Why are small towns in conservative states being specifically targeted for refugee resettlement? Of course the Obama administration will never publicly admit that this is happening, but it doesn’t take a genius to figure out what is going on. Just look at the uproar that refugee resettlement is now causing in small communities in Idaho, Montana, North Dakota and Kansas. The Obama administration has deemed large cities such as Washington D.C. to be “too expensive” for the refugees, and so large numbers of them are being dispersed throughout smaller communities all over the nation. If you drop a few hundred refugees into a major city of several million people, it isn’t going to make much of a difference. But if you drop a few hundred refugees into a small town that has only a few thousand people living there, you can start to fundamentally alter the character of the whole area. Could it be possible that this is yet another way that Barack Obama is attempting to “fundamentally transform” America?
You would think that there would be more employment opportunities, cultural attractions and government services available for refugees in major metropolitan areas. So it would seem natural to resettle them in those areas. But instead, there seems to be a major push to resettle large numbers of them in small towns.
Needless to say, this is creating a huge uproar in many areas. In fact, on Monday there is a major protest planned in Missoula, Montana. The following comes from Leo Hohmann of WND…
Another big battle is brewing over Syrian “refugees” sweeping into small-town America.
Rural folks in Montana are pushing back against plans by urban elites to plant hundreds of Muslims from the Third World into Helena and Missoula. They plan a protest rally at 10 a.m. Monday in front of the county courthouse in Missoula. And if the pattern holds of similar rallies in Twin Falls, Idaho, and Fargo, North Dakota, a contingent of pro-refugee people will show up to counter protest.
Well funded pro-immigrant NGOs have been searching out local politicians that are willing to work with them to invite the Obama administration to resettle large numbers of Islamic refugees in their areas. Unfortunately for residents of Missoula, politicians there seem quite willing to open the door…
Here in “Big Sky Country” local politicians in Missoula, working with pro-immigrant NGOs, are inviting the federal government to begin sending Syrians, comparing them to the Hmong refugees who fled Vietnam’s communists in the late 1970s. They have not been deterred by the fact that 98 percent of Syrian refugees are Sunni Muslims, the vast majority of whom FBI Director James Comey admits are impossible to vet for ties to terrorism.
Despite Comey’s warnings, the Missoula Board of County Commissioners sent a letter on Jan. 13 to the U.S. State Department requesting Syrian refuges. “We look forward to seeing approximately 100 refugees per year resettled in Missoula,” the letter states.
“Missoula is an ideal city for resettling refugees,” the letter continues. “Our community enjoys good schools, incredible natural beauty, and a low unemployment rate, among other factors.”
We have all seen the chaos that has erupted in Europe as massive waves of Islamic immigrants have been allowed in and resettled in large numbers in small communities. Just a few weeks ago, I wrote about the epidemic of rape that is sweeping across formerly peaceful countries like Norway and Sweden.
And I am sure most of you have already read about the extremely alarming sexual crimes that Germany is dealing with now. But many of us don’t seem to be connecting the dots. What is happening over there could someday happen to our own wives and daughters.
Fortunately, there are some communities that are still willing to step up and take a stand against what the social engineers in Washington D.C. are trying to do. One of those communities is Sandpoint, Idaho…
Sandpoint City Council members voted Wednesday night to withdraw a resolution supporting refugee resettlement, bringing an end to a heated, month-long controversy.
Cheers erupted from the audience when newly elected Sandpoint Mayor Shelby Rognstad asked the council to withdraw the resolution from consideration. A measure meant to counter statements from Bonner County commissioners and Sheriff Darryl Wheeler opposing the resettlement of refugees, the resolution was intended to restate Sandpoint’s commitments to human rights, according to Rognstad.
“This resolution has only served to divide us and this community,” said Rognstad, as he requested the withdrawal. “That saddens me.”
Once again, anti-refugee activists turned out in force to oppose the resolution and, once again, the council meeting procedure was punctured by applause and shouts. When Rognstad called for order, the crowd responded with catcalls.
But other small communities in Idaho are not so fortunate.
Just consider what is happening in Twin Falls…
Beginning the next fiscal year (October 1), some 300 Muslim refugees, primarily from Syria, will arrive in Twin Falls, Idaho, the Twin Falls Times reports.
But this miniature exodus from the Middle East to the small southern Idaho town of 45,000 people is believed to be just the tip of the iceberg, according to WND, which indicates that many more refugees from Iraq, Syria, the Democratic Republic of Congo, and likely Syria, are on their way. The conservative news site received reports that community leaders were told at a recent Boise State University conference held for “stakeholders” — including church groups and social service providers — that a couple thousand refugees are planned to a arrive statewide soon.
Look, I am all for assisting people that need our help.
In particular, I would love for our country to take in Christians from Iraq and Syria. The things that ISIS has been doing to those that believe in Jesus Christ are almost too horrible to put into words, and yet Barack Obama has been almost totally silent on the matter.
Instead of taking in persecuted Christians, it has been estimated that well over 90 percent of the refugees from Syria are Sunni Muslims, and surveys have found that a significant percentage of them actually have a favorable view of ISIS.
In the mainstream media, we are told quite often that the number of refugees being brought in is 10,000 a year. But that simply is not accurate. In a previous article, I documented the fact that the White House has admitted that the number of refugees being resettled in this country has been increased to 100,000 per year. The following is a message that was tweeted by the official White House Twitter account on September 28th…
I don’t see how there could be any confusion. Barack Obama himself says that we are bringing in 100,000 refugees a year for the next two years.
Not all of these refugees are coming from Syria, but the vast majority of them are coming from countries where a radical version of Sunni Islam is practiced as a way of life.
When large numbers of refugees are injected into a small community, the character of that community can be fundamentally altered. And at this point, it appears that there is a concentrated effort to funnel large numbers of these refugees into small towns in some of the most conservative states in the country.
If you are concerned about what is going on in places like Missoula, Sandpoint and Twin Falls, you might want to check on what your own local politicians are doing.
