Friday Is Coming, And 48 Million Americans Still Have Holiday Debt From Last Year

The biggest shopping day of the year is almost here, and marketers are working hard trying to extract as much money from U.S. consumers as possible.  Unfortunately, it is becoming increasingly difficult to get consumers to open up their wallets, because many of them are already drowning in debt.  As a society, we have been trained to think of this as “the happiest time of the year”, and for many Americans the most important part of the holiday season is opening presents on Christmas morning.  So there is a tremendous amount of pressure to spend a lot of money on presents, but this often leads to high levels of credit card debt.  In fact, a survey that was just released discovered that 48 million Americans “are still paying off credit card debt from last holiday season”

The holidays can be hard: cooking elaborate meals, facing frigid temperatures, making travel plans that please everyone.

Overspending, however, is too easy. In fact, about 48 million Americans are still paying off credit card debt from last holiday season, according to a NerdWallet survey conducted by The Harris Poll.

Sadly, some of those consumers will end up paying the credit card companies more than twice what those Christmas presents originally cost, and it can be exceedingly difficult to ever get ahead when you are trapped in a seemingly endless cycle of debt.

So why do people do it?

Well, according to one financial therapist many Americans are chasing an “emotional experience” this time of the year…

Gift-buying requires money, time and energy when you may already feel overwhelmed, says Los Angeles-based financial therapist Amanda Clayman. During the holidays, “we’re chasing a sort of emotional experience,” she says. Think: the love and happiness of a Hallmark movie.

But feelings of grief or longing may be more realistic. “This is a sad and lonely time for many people,” says Sarah Newcomb, behavioral economist for Morningstar. Shopping (for anything or everything) can be a convenient coping mechanism.

We want what we see on television, but what we see on television is not real.

In the end, many Americans leave the holiday season feeling deeply disappointed, because what they were chasing was just an illusion.

Yes, some wealthy families will literally have hundreds of presents under their Christmas trees this holiday season, but most American families are deeply struggling these days.

In fact, over two million of us are actually living without basic necessities such as “running water or indoor plumbing”.  The following comes from Daisy Luther

A new report says that more than 2 million Americans in West Virginia, Alabama, Texas and the Navajo Nation Reservation in the Southwest are living without clean running water or indoor plumbing. They’re drinking from polluted streams. They’re carrying buckets of the same water home for washing. They’re urinating and defecating outside with no wastewater treatment.

The gap between the rich and the poor continues to grow, and at this point the wealthiest 0.1 percent of all Americans now have as much wealth as the poorest 90 percent of all Americans combined.

Let that sink in for a moment.

That is a recipe for societal disaster, and it is getting worse with each passing year.

A big reason for this is because the Federal Reserve has been artificially pumping up the financial markets, and on Monday stocks hit yet another all-time high

The S&P 500 and Nasdaq Composite hit all-time closing highs as they rose 0.8% to 3,133.64 and 1.3% to 8,632.49, respectively. Both indexes also notched intraday records. The Dow Jones Industrial Average also had a record close, gaining 190.85 points, or 0.5% to 28,066.47.

President Donald Trump tweeted about the record, saying: “Enjoy!”

But what most Americans don’t understand is that 84 percent of all stock market wealth is owned by the wealthiest 10 percent of all Americans.

Of course the stock market bubble won’t last indefinitely.  We are already in an earnings recession, and that earnings recession is expected to continue in the fourth quarter

Earnings in the S&P 500 index SPX, +0.75%  are now projected to decline 1.51% in the fourth quarter from the year before, according to a FactSet computation of analysts’ average forecasts for individual companies. An earnings recession is defined as two quarters or more of consecutive year-over-year declines, and earnings for S&P 500 components dipped in the first two quarters of 2019 and are all but certain to do so again in the third quarter — with nearly 95% of calendar third-quarter reports posted, earnings have dropped 2.34%, the biggest decline so far this year.

And about 75 percent of the time, an earnings recession leads into a full-blown recession for the economy as a whole

Three-fourths (75%) of earnings recessions since World War II have morphed into economic recessions, said CFRA Chief Investment Strategist Sam Stovall, who told Market Watch that he has been “scratching his head” trying to reconcile analyst pessimism around earnings with continued stock-market rallies.

So the truth is that those that are celebrating what the stock market is doing are not likely to be celebrating for too much longer.

