“When the bubble bursts, America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression”

The bigger they come, the harder they fall.  Currently, we are in the terminal phase of an “everything bubble” which has had ten years to grow.  It is the biggest financial bubble that our country has ever seen, and experts are warning that when it finally bursts we will experience an economic downturn that is even worse than the Great Depression of the 1930s.  Of course many of us in the alternative media have been warning about what is coming for quite some time, but now even many in the mainstream media have jumped on the bandwagon.  The Economist is one of the most prominent globalist mouthpieces in the entire world, and so I was stunned when I came across one of their articles earlier today that was entitled “Another economic downturn is just a matter of time”.  When the alternative media and globalist media outlets are both preaching economic doom, that is a very clear sign that big trouble is imminent.

But for the moment, global financial markets seem to have settled down a bit.  U.S. markets were down on Monday, but there wasn’t that much volatility.  Once again, it was tech stocks that got hit the hardest

Apple and Netflix pulled back more than 1.8 percent each. Netflix fell after Goldman Sachs and Raymond James slashed its price targets on the video-streaming giant. Apple dropped after Goldman Sachs said the tech giant’s earnings could fall short this year as demand in China slows. Amazon, Microsoft and Alphabet also traded lower.

This may seem odd to hear, but what happened on Monday was actually good news for Wall Street.

Whether the markets go up or down, what investors should want more than anything else right now is calm, and that is precisely what we witnessed on Monday.  Yes, tech stocks took a bit of a hit, but overall there was not much panic in the marketplace and that is a positive sign (at least in the short-term) for Wall Street.

But that doesn’t mean that some big event isn’t going to cause another wave of panic on Wall Street by the end of the week.  Nothing about the long-term outlook has changed at all.  We have entered a time when the Ponzi scheme that we call “our financial system” could literally collapse at any moment.

And when it does collapse, the U.S. economy is going to experience pain unlike anything that we have ever seen before.  In his most recent article, Ron Paul warns that when the “everything bubble” finally bursts “America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression”…

The Fed will be unsuccessful in keeping the everything bubble from exploding. When the bubble bursts, America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression.

This crisis is rooted in the failure to learn the lessons of 2008 and of every other recession since the Fed’s creation: A secretive central bank should not be allowed to manipulate interest rates and distort economic signals regarding market conditions. Such action leads to malinvestment and an explosion of individual, business, and government debt. This may cause a temporary boom, but the boom soon will be followed by a bust. The only way this cycle can be broken without a major crisis is for Congress both to restore people’s right to use the currency of their choice and to audit and then end the Fed.

Of course Ron Paul is far from alone.

Just the other day, Peter Schiff said essentially the exact same thing

Economic guru Peter Schiff is saying that the next market crash will be “far more painful” than that of the Great Recession in 2008. With rising interest rates and tariffs spiking the cost of living, Americans will have some difficult financial times ahead.

“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said. “This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business. Schiff is predicting a recession, accompanied by rising consumer prices, that will be far more painful than the 2007-2009 Great Recession.

The Federal Reserve and other global central banks worked very hard to inflate this bubble for a very long time, and now the Federal Reserve is raising interest rates quite rapidly.

They seem determined to burst their own bubble, and in the process they are going to create immense economic devastation all over the planet.

When President Trump said that the Federal Reserve has “gone crazy”, he was right on the money, and hopefully the American people will finally see that it is time to shut the Fed down permanently.

And as I noted earlier, the mainstream media also seems to at least partially understand what is happening.  For example, the following comes from a Bloomberg article entitled “Get Out of Equities Before It’s Too Late, Says Fund Manager”

The tumble in equities may go deeper than the correction earlier this year and investors should get ready to sell, according to a Budapest-based fund manager.

“Investors have to start looking for a way out from equities now,” Attila Dzsubak, investment director at MKB-Pannonia Fund Manager, who helps oversee 670 billion forint ($2.4 billion) in assets, said in Budapest. “Past experience shows that exits can quickly become too narrow.”

In the stock market, you only make money if you buy at the right time and if you sell at the right time.