An insidious agenda is at work, and I have a feeling that this is just the tip of the iceberg.
Have you ever come away discouraged after trying to talk about prepping with friends or family members that just don’t seem to be interested? Over the years, I have heard countless excuses from people for why they aren’t getting prepared for what is about to happen to America. Some of the excuses, like a lack of money, are definitely legitimate. But in many other instances, the objections don’t seem to make a lot of sense. In America today, most people let others do most of their thinking for them. And in general, our political, religious and cultural leaders are telling Americans that there really is no reason to be overly concerned about the future. They assure us that they have everything under control, and that life is only going to get better in the years ahead. Bad beliefs lead to bad decisions which in turn lead to bad actions, and most Americans have chosen to believe what the elite are telling them at this point. As a result, only a small fraction of society is getting physically, mentally, emotionally and spiritually prepared for the exceedingly hard times that are rapidly approaching. The following are 53 common excuses that people like to use for not prepping…
1. “Obama fixed everything that was wrong with America”
2. “When Hillary Clinton is elected she will put this nation back on the right track”
3. “Donald Trump will make America great again”
4. “I don’t have to prepare because the rapture is going to happen before anything really bad happens to this country”
5. “Everybody told me that the world was going to end in September and that didn’t happen”
6. “I don’t have enough money to buy emergency food and supplies”
7. “I’m too exhausted after working hard all day to do anything else”
8. “There is never enough time, and I would rather spend my precious free time doing something else”
9. “The U.S. economy is the greatest economy in the history of the world – there is no way that it could ever possibly collapse”
10. “Whenever we have had a major economic downturn in the past we have always recovered”
11. “Things are never going to get THAT bad”
12. “When things fall apart the federal government will take care of us”
13. “I am going to spend my extra money on fun rather than on fear”
14. “While you guys are sitting on stockpiles of expired food, I will be counting all of the money that I made in the stock market”
15. “When disaster strikes I will simply steal food from everyone else that has been prepping”
16. “The people at the Federal Reserve are very highly educated and they know precisely what they are doing”
17. “Wal-Mart will always be there when I need it”
18. “I’m too lazy to get prepared”
19. “Preppers don’t have a positive mental attitude”
20. “It is anti-faith to get prepared for an economic collapse”
21. “If the economy does collapse, I will just go on welfare”
22. “Nobody can get prepared for every possible scenario, so why bother?”
23. “I would rather save money for retirement”
24. “Obama told me that anyone that says the economy is heading for hard times is just peddling fiction”
25. “The stock market always rebounds to new highs after every crash, so why worry?”
26. “I don’t have room to store anything at my place”
27. “Prepping is something that crazy people do”
28. “I’m not a conspiracy theorist”
29. “I am afraid that all of the food that I store is going to go bad”
30. “All of the people that got freaked out about Y2K look really foolish right about now, don’t they?”
31. “Instead of being ultra-paranoid, I would rather just enjoy my life”
32. “If things get really bad, the people in my community will just band together to take care of everyone”
33. “If society did completely collapse, I would not want to go on living anyway”
34. “I’m too lazy to learn how to grow a garden”
35. “If you assume that the worst is eventually going to happen, then you don’t really believe in America”
36. “If something happens I will just run out to the store and grab what I need”
37. “If all of my debts are wiped out during an economic collapse I might as well live it up now”
38. “When things hit the fan I will just go live with my relatives that have been prepping”
39. “My spouse does not believe that prepping is a good idea”
40. “Prepping seems so complicated and I don’t know where to start”
41. “I don’t have to worry about preparing for a major disaster because that is what FEMA is for”
42. “There is no way that the supermarkets could ever possibly run out of food”
43. “Once I get my student loans and credit card debt paid off then maybe I will start thinking about prepping”
44. “My relatives are already convinced that I am a nutjob – I don’t need to make it worse by stockpiling buckets of food in my garage”
45. “What would the people at work think?”
46. “If there really was a reason to get prepared they would have told us about it on the news”
47. “People have been predicting doom and gloom for years, and yet nothing has happened”
48. “If I do prepare, angry mobs will just come and steal it all at some point anyway”
49. “Look at how fast technology is advancing – there is no way that things could completely fall apart now that humanity has so much advanced knowledge”
50. “We live in the greatest country on the entire planet during the greatest time for humanity in the history of the world”
51. “I have no intention of becoming a card carrying member of the Tin Foil Hat Brigade”
52. “If we are all going to die anyway, what is the point of prepping?”
53. “There is always more time – if I don’t get prepared today I can always get prepared tomorrow”
If you would like to learn more about how you can get prepared for what is immediately ahead of us, you may want to check out an article that I recently did entitled “70 Tips That Will Help You Survive What Is Going To Happen To America“. It contains quite a few little “nuggets” that many people don’t commonly think about when it comes to prepping.
Personally, I think that it would be very nice if normal life were to just continue indefinitely in America. That way I could just sit up on my mountain and enjoy a nice quiet life with my family.
But the truth is that we are moving into the greatest time of chaos that any of us have ever experienced, and those of us that have been preparing are going to need to step forward as leaders. It is during times of great darkness that light is needed the most, and during the hard years ahead there is going to be a crying need for people that have great strength, great courage and great love.
So do you have any excuses that you have heard that you think would make good additions to this list? Please feel free to share them with the rest of us by leaving a comment below…
If there is one thing that Americans can agree on these days, it is the fact that most of us don’t like the government. CBS News has just released an article entitled “Americans hate the U.S. government more than ever“, and an average of recent surveys calculated by Real Clear Politics found that 63 percent of all Americans believe the country is heading in the wrong direction and only 28 percent of all Americans believe that the country is heading in the right direction. In just a few days the first real ballots of the 2016 election will be cast in Iowa, and up to this point the big story of this cycle has been the rise of “outsider” candidates that many of the pundits had assumed would never have a legitimate chance. Donald Trump, Ted Cruz and Bernie Sanders have all been beneficiaries of the overwhelming disgust that the American people feel regarding what has been going on in Washington.
