Why Is The Mainstream Media Signaling That A Much Larger Stock Market Decline Is Coming?

Why would the mainstream media want all of us to believe that stock prices are about to fall dramatically?  Just like we witnessed earlier this year at the beginning of the pandemic, the corporate media is full of reports that seem to imply that it is a virtual certainty that stock prices are going to go even lower.  Of course it would make perfect sense for stock prices to go down because they are incredibly overvalued right now, but normally the mainstream media does not try to tell us where stock prices are going next.  And the fact that so many news outlets are repeating the same mantra right now is particularly troublesome.

Without a doubt, the momentum of stock prices is taking us in a downward direction at the moment.  All of the major stock indexes have posted declines for three weeks in a row, and it looks like this week could make it four.

As I write this article, the Dow Jones Industrial Average is down 4.5 percent for the month, the S&P 500 is down over 6 percent, and the Nasdaq has fallen about 8.5 percent.  Overall, the market is on pace for the worst September in 18 years, but the corporate-controlled media seems convinced that things are going to get even worse.  For example, the following comes from a CNBC article entitled “Stock sell-off accelerates and is expected to get worse before it gets better”

Stock investors focused on new worries about the coronavirus and economy, selling into a market Monday that was already technically shaken and set for further declines.

I looked for evidence that would back up the assertion that the market is “set for further declines” in the remainder of that article, but I didn’t see any.

Without a doubt, I definitely agree that stock prices have a long, long way to fall, but there is no reason why they couldn’t bounce back for the rest of this week.

So it seems odd that CNBC would be so dogmatic.

And USA Today just posted an article that suggested that we are facing “a looming global financial crisis”…

“Massive fiscal and monetary policy stimulus” that came together to prop up the economy has caused debt to balloon and stocks to become potentially overvalued, posing “the serious risk of a looming global financial crisis as central banks begin to shift away from easy (monetary) policy at some point in the years to come.”

Once again, I definitely agree that a global financial crisis could erupt at any time.

But normally we don’t see the mainstream media using such language.

At this point, we are less than a month and a half away from the election, and many have suggested that uncertainty about the outcome could weigh heavily on the market.  In fact, CNN is telling us that we should anticipate “that volatility will be high” during the period surrounding election day…

Market experts have warned that volatility will be high toward the end of the year and around the election, especially because many expect the winner won’t be known immediately.

Could it be possible that there will be an attempt to disrupt the market in an attempt to make one of the candidates look bad?

I know that would sound absurd during normal times, but these are definitely not normal times.

And ultra-wealthy insiders definitely seem to believe that something is coming, because they have been selling stocks like crazy recently.  According to Zero Hedge, “during the week ended September 11, insiders sold $473 million in shares while only buying $9.5 million.”

I don’t know about you, but those numbers definitely got my attention.

Of course stock prices should have never, ever gotten so high in the first place.  The unprecedented market rally that we have witnessed in 2020 has occurred during a time when we have actually plunged into a new economic depression.  Almost every day I share more horrific economic numbers with my readers, and here are some more from the New York Post

Nearly 90 percent of New York City bar and restaurant owners couldn’t pay their rent in August, heightening the continued crush the coronavirus shutdown has inflicted on Gotham’s economy.

Eighty-seven percent of bars, restaurants, nightclubs and event spaces in the five boroughs could not pay their full August rent, according to data from 457 businesses surveyed between Aug. 25 and Sept. 11, in a new study released Monday by the nonprofit NYC Hospitality Alliance.

How in the world can anyone possibly use the phrase “economic recovery” when we are seeing numbers like that?

We have never seen an economic downturn of this magnitude in all of modern American history, and many believe that what we have experienced so far is just the beginning.

With each passing day, we see more societal turmoil in the headlines, and the upcoming election threatens to bring our societal tensions to a thundering crescendo.

In such an environment, a huge stock market crash would not be surprising at all, and some are suggesting that the shove that pushes us over the edge could actually happen on purpose.  In his most recent video, Greg Mannarino warned that the upcoming financial crash “is going to be epic”, and he told his audience that our largest financial institutions could collapse the market any time that they want

“They can crush the global economy or the market. The global economy, which is the middle class, is already crushed, ok. They can destroy the stock market like this [snaps fingers.] And you can see it playing out right now. So all to of this is more than likely going to get brushed under the rug as it always does,” Mannarino says of the banks controlling the world.

It is not unusual for pundits such as Mannarino to make such bold predictions, but what alarms me is that the mainstream media is also strongly suggesting that a market crash is coming.

Even if the mainstream media is not attempting to do it on purpose, their words can become a self-fulfilling prophecy as countless investors spooked by their reports pull money out of the marketplace.

Sadly, this is one instance in which the mainstream media will ultimately be proven correct.  Whether it happens in the immediate future or not, the truth is that we are heading for a financial meltdown that will be absolutely horrifying.