Many of those that are wealthy on paper at the moment are going to see that paper wealth disappear in stunning fashion during the coming collapse.

America’s pride is largely based on the staggering wealth that we have been able to enjoy, but what is going to happen once that wealth is gone?

For the moment the bubble still lives, but the clock is ticking…

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

You Can Kick The Can Down The Road, But Reality Will Catch Up With You Eventually

Nobody can defy the laws of economics forever.  Whether it is an individual, a company or the nation as a whole, reality always catches up with everyone eventually.  For years, I have been warning that Sears was eventually going to zero, but of course it didn’t happen immediately.  Sears CEO Eddie Lampert kept convincing investors to pour more money into his beleaguered money pit, and so the can kept getting kicked down the road.  It takes a great con man to be able to pull off what Eddie Lampert was able to pull off, and we should all be in awe at the level of skill that he has displayed.  But all good cons eventually come to an end, and now the retailer that was once the largest in world history is coming to an end.  According to multiple media reports, a Sears bankruptcy filing is imminent.  For a while there it looked like it would be a Chapter 7 filing which would mean immediate liquidation for Sears.  But it appears that Lampert will be able secure enough funding to give Sears a little bit of breathing space.  A Chapter 11 bankruptcy filing will allow most of the stores to stay open through the holidays and will give Sears more time to sell off more assets.

I can’t even imagine who would be dumb enough to hand Lampert more money at this point, and this is yet another example that shows that the old saying “a sucker is born every minute” is definitely true.

And we are not talking about a small amount of money.  According to USA Today, Sears is going to need between 300 and 500 million dollars just to keep operating through the holidays…

It is trying to secure $300 million to $500 million to continue functioning through the holidays, keeping a winnowed number of locations open, says the person familiar with what is being considered. As of an Aug. 4 public filing, Sears Holdings, the parent company of Sears and Kmart, still had 506 Sears stores and 360 Kmart locations.

If the bankruptcy filing occurs, it is likely the beginning of what has been the long, drawn-out ending to one of the most renowned sagas in retail.

Lampert is going to be burning up the phones all weekend, because Sears needs cash immediately for a 134 million dollar debt payment that is due on Monday

Now, Sears is facing a critical Monday deadline to make a $134 million debt payment. Reports this week by the Wall Street Journal and CNBC said Sears had begun consulting with advisers to prepare a possible bankruptcy filing.

Just like our current stock market bubble, it is absolutely amazing that Sears has survived for as long as it has.

The truth is that Sears should have been put out of its misery long ago, but the can just kept getting kicked down the road.  But now the cash is gone and the debts have become overwhelming.

At this point, Sears has been missing payments to important vendors and has been making preparations for the upcoming bankruptcy filing for weeks

Three companies that sell items at Sears told Reuters this week that Sears had missed payments to them over the past few weeks. One of Sears’ major shareholders recently dumped a chunk of his stock for pennies on his original investment. The company added a new director this week who is familiar with bankruptcies and restructuring.

And reports are swirling that the company is talking to advisers and banks in preparation for a bankruptcy filing. According to the Wall Street Journal, Sears has hired M-III Partners, a boutique advisory firm specializing in seeing companies through bankruptcies and restructuring, The company is also talking to lenders about providing it with debtor-in-possession financing, CNBC reported. That kind of loan is used by companies that file for bankruptcy to fund operations during the process. Usually, funding is secured well before the final days.

Many of the company’s lenders had been pushing for an immediate Chapter 7 liquidation.  They wanted the bleeding to stop so that they could recover what they could while there was still something to grab.

But Eddie Lampert seems determined to stretch this thing out for as long as possible, and so it appears that a Chapter 11 bankruptcy filing will happen instead.

It is easy to mock Sears, but the truth that America as a whole is on the exact same trajectory.

In my article that lists 101 reasons why the Federal Reserve should be shut down, I explain the absolute insanity of our current debt-based financial system.  Our system is literally designed to create as much debt as possible, and that is precisely what has been happening since the Federal Reserve was created in 1913.