And it isn’t just Barack Obama or members of Congress that Americans are disgusted with. According to the CBS News article that I referenced above, our satisfaction with various federal agencies has fallen to an eight year low…
A handful of industries are those “love to hate” types of businesses, such as cable-television companies and Internet service providers.
The federal government has joined the ranks of the bottom-of-the-barrel industries, according to a new survey from the American Customer Satisfaction Index. Americans’ satisfaction level in dealing with federal agencies –everything from Treasury to Homeland Security — has fallen for a third consecutive year, reaching an eight-year low.
So if we are all so fed up with the way that things are running, it should be easy to fix right?
Unfortunately, things are not so simple.
In America today, we are more divided as a nation than ever. If you ask 100 different people how we should fix this country, you are going to get 100 very different answers. We no longer have a single shared set of values or principles that unites us, and therefore it is going to be nearly impossible for us to come together on specific solutions.
You would think that the principles enshrined in the U.S. Constitution should be able to unite us, but sadly those days are long gone. In fact, the word “constitutionalist” has become almost synonymous with “terrorist” in our nation. If you go around calling yourself a “constitutionalist” in America today, there is a good chance that you will be dismissed as a radical right-wing wacko that probably needs to be locked up.
The increasing division in our nation can be seen very clearly during this election season. On the left, an admitted socialist is generating the most enthusiasm of any of the candidates. Among many Democrats today, Hillary Clinton is simply “not liberal enough” and no longer represents their values.
On the other end of the spectrum, a lot of Republican voters are gravitating toward either Donald Trump or Ted Cruz. Both of those candidates represent a complete break from how establishment Republicans have been doing things in recent years.
Now don’t get me wrong – I am certainly not suggesting that we need to meet in the middle. My point is that there is absolutely no national consensus about what we should do. On the far left, they want to take us into full-blown socialism. Those that support Donald Trump or Ted Cruz want to take us in a more conservative direction. But even among Republicans there are vast disagreements about how to fix this country. Establishment Republicans greatly dislike both Trump and Cruz, and they are quite determined to do whatever it takes to keep either of them from getting the nomination. The elite have grown very accustomed to anointing the nominee from each party every four years, and so the popularity of Trump and Cruz is making them quite uneasy this time around. The following comes from the New York Times…
The members of the party establishment are growing impatient as they watch Mr. Trump and Mr. Cruz dominate the field heading into the Iowa caucuses next Monday and the New Hampshire primary about a week later.
The party elders had hoped that one of their preferred candidates, such as Senator Marco Rubio of Florida, would be rising above the others by now and becoming a contender to rally around.
The global elite gathered in Davos, Switzerland are also greatly displeased with Trump. Just check out some of the words that they are using to describe him…
“Unbelievable“, “embarrassing” even “dangerous” are some of the words the financial elite gathered at the World Economic Forum conference in the Swiss resort of Davos have been using to describe U.S. Republican presidential frontrunner Donald Trump.
Although some said they still expected his campaign to founder before his party picks its nominee for the November election many said it was no longer unthinkable that he could be the Republican candidate.
The truth is that the Republican Party represents somewhere less than half the population in the United States, and today it is at war with itself. Supporters of Trump have a significantly different vision of the future than supporters of Cruz, and the establishment wing wants nothing to do with either candidate.
A lot of people seem to assume that since Trump is leading in the polls that he will almost certainly get the nomination.
That is not exactly a safe bet.
It is my contention that the establishment will pull out every trick in the book to keep either him or Cruz from getting the nomination. And in order to lock up the nomination before the Republican convention, a candidate will need to have secured slightly more than 60 percent of all of the delegates during the caucuses and the primaries.
The following is an excerpt from one of my previous articles in which I discussed the difficult delegate math that the Republican candidates are facing this time around…
It is going to be much more difficult for Donald Trump to win the Republican nomination than most people think. In order to win the nomination, a candidate must secure at least 1,237 of the 2,472 delegates that are up for grabs. But not all of them will be won during the state-by-state series of caucuses and primaries that will take place during the first half of 2016. Of the total of 2,472 Republican delegates, 437 of them are unpledged delegates – and 168 of those are members of the Republican National Committee. And unless you have been hiding under a rock somewhere, you already know that the Republican National Committee is not a fan of Donald Trump. In order to win the Republican nomination without any of the unpledged delegates, Trump would need to win 60.78 percent of the delegates that are up for grabs during the caucuses and primaries. And considering that his poll support is hovering around 30 percent right now, that is a very tall order.
In the past, it was easier for a front-runner to pile up delegates in “winner take all” states, but for this election cycle the Republicans have changed quite a few things. In 2016, all states that hold caucuses or primaries before March 15th must award their delegates proportionally. So when Trump wins any of those early states, he won’t receive all of the delegates. Instead, he will just get a portion of them based on the percentage of the vote that he received.
In 2016, more delegates will be allocated on a proportional basis by the Republicans than ever before, and with such a crowded field that makes it quite likely that no candidate will have secured enough delegates for the nomination by the time the Republican convention rolls around.
If no candidate has more than 60 percent of the delegates by the end of the process, then it is quite likely that we will see the first true “brokered convention” in decades.
If we do see a “brokered convention”, that would almost surely result in an establishment candidate coming away with the nomination. That list of names would include Bush, Rubio, Christie and Kasich.
And if by some incredible miracle either Trump or Cruz does get the nomination, the elite will move heaven and earth to make sure that Hillary Clinton ends up in the White House.
For decades, it has seemed like nothing ever really changes no matter which political party is in power, and that is exactly how the elite like it.
Our two major political parties are really just two sides of the same coin, and they are both leading this nation right down the toilet.