And every day we continue to get more bad news from the real economy.  For example, we just learned that the largest maker of truck engines in the United States will be laying off about 2,000 workers

Those market trends are now impacting Cummins, a Columbus, Ind., manufacturer of heavy equipment. It’s the largest manufacturer of Class 8 truck engines, claiming a 38.3% market share in 2018 over competitors like Daimler and Volvo/Mack.

Cummins spokesperson Jon Mills confirmed to Business Insider that the company, which employs some 62,610 globally, will reduce its global workforce by about 2,000. Those layoffs will be complete by the first quarter of 2020, he said.

As a “perfect storm” overtakes America, many believe that this will be the last “normal” holiday season that Americans will be able to enjoy.

It has become exceedingly clear that very hard times are coming, and quite a few experts believe that the crisis that is ahead will be even worse than what we experienced in 2008.

So enjoy the time that you are able to spend with your family and friends over the coming weeks, because major changes are already starting to happen, and our nation will soon be dealing with one major headache after another.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

Solar Minimum Madness: Is Thanksgiving’s Winter Wonderland A Preview Of The Bitterly Cold Winter To Come?

This week, three major winter storms will batter most of the country with ice, snow and bitterly cold temperatures just in time for Thanksgiving.  It is being projected that 55 million Americans will be traveling this week, and so this bizarre weather comes at a very bad time.  But of course we have already seen a series of blizzards roar across the nation in recent weeks and hundreds of record cold temperatures have already been shattered and we are still about a month away from the official start of winter.  Normally, it isn’t supposed to be this cold or this snowy yet, but we don’t live in “normal” times.

Scientists tell us that solar activity becomes very quiet during a “solar minimum”, and when solar activity becomes very quiet we tend to have very cold winters.  And in recent months solar activity has been very, very low.  In fact, we haven’t seen any sunspots at all “since November 2”

We have not seen any sunspots since November 2, and at that time they were only visible for two days, and prior to that no sunspots since October 2.

Unless things change, and that is not expected to happen, we should prepare for a very cold and very snowy winter.  And this upcoming week is likely to be a preview of coming attractions.  According to CNN, holiday travelers will have three major winter storms to deal with…

As Thanksgiving week starts, a record number of travelers will be dealing with three storms nationwide that will add to the holiday stress.

One storm will lash the East and will affect travel through Sunday, another one will batter the Midwest on Tuesday and a third one will move through the West on Wednesday.

Forecasters are telling us that Denver could receive a foot of snow, but it isn’t too unusual for Denver to get a lot of snow.

But it is unusual for Arizona, New Mexico and Texas to get snow this time of the year, and apparently it looks like that could happen on Wednesday

By Wednesday Arizona could see snow, as could New Mexico, the northern Texas Panhandle, Oklahoma Panhandle.

As that storm moves through the Midwest, “winterlike travel” is expected over large portions of the heartland…

“At this time, enough snow to create winterlike travel is anticipated from central and northeastern Colorado to much of Nebraska, northern Kansas, much of Iowa, northwestern Missouri, northwestern Illinois, southeastern Minnesota, central and eastern Wisconsin and northern Michigan,” AccuWeather Senior Meteorologist Brett Anderson said.

Forecasters expect Tuesday into Wednesday to bring the worst conditions in the Midwest, with strong, gusty winds battering such key airports as Chicago’s O’Hare International Airport.

Shortly thereafter, an absolutely massive winter storm is going to hit California really hard, and we are being told that “travel may be impossible” in certain areas…

Winter storm watches have already been issued for the Sierra and the National Weather Service is saying travel may be impossible as snow levels drop which could lead to numerous road closures Wednesday into Thursday.

Several feet is forecast to snow in the mountains. In the lower elevations and along the coast, it will be rain with the possibility of totals reaching 5 inches.

This definitely is not normal.

In some parts of the country, it feels like winter already arrived more than a month ago.  This has had a huge impact on harvest season, and unusually cold temperatures could also make things extremely difficult for farmers that plan to grow crops this winter.  The following comes from Martin Armstrong

The BIG FREEZE is upon us. The volatility in weather that our computer has been forecasting on a long-term basis should result in this winter being colder than the last. In Britain, the snow has hit an already flood-ravaged country as temperatures plunged to -7C. This is part of the problem we face. The ground freezes down and this prevents winter crops. During the late 1700s, the ground froze to a depth of 2 feet according to John Adams.