If you add up all forms of debt in the United States (government, business, consumer, etc.), it comes to a grand total of more than 68 trillion dollars.  Other than hyper-inflating our currency into oblivion, there is no possible way that all of that debt will ever be repaid.  Under our current system, the only viable choice is to “extend and pretend”, and that is what we have been doing for decades.

But just like with Sears, economic reality is catching up with us, and time is rapidly running out for America.

From time to time, I get accused of being “too negative”, but the truth is that myself and others like me have been pleading with the American people to consider alternative solutions for many years.  In my latest book, I strongly advocate for the elimination of the Federal Reserve system and the establishment of a new financial system and a new currency that are not based on exponential debt growth.  In addition to writing thousands of articles, I have traveled and spoken to groups about these issues extensively, and I have done countless radio and television interviews.

But voices like mine have not been embraced on a widespread basis, and instead the American people seem to want the status quo.

So the can will keep getting kicked down the road until everything collapses.

Ultimately, what we are facing is the greatest economic depression that the United States has ever seen.  I really like how Charles Hugh Smith made this point as he wrapped up his most recent article

Everywhere we look in the U.S. economy, we see sky-high fixed costs. Investors who overpaid for commercial real estate will default once their business tenants close down, homeowners who overpaid will default once one of the household’s primary jobholders loses his/her job, state and local governments that have feasted on a decade of rising tax revenues will suddenly face staggering deficits as tax revenues crater–the list of those with high fixed costs and no wiggle room other than bankruptcy is essentially endless in America.

Here’s the difference between a recession and a depression: you can’t get blood from a stone, or make an insolvent entity solvent with more debt. Losses will have to taken, and nose-bleed fixed-costs will have to be slashed; reality will eventually have to be dealt with.

But everyone will resist this process because high fixed costs are the gravy train everyone depends on. Slashing fixed costs destroys the income needed to support asset valuations which are the collateral for the stupendous mountains of debt that define the U.S. economy. Once that debt is written down, the entire financial system collapses.

It didn’t have to be this way.

America could have chosen another path, but it didn’t.

So now we are steamrolling toward a date with destiny, and the people of this country will soon receive a very harsh lesson about economic reality.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Ron Paul Is Warning That A 50% Stock Market Decline Is Coming – And That There Is No Way To Stop It

Is Ron Paul about to be proven right once again?  For a very long time, Ron Paul has been one of my political heroes.  His willingness to stand up for true constitutional values and to keep saying “no” to the Washington establishment over and over again won the hearts of millions of American voters, and I wish that there had been enough of us to send him to the White House either in 2008 or in 2012.  To this day, I still wish that we could make his classic work entitled “End The Fed” required reading in every high school classroom in America.  He was one of the few members of Congress that actually understood economics, and it is very sad that he has now retired from politics.  With the enormous mess that Washington D.C. has become, we sure could use a lot more statesmen like him right now.

But even though he has retired from politics, Ron Paul is still speaking out about the most important issues of the day.  And what he recently told CNBC is extremely ominous.

The following comes from a CNBC article entitled “Ron Paul: US is barreling towards a stock market drop of 50% or more, and there’s no way to prevent it”

According to the former Republican Congressman from Texas, the recent jump in Treasury bond yields suggest the U.S. is barreling towards a potential recession and market meltdown at a faster and faster pace.

And, he sees no way to prevent it.

Of course lots of such predictions are flying around these days.

In fact, at this point even the IMF is warning of a “second Great Depression”.

So when it actually takes place it won’t be much of a surprise.  However, I do believe that many will be surprised by the ferocity of the coming crash.  According to Ron Paul, stock prices could end up falling by up to 50 percent

Paul is a vocal Libertarian known for an ardent grassroots fanbase that propelled him to multiple presidential runs, as well as his grim warnings about the economy. Yet he has been warning investors for years that an epic drop of 50 percent or more will eventually hit the stock market. He predicted the February correction, but not in size and scope.

Actually, stock prices need to fall by at least 50 percent in order for stock valuations to get close to their long-term averages.

In the end, if stocks only fall by 50 percent we will be extremely fortunate.  Stock valuations always, always, always return to their long-term averages eventually, and usually they fall below those averages during a period of adjustment.