On January 22nd, one of the worst east coast blizzards in history slammed into Washington D.C. like a freight train. More than three feet of snow was dumped on some areas, hundreds of thousands of people were left without power, and coastal cities all long the eastern seaboard experienced flooding to a degree not seen since Hurricane Sandy. Tens of millions of people live in communities that were completely paralyzed by this storm, and it is being projected that the total amount of economic damage done will ultimately be in the billions of dollars. January 22nd also happens to be the anniversary of the U.S. Supreme Court decision that legalized abortion in all 50 states. Since that Supreme Court decision, more than 58 million babies have been murdered in abortion clinics in America. Could it be possible that it is more than just a “coincidence” that both of these events happened on January 22nd?
In a previous article, I noted that this east coast blizzard was officially given the name “Jonas”. It turns out that “Jonas” is actually a Greek transliteration of the Hebrew name “Jonah”.
In the Bible, Jonah was sent to the city of Ninevah to warn that the judgment of God was about to come. Some are suggesting that it may not be any accident that a historic blizzard named after this Biblical prophet hit Washington D.C. on the exact anniversary of the Roe vs. Wade decision.
And without a doubt, this was a whopper of a storm. According to USA Today, some cities broke their all-time records for snowfall from a single storm…
It was the biggest snowstorm ever recorded for three cities — Baltimore (29.2 inches), Allentown, Pa. (31.9) and Harrisburg, Pa. (34), the National Weather Service said. New York City picked up 26.8 inches of snow, missing its all-time record by one-tenth of an inch.
In the D.C. area things were absolutely crazy. Dulles Airport got a total of 29.3 inches of snow, and Baltimore-Washington International Airport got 29.2 inches of snow. Some of the outlying areas actually got closer to three feet of snow, and it could take weeks for transportation in the region to get back to normal.
New York City got absolutely pummeled as well. CNN is reporting that John F. Kennedy International Airport got 31 inches of snow and New York’s Central Park has been buried under 27 inches of snow.
In addition to crazy amounts of snow, vast stretches right along the coast had to deal with tremendous flooding. In fact, CNN is reporting that the flooding was even worse than during Hurricane Sandy in some areas…
Margate City, just down the coast from Atlantic City, was also affected.
“In a lot of our business areas and our back bay areas, water is coming over the bulkhead in a lot of the same areas as Hurricane Sandy hit,” Lt. Matt Hankinson of the Margate City Police Department said. “Some areas I would say it’s thigh- to waist-deep.”
Farther south in North Wildwood, the high tide was much higher than anticipated and caught many of the town’s 5,000 year-round residents off guard — with flooding levels that actually exceeded those during Hurricane Sandy, said Patrick Rosenello, the city’s mayor.
Meanwhile, a very powerful El Nino pattern continues to send storm after storm slamming into the west coast. It didn’t get much publicity because of the giant blizzard on the east coast, but the California coastal city of Pacifica just declared a state of emergency due to the damage from these storms. The following comes from the Daily Mail…
As the East Coast is hit with one of the most powerful storms in recent years, the West Coast is continuing to be slammed with storms thanks to El Nino.
The city of Pacifica in northern California declared a state of emergency Friday after continuous El Nino storms slammed into the city’s coastline,KNTV reported.
A sinkhole and a severely damaged sea wall are part of the destruction in the city from the wild winter weather.
‘El Nino is hitting the city’s coastline very hard and creating almost daily reports of impacts to both public and private property,’ City Manager Lorie Tinfow told KNTV.
All of this continues a very unusual pattern of disasters that we have been witnessing over the past six months. Just consider what we have seen happen since last September…
-Around the turn of the year the middle part of the country experienced absolutely horrific flooding. The only thing people can really compare it to is the great flood of 1993, and Missouri Governor Jay Nixon says that some communities saw floodwaters get to “places they’ve never been before”. Normally if the middle of the country is going to see flooding like this, it is going to happen when the snow begins to thaw in the spring. For something like this to happen in December is absolutely unprecedented.
-Prior to that, a conveyor belt of storms that barreled into coastal areas of Oregon and Washington caused horrible flooding in many areas. In fact, in early December we witnessed the wettest day in the history of Portland, Oregon. The resulting landslides and floods made headlines all over the nation.
-Before that, the remnants of Hurricane Patricia caused nightmarish flooding in many parts of Texas. The flooding was so bad that at one point an entire train was knocked off the tracks.
-Out on the west coast, flash flooding in southern California sent rivers of mud streaming across highways in southern California. The lifeless body of one man that had his vehicle completely buried in mud was recovered several days later because that is how long it took emergency workers to get to him.
-To kick things off, moisture from Hurricane Joaquin caused horrible flooding all up and down the east coast back in early October. The governor of South Carolina said that it was the worst rain that some parts of her state had seen in 1,000 years.
All of this flooding has happened since the end of September.
Never before in U.S. history have we ever seen a series of catastrophic floods like this within such a concentrated space of time.
And let us not forget that 2015 was also the worst year for wildfires in all of U.S. history, the state of Oklahoma absolutely shattered their yearly record for earthquakes, and much of the rest of the country has been experiencing highly unusual natural disasters. In fact, the state of Alaska was hit by a 7.1 magnitude earthquake just today.
In addition, my regular readers already know that global financial markets have just had their worst start to a year in all of modern history.
Could someone be trying to tell us something?
Most people out there would dismiss such a suggestion without even thinking about it. To most Americans, it must just be a “coincidence” that we have been hit by major disaster after major disaster since the month of September.
But there are others that would point out that you eventually reap what you sow, and this nation has been doing a tremendous amount of evil for a very long time.
As I mentioned at the top of this article, America has murdered more than 58 million babies since 1973. Instead of being horrified at our crimes, we just continue to shake our fist at God as we celebrate all of the evil that we are doing. In fact, Barack Obama took time out of his day on Friday to actually celebrate the anniversary of Roe v. Wade…
President Barack Obama issued a statement today, celebrating the 43rd anniversary of the Supreme Court’s 1973 Roe v. Wade decision that declared abortion a constitutionally protected right.
“Today, we mark the 43rd anniversary of the Supreme Court ruling in Roe v. Wade, which affirmed a woman’s freedom to make her own choices about her body and her health,” said Obama.
