Wal-Mart Executive Warns: “Higher Tariffs Will Lead To Higher Prices For Customers”

Wal-Mart gets approximately one-fourth of all the merchandise that it sells from China, and Wal-Mart’s CFO is warning that “higher tariffs will lead to higher prices for customers”.  In other words, U.S. consumers will soon be feeling a lot of pain.  Over the last several decades, major retailers such as Wal-Mart have become increasingly dependent on exports from China, and U.S. consumers have loved the “low, low prices” because those rock bottom prices enabled our society to enjoy a greatly inflated standard of living.  Of course in the process we were mortgaging our own economic future, because we have lost more than 60,000 manufacturing facilities and millions of good paying jobs since China first joined the WTO in 2001.  But we didn’t care because ultra-low prices felt good, and so our economy became increasingly integrated with China’s economy.  Well, now a trade war has begun and people all over America are demanding that we get tough with China.  And without a doubt something needs to be done about China, but the process of decoupling from the Chinese economy is going to be exceedingly painful.  We should have never allowed ourselves to become so dependent on China in the first place, and now the consequences for our past foolishness are going to be very bitter indeed.

Previously, I have warned that this trade war will be particularly painful for those on the bottom of the economic food chain, and now the CFO of Wal-Mart has confirmed that higher tariffs “will lead to higher prices for customers”

Walmart has said that prices for shoppers will rise due to higher tariffs on goods from China, joining other retailers in warning consumers of cost hikes for imports.

‘Higher tariffs will lead to higher prices for customers,’ Walmart Chief Financial Officer Brett Biggs said on Thursday following the company’s report on its first quarter results.

So what this means is that a hundred dollars will not go nearly as far as it once did when you are shopping at Wal-Mart.

And some of Wal-Mart’s biggest vendors are also sounding the alarm.  For example, just consider what Del Monte CEO Greg Longstreet just said

Also, Walmart’s vendors have started to raise prices, among them Del Monte Foods, which supplies fresh and packaged goods to Walmart, including mandarin oranges imported from China. Prices will go up again with tariffs rising.

‘It´s not just tariffs. Transportation costs are up, labor costs are up. It´s an inflationary environment,’ Del Monte CEO Greg Longstreet told Reuters on the sidelines of a conference. ‘A lot of that’s going to have to be passed on. The consumer is going to have to pay more for a lot of critical goods.’

Unfortunately, Longstreet is 100% correct.

The price of everything is going to go up in the months ahead, and this is particularly true when it comes to food prices.

Meanwhile, the trade war is really starting to hit hard in other parts of the economy as well.  At this point, the largest producer of farm tractors in the world is no longer “cautiously optimistic”

Deere & Co. is no longer “cautiously optimistic” as it has been for so long. The machinery giant reported lower-than-expected earnings and cut its annual guidance as its farmer customers shun major purchases amid uncertainty about demand for their products.

“Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases,” Chief Executive Officer Sam Allen said in a statement Friday.

If the U.S. and China are able to come to a trade agreement soon, that would greatly help things.

But at this juncture no new talks have even been scheduled because there really isn’t anything to talk about

Scheduling for the next round of negotiations is “in flux” because it is unclear what the two sides would negotiate, two sources briefed on the status of the talks said. China has not signaled it is willing to revisit past promises on which it reneged earlier this month, despite showing up for talks in Washington last week.

Both sides have dug in on their positions this week. China propped up its currency and cut U.S. pork orders, while state media took on an increasingly nationalistic message. The Trump administration, meanwhile, put Chinese telecommunications company Huawei and its affiliates on a business blacklist and banned it from the supply chain, actions it had shelved earlier in the trade talks to smooth relations.

When President Trump decided to use the “nuclear option” on Chinese telecommunications giant Huawei, that was a major turning point.

At this moment, it would be difficult to overstate how angry the Chinese are at the Trump administration.  The Global Times is a mouthpiece for the Chinese government, and they just published a scathing editorial in which they accused Trump of “a declaration of war on China in the economic and technological fields”.  The following excerpt from that editorial comes from Zero Hedge

Huawei is the symbol of China’s ability to do independent research. As a private company, it is the forerunner of China’s reform and opening-up. It has been deeply engaged in the development of global communications and become the leader of 5G technology. That Huawei will not lose to the US is significant for China’s response to the US’ strategic suppression.

The US has completely abandoned commercial principles and disregarded law. Its barbaric behavior against Huawei by resorting to administrative power can be viewed as a declaration of war on China in the economic and technological fields. It is time that the Chinese people throw away their illusions. Compromise will not lead to US goodwill.

A breakdown in relations with China is part of the long-term scenario that we have been anticipating.  But we had hoped that it would be put off for as long as possible, because what is coming next is going to be very painful.

This isn’t going to be just a trade war.

And in the long run, it isn’t going to be just an “economic war” either.

Unless somebody can pull off a miracle, things between are two nations are likely to start spiraling downhill rather quickly.  As the trade war escalates, the U.S. and China will take turns retaliating back and forth, and the entire globe is going to suffer as a result.

So let us hope for a miracle, because at this point the outlook for the months ahead is definitely quite bleak.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Here Are 15 Numbers That Show How The Global Economy Is Performing, And All Of Them Are Bad

Global economic activity has already been slowing down dramatically, and the U.S. trade war with China is just going to make things worse.  In so many ways, what we are witnessing in 2019 is quite reminiscent of what we witnessed as the last recession was beginning.  Global exports are absolutely plummeting, auto sales are way down all over the globe, debt delinquencies are way up, and retailers are closing stores at a record pace.  Even if the U.S. and China were getting along, things would be rough for the global economy in the months ahead, but a full-blown trade war between the two largest economies on the entire planet has the potential to be absolutely disastrous.  We are truly in uncharted waters, and many believe that events are going to start accelerating very rapidly now.