And the mood on Wall Street has definitely changed.  The euphoria that we once witnessed is now gone, and instead it has been replaced by a gnawing sense that a really big downturn is coming.  In his most recent piece, John Hussman compared it to the fading out of a pop song

In recent days, the combination of extreme valuations and unfavorable market internals has been joined by acute dispersion in daily trading data that often occurs within a few days of pre-collapse peaks in the market. My opinion is that the music has already quietly faded out like the end of a pop song, in a wholly uneventful way, and that even a surprise push to further highs would be marginal.

And he concluded his most recent piece with this very chilling statement

For now, and until market conditions shift, there’s an open trap door under the equity market, and it’s a very long way down.

The end of last week was very bad for the markets, and so Monday and Tuesday will be key.

If stock prices continue to fall, this could be the beginning of a race for the exits.

But if stock prices rebound a bit, it means that we could have some more time.

And keep an eye on junk bonds.  They crashed really hard just before the financial crisis of 2008, and they are starting to slip here in October 2018.

A full-blown junk bond panic would definitely be a very clear sign that a major market crash is imminent.

As I write this, all of the markets in Asia are down.  Chinese stocks have fallen almost 3 percent, and that is very troubling news.

But whether a massive crisis erupts right now or not, the truth is that there is no way that we are going to avoid the consequences of our actions.

At this moment we are in the terminal phase of the biggest debt bubble in human history.  In fact, total indebtedness in the United States has increased by more than 2 trillion dollars over the past 12 months…

In total, indebtedness of consumers, corporations, and all governments has grown by $2.04 trillion over the past four quarters. And they’re going to be paying higher interest rates on this ballooning debt. In other words, debt service costs are going to rise substantially.

All of this debt has fueled a short-term bubble of relative “prosperity”, but meanwhile all of our long-term problems just continue to get worse.

There is no possible way that our debt bubble can continue to grow much faster than the overall economy indefinitely.  In fact, we have already been defying the laws of economics for way too long.

Eventually all debt bubbles burst, and when this one bursts we are going to experience economic pain on a scale that America has never seen before.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Inverted Global Yield Curve Creates “The Perfect Cocktail For A Liquidity Crunch” As The IMF Warns Of “A Second Great Depression”

Why would the IMF use the phrase “a second Great Depression” in a report that they know the entire world will read?  To be more precise, the IMF stated that “large challenges loom for the global economy to prevent a second Great Depression”.  Are they saying that if we do not change our ways that we are going to be heading into a horrific economic depression?  Because if that is what they are trying to communicate, they would be exactly correct.  At this moment, global debt levels are higher than they have ever been before in all of human history, and in their report the IMF specifically identified “global debt levels” as one of the key problems that could lead to “another financial meltdown”

The world economy is at risk of another financial meltdown, following the failure of governments and regulators to push through all the reforms needed to protect the system from reckless behaviour, the International Monetary Fund has warned.

With global debt levels well above those at the time of the last crash in 2008, the risk remains that unregulated parts of the financial system could trigger a global panic, the Washington-based lender of last resort said.

And the IMF report also seemed to indicate that global central banks were responsible for the situation in which we now find ourselves.

In the report, an “extended period of ultralow interest rates” was blamed for “the build-up of financial vulnerabilities”

The IMF Global Financial Stability report read: “The extended period of ultralow interest rates in advanced economies has contributed to the build-up of financial vulnerabilities.

The large accumulation of public debt and the erosion of fiscal buffers in many economies following the crisis point to the urgency of rebuilding those defences to prepare for the next downturn.”

This is extremely unusual language for a globalist institution such as the IMF to be using.

Are they trying to signal that a major global financial crisis is imminent?

Of course they would hardly be the first to sound the alarm.  Prominent names throughout the financial world are making all sorts of ominous declarations these days, and more red flags continue to pop up with each passing day.

For example, according to one analysis the global yield curve has gone negative for the first time since the last financial crisis, and this has created “the perfect cocktail” for a “liquidity crunch”…

A stronger US dollar and the global cost of capital rising is the perfect cocktail, in our opinion, for a liquidity crunch.