Despite being shown our guilt over and over again, we have absolutely refused to change our ways, and so now we will pay the price for our crimes.
As I have said on television, on the radio and in my articles, 2016 is the year when everything changes.
We are about three weeks into 2016, and we are witnessing things that we have never seen before. There were two emergency market shutdowns in China within the first four trading days of this year, the Dow Jones Industrial Average has never lost this many points within the first three weeks, and just yesterday we learned that global stocks had officially entered bear market territory. Overall, more than 15 trillion dollars of global stock market wealth has been wiped out since last June. And of course the markets are simply playing catch up with global economic reality. The Baltic Dry Index just hit another new all-time record low today, Wal-Mart has announced that they are shutting down 269 stores, and initial jobless claims in the U.S. just surged to their highest level in six months. So if things are this bad already, what will the rest of 2016 bring?
The Dow was up just a little bit on Thursday thankfully, but even with that gain we are still in unprecedented territory. According to CNBC, we have never seen a tougher start to the year for the Dow than we have in 2016…
The Dow Jones industrial average, which was created in 1896, has never begun a year with 12 worse trading days. Through Wednesday’s close, the Dow has fallen 9.5 percent. Even including the 1.3 percent gains as of noon Thursday, the Dow is still down nearly 8 percent in 2016.
But even with the carnage that we have seen so far, stocks are still wildly overpriced compared to historical averages. In order for stocks to no longer be in a “bubble”, they will still need to decline by about another one-third. The following comes from MarketWatch…
Data from the U.S. Federal Reserve, meanwhile, say U.S. nonfinancial corporate stocks are now valued at about 90% of the replacement cost of company assets, a metric known as “Tobin’s Q.” But the historic average, going back a century, is in the region of 60% of replacement costs. By this measure, stocks could fall by another third, taking the Dow all the way down toward 10,000. (On Wednesday it closed at 15,767.) Similar calculations could be reached by comparing share prices to average per-share earnings, a measure known as the cyclically adjusted price-to-earnings ratio, commonly known as CAPE, after Yale finance professor Robert Shiller, who made it famous.
Of course the mainstream media doesn’t seem to understand any of this. They seem to be under the impression that the bubble should have lasted forever, and this latest meltdown has taken them totally by surprise.
Ultimately, what is happening should not be a surprise to any of us. The financial markets always catch up with economic reality eventually, and right now evidence continues to mount that economic activity is significantly slowing down. Here is some analysis from Brandon Smith…
Trucking freight in the U.S. is in steep decline, with freight companies pointing to a “glut in inventories” and a fall in demand as the culprit.
Morgan Stanley’s freight transportation update indicates a collapse in freight demand worse than that seen during 2009.
The Baltic Dry Index, a measure of global freight rates and thus a measure of global demand for shipping of raw materials, has collapsed to even more dismal historic lows. Hucksters in the mainstream continue to push the lie that the fall in the BDI is due to an “overabundance of new ships.” However, the CEO of A.P. Moeller-Maersk, the world’s largest shipping line, put that nonsense to rest when he admitted in November that “global growth is slowing down” and “[t]rade is currently significantly weaker than it normally would be under the growth forecasts we see.”
In addition, another very troubling sign is the fact that initial jobless claims are starting to surge once again…
The number of Americans applying for unemployment benefits in mid-January reached seven-month highs, perhaps a sign that the rate of layoffs in the U.S. has risen slightly from record lows.
Initial jobless claims climbed a seasonally adjusted 10,000 to 293,000 in the seven days stretching from Jan. 10 to Jan 16, the government said Thursday. That’s the highest level since last July.
Since the last recession, the primary engine for the creation of good jobs in this country has been the energy industry.
Unfortunately, the “oil boomtowns” are now going bust, and workers are being laid off in droves. As I mentioned the other day, 42 North American oil companies have filed for bankruptcy and 130,000 good paying energy jobs have been lost in this country since the start of 2015. And as long as the price of oil stays in this neighborhood, the worse things are going to get.
A lot of people out there still seem to think that this is just going to be a temporary downturn. Many are convinced that we will just go through another tough recession and then we will come out okay on the other side. What they don’t realize is that a number of long-term trends are now reaching a crescendo.
For decades, we have been living wildly beyond our means. The federal government, state and local governments, corporations and consumers have all been going into debt far faster than our economy has been growing. Of course this was never going to be sustainable in the long run, but we had been doing it for so long that many of us had come to believe that our exceedingly reckless debt-fueled prosperity was somehow “normal”.
Unfortunately, the truth is that you can’t consume far more than you produce forever. Eventually reality catches up with you. This is a point that Simon Black made extremely well in one of his recent articles…
Economics isn’t complicated. The Universal Law of Prosperity is very simple: produce more than you consume.
Governments, corporations, and individuals all have to abide by it. Those who do will thrive. Those who don’t will fail, sooner or later.
When the entire financial system ignores this fundamental rule, it puts us all at risk.
And if you can understand that, you can take simple, sensible steps to prevent the consequences.
Sadly, the time for avoiding the consequences of our actions is now past.
We are now starting to pay the price for decades of incredibly bone-headed decisions, and anyone that is looking to Barack Obama, the Federal Reserve or anyone else in Washington D.C. to be our savior is going to be bitterly disappointed.
And as bad as things have been so far, just wait until you see what happens next.
2016 is the year when everything changes.
The Royal Bank of Scotland is telling clients that 2016 is going to be a “cataclysmic year” and that they should “sell everything”. This sounds like something that you might hear from The Economic Collapse Blog, but up until just recently you would have never expected to get this kind of message from one of the twenty largest banks on the entire planet. Unfortunately, this is just another indication that a major global financial crisis has begun and that we are now entering a bear market. The collective market value of companies listed on the S&P 500 has dropped by about a trillion dollars since the start of 2016, and panic is spreading like wildfire all over the globe. And of course when the Royal Bank of Scotland comes out and openly says that “investors should be afraid” that certainly is not going to help matters.