And over in Scotland, it is being projected that this could be “the coldest winter for 10 years”

SCOTLAND is forecast the coldest winter for 10 years – with -13C lows, snow, ice and travel woes, with a weak sun and Arctic chills blamed.

The worst winter since 2009-10 is due as the sun is at the weakest point of its 11-year cycle of strength, said The Weather Company, the world’s biggest commercial forecaster.

The last time the sun’s power was as low as now, Scotland saw the bitter 2009-10 winter, Britain’s coldest winter since the 1970s, and the 2010 Big Freeze, with the coldest December ever recorded.

We are witnessing bizarrely cold weather all over the northern hemisphere, but most people don’t understand why this is happening.

More than anything else, solar activity determines whether conditions are going to be warmer or colder than normal.  So this is why the Farmers’ Almanac and the Old Farmer’s Almanac are both telling us that this winter will be bitterly cold and very snowy

Not long after the Farmers’ Almanac suggested it would be a “freezing, frigid, and frosty” season, the *other* Farmer’s Almanac has released its annual weather forecast—and it’s equally upsetting.

While the first publication focused on the cold temperatures anticipated this winter, the Old Farmer’s Almanac predicts that excessive snowfall will be the most noteworthy part of the season.

The Old Farmer’s Almanac, which was founded in 1792, says that the upcoming winter “will be remembered for strong storms” featuring heavy rain, sleet, and a lot of snow. The periodical actually used the word “snow-verload” to describe the conditions we can expect in the coming months.

Scientists are hoping that solar activity will return to normal soon, but there is no guarantee that will happen.  In fact, in a recent article I explained that some experts believe that we may have entered a “grand solar minimum” similar to the Maunder Minimum that created a “mini ice age” in the 17th century.  The sunspot cycle virtually vanished from 1645 to 1715, and this resulted in bitterly cold temperatures, disastrous harvests and famines that killed millions upon millions of people all over the globe.

Hopefully things will not get that bad any time soon, but without a doubt we live at a time when global weather patterns are going absolutely haywire.  We should be hoping for the best, but we should also be preparing for the worst.

This week, the crazy weather will be a major headache for holiday travelers, but that is just a temporary problem.  If solar activity does not return to normal over the next few years, we will soon have far larger issues to deal with.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

Global Collapse Incoming? The Total Breakdown Of Relations With China Could Throw Our Planet Into Utter Turmoil

We just witnessed one of the most monumental events of the entire decade, and yet most Americans still don’t understand what has happened.  In recent months, the global economy and stock markets around the world have been buoyed by the hope that the U.S. and China would soon sign a new trade agreement.  Unfortunately, there is no way that is going to happen now.  On Tuesday, the Senate unanimously passed the “Hong Kong Human Rights and Democracy Act of 2019”, and the House of Representatives passed the same bill by a 417 to 1 vote on Wednesday.  Needless to say, the Chinese are beyond angry that Congress has done this.  In part one of this article, I showed that China is warning the U.S. to “rein in the horse at the edge of the precipice” and that there will be “revenge” if this bill is allowed to become law.  And it looks like this bill will actually become law, because Bloomberg is reporting that President Trump is fully expected to sign it…

President Donald Trump is expected to sign legislation passed by Congress supporting Hong Kong protesters, setting up a confrontation with China that could imperil a long-awaited trade deal between the world’s two largest economies.

Before I go any further, there is something that I want to address.  Earlier today, one of my readers emailed me and accused me of siding with China because I am warning about what will happen if trade negotiations fail.  Of course that is not true at all.  I have been writing about the horrific human rights abuses in China for many years, and they are one of the most tyrannical regimes on the entire planet today.  But our two economies have become deeply intertwined over the past two decades, and there are going to be very serious consequences now that we are rapidly becoming bitter enemies.  Anyone that doesn’t see this is simply not being rational.

As I have detailed repeatedly in recent months, the global economy has already entered a very serious slowdown.  One of the only things that could reverse our economic momentum in the short-term would be a comprehensive trade agreement between the United States and China.  But now that our relationship with China has been destroyed, there isn’t going to be a deal.

Some mainstream news sources are reporting that all of this rancor about Hong Kong could delay a trade deal, but that is just more wishful thinking.