Major liquidity crunches often occur when yield curves around the world flatten or invert. Currently, the global yield curve is inverted; this is an ominous sign for the global economy and financial markets, especially overvalued stocks markets like the US.

To me, that is one of the most alarming charts that we have seen in a very long time.

Everything in the global financial system revolves around the flow of debt.  When money is cheap and flowing freely, economic growth tends to expand.  But when a liquidity crunch happens, economic activity can start contracting very rapidly, and it looks like that is the type of scenario that is quickly starting to develop.

In fact, we are already witnessing a substantial liquidity crunch in emerging markets.  Lenders are hesitant to lend while economic conditions in those countries are chaotic, and a rapidly rising dollar has made servicing existing dollar-denominated debts increasingly problematic.

As we witnessed in 2008, debt bubbles end when liquidity begins to tighten up.  The only way that this current debt bubble can survive is if it continues to expand, and it can only expand for as long as lenders are willing to part with their money easily.

If interest rates continue to go higher, the U.S. economy and the global economy as a whole are going to be hit really hard.

On Thursday, the fact that interest rates “hit new multiyear highs” was blamed for the large decline in the stock market…

Stocks fell sharply on Thursday as interest rates hit new multiyear highs, dampening investor sentiment.

The Dow Jones Industrial Average dropped 201 points as Nike and Home Depot lagged. The 30-stock index dropped 356 points at its lows of the day and posted its worst decline since Aug. 10.

The Dow hit a new all-time high earlier this week, but many believe that it was essentially an illusion.

Because right now there are three times as many stocks at 52-week lows than there are stocks at 52-week highs.  Prior to this week, there was only one other day since 1965 when this happened

There have been two days since 1965 have seen 3x as many NYSE stocks at year-lows than at year-highs while the Dow traded at an all-time high.

The only other time prior to October 3, 2018?

December 28, 1999. The Dow was just days prior to hitting 11,722 on January 10, 2000, which would mark its long-term top. It would bottom at 8,062 on September 21, 2001. A 32% decline. The Nasdaq lost over 60% of its value during that same period, and would decline 78% from its all-time high.

I know that I have used a lot of technical jargon in this article, but the bottom line is this…

Big trouble is coming.

At this point, even Dennis Gartman is saying that “one cannot but think that a global bear market of some very real consequence is developing.”

Sentiment on Wall Street has shifted at a rate that is absolutely breathtaking.  The mindless optimism of recent years has been replaced with an ominous feeling that a major downturn is imminent.

And because markets tend to go down a lot faster than they go up, a lot of people could end up being wiped out financially before they even realize what just hit them.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

America Is Committing Suicide: Over The Past 12 Months, The U.S. National Debt Has Increased By 1.271 Trillion Dollars

If we do not change course, our once great nation will be destroyed by a debt that has grown wildly out of control.  We are facing an unprecedented debt crisis that literally threatens to bring our country to an end, and yet our politicians are almost entirely silent on this issue in 2018.  In fact, Republicans and Democrats just worked together to pass another big, fat spending bill through Congress that is actually going to increase the pace at which we are going into debt.  What the Republicrats are doing is not just wrong.  To be honest, the truth is that they are committing crimes against humanity, and they are completely wiping out the very bright future that our children and our grandchildren were supposed to have.  How in the world is America supposed to be “great again” when we are buried in so much debt that future generations can never have any possible hope of getting free from it?

The fiscal year of the federal government goes from October 1st to September 30th.  During the fiscal year that just ended, the U.S. national debt increased by 1.271 trillion dollars

The federal debt increased by $1,271,158,167,126.72 in fiscal 2018, according to data released today by the Treasury.

The total federal debt started the fiscal year at $20,244,900,016,053.51 according to the Treasury, and finished the fiscal year at $21,516,058,183,180.23.

This is one of the reasons why I wanted to go to Washington.  Our current “representatives” are completely and utterly failing us.