In recent months, the Federal Reserve was able to reinflate our financial bubbles one more time, and hordes of investors eagerly jumped aboard the rally train.

But now that train is in danger of being derailed, and those that do not hop off in time could find themselves plunging into a nightmarish financial abyss.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

2020 Has Been A “Nightmare Year” For America, And The Economic Fallout Is Just Getting Started

Most of us have never experienced a year that has been as tough as 2020 has been for our nation.  It has just been one major crisis after another, and the month of September has brought us even more trouble.  The worst wildfire season in the history of the state of California has been making headlines day after day, and now the passing of Ruth Bader Ginsburg threatens to escalate the political turmoil in this nation to an entirely new level.  Many had such high hopes for 2020, but at this point this year has been such a disaster that USA Today is calling it “an American nightmare”, and it is difficult to argue with their reasoning…

First the pandemic, which divided us, economically devastated us, and has killed nearly 200,000 of us. Then the racial unrest, erupting at the deaths of more Black Americans at the hands of police: George Floyd, Breonna Taylor, Rayshard Brooks, Daniel Prude.

Now the extreme weather. For only the second time in history, the National Hurricane Center has moved into the Greek alphabet for storm names. This season’s wildfires are bigger, deadlier and more frequent than in years past. In the West, people can’t breathe.

And now a member of the U.S. Supreme Court has died with about a month and a half to go until we get to election day.

The shocking death of Ruth Bader Ginsburg has stunned the entire country, and I will share my analysis on where things could go from here on The Most Important News later tonight.

In this article, I want to focus on the economic impact that all of this chaos is having.

Since the pandemic first started, more than 60 million Americans have filed new claims for unemployment benefits, and that is a threshold that has never been crossed before in all of our history.

And we have also seen businesses shut down at a pace that is hard to fully grasp.  If you can believe it, more than 160,000 businesses listed on Yelp say “that they have closed”

Yelp on Wednesday released its latest Economic Impact Report, revealing business closures across the U.S. are increasing as a result of the coronavirus pandemic’s economic toll.

As of Aug, 31, 163,735 businesses have indicated on Yelp that they have closed. That’s down from the 180,000 that closed at the very beginning of the pandemic. However, it actually shows a 23% increase in the number of closures since mid-July.

I was most alarmed by that last sentence.

Things were supposed to be getting a lot better by now, but instead we have seen “a 23% increase in the number of closures since mid-July”.

That is not good.

And the percentage of businesses on Yelp that are indicating that their closures are “permanent” just keeps rising

In addition to monitoring closed businesses, Yelp also takes into account the businesses whose closures have become permanent. That number has steadily increased throughout the past six months, now reaching 97,966, representing 60% of closed businesses that won’t be reopening.

So what this means is that none of us should be expecting a return to what we considered to be “normal” prior to 2020.

In fact, it is likely that we will see large numbers of businesses continue to fail in the months ahead.  According to Fox Business, a whopping 40 percent of all U.S. restaurants “could go under within the next six months”…

At least 40% of restaurant operators struggling to stay afloat during the coronavirus pandemic believe their businesses could go under within the next six months if there is no additional stimulus package from the federal government, according to a new survey by the National Restaurant Association.

With one in every six restaurants closed permanently or for the “long term,” the industry is on track to lose $240 billion in sales by the end of the year, according to the National Restaurant Association’s findings on the impact COVID-19 has on the restaurant business.

So what do you think?

Should we bail out the restaurant industry?

By the way, the airline industry really wants a bailout too.

And just about every other industry is looking for government help as well.

The reason why almost everyone has their hands out is because we have plunged into a crippling economic depression, and everyone is starting to realize that there is no end in sight to this downturn.

Of course most average citizens also want another round of “stimulus checks” from the federal government, and we are being told that there is a really good chance that “the economy backslides” if that does not happen…

Lawmakers remain deadlocked over a measure to provide another round of $1,200 checks to most households and more aid to struggling small businesses and unemployed Americans. Most saw the money they received from Congress’s $2.2 trillion CARES Act run dry over the summer.

“If they don’t” approve another stimulus, “they’re taking a huge risk, says Mark Zandi chief economist of Moody’s Analytics. “The odds are better than even the economy backslides.”

We have already stolen several trillion dollars from future generations of Americans so far this year to fund “stimulus packages”, and so a lot of people figure that it probably wouldn’t make that much of a difference if we stole several trillion more to fund another one.

And the Federal Reserve has been flooding the financial system with so much new money that it makes everything that they have ever done in the past look completely insignificant.

In the process, our authorities are systematically destroying the reserve currency that the entire globe depends upon, but at this point very few people seem to care.

So we continue to steamroll toward economic oblivion, and nobody is even thinking about hitting the brakes.