It amazes me that the Royal Bank of Scotland is essentially saying the exact same thing that I have been saying for months. Just like I have been telling my readers, RBS has observed that global markets “are flashing the same stress alerts as they did before the Lehman crisis in 2008″…
RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that the major stock markets could fall by a fifth and oil may reach US$16 a barrel.
The bank’s credit team said markets are flashing the same stress alerts as they did before the Lehman crisis in 2008.
So what should our response be to these warning signs?
According to RBS, the logical thing to do is to “sell everything” excerpt for high quality bonds…
“Sell everything except high quality bonds,” warned Andrew Roberts in a note this week.
He said the bank’s red flags for 2016 — falling oil, volatility in China, shrinking world trade, rising debt, weak corporate loans and deflation — had all been seen in just the first week of trading.
“We think investors should be afraid,” he said.
And of course RBS is not the only big bank issuing these kinds of ominous warnings.
The biggest bank in America, J.P. Morgan Chase, is “urging investors to sell stocks on any bounce”…
J.P. Morgan Chase has turned its back on the stock market: For the first time in seven years, the investment bank is urging investors to sell stocks on any bounce.
“Our view is that the risk-reward for equities has worsened materially. In contrast to the past seven years, when we advocated using the dips as buying opportunities, we believe the regime has transitioned to one of selling any rally,” Mislav Matejka, an equity strategist at J.P. Morgan, said in a report.
Aside from technical indicators, expectations of anemic corporate earnings combined with the downward trajectory in U.S. manufacturing activity and a continued weakness in commodities are raising red flags.
Major banks have not talked like this since the great financial crisis of 2008/2009. Clearly something really big is going on. Trillions of dollars of financial wealth were wiped out around the world during the last six months of 2015, and trillions more dollars have been wiped out during the first 12 days of 2016. As I noted above, the collective market value of the S&P 500 is down by about a trillion dollars all by itself.
One of the big things driving all of this panic is the stunning collapse in the price of oil. U.S. oil was trading as low as $29.93 a barrel on Tuesday, and this was the first time that oil has traded under 30 dollars a barrel since December 2003.
Needless to say, this collapse is absolutely killing energy companies. The following comes from USA Today…
There aren’t many people who feel bad for oil companies. But the implosion in oil prices is causing a profit decline that almost invokes pity.
The companies in the Standard & Poor’s 500 energy sector are expected to lose a collective $28.8 billion this calendar year, down from $95.4 billion in net income earned during the industry’s bonanza year of 2008, according to a USA TODAY analysis of data from S&P Capital IQ. That’s a $124 billion swing against energy companies – and one you’re probably enjoying at the pump. The analysis includes only the 36 S&P 500 energy companies that reported net income in 2008.
If we are to avoid a major global deflationary crisis, we desperately need the price of oil to get back above 50 dollars a barrel. Unfortunately, that does not appear to be likely to happen any time soon. In fact, Dallas Fed President Robert Kaplan says that the price of oil is probably going to stay very low for years to come…
You’d expect at least some artificial optimism when the president of the Dallas Fed talks about oil. You’d expect some droplets of hope for that crucial industry in Texas. But when Dallas Fed President Robert Kaplan spoke on Monday, there was none, not for 2016, and most likely not for 2017 either, and maybe not even for 2018.
The wide-ranging speech included a blunt section on oil, the dismal future of the price of oil, the global and US causes for its continued collapse, and what it might mean for the Texas oil industry: “more bankruptcies, mergers and restructurings….”
The oil price plunge since mid-2014, with its vicious ups and downs, was bad enough. But since the OPEC meeting in December, he said, “the overall tone in the oil and gas sector has soured, as expectations have decidedly shifted to an ‘even lower for even longer’ price outlook.”
In recent articles I have discussed so many of the other signs that indicate that there is big trouble ahead, but today I just want to quickly mention another one that has just popped up in the news.
The amount of stuff being shipped across the U.S. by rail has been dropping dramatically. The only times when we have seen similar large drops has been during previous recessions. The following comes from Bloomberg…
Railroad cargo in the U.S. dropped the most in six years in 2015, and things aren’t looking good for the new year.
“We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009.”
BofA analysts led by Ken Hoexter look at the past 30 years to see what this type of steep decline usually means for the U.S. economy. What they found wasn’t particularly encouraging: All such drops in rail carloads preceded, or were accompanied by, an economic slowdown (Note: They excluded 1996 due to an extremely harsh winter).
The “next economic downturn” is already here, and it is starting to accelerate.
Yes, the financial markets are starting to catch up with economic reality, but they still have a long, long way to go. It is going to take another 30 percent drop or so just for them to get to levels that are considered to be “normal” or “average” by historical standards.
And the markets are so fragile at this point that any sort of a major “trigger event” could cause a sudden market implosion unlike anything that we have ever seen before.
So let us hope for the best, but let us also heed the advice of RBS and get prepared for a “cataclysmic” year.
The stock market is in far worse shape than we are being told. As you will see in this article, the average U.S. stock is already down more than 20 percent from the peak of the market. But of course the major indexes are not down nearly that much. As the week begins, the S&P 500 is down 9.8 percent from its 2015 peak, the Dow Jones Industrial Average is down 10.7 percent from its 2015 peak, and the Nasdaq is down 11.0 percent from its 2015 peak. So if you only look at those indexes, you would think that we are only about halfway to bear market territory. Unfortunately, a few high flying stocks such as Facebook, Amazon, Netflix and Google have been masking a much deeper decline for the rest of the market. When the market closed on Friday, 229 of the stocks on the S&P 500 were down at least 20 percent from their 52 week highs, and when you look at indexes that are even broader things are even worse.
For example, let’s take a look at the Standard & Poor’s 1500 index. According to the Bespoke Investment Group, the average stock on that index is down a staggering 26.9 percent from the peak of the market…
Indeed, the Standard & Poor’s 1500 index – a broad basket of large, mid and small company stocks – shows that the average stock’s distance from its 52-week high is 26.9%, according to stats compiled by Bespoke Investment Group through Friday’s close.