Once upon a time, at least members of the Tea Party would stand up and say something, but these days nobody seems to care that America’s future is being systematically destroyed.  Republicans have been in control of both houses of Congress, but our debt problems just continue to get worse and worse.  And the truth is that the budgets that have been passed since Donald Trump became president are simply slightly revised Obama budgets.  The Republicans have allowed the Democrats to have their way time after time, and it has been absolutely disgusting to watch.

In 8 of the past 11 fiscal years, the U.S. national debt has risen by more than a trillion dollars, and the U.S. national debt is now sitting at an all-time record high of 21.52 trillion dollars.

What we are doing is literally insane, and if we want our nation to survive we must change course immediately.

These days, there is a lot of discussion about the political gains that “Democratic socialists” have been making all over America, and Republicans are trying to assure us that the American people don’t actually want socialism.

But you know what?

We have already gone most of the way down the road toward socialism.  I think that Ron Paul made this point very well  in his most recent article

We know socialism does not work. It is an economic system based on the use of force rather than economic freedom of choice. But while many Americans seem to be in a panic over the failures of socialism in Venezuela, they don’t seem all that concerned that right here at home President Trump just signed a massive $1.3 trillion dollar spending bill that delivers socialism on a scale that Venezuelans couldn’t even imagine. In fact this one spending bill is three times Venezuela’s entire gross domestic product!

Did I miss all the Americans protesting this warfare-welfare state socialism?

If you are really against socialism, you should be fighting for the federal government to be greatly reduced in size and scope.

But so few Americans seem to believe in true limited government these days.

It would be a great first step if we would actually try to start living within our means.  But if 1.271 trillion dollars of government spending was pulled out of the economy over the past 12 months, the result would be a horrible economic depression.  And politicians do not like economic downturns, because when things get bad voters tend not to vote for incumbents.  So they just keep going into more debt and they keep kicking the can down the road.

But if we stay on the path that we are currently on, the CBO says that the United States will be 99 trillion dollars in debt by 2048.

Of course we will never actually ever get to 99 trillion dollars in debt.  America will cease to exist long before we ever reach that mark.

If we want to save America, we must take action now, but very few people seem to even care about our exploding debt at this point.

And it isn’t just our national debt that is the problem.  State and local government debt is at record levels all over the nation, corporate debt has doubled since the last financial crisis, and U.S. consumers are more than 13 trillion dollars in debt

If you added up the personal debt of every American — what they owe on their mortgages, credit cards, student loans, and more — the total is staggering. Collectively, we’re $13.2 trillion in the red. That’s the highest ever, according to the New York Fed.

Yet no one seems to be panicking. Maybe that’s because we can’t comprehend $13 trillion. Imagine buying every NFL team. And every NBA team. And every NHL team. And every Major League Baseball team. But that only adds up to $191 billion.

America is committing suicide in slow-motion, and it is an absolutely heartbreaking thing to witness.

It is almost as if we lack the will to survive as a nation.  All we seem to care about is our comfort level at this moment, and we don’t want anyone to tell us that we have to cut back on anything.  I think that Chris Martenson summed things up very well in his most recent piece

Nothing grows forever.  Cancer tries, but always defeats itself in the process.  Yeast parties until all the sugar in the vat is gone or it pollutes itself out of an active existence.

Can humans do better? The jury is still out on that.

But so far, the signs say that, as a group, we lack the ability to organize effectively against big, complex challenges. Especially if doing so requires us to willingly choose to live a life of less. We’re simply too addicted to more.

We cannot continue to go down this road.

Because at the end of this road is not just economic collapse.  What we are talking about is literally the end of the United States of America.