Over in China, they are being much more realistic.  In fact, the editor of the Global Times, Hu Xijin, just said that the Chinese are “prepared for the worst-case scenario

Few Chinese believe that China and the US can reach a deal soon. Given current poor China policy of the US, people tend to believe the significance of a trade deal, if reached, will be limited. China wants a deal but is prepared for the worst-case scenario, a prolonged trade war.

And he followed that up with another tweet that openly taunted U.S. farmers

So a friendly reminder to American farmers: Don’t rush to buy more land or get bigger tractors. Wait until a China-US trade deal is truly signed and still valid six months after. It’s safer by then.

As the two largest economies on the entire planet decouple from one another, it is going to cause global economic activity as a whole to dramatically slow down.  Corporate revenues will fall, credit markets will start to tighten, and fear will increasingly creep into global financial markets.

I have repeatedly warned that conditions are ideal for our first major crisis since 2008, and this conflict with China could be more than enough to push us over the edge.

And already we are getting more bad economic news day after day.  For example, we just learned that U.S. rail traffic this month is way down compared to last year

Nowhere is the slowdown in the U.S. economy more obvious than in places like Class 8 Heavy Duty Truck orders and rail traffic. We already wrote about how Class 8 orders continued to fall in October and new data the American Association of Railroads (AAR) now shows that last week’s rail traffic and intermodal container usage both plunged.

The AAR reported total carloads for the week ended Nov. 9 came in at 248,905, down 5.1% compared with the same week in 2018. U.S. weekly intermodal volume was 266,364 containers and trailers, down 6.7% compared to 2018, according to Railway Age.

Unless a miracle happens with China, the economic numbers are going to continue to get worse.

Sadly, a miracle seems exceedingly unlikely now.  As I pointed out in part one, the only way that our relationship with China can be fixed is if Congress repeals the bill that it just passed, and there is no way that is going to happen.

And we better hope that our trade war with China doesn’t escalate into a real war at some point.

According to a report that was released earlier this year, we are very ill-prepared to fight any sort of a conventional war with China in the Western Pacific…

The University of Sydney’s United States Studies Centre’s new report Averting Crisis, said: ‘China’s growing arsenal of accurate long-range missiles poses a major threat to almost all American, allied and partner bases, airstrips, ports and military installations in the Western Pacific.

‘As these facilities could be rendered useless by precision strikes in the opening hours of a conflict, the PLA missile threat challenges America’s ability to freely operate its forces from forward locations throughout the region.’

In addition, U.S. military officials are deeply concerned by how rapidly China has been upgrading their strategic nuclear arsenal.  For example, they now possess a “submarine-launched missile capable of obliterating San Francisco”

China has tested a new submarine-launched missile capable of obliterating San Francisco, an insider has revealed, in a massive boost to the country’s ‘deterrent’.

The Chinese navy tested its state-of-the-art JL-3 missile in Bohai Bay in the Yellow Sea last month, sources said.

The nuclear-capable missile has a 5,600 mile range, significantly longer than its predecessor the JL-2, which could strike targets 4,350 miles away.

We certainly aren’t at that point yet, but without a doubt the Chinese now consider us to be their primary global enemy.

For the moment, it is just a “cold war” that we are facing, and the Chinese are quite adept at playing global chess.  They have lots of ways that they can hurt us, and most Americans don’t realize this.

But in the end nobody is going to “win” this conflict, and the entire planet is going to suffer.

Collectively, the economies of the United States and China account for approximately 40 percent of the GDP of the entire world.

As we cause chaos for one another, everyone else is going to experience tremendous pain as well.

The stage is set for a global nightmare, and at this point it doesn’t appear that there is a way that we will be able to escape it.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

U.S. Relations With China Were Just Destroyed, And Nothing Will Ever Be The Same Again

Our relationship with China just went from bad to worse, and most Americans don’t even realize that we just witnessed one of the most critical foreign policy decisions of this century. The U.S. Senate just unanimously passed the “Hong Kong Human Rights and Democracy Act of 2019”, and the Chinese are absolutely seething with anger.  Violent protests have been rocking Hong Kong for months, and the Chinese have repeatedly accused the United States of being behind the protests.  Whether that is true or not, the U.S. Senate has openly sided with the protesters by passing this bill, and there is no turning back now.