In the USA Today article that I quoted at the start of this piece, the author stated that it is “impossible to know if the worst is behind us or still lies ahead”…

Many of us are vacillating between horror and disbelief at what can only be described as an American nightmare. Devastation doesn’t cover it. It’s impossible to know if the worst is behind us or still lies ahead.

Of course that is not true at all.  In fact, it is exceeding clear that what is ahead of us is going to be much, much worse than what we have already experienced.

But most Americans don’t want to hear that.

Most of us just want to cling to the belief that someday we will wake up and everything will have returned to normal.

That may happen in fairy tales, but this is real life, and real life simply does not work that way.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Is The Nationwide Coin Shortage Being Used To Push Us Toward A Cashless Society?

The coin shortage in the United States is becoming quite severe, and a lot of people are deeply concerned about where this might be leading us.  But if you don’t run a business or deal with coins on a regular basis, you may not even know that it is happening.  On Monday, my wife told me that a lot of people on Facebook were talking about this nationwide coin shortage, and then on Tuesday Ricky Scaparo posted a couple of news stories about it, so I decided that I better start looking into this.  Because if this coin shortage is going to be used to push us toward a cashless society, that makes it a really big deal.

What I discovered is that this coin shortage has actually been intensifying for quite a few weeks, and on June 11th the Federal Reserve issued a statement in which they announced that coin rationing would begin on June 15th

Consequently, effective Monday, June 15, Reserve Banks and Federal Reserve coin distribution locations began allocating coin inventories. To ensure a fair and equitable distribution of existing coin inventory to all depository institutions, effective June 15, the Federal Reserve Banks and their coin distribution locations began to allocate available supplies of pennies, nickels, dimes, and quarters to depository institutions as a temporary measure. The temporary coin allocation methodology is based on historical order volume by coin denomination and depository institution endpoint, and current U.S. Mint production levels. Order limits are unique by coin denomination and are the same across all Federal Reserve coin distribution locations. Limits will be reviewed and potentially revised based on national receipt levels, inventories, and Mint production.

It turns out that the rationing has been a lot stricter than many people originally anticipated.  One small bank in Tennessee that would normally use “400 to 500 rolls of pennies each week” is now only being given 100 rolls per week…

“It was just a surprise,” said Gay Dempsey, who runs the Bank of Lincoln County in Tennessee, when she learned of the rationing order. “Nobody was expecting it.”

Dempsey’s bank typically dispenses 400 to 500 rolls of pennies each week. Under the rationing order, her allotment was cut down to just 100 rolls, with similar cutbacks in nickels, dimes and quarters.

Businesses of all types rely on their banks to supply them with the change they need for their customers, and now many of those businesses are being forced to make major changes because of this coin shortage.

In fact, it is being reported that some businesses around the country are starting to put up signs asking their customers to either pay with exact change or with a card…

First to go were masks, then toilet paper and now there’s a national coin shortage. The 7-Eleven on Oakwood Ave. has a sign asking customers to pay in exact change or by card.

According to the First News Now Facebook, several residents across Tioga County, Pennsylvania mentioned that there’s a coin shortage throughout the area.

Some businesses, like Lowes in Mansfield, Pennsylvania, have posted signs in their stores to inform their customers before they check out with their purchases.

And I was stunned to hear that cash has been “temporarily” banned at all Meijer self-checkout lanes

Cash temporarily won’t be accepted at Meijer self-checkout lanes due to a national shortage of coins.

Customers who want to pay with bills will have to visit Meijer’s staffed checkout lanes for the time being, according to a company statement. The change is in effect at most of Grand Rapids-based retail giant’s 250 supercenters.

Hopefully this coin shortage will start to subside once this coronavirus pandemic begins to fade, but right now there are no indications that this pandemic is going to fade any time soon.  The mainstream media keeps telling us that the pandemic is getting worse, and the number of new cases being reported around the world has been surging in recent weeks.

From the very beginning of this pandemic, we have been told that using cash is potentially “dangerous” because it could possibly spread the virus.  The following comes from an article by Claudio Grass

Even in the early stages of the pandemic, when essentially nothing was concretely known about the virus itself or its transmission, the seeds of new fears were already planted by sensational media reports and fear-mongering political and institutional figures. The insidious idea that “you can catch Covid through cash” might have been prematurely spread, but it did stick in most people’s minds. This is, of course, understandable, given the extremely high levels of uncertainty and anxiety in the general public. Wanting to eliminate potential threats was a natural instinct and so was the urge to take back at least some control over our lives, after they’d been suddenly thrown into utter chaos in the wake of the global economic freeze.

Another factor that concretely helped the shift away from physical cash was an entirely practical one. Given the lockdown measures and the new “social distancing” directives that were enforced all over the world, it became difficult to use cash, even if you really wanted to, or had no other means of transaction, as is the case for billions of people. With physical stores being forced to shut down and with more and more online shops offering contactless delivery (either as a choice or as a service requirement), the need for cash very quickly gave way to digital payments.