All throughout history, great societies have been done in by greed, sloth, corruption and laziness, and we are headed down the exact same path.  If we want to survive, emergency surgery is necessary, but at this point nobody is even tending to the dying patient.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

The Stock Market Just Crashed In Italy, And Argentina Has Panic-Raised Interest Rates To 65 Percent

In the 9th largest economy in the world, the financial markets are crashing, and in the 21st largest economy in the world the central bank just raised interest rates to 65 percent to support a currency that is completely imploding.  While the mainstream media in the United States continues to be obsessed with all things Kavanaugh, an international financial crisis threatens to spiral out of control.  Stock prices are falling and currencies are collapsing all over the planet, but because the U.S. has been largely unaffected so far the mainstream media is mostly choosing to ignore what is happening.  But the truth is that this is serious.  The financial crisis in Italy threatens to literally tear the EU apart, and South America has become an economic horror show.  The situation in Brazil continues to get worse, the central bank of Argentina has just raised interest rates to 65 percent, and in Venezuela starving people are literally eating cats and dogs in order to survive.  How bad do things have to get before people will start paying attention?

On Friday, Italian stocks had their worst day in more than two years, and it was the big financial stocks that were on the cutting edge of the carnage

Shares in Italian banks .FTIT8300, whose big sovereign bond portfolios makes them sensitive to political risk, bore the brunt of selling pressure, sinking 7.3 percent as government bonds sold off and the focus turned to rating agencies.

Along with the main Italian stock index .FTMIB, the banks had their worst day since the June 2016 Brexit vote triggered a selloff across markets.

Italian bonds got hit extremely hard too.  The following comes from Business Insider

Bond markets are also suffering. The yield on the benchmark 10-year Italian bond jumped in Friday morning trading. Yields move inversely to price, with a higher yield reflecting an increased premium to hold the bond. The 10-year yield hit 3.22% in early morning trade, an increase of more than 10%.

So what sparked the sudden selloff?

Well, the new Italian government and the EU are at odds with one another, and the European elite were greatly displeased when Italy approved a new budget that was far larger than anticipated

On Thursday night, six months after the government’s ascent to power, Italy’s populist coalition government of the Five Star Movement and the Northern League finally agreed on the key tenets of its first budget.

The coalition said in a statement they had agreed to set Italy’s budget deficit at 2.4% of GDP, an increase on the current level and far above the 1.6% that technocratic finance minister Giovanni Tria had lobbied for.

It is easy to criticize Italy, but what we are doing here in the United States is just as bad if not worse.

A new 854 billion dollar spending bill just got pushed through in D.C., and it is going to continue to explode the size of our national debt.  We are going down the exact same path that all of these other nations have gone down, and in the process we are literally committing national suicide.

Just look at what is happening in Argentina.  Years of wild spending have resulted in an economy that is deep in recession.  The Argentine peso has lost approximately 50 percent of its value so far in 2018, and in a desperate attempt to stop the bleeding the central bank of Argentina just panic-raised interest rates to 65 percent.

When interest rates are at 65 percent, you don’t really have an economy anymore.

What you have is an endless nightmare.

In an emergency move, the International Monetary Fund has agreed to increase the size of Argentina’s bailout to 57 billion dollars

The International Monetary Fund and Argentina announced Wednesday an arrangement to increase resources available to the South American country by $19 billion.

The agreement, pending IMF Executive Board approval, would bring the total amount available under the program to $57.4 billion by the end of 2021, up from $50 billion.

That won’t be nearly enough to turn the situation around in Argentina, and the IMF probably knows that.

For a long time many of us have been warning of a coming global financial crisis, and now that day has arrived.

For a long time many of us have been telling you to keep a close eye on Italy, and now a day of reckoning for that very troubled nation is here.

And big problems are coming for the U.S. too.  Signs of imminent economic trouble just keep popping up, and it isn’t going to take much to push us into a new financial crisis that will be much worse than what we witnessed in 2008.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

New Vehicle Sales “Collapse” And Pending Home Sales “Plunge” As America’s Economic Slowdown Accelerates

In late 2018, the bad economic news just keeps rolling in.  At a time when consumer confidence is absolutely soaring, the underlying economic numbers are clearly telling us that enormous problems are right around the corner.  Of course this is usually what happens just before a major economic downturn.  Most people in the general population feel like the party can go on for quite a while longer, but meanwhile the warning signs just keep becoming more and more obvious.  I have been hearing from people that truly believe that the economy is “strong”, but if the U.S. economy really was in good shape would new vehicle sales be “collapsing”?