The protesters in Hong Kong have been waving American flags, singing our national anthem and they have made it exceedingly clear that they want independence from China.  And all of us should certainly be able to understand why they would want that, because China is a deeply tyrannical regime.  But to the Chinese government, this move by the U.S. Senate is essentially an assault on China itself.  They are going to argue that the U.S. is inciting a revolution in Hong Kong, and after what the Senate has just done it will be very difficult to claim that is not true.

The Chinese take matters of internal security very seriously, and the status of Hong Kong is one of those issues that they are super sensitive about.  China will never, ever compromise when it comes to Hong Kong, and if the U.S. keeps pushing this issue it could literally take us to the brink of a military conflict.

And you can forget about a comprehensive trade agreement ever happening.  Even if a Democrat is elected in 2020, that Democrat is going to back what the Senate just did.  That is why it was such a major deal that this bill passed by unanimous consent.  It sent a message to the Chinese that Republicans and Democrats are united on this issue and that the next election is not going to change anything.

And the trade deal that President Trump was trying to put together was already on exceedingly shaky ground.  “Phase one” was extremely limited, nothing was ever put in writing, and nothing was ever signed.  And in recent days it became quite clear that both sides couldn’t even agree about what “phase one” was supposed to cover

A spokesperson for China’s Commerce Ministry said earlier this month that both countries had agreed to cancel some existing tariffs simultaneously. Trump later said that he had not agreed to scrap the tariffs, lowering hopes for a deal.

“They’d like to have a rollback. I haven’t agreed to anything,” the president said.

On Tuesday, Trump was visibly frustrated by how things are going with China, and he publicly warned the Chinese that he could soon “raise the tariffs even higher”

President Donald Trump threatened higher tariffs on Chinese goods if that country does not make a deal on trade.

The comments came during a meeting with the president’s Cabinet on Tuesday. The U.S. and China, the world’s two largest economies, have been locked in an apparent stalemate in trade negotiations that have lasted nearly two years.

“If we don’t make a deal with China, I’ll just raise the tariffs even higher,” Trump said in the meeting.

Unfortunately, raising tariffs isn’t going to fix anything at this point.

In fact, Trump can raise tariffs until the cows come home but it isn’t going to cause the Chinese to budge.

That is because on Tuesday evening everything changed.

When they passed the “Hong Kong Human Rights and Democracy Act of 2019” by unanimous consent, the U.S. Senate essentially doused our relationship with China with kerosene and set it on fire.  The following comes from Zero Hedge

In a widely anticipated move, just after 6pm ET on Tuesday, the Senate unanimously passed a bipartisan bill, S.1838,  showing support for pro-democracy protesters in Hong Kong by requiring an annual review of whether the city is sufficiently autonomous from Beijing to justify its special trading status. In doing so, the Senate has delivered a warning to China against a violent suppression of the demonstrations, a stark contrast to President Donald Trump’s near-silence on the issue, the result of a behind the scenes agreement whereby China would allow the S&P to rise indefinitely as long as Trump kept his mouth shut.

As we reported last week, the vote marks the most aggressively diplomatic challenge to the government in Beijing just as the US and China seek to close the “Phase 1” of their agreement to end their trade war. The Senate measure would require annual reviews of Hong Kong’s special status under U.S. law to assess the extent to which China has chipped away the city’s autonomy; in light of recent events, Hong Kong would not pass. It’s unclear what would happen next.

I am finding it difficult to find the words to describe what this means to the Chinese.

We have deeply insulted their national honor, and our relationship with them will never be the same again.

Many will debate whether standing up to China on this issue was the right thing to do, but in this article I am trying to get you to understand that there will be severe consequences for what the U.S. Senate just did.

There isn’t going to be a comprehensive trade deal, the global economy is going to suffer greatly, and the Chinese now consider us to be their primary global adversary.

Shortly after the Senate passed the bill, a strongly worded statement was released by the Chinese government.  The following excerpt comes from the first two paragraphs of that statement

On November 19th, the US Senate passed the “Hong Kong Bill of Rights on Human Rights and Democracy.” The bill disregards the facts, confuses right and wrong, violates the axioms, plays with double standards, openly intervenes in Hong Kong affairs, interferes in China’s internal affairs, and seriously violates the basic norms of international law and international relations. The Chinese side strongly condemns and resolutely opposes this.