Of course central banks all over the globe have been encouraging the use of digital payments for a very long time, and so this pandemic has given them a golden opportunity to accelerate that agenda.

Here in the U.S., there has always been a lot of resistance to the idea of a cashless system, but some countries in Europe such as Sweden have almost entirely done away with cash at this point, and China is shifting in the direction of a cashless society at a pace that is breathtaking.

A lot of people like the speed and efficiency of cashless payments, but what people need to understand is that a system that is entirely cashless would allow governments and financial institutions to monitor us, track us and control us like never before.

It has often been said that “cash means freedom”, and the total abolition of physical cash would be a major blow to everyone that still loves liberty.

Unfortunately, the entire world has been steadily moving in a cashless direction for many years, and this pandemic has given opponents of cash a window of opportunity to push us down that road even faster.

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

As The Stock Market Soars, The Numbers Say That The Real Economy Is In The Midst Of A Historic Crash

Have you been watching the madness that has been unfolding on Wall Street?  Even though we are in the middle of the worst global pandemic in 100 years, and even though rioters and looters have been turning our major cities into war zones, stock prices have been going up day after day.  In fact, the Nasdaq closed at an all-time record high on Monday.  Sometimes people ask me to explain this rationally, and I can’t, because the Federal Reserve has transformed our “financial markets” into a total mockery at this point.  The real economy is literally collapsing all around us, but thanks to Fed intervention stock investors are doing just fine.  It has been absolutely disgusting to watch, and if Adam Smith could see what was happening he would be rolling over in his grave.  Unfortunately, thanks to our rapidly declining system of education most Americans don’t even know who Adam Smith is anymore.

I can’t recall another time in modern U.S. history when stock prices skyrocketed as the U.S. economy plunged into a recession.  What we have been witnessing has truly been extremely bizarre, and it will be fascinating to see how long it can last.

Meanwhile, the real economy is a giant mess.  On Monday, the National Bureau of Economic Research finally got around to letting us know that a recession has officially begun

It’s official: The United States is in a recession.

The National Bureau of Economic Research said Monday the U.S. economy peaked in February, ending the longest expansion in U.S. history at 128 months, or about 10½ years.

In truth, the announcement codifies the painfully obvious. States began shutting down nonessential businesses in mid-March to contain the spread of the coronavirus, halting about 30% of economic activity and putting tens of millions of Americans out of work.

And in other news, the sky is blue and the moon is not made out of cheese.

Anyone with half a brain can see that the economy is falling apart.  For example, we just learned that U.S. factory orders were down 22.3 percent in April compared to a year earlier…

Having collapsed by a record 10.4% MoM in March, April factory orders were expected to accelerate even lower and it did. However, the 13.0% plunge in April was modestly better than the 13.4% MoM drop expected… but is still the worst in American history.

Year-over-year, factory orders collapsed 22.3% – the worst since the peak of the financial crisis.

Of course it is not that difficult to find a number that is even worse than that.

Just look at heavy truck sales.  Last month they were down a whopping 37 percent from the same month in 2019…

The last three months have been catastrophic for segments of the trucking business, after an already tough period that started in late 2018. In May, orders for Class 8 trucks – the heavy trucks that haul much of the goods-based economy across the US – plunged 37% from the  low levels in May a year earlier, and by 81% from May two years ago, to 6,600 orders, according to estimates by FTR Transportation Intelligence today.

Not to be outdone, the number of corporate bankruptcies shot up 48 percent last month compared to the same period a year ago…

Corporate bankruptcies spiked during May as the coronavirus pandemic slammed the U.S. economy, pushing the number of filings to levels recorded in the wake of the 2007-09 recession.

U.S. courts recorded 722 businesses nationwide filing for chapter 11 protection last month, a yearly increase of 48%, according to figures from legal-services firm Epiq Global.

But every time we get another horrific economic figure, the stock market goes even higher.

The worse the news gets, the more investors seem to like it.  Week after week, we have seen unprecedented numbers of Americans file for unemployment benefits, and at this point a grand total of more than 42 million Americans have lost a job since this pandemic began.

And yet investors keep taking these job losses as signs that they should buy even more stocks.

Perhaps someone should spread a rumor that a planet-killing asteroid is about to hit us, because that would probably really get investors salivating.

Of course most ordinary Americans don’t get to live in a Fed-fueled fantasy world, and this new economic downturn is hitting most of them extremely hard.

In fact, it is being reported that approximately a third of all Americans “are now showing signs of clinical anxiety and depression”…

In the wake of the COVID-19 pandemic and resulting economic crash, which triggered depression-like unemployment with 40 million initial claims filed in ten weeks, a third of Americans are now showing signs of clinical anxiety and depression, according to new data collected by the Census Bureau. This, by far, is the most comprehensive and troubling sign yet of the psychological toll inflicted on Americans due to months of lockdowns.