According to the latest estimates released by Edmunds, new vehicle sales for September are expected to collapse both on a monthly basis and year-over-year basis. The company predicted that 1,392,434 new cars and trucks will be sold in the U.S. in September, which makes for a estimated seasonally adjusted annual rate (SAAR) of 17 million. This will be a 5.4% decrease from last month and an 8.3% drop from September of last year.

Those are absolutely terrible numbers.

And this news comes after all of the major automakers had already revised earnings guidance lower.  The following comes from Zero Hedge

The drop in sales capped another rough month for the auto industry during which Detroit’s carmakers all revised their earnings guidance lower and Ford embarked on a five-year restructuring plan. Earlier this week, we reported that Ford’s CEO claimed that President Trump’s auto tariffs had cost the company $1 billion in profits.

Sadly, this may just be the very beginning of the auto industry’s troubles.

It is now being projected that if this trade war with China continues, U.S. automakers could see total sales fall “by 2 million vehicles per year”

Retaliation by China to tariffs already in place have made some American auto exports uncompetitive, and could collapse US auto sales by 2 million vehicles per year, resulting in the loss of up to 715,000 American jobs and a devastating hit of as much as $62 billion to the US GDP.

As per NBC News, the Center for Automotive Research (CAR) warns that the auto industry could receive a devastating blow if Section 232 declares foreign-made cars and car parts a threat to national security.

Kristin Dziczek, a vice president and senior economist at CAR, said if Section 232 is enacted, it could trigger a “downward cycle” in the auto industry – not seen since the last great recession.

And needless to say, the thousands of companies that do business with those large automakers would also lose sales and jobs.

Once these downturns get rolling, the domino effect can be absolutely devastating.

On Thursday, we also learned that pending home sales “plunged in August”

Pending home sales plunged in August, dropping 1.8% MoM (almost four times worse than expected) to its lowest since Oct 2014 (and fell 2.5% YoY) – the fourth month of annual declines in a row…

If the U.S. economy truly is “strong”, then why have we seen four monthly declines in a row?

And it isn’t just one part of the nation that is experiencing a downturn.  According to Bloomberg, all four major regions of the country showed a decline…

As Bloomberg notes, the decline, which was broad-based across all four regions, shows that higher mortgage rates, rising prices and a shortage of affordable homes continue to squeeze buyers. Existing-home sales in August matched the lowest in more than two years, while revisions to new-home sales showed a slower market than thought, according to previously released figures.

Homes are not selling like they once were.  There is a reason why one out of every four home sellers in America slashed their prices in August.  Demand is way down, and that strongly indicates that an economic slowdown is here.

When it looks like the economy is headed for a major downturn, a lot of people go out and stock up on gold, and it turns out that is precisely what global central banks have been doing

Central banks have emerged as some of the biggest buyers of gold this year, buying a total of 264 metric tons this year to reach the highest level in six years, according to analysts at Macquarie.

Of course the Federal Reserve and other central banks are trying to assure us that everything is going to be okay, but meanwhile their actions are telling us a different story.

Much of the world is already in the midst of a crippling economic crisis, and every indicator seems to be pointing to the fact that the U.S. is headed down the same path.

Even without any extenuating circumstances, the truth is that we are way overdue for a recession.  But when you throw in political chaos, exploding debt levels, an emerging market currency crisis and a trade war between the two largest economies on the entire planet, you definitely have a recipe for a perfect storm.

If you do not believe that this trade war is a big deal, you should consider the words of former Reagan administration official David Stockman

Folks, it’s not a “skirmish”. On the scale of trade warfare we are now at DEFCON 2.

At this very moment, the US is taxing $250 billion of Chinese imports or nearly half the total flow; and China is taxing $110 billion of its imports from the US or 85% of the flow.

And it’s soon going full monte. The Donald has repeatedly threatened to tariff the remaining $267 billion of Chinese imports if Beijing retaliates against his $200 billion, but, self-evidently, they already have.

The U.S. economy has found a way to muddle through for the past couple of years, and we should all hope that the economy can find a way to navigate through these current problems.

But the storm clouds are growing more ominous with each passing day, and at some point time will run out.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.