In the past five months, the persistent violent criminal acts in Hong Kong have seriously jeopardized the safety of the public’s life and property, seriously trampled on the rule of law and social order, seriously undermined Hong Kong’s prosperity and stability, and seriously challenged the bottom line of the “one country, two systems” principle. At present, what Hong Kong faces is not the so-called human rights and democracy issues, but the issue of ending the storms, maintaining the rule of law and restoring order as soon as possible. The Chinese central government will continue to firmly support the Hong Kong SAR Government in its administration of the law, firmly support the Hong Kong police in law enforcement, and firmly support the Hong Kong Judiciary in punishing violent criminals in accordance with the law, protecting the lives and property of Hong Kong residents and maintaining Hong Kong’s prosperity and stability.

For a long time I have been warning that U.S. relations with China would greatly deteriorate, and this is the biggest blow that we have seen yet.

The U.S. and China are now enemies, and ultimately that is going to result in a tremendous amount of pain for the entire planet.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

The Mainstream Media Is Filled With Conspiracy Theories Regarding Trump’s Mysterious Visit To The Hospital

On Saturday, President Trump made an unscheduled visit to Walter Reed Hospital.  According to White House Press Secretary Stephanie Grisham, Trump went through “a routine checkup as part of his annual physical”, and after about two hours he departed.  If it was anyone else, this wouldn’t even be news.  But when it comes to Trump, if there is any potential sign of weakness the mainstream media is going to jump all over it.  Even though the White House insists that Trump is in perfect health, the mainstream media refuses to believe it.  In fact, a CNN article about this incident claims that we can’t take anything that the Trump administration tells us at face value because of the “thousands of lies and deceptions” that the Trump administration has supposedly already promulgated…

Like a weekend worrier who shows up at the emergency room, President Donald Trump went to Walter Reed National Military Medical Center unannounced for what the White House says were supposedly routine tests. “He’s in good health and it was a routine checkup as part of his annual physical,” insisted White House press secretary Stephanie Grisham.

Another administration might get the benefit of the doubt in such a case, but after thousands of lies and deceptions, this one deserves nothing of the sort.

Of course that article didn’t actually identify any examples of past “lies and deceptions” by the White House.

A reporter for the Los Angeles Times also accused the Trump administration of a “long history of false statements”

“Perfect example of how the long history of false statements from White House has worn away any presumption of truthfulness,” David Lauter, the Los Angeles Times’ Washington bureau chief, tweeted. “Maybe Trump’s hospital visit was routine, but burden of proof is on WH to show evidence.”

What we are witnessing is extremely bizarre.  The mainstream media is regularly accusing the president of the United States and those around him of being blatant liars, and they are making it very clear that we shouldn’t believe anything that they tell us.

Could you imagine if they had treated Barack Obama this way?

In order for our system of government to function properly, we need to be able to trust that our leaders are telling us the truth.  If they are not telling us the truth, or if we feel like we are no longer able to trust them, our system is ultimately doomed to fail.

And with each passing day, the mainstream media is working very hard to erode our trust in the White House.  NBC News seems to think that we should be suspicious of what happened at Walter Reed because it deviated from what Trump had done in the past

Trump, 73, had no public events on his calendar Saturday and no advance guidance was given that he would be getting any kind of medical exam. Trump’s prior two physical exams as president were on the public schedule and advance warning was provided. In addition, those exams did not take place in multiple “phases.” Trump’s most recent physical was in February.

Trump arrived at the hospital at 2:45 p.m. Saturday and spent slightly more than two hours there. He was seen leaving with a tan envelope tucked in his arm. The full annual presidential physical typically takes several hours and is unlikely to be described as a “quick exam and labs,” which is how White House press secretary Stephanie Grisham explained the visit afterward.

And Jonathan Wackrow of CNN pointed out that the medical unit at the White House could easily accommodate most of what is needed in an annual physical

This does not add up; the White House Medical Unit has very comprehensive facilities at the White House complex that could easily accommodate most of what is needed in an annual physical. As a fmr USSS Agent assigned POTUS, I have never seen the annual formality occur in stages.

But just because Trump did something a certain way a couple of times in the past does not mean that he is always going to do things that way in the future.