The Census Bureau contacted one million households between May 7 and 12, and about 42,000 responded, said The Washington Post. The survey was about 20 minutes long and buried deep within, several questions asked respondents about depression and anxiety. Those who answered provided a laggard but clearest snapshot into people’s mental state at the tail end of the lockdown, where many folks were subjected to isolationism, virus fears, and widespread unemployment.

That is the most alarming number that I have shared with you so far in this article, but I am about to share with you some numbers that are even more alarming.

In recent days, we have watched rioters destroy large sections of our major cities all across America.  But when asked about “violent protests”, a surprising percentage of Americans actually support them…

A broad majority of Americans say the peaceful protests happening all across the country after police violence against African Americans are justified (84% say so), and roughly a quarter (27%) say violent protests in response to police harming or killing African Americans are justified. Both figures are higher than they were when similar protests rose in the fall of 2016. Then, 67% saw peaceful protests as justified while 14% felt violent protests were.

There isn’t much of a racial or partisan difference over whether peaceful protests are justified now, but the gaps are larger over violent protests. Among Democrats, 42% consider violent protests justified in response to police violence against African Americans, while just 9% of Republicans agree.

Yes, you read that last sentence correctly.

42 percent.

Unfortunately, a lot more economic pain is on the way, and that is just going to fuel even more rioting, looting and violence.

These are definitely not “the best of times” no matter what stock market investors seem to think.

We have entered a deeply disturbing new chapter in American history, and life in this country will never be the same again.

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

10 Numbers That Show The U.S. Has Fallen Into A Horrifying Economic Depression

The last recession was really, really bad, but it was never like this.  It is time for us to face reality, and that means admitting that the U.S. economy has plunged into a depression.  This is already the worst economic downturn that America has experienced since the Great Depression of the 1930s, and we are right in the middle of the largest spike in unemployment in all of U.S. history by a very wide margin.  Of course it was fear of COVID-19 that burst our economic bubble, and fear of this virus is going to be with us for a very long time to come.  So we need to brace ourselves for an extended economic crisis, and at this point even Time Magazine is openly referring to this new downturn as an “economic depression”.  Needless to say, there will be a tremendous amount of debate about how deep it will eventually become, but everyone should be able to agree that our nation hasn’t seen anything like this since before World War II.

In order to prove my point, let me share the following 10 numbers with you…

#1 According to a study that was just released by the National Bureau of Economic Research, more than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back.

#2 The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter…

A new GDP forecast from the Federal Reserve Bank of Atlanta for the three months through June estimates an unprecedented drop of 42.8 percent. The bank describes the data as a “nowcast” or real-time, compared with the official government report of GDP, which is dated. The first-quarter preliminary data, which showed a 4.8 percent dip, included a limited period of impact from COVID-19.

#3 On Friday we learned that U.S. retail sales were down 16.4 percent during the month of April, and that is a new all-time record.

#4 U.S. factory output was down 13.7 percent last month, and that was the worst number ever recorded for that category.

#5 U.S. industrial production fell 11.2 percent last month, and that represented the worst number in 101 years.

#6 On Thursday, we learned that the number of Americans that have filed initial claims for unemployment benefits during this pandemic has risen by another 2.9 million, and that brings the grand total for this entire crisis to 36.5 million.  To put that number in perspective, at the lowest point of the Great Depression of the 1930s only about 15 million Americans were unemployed.

#7 According to the Federal Reserve Bank of Chicago, the real rate of unemployment in the U.S. is now 30.7 percent.

#8 According to a survey Fed officials just conducted, almost 40 percent of Americans with a household income of less than $40,000 a year say that they have lost a job during this crisis.

#9 One study has concluded that 42 percent of the job losses during this pandemic will end up being permanent.

#10 According to a professor of economics at Columbia University, the U.S. homeless population could rise by up to 45 percent by the end of this calendar year.

We have never seen economic numbers this horrifying, and more awful economic numbers are coming in the months ahead.

At this point, things are so bad that even Fed Chair Jerome Powell is openly admitting that he doesn’t really know how long this new economic downturn will last…

“This economy will recover…We’ll get through this. It may take a while. It may take a period of time. It could stretch through the end of next year,” Powell said during a rare televised interview that aired on “60 Minutes” Sunday night. “We really don’t know. We hope that it will be shorter than that, but no one really knows.”

In the months ahead, there are a few sectors that you will want to keep a particularly close eye on, and one of them is the commercial real estate market.  The following comes from Zero Hedge

Fast forward to today, coronavirus outbreak, and the ensuing lockdown, has essentially frozen the commercial real estate market. Buildings that were once used for restaurants, offices, hotels, spas, and or anything else that is classified non-essential have seen soaring vacancies.