“That’s bear market territory!” says Paul Hickey, co-founder of Bespoke Investment Group, the firm that provided USA TODAY with the gloomy price data.
So if the average stock has fallen 26.9 percent, what kind of market are we in?
To me, that is definitely bear market territory.
The rapid decline of the markets last week got the attention of the entire world, but of course this current financial crisis did not begin last week. These stocks have been falling since the middle part of last year. And what Bespoke Investment Group discovered is that small cap stocks have been hurt the most by this current downturn…
Here’s a statistical damage assessment, provided by Bespoke Investment Group, of the pain being felt by the average U.S. stock in the S&P 1500 index:
* Large-company stocks in the S&P 500 index are down 22.6%, on average, from peaks hit in the past 12 months.
* Mid-sized stocks in the S&P 400 index are sporting an average decline of 26.5% since hitting 52-week highs.
* Small stocks in the S&P 600 index are the farthest distance away from their recent peaks. The average small-cap name is 30.7% below its high in the past year.
After looking at those numbers, is there anyone out there that still wants to try to claim that “nothing is happening”?
Over the past six months or so, the sector that has been hit the hardest has been energy. According to CNN, the average energy stock has now fallen 52 percent…
And then there’s energy. The dramatic decline in crude oil prices rocked the energy space. The average energy stock is now down a whopping 52% from its 52-week high, according to Bespoke. The only thing worse than that is small-cap energy, which is down 61%.
If you go up to an energy executive and try to tell him that “nothing is happening”, you might just get punched in the face.
And it is very important to keep in mind that stocks still have a tremendous distance to fall. They are still massively overvalued by historical standards, and this is something that I have covered repeatedly on my website in recent months.
So how far could they ultimately fall?
Well, Dr. John Hussman is convinced that we could eventually see total losses in the 40 to 55 percent range…
I remain convinced that the U.S. financial markets, particularly equities and low-grade debt, are in a late-stage top formation of the third speculative bubble in 15 years.
On the basis of the valuation measures most strongly correlated with subsequent market returns (and that havefully retained that correlation even across recent market cycles), current extremes imply 40-55% market losses over the completion of the current market cycle, with zero nominal and negative real total returns for the S&P 500 on a 10-to-12-year horizon.
These are not worst-case scenarios, but run-of-the-mill expectations.
If the market does fall about 40 percent, that will just bring us into the range of what is considered to be historically “normal”. If some sort of major disaster or emergency were to strike, that could potentially push the market down much, much farther.
And with each passing day, we get even more numbers which seem to indicate that we are entering a very, very deep global recession.
For instance, global trade numbers are absolutely collapsing. This is a point that Raoul Pal hammered home during an interview with CNBC just the other day…
Looking at International Monetary Fund data, “the year-over-year change in global exports is at the second lowest level since 1958,” Raoul Pal, Publisher of the Global Macro Investor told CNBC’s”Fast Money”this week.
Basically, it means economies around the world are shipping their goods at near historically low levels. “Something massive is going on in the global economy and people are missing it,” Pal added.
The steep decline in 2015 exports is second only to 2009, when the global recession led to a 37 percent drop in export growth.
We have never seen global exports collapse this much outside of a recession.
Clearly we are witnessing a tremendous shift, and it boggles my mind that more people cannot see it.
As for this current wave of financial turmoil, it is hard to say how long it will last. As I write this article, markets all over the Middle East are imploding, stocks in Asia are going crazy, currencies are crashing, and carry trades are being unwound at a staggering pace. But at some point we should expect the level of panic to subside a bit.
If things do temporarily calm down, don’t let that fool you. Global financial markets have not been this fragile since 2008. Any sort of a trigger event is going to cause stocks all over the world to slide even more.
And let us not minimize the damage that has already been done one bit. As you just read, the average stock on the Standard & Poor’s 1500 index is already down 26.9 percent. The financial crisis that erupted during the second half of 2015 has already resulted in trillions of dollars of wealth being wiped out.
When people ask me when the “next financial crisis” is coming, I have a very simple answer for them.
The next financial crisis is not coming.
The next financial crisis is already here.
An angry bear has been released after nearly seven years in hibernation, and the entire world is going to be absolutely shocked by what happens next.
A lot of people were expecting some really big things to happen in 2015, and most of them did not happen. But what did happen? It is my contention that a global financial crisis began during the second half of 2015, and it threatens to greatly accelerate as we enter 2016. During the last six months of the year that just ended, financial markets all over the planet crashed, trillions of dollars of global wealth was wiped out, and some of the largest economies in the world plunged into recession. Here in the United States, 2015 was the worst year for stocks since 2008, nearly 70 percent of all investors lost money last year, and it is being projected that the final numbers will show that close to 1,000 hedge funds permanently shut down within the last 12 months. This is what the early stages of a financial crisis look like, and the worst is yet to come.
If we were entering another 2008-style crisis, we would expect to see junk bonds crashing. When financial trouble starts, it usually doesn’t start with the biggest and strongest companies. Instead, it usually starts percolating on the periphery. And right now bonds of firms that are considered to be on the risky side of things are rapidly losing value.
In the chart below, you can see that a high yield bond ETF that I track very closely known as JNK started crashing in the middle of 2008. This crash began to unfold before the horrific crash of stocks in the fall. Investors that saw junk bonds crashing in advance and pulled their money out of stocks in time saved an enormous amount of money.
Now, for the very first time since the last financial crisis, we are seeing junk bonds crash again. In December, there was finally a sustained crash through the psychologically-important 35.00 level, and at this point JNK is sitting a bit below 34.00. This stunning decline is a giant red flag that tells us that stocks will soon follow in the exact same direction…
In 2015, Third Avenue Management shocked Wall Street when they froze withdrawals from a 788 million dollar mutual fund that was highly focused on junk bonds. Investors that couldn’t get their money out began to panic, and other mutual funds now find themselves under siege. If junk bonds continue to crash, this will just be the beginning of the carnage.