Trump is known to suddenly change course based on what he is feeling in the moment.  Perhaps he got up on Saturday and decided that getting checked out by a doctor would be a good thing to do, and there wouldn’t be anything wrong with that.

Unfortunately, many in the mainstream media continue to speculate that there must have been some sort of “medical issue” that caused the sudden visit to Walter Reed.  For example, just check out what Joe Lockhart tweeted

“The one thing you can be absolutely sure of is this was not routine and he didn’t go up there for half his physical,” tweeted Joe Lockhart, a press secretary under President Bill Clinton, who was himself impeached for perjury and obstruction. “What does it mean? It means that we just won’t know what the medical issue was.”

And NBC News actually speculated on the air that President Trump may have a heart problem

NICHOLS: But at his last check-up, doctors noted a higher coronary calcium score.

TORRES: The calcium score he had from 2018 showed he already had plaque buildup around his heart. That’s a bit concerning.

When Hillary Clinton was literally collapsing in public during the 2016 campaign season, the mainstream media insisted over and over that she was perfectly fine.

But Trump makes one unscheduled visit to the hospital, and all of a sudden the conspiracy theories are running rampant in the mainstream media.

Some outlets are even promoting the theory that this hospital visit was made so that Trump can resign for health reasons

According to Cheri Jacobus, Trump’s hospital visit was setting up an excuse “so he can quickly resign for alleged ‘health reasons.’”

According to Jacobus, Trump may simply quit, as evidence grows in the impeachment inquiry against him. Vice President Mike Pence would then become president — and would hand Trump a pardon for any crimes he may have committed, due to “compassion” for Trump’s alleged “health issues.”

What a bunch of nonsense.

After everything he has been through, President Trump is definitely not going to resign.  Every time the mainstream media spreads such nonsense they lose even more credibility.

In the old days, the mainstream media would simply report the information that they received from the White House, and what the White House is telling us is that President Trump is “perfectly healthy”

As Trump was at the hospital, Grisham said, “Anticipating a very busy 2020, the president is taking advantage of a free weekend here in Washington, D.C., to begin portions of his routine annual physical exam at Walter Reed.” Afterward, she said Trump “remains healthy and energetic without complaints, as demonstrated by his repeated vigorous rally performances in front of thousands of Americans several times a week.”

Later in the evening, Grisham told NBC News in a statement that Trump “is fine — perfectly healthy.”

But what isn’t healthy is the relationship between the Trump administration and the mainstream media.

During previous administrations, the mainstream media at least attempted to maintain a pretense of objectivity, but those days are long gone.

At this point it is exceedingly apparent that they absolutely hate Trump, and they are going to do their very best to help get a Democrat elected in 2020.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

Brace For Impact! The U.S. Economy Is Going Down, And It Is Going Down Hard…

I have so many bad economic numbers to share with you that I don’t even know where to start.  I had anticipated that the U.S. economic slowdown would accelerate during the fourth quarter of 2019, and that is precisely what has happened.  The Federal Reserve is trying to do all that it can to keep us from officially slipping into a recession, and the federal government is literally spending money as if tomorrow will never come, but all of that intervention has not been enough to reverse our economic momentum.  We are really starting to see conditions begin to deteriorate very rapidly now, and 2020 is already shaping up to be the most pivotal year for the U.S. economy since 2008.

Let me start my analysis by discussing how U.S. consumers are doing right now.  According to CBS News, a major new study that was just released found that 70 percent of all Americans are struggling financially…

Many Americans remain in precarious financial shape even as the economy continues to grow, with 7 of 10 saying they struggling with at least one aspect of financial stability, such as paying bills or saving money.

The findings come from a survey of more than 5,400 Americans from the Financial Health Network, a nonprofit financial services consultancy. The project, which started a year ago, is aimed at assessing people’s financial health by asking about debt, savings, bills and wages, among other issues.

That sure doesn’t sound like a “booming economy”, does it?

And even though things are already really tough for millions upon millions of American families, it appears that things are rapidly getting worse.  In fact, we just witnessed the largest decline for the Bloomberg Consumer Comfort Index since 2008

Despite stocks soaring to record highs, The Bloomberg Consumer Comfort index fell last week to 58.0 from 59.1 a week earlier, and has now plunged 5.4 points in three weeks, the biggest such drop since 2008

Yes, the employment situation in this country is still relatively stable for the moment, but the truth is that most of the “jobs” that have been “created” in recent years actually pay very little.  If you can believe it, 58 million jobs in the United States currently pay less than $793 a week

There are now roughly 105 million production and nonsupervisory jobs in the U.S. That’s 83 percent of all private sector jobs. And more than half of them — 58 million — pay less than the average weekly U.S. wage of $793. Many of these jobs don’t offer health care or other benefits.