This is single handily sending the commercial property market into chaos. As vacancies soar, tremendous downward pressure is being put on almost every asset class tied to commercial real estate.

The latest TREPP remittance data compiled by Morgan Stanley showed a quarter of all commercial mortgage-backed securities (CMBS) could be on the verge of default.

I am personally convinced that we are on the precipice of the greatest commercial real estate implosion in American history.

As the dominoes tumble, it is going to send wave after wave of devastation through the financial industry, and it is going to make the subprime mortgage meltdown of 2008 look like child’s play.

But at least bankruptcy lawyers will have plenty of work.  Last week we learned that J.C. Penney filed for Chapter 11 bankruptcy protection, and of course the bankruptcies that we have seen so far will just be the tip of the iceberg.

I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst.

Sadly, very few people understood how shaky our debt-fueled economic “boom” was, and ultimately it didn’t take that much to push us into a new economic depression.

And now every additional crisis that comes along is just going to escalate our economic troubles.  This is going to be one very long nightmare, and there will be no waking up from it any time soon.

Even before COVID-19 came along, homelessness had become a massive problem in many of our major cities, and now tent cities are rapidly multiplying in size.

There is going to be so much economic pain in the months ahead, and it could have all been avoided if we had made much different choices as a nation.

But we didn’t, and so now we all get to pay the price.

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

A Taste Of What Is Coming – Food Prices Just Increased By The Most That We Have Seen Since 1974

Get ready to pay much more for groceries.  I have been warning that the flood of new money that the Federal Reserve and Congress have been pumping into the system would have very serious consequences, and I have also been warning that food prices would be shooting higher.  When things start getting really crazy, demand for food and other basic essentials goes way up, and meanwhile this pandemic has significantly disrupted production of certain products.  So even though most of the economy is currently still in a deflationary phase, food prices are beginning to spike.  In fact, the U.S. Labor Department says that we just witnessed the largest one month increase since February 1974

The Labor Department reported Tuesday that prices U.S. consumers paid for groceries jumped 2.6% in April, the largest one-month pop since February 1974. The spike in supermarket prices was broad based and impacted items from broccoli and ham to oatmeal and tuna.

The price of the meats, poultry, fish and eggs category rose 4.3%, fruits and vegetables climbed 1.5%, cereals and bakery products advanced 2.9%, and dairy goods gained 1.5%.

Sadly, this is just the beginning.

Prior to this pandemic, Americans spent about 10 percent of their incomes on food.

As this new economic depression deepens, expect that number to eventually more than double.

We live at a time when global food supplies are becoming increasing stressed for a variety of reasons.  In wealthy countries this is going to force food prices aggressively higher, and in poor countries this is going to mean that a lot of people simply will not have enough to eat.

Already, we are seeing some crazy prices for certain items here in the United States.  King Arthur Flour is very popular these days, and because supplies have become so tight a single bag is now selling for more than 26 dollars on eBay…

Five-pound bags of King Arthur Flour have been so hard to score that they were selling this week on eBay for $26.49, five times the store price.

If you planned on stocking up on flour, hopefully you did it ahead of time.

Many out there are suggesting that the best thing that we can do during an economic environment such as this is to keep showering the American people with more government checks.

In fact, Democrats in Congress have just introduced a new bill that would borrow and spend an additional three trillion dollars that we don’t currently have

State and local governments would share nearly $1 trillion in federal aid to cover their coronavirus-related costs and families would get another round of direct payments under a stimulus bill House Democrats unveiled Tuesday.

The more than $3 trillion Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, also would expand unemployment assistance, boost food stamps, increase emergency grants to small businesses trying to weather the COVID-19 pandemic that has slammed the economy and upended daily life in the U.S.

Without a doubt, millions upon millions of Americans are deeply hurting right now.  Just about everyone has been thrilled to receive the first round of “stimulus checks”, and certainly very few people would complain if another round was sent out.

But if sending everyone a thousand dollars is good, wouldn’t sending everyone a million dollars be even better?

Needless to say, throwing giant piles of money around recklessly is not a good idea, because it destroys the value of our currency.

Venezuela tried that, and at this point almost everyone in the country is a millionaire

What if I told you that in the socialist paradise of Venezuela, everyone’s a millionaire?

The Bolivarian Revolution has raised the minimum wage over 50 times throughout the past 20 years. As of May 2020, it’s been set at 400,000 bolivars, plus a 400,000 socialist food ticket bonus, bringing it to an astounding total of 800,000 bolivars per month.

But even though there are so many “millionaires” running around, almost everyone in Venezuela is living in deep poverty because the money has become virtually worthless.

Do we really want to become just like Venezuela?

Because that is the path that we are currently on.

Every time a new dollar is created, every existing dollar that you currently hold declines in value.

And every time a new dollar is created, the value of your paycheck goes down if your employer doesn’t give you a raise to match the increase in the money supply.