One of the big reasons why junk bonds are crashing is because of the crash in the price of oil. Over the past 18 months, the price of oil has plummeted from $108 a barrel to $37 a barrel.
There has only been one other time in all of history when we have ever seen an oil price crash of this magnitude. That was in 2008 – just before the greatest financial crisis since the Great Depression…
Why can’t people see the parallels?
Crashes are happening all around us, and yet so many of the “experts” seem completely blind to what is going on.
Unlike 2008, the price of oil is not expected to rapidly rebound any time soon. The following comes from CNN…
Crude prices dropped a whopping 35% last year and are hovering around $37 a barrel. That’s a level not seen since the global financial crisis.
It won’t get better any time soon. Most oil experts believe prices will bounce back in late 2016, but they expect more pain first.
Goldman Sachs forecasts that oil will average about $38 a barrel in February, even lower than for most of 2015.
Meanwhile, the prices of industrial commodities have been crashing as well. For example, the chart below shows that the price of copper started crashing hard just before the great financial crisis of 2008, and the exact same thing is happening once again right before our very eyes…
Things are unfolding just as we would expect they would during the initial stages of a new global financial crisis.
And we have already seen a full blown stock market crash in many of the largest economies around the planet. For instance, just look at what has been happening in Brazil. The Brazilians have the 7th largest economy in the world, and Goldman Sachs says that they have plunged into an “outright depression“. In the chart below, you can see the sharp downturn that took place in August, and Brazilian stocks actually kept falling all the way through the end of 2015…
We see a similar thing when we look at our neighbor to the north. Canada has the 11th largest economy on the entire planet, and I recently wrote a lengthy article about the economic difficulties that the Canadians are now facing. 2015 was a very bad year for Canadian stocks as well, and they just kept falling steadily all the way through December…
Of course nobody can forget what happened to China. The Chinese have the second largest economy on the globe, and news about their economic slowdown in making headlines almost every single day now.
Last summer, Chinese stocks crashed about 40 percent, and they did manage to bounce back just a bit since then. But they are still down about 30 percent from the peak of the market…
And there is plenty more that we could talk about. European stocks just had their second worst December ever, and Japanese stocks are down about 500 points in early trading as I write this article.
Here in the United States, the Dow Jones Industrial Average, Dow Transports, the S&P 500 and the Russell 2000 all had their worst years since 2008. As I mentioned the other day, 674 hedge funds shut down during the first nine months of 2015, and it is being projected that the final total for the year will be up around 1000.
But we aren’t hearing much about this financial carnage on the news yet, are we?
Many people that I talk to still think that “nothing is happening”, but don’t you dare say that to Warren Buffett.
He lost 7.8 billion dollars in 2015.
How would you feel if you lost 7.8 billion dollars in a single year?
The truth, of course, is that signs of financial chaos are erupting all around us. Corporate profits are plunging, the bond distress ratio just hit the highest level that we have seen since the last financial crisis, and corporate debt defaults have risen to the highest level that we have seen in about seven years.
If you run a business, you may have noticed that fewer people are coming in and it seems like those that do come in have less money to spend. Economic activity is slowing down, and inventories are piling up. In fact, wholesale inventories have now risen to the highest level that we have seen since the last recession…
Do you notice a theme?
So many things that have not happened in six or seven years are now happening again.
History may not repeat, but it sure does rhyme, and it astounds me that more people cannot see that 2015/2016 is looking eerily similar to a replay of 2008/2009.
Another number that I watch closely is the velocity of money. When an economy is running well, money tends to circulate efficiently through the system. But when an economy gets into trouble, people get scared and start holding on to their money. As you can see from the chart below, the velocity of money declined during every single recession since 1960. This is precisely what one would expect. And of course during the recession that started in 2008, the velocity of money plunged precipitously. But then a funny thing happened when that recession supposedly “ended”. The velocity of money just kept going down, and now it has fallen to an all-time record low…
A big reason for this is the ongoing decline of the middle class. In 2015, we learned that middle class Americans now make up a minority of the population for the first time ever.
But if you go back to 1971, 61 percent of all Americans lived in middle class households.
Meanwhile, the share of the income pie that the middle class takes home has also continued to shrink.
In 1970, the middle class brought home approximately 62 percent of all income. Today, that number has fallen to just 43 percent.
As the middle class is systematically destroyed, the number of Americans living in poverty just continues to grow. And those that often suffer the most are the children. It may be hard for you to believe, but the number of homeless children in the U.S. has increased by 60 percent over the past six years.
How in the world can anyone dare to claim that “things are getting better”?
Anyone that says that should be ashamed of themselves.
We are in the midst of a long-term economic collapse that is now accelerating once again.
Anyone that tries to tell you that “things are getting better” and that 2016 is going to be a better year than 2015 is simply not being honest with you.
A new global financial crisis erupted during the last six months of 2015, and this new financial crisis is going to intensify throughout the early months of 2016. Financial institutions will begin falling like dominoes, and this will result in a great credit crunch around the world. Businesses will fail, unemployment will skyrocket and millions will suddenly be faced with economic despair.
By the time it is all said and done, this new financial crisis will be even worse than what we experienced back in 2008, and the suffering that we will see around the world will be off the charts.
So does that mean that I am down about this year?
Not at all. In fact, my wife and I are greatly looking forward to 2016. In the midst of all the chaos and darkness, there will be great opportunities to do good and to make a difference.
What a great shaking comes, people go looking for answers. And I think that this will be a year when millions of people start to understand that our politicians and the mainstream media are not telling them the truth.
Yes, great challenges are coming. But now is not a time to dig a hole and try to hide from the world. Instead, this will be a time for those that have prepared in advance to love others, help others and show them the truth.
What about you?
Are you ready to be a light during the dark times that are coming?
Please feel free to join the conversation by posting a comment below…