These are the best jobs that many Americans can find and the most hours they can get.

And I discussed in a previous article, 50 percent of all U.S. workers currently make less than $33,000 a year.

In recent years, many families have increasingly turned to debt in order to maintain their “middle class lifestyles”, but now a lot of those debts are starting to go bad.

In fact, the New York Fed just announced that serious auto loan delinquencies in the United States have hit a brand new record high.  The following comes from Wolf Richter

Serious auto-loan delinquencies – auto loans that are 90 days or more past due – in the third quarter of 2019, after an amazing trajectory, reached a historic high of $62 billion, according to data from the New York Fed today

Do you remember the subprime mortgage meltdown of 2008?

Well, a very similar thing is happening right now with auto loans.

Meanwhile, the bad economic numbers just keep rolling in.  Here are a few new data points that we have gotten since my last article…

-We just witnessed the worst decline for U.S. industrial production since 2009.

-The Cass Freight Index has just fallen for the 11th month in a row.

-Sears has announced that they will be laying off hundreds of workers as they continue to close stores at a very rapid pace.

At this point, it is going to be a real challenge to keep U.S. GDP growth above zero for the fourth quarter.  If you can believe it, the latest forecast from the Atlanta Fed is projecting a fourth quarter growth rate of just 0.3 percent…

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2019 is 0.3 percent on November 15, down from 1.0 percent on November 8. After this morning’s retail trade releases from the U.S. Census Bureau, and this morning’s industrial production report from the Federal Reserve Board of Governors, the nowcasts of fourth-quarter real personal consumption expenditures growth and fourth-quarter real gross private domestic investment growth decreased from 2.1 percent and -2.3 percent, respectively, to 1.7 percent and -4.4 percent, respectively.

That is terrible.

We aren’t talking about 3 percent.  They are projecting growth of “0.3 percent”, and if we slip below zero we could actually be in the beginning of a recession right now without even realizing it yet.

The Federal Reserve has been attempting to bolster the economy by cutting interest rates and by pumping massive amounts of money into the financial system.  They are telling us that this new round of money creation is “not QE”, but from the very beginning I have been pointing out that it really is more quantitative easing, and many in the financial world are starting to acknowledge this reality

After a month of constant verbal gymnastics (and diarrhea from financial pundit sycophants who can’t think creatively or originally and merely parrot their echo chamber in hopes of likes/retweets) by the Fed that the recent launch of $60 billion in T-Bill purchases is anything but QE (whatever you do, don’t call it “QE 4”, just call it “NOT QE” please), one bank finally had the guts to say what was so obvious to anyone who isn’t challenged by simple logic: the Fed’s “NOT QE” is really “QE.”

In a note warning that the Fed’s latest purchase program – whether one calls it QE or NOT QE – will have big, potentially catastrophic costs, Bank of America’s Ralph Axel writes that in the aftermath of the Fed’s new program of T-bill purchases to increase the amount of reserves in the banking system, the Fed made an effort to repeatedly inform markets that this is not a new round of quantitative easing, and yet as the BofA strategist notes, “in important ways it is similar.”

But as I discussed earlier, all of the Fed’s efforts are not working.

No matter how hard they try, they have not been able to reverse our economic momentum.

And many people believe that what we have seen so far is just the tip of the iceberg.  In fact, trends forecaster Gerald Celente is convinced that we are heading for “the Greatest Depression”

You think you have a crisis in a country near you now? You haven’t seen anything. When the Greatest Depression hits, people are going to be escaping violence, poverty, corruption — civil wars are happening in front of everybody’s eyes. And you think you’ve got a homeless problem in a city near you? You haven’t seen anything. You are going to see homeless everywhere. This is out of control and it’s going to only get worse as the global economy slows down…

And you know what?

He’s right.

What is coming is going to make 2008 look like a Sunday picnic, and our society is completely and utterly unprepared for what is about to happen.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

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