But the mainstream media continues to be enamored by the Federal Reserve’s ability to “solve our problems” by creating trillions of dollars out of thin air.  Just consider the following quote from a recent USA Today article

It works like magic. With a few strokes on a computer, the Federal Reserve can create dollars out of nothing, virtually “printing” money and injecting it into the commercial banking system, much like an electronic deposit. By the end of the year, the Fed is projected to have purchased $3.5 trillion in government securities with these newly created dollars, one of many tools it is using to help prop up the ailing economy during the COVID-19 pandemic, according to Oxford Economics.

“It works like magic”?

You can probably imagine how I responded when I first read that.

They make it sound like some sort of Disney production, but in reality what the Federal Reserve is doing is slowly but surely turning us into the Weimar Republic.

Unfortunately, the mainstream media will continue to cheer the Fed on as they steadily kill the U.S. dollar, but none of us will be cheering when a loaf of bread costs 5 dollars and a gallon of milk costs 10 dollars.

A torrent of newly created money is not going to fix our economy.  What we really need is for the American people to be allowed to go back to work, but quite a few states are indicating that some restrictions may not be lifted until August or later.

And even if all of the restrictions were lifted immediately, fear of COVID-19 is going to keep many Americans from resuming normal activities for the foreseeable future

Most Americans say they would be uncomfortable returning to their regular routines today, even as they are increasingly leaving their homes to visit others, according to a new CNN Poll conducted by SSRS.

The 58% who say they are not comfortable returning to their routines today is similar to the 60% who said last month that they would be uncomfortable doing so if guidelines on social distancing expired on April 30. On the other side, 41% say they would be comfortable resuming their regular routines now.

What all of this means is that we are going to be dealing with an economic depression for a long time to come, and every new crisis that erupts during this period of time is just going to intensify our problems.

For a long time, I warned that an economic collapse was coming, but I don’t have to do that anymore because the economic collapse is here.

Now the value of our currency is being absolutely destroyed by our authorities as they respond to this economic collapse, and that is going to have very serious implications for our future.

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

Deep Economic Suffering Has Erupted All Over America, But Guess Who The Federal Reserve Is Helping?

As millions upon millions of Americans lose their jobs in the greatest wave of unemployment in U.S. history, the Federal Reserve has decided that now is the time to spend trillions of newly created dollars in a desperate attempt to protect financial asset values.  In other words, as much of the country suddenly plunges into poverty, the Federal Reserve is working exceedingly hard to protect the wealth of the elite.  Approximately fifty percent of all stock market wealth is owned by the wealthiest one percent of all Americans, and the amount of stock market wealth owned by the poorest 50 percent of all Americans is so small that it really doesn’t matter.  And those running the Fed certainly understand that their reckless policies will create very painful inflation that will hit average American families extremely hard, but they don’t seem to care.  At this point, they figure that asset values must be protected at all costs, and that is going to continue to expand the absolutely massive gap between the rich and the poor in this country.

Over the past 3 weeks, more than 16 million Americans have filed new claims for unemployment benefits.

Prior to this year, the highest number that we had ever seen in any 3 week span in all of American history was about 2 million.

It is a collapse of unprecedented magnitude, and things have already gotten so bad that even “the Happiest Place on Earth” is conducting mass layoffs

Walt Disney World Resort will furlough 43,000 union workers while its theme parks remain closed as authorities restrict large gatherings due to the coronavirus pandemic, according to the Service Trades Council Union.

Because most U.S. workers live paycheck to paycheck, many of the newly unemployed have fallen on hard times very rapidly.  Food banks all over the nation are seeing an alarming surge in demand, and in many cities people are literally lining up before the sun rises in order to ensure that they will get some food

In many cities, lines outside food pantries have become glaring symbols of financial precarity, showing how quickly the pandemic has devastated working people’s finances.

In San Antonio, 10,000 families began arriving before dawn on Thursday at a now-shuttered swap meet hall to receive boxes of food. Normally, 200 to 400 families might show up during a normal food distribution.

For many other similar examples, please see my previous article entitled “America’s ‘Food Lines’ Are Being Measured In Miles As Desperation Sets In All Over The Country”.  Yes, things got bad during the last recession, but they were never as bad as we are witnessing now.  In fact, the CEO of Feeding America says that demand is already at the highest level that she has ever seen

‘I’ve never witnessed a system being more strained,’ Feeding America CEO Claire Babineaux-Fontenot said.

‘For the first time probably in our history, we’ve had to turn some people away,’ she said, not that ‘We don’t want to do that, ever.’

Unfortunately, this economic collapse is still in the very early chapters.  If you can believe it, JPMorgan is actually projecting that U.S. GDP “will fall by 40 percent” on an annualized basis during the second quarter

According to CNBC, JPMorgan economists are forecasting that the GDP will fall by 40 percent through the spring months. They also predict unemployment will reach 20 percent in April, with 25 million jobs lost overall.

Such a drop would be, by far, the worst in U.S. history. For context, according to Credit Suisse (via Business Insider), the worst quarterly drop of the 2008 crash was 8.4 percent.

And even once the “shelter-in-place” orders are finally lifted, that will not mean that things will go back to normal.  As Nobel-prize winning economist Robert Shiller has noted, fear of the coronavirus is going to cause many Americans to avoid restaurants, sporting events and other businesses where public interaction is required for a long time to come…

“The shortage of supplies is generating horrible news stories that put us all on edge,” said Shiller. “It may mean people won’t go to restaurants or sporting events in good numbers for years. You know the disease might not well be eradicated for several years from now.”

So the truth is that we are heading into a very deep economic depression, and the economic suffering in this country is going to be off the charts.

As events have begun to spiral out of control, the Federal Reserve has sprung into action on a scale unlike anything that we have ever seen before, and this has pushed the Fed’s balance sheet above 6 trillion dollars

The Federal Reserve’s balance sheet increased to a record $6.13 trillion this week as the central bank used its nearly unlimited buying power to soak up assets and keep markets functioning smoothly, even as efforts to contain the coronavirus pandemic cut deeply into employment and economic output.

In the four weeks since the Fed slashed interest rates to zero, restarted bond purchases and rolled out an unprecedented range of programs to limit the economic damage from the outbreak, the central bank’s balance sheet has jumped by about $1.7 trillion.

Let me try to put those numbers in perspective.

During QE3, the Fed’s balance sheet increased by 1.7 trillion dollars over the course of an entire year, and now the Fed has achieved that same feat in just four weeks.

What the Fed is doing is completely and utterly insane, but to a certain extent it is working.

Even though we are in the midst of the most dramatic unemployment spike in American history, last week was the best week for the stock market in decades thanks to the Fed.

Isn’t that nuts?

I know that this also sounds incredibly absurd, but last week’s surge actually pushed P/E values back near record highs.

In other words, stock prices are incredibly overvalued at this moment.

And if everything that we have already witnessed was not enough, on Thursday the Fed announced that it will now be spending trillions of dollars to voraciously buy up bonds of all types

The Federal Reserve is not leaving any corner of the U.S. bond market behind in this crisis.

There’s no other way to interpret the central bank’s sweeping measures announced Thursday, which together provide as much as $2.3 trillion in loans to support the economy. It will wade into the $3.9 trillion U.S. municipal-bond market to an unprecedented degree, can now purchase “fallen angel” bonds from companies that have recently lost their investment-grade ratings, and has expanded its Term Asset-Backed Securities Loan Facility to include top-rated commercial mortgage-backed securities and collateralized loan obligations.

In other words, moving forward we will no longer have a “bond market”.  What we will have is a Fed-manipulated sham in which the Fed picks winners and losers.

Of course many believe that it is only a matter of time before the Fed starts buying stocks as well.

Those that love free markets should be absolutely disgusted by all of this, because the Fed is coming up with lots of new ways to give handouts to the very wealthy.

Meanwhile, the poor are rapidly getting poorer.

But don’t worry too much, because you will soon receive your $1,200 socialist handout from the federal government.

Try not to spend it all in one place.

Needless to say, $1,200 won’t last very long in the hands of most Americans, and one recent survey found that “63% of respondents said they will need another check within the next three months”.

Like I warned from the very beginning, these sorts of direct payments set a very dangerous precedent, and if a Democrat wins the presidency in November they may become permanent.

That may sound really good to you, but what are you going to do when it gets to the point where you have to spend 500 dollars a week just to feed your family?

At that point many of you will also be lining up at the crack of dawn to receive whatever the food banks have available to give you

Outside of Pittsburgh, Danielle Small pulled up 90 minutes early to a food distribution, but found two long rows of cars already ahead of her. Money was getting tight after her boyfriend had to take a pay cut, and she decided to make her first trip to a food bank this week.

She said the line moved efficiently as cars pulled ahead in clusters of 10. After Ms. Small, 32, received a box filled with chicken fajita strips, preserved peaches, fruit, nuts and juice, she mouthed, “Thank you,” to the volunteers and drove away.

Millions of Americans driving nice vehicles and wearing nice clothes are suddenly being forced to spend hours waiting in food lines because fear of the coronavirus has crashed our economy.

A day of reckoning has finally arrived, and a lot more pain is on the way.

Sadly, many Americans will just go along with whatever “solutions” are proposed as long as it looks like they may provide short-term relief.  What remains of our free markets is being obliterated, Congress is openly embracing socialism, and our rights are being stripped away at a staggering rate, but most people don’t seem concerned by any of this.

Most people just want the pain to end and for life to go back to normal, but that is simply not going to happen.

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

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