Even though I write about this stuff on a daily basis, I have been surprised by how poor the global economic numbers have been lately.

And remember, earlier this month the global media were convinced that the U.S. and China were about to finalize a trade deal.  Now that negotiations have completely broken down, we should expect that these numbers will soon get even worse.

The following are 15 numbers that show how the global economy is currently performing…

#1 Global exports are absolutely crashing and have now fallen to the lowest level since 2009.

#2 U.S. auto dealers are dealing with a backlog of 4.2 million unsold vehicles.

#3 Auto sales in Europe have fallen for seven months in a row.

#4 Chinese auto sales fell a whopping 16.6 percent in the month of April.

#5 Overall, Chinese auto sales have now fallen for 11 months in a row.  That is a new all-time record.

#6 U.S. auto loan delinquencies have reached the highest level since the last recession.

#7 U.S. credit card delinquencies have hit the highest level in eight years.

#8 In April, U.S. manufacturing activity unexpectedly declined 0.5 percent.

#9 Thanks to the trade war, the price of soybeans just dropped to the lowest level since 2008.

#10 Party City just announced that it will be closing 45 stores.

#11 Fred’s just announced that they will be closing 104 more stores.

#12 In April, U.S. retail sales declined for the second time in three months.

#13 According to the Atlanta Fed’s latest forecast, U.S. GDP growth is expected to fall to just 1.2 percent in the second quarter of 2019.

#14 According to a new study just released by the Urban Institute, 40 percent of all Americans “sometimes struggle to afford housing, utilities, food or health care”.

#15 Overall, 59 percent of all Americans are currently living paycheck to paycheck according to a survey that was just conducted by Charles Schwab.

Leaders from both the U.S. and China are trying to act tough and say the right things, but everyone knows that this trade war is going to hurt both countries.

Economic numbers from both nations have been troubling lately, and one expert that was just interviewed by CNBC says that “it could get a lot worse”

Consumer and industrial activity in both the U.S. and China slowed in April, even before the world’s two biggest economies entered the latest phase of an escalating trade war that could take a bite out of global growth.

“The real message today is that both the economic data from the U.S. and China have disappointed. They’re like two boys in the sandbox that are spitting on each other, and it could get a lot worse,” said Marc Chandler, global market strategist at Bannockburn Global Forex.

In the short-term, it would greatly help if the U.S. and China could find a way to agree to a trade deal.

Unfortunately, the events of the past 48 hours have made that a lot less likely.

As I discussed yesterday, President Trump essentially took a sledgehammer to Chinese telecommunications giant Huawei.  When the Commerce Department put Huawei on the “Entity List”, it essentially banned the company from buying much needed parts and components from U.S. firms.  Some have described this as “the nuclear option”, and I think that description is quite accurate.  In the end, this move is going to be absolutely devastating for Huawei.

Of course the Chinese are absolutely furious about this.  Huawei is viewed with great national pride in China, and this move is considered to be a direct insult to Chinese national honor.  Most Americans are not paying too much attention to the details of the trade war, but in China this is a really big deal and people are extremely angry.  In fact, there has apparently been a run on “Donald Trump toilet brushes” in China in recent days because the Chinese are so angry.

Following my recent article about Huawei, a number of readers complained that I was being too soft on China.  Of course that is not true at all.  Long before Donald Trump ran for president, I was writing about how China was lying, cheating, stealing our technology and robbing us blind.  I was literally begging for our politicians to stand up and do something, and I was thrilled when Trump started talking tough about China because I knew that he really understood these issues.

But I also want everyone to understand that trying to decouple from the Chinese economy would be extremely painful even in the most optimistic scenario.  Our two economies have become extremely integrated, and we have become very dependent on China in many different ways.  They buy our soybeans, they provide us with rare earth elements, and they own more than a trillion dollars of our debt.  Looking at it from the Chinese perspective, they have countless ways that they can hurt us, and the angrier we make them the more likely it will be that they will lash out at us.

When negotiating with China, you need to be tough but you also need a lot of finesse.  Taking a baseball bat and slamming it into their kneecaps is not going to work.

If we destroy our relationship with China, that is going to result in us going down a very dark path.  Yes, China is an evil empire that has no respect for human rights at all.  There is no freedom of speech in China, over the past year they have been shutting down lots of churches and burning lots of Bibles, and they have been systematically throwing members of other religious minorities into concentration camps.

So I don’t have any sympathy for the communist Chinese government at all.  I just want all of you to understand that they are a very dangerous adversary, and a protracted trade war could be truly disastrous for the entire global economy.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

I Dare You To Tell Me The Economy Is “Booming” After Reading This List Of 19 Facts About Our Current Economic Performance

After taking an honest look at the facts, I don’t know how anyone can possibly claim that the U.S. economy is “booming”.  I really don’t.  We hear this sort of rhetoric from the mainstream media all the time, but it doesn’t make any sense.  As I discussed yesterday, nobody should be using the term “booming” to describe the state of the U.S. economy until we have a full year when GDP growth is 3 percent or better, and at this point we haven’t had that since the middle of the Bush administration.  And as you will see below, the latest numbers are clearly telling us that the U.S. economy is not even moving in the right direction.  Economic conditions are getting worse, and they weren’t that great to begin with.  According to the calculations that John Williams has made over at shadowstats.com, the U.S. economy is already in a recession, but of course the Federal Reserve will continue to tell us that everything is just fine for as long as they possibly can.  Unfortunately for them, they can’t hide the depressingly bad numbers that are coming in from all over the economy, and those numbers are all telling us the same thing.

The following are 19 facts about our current economic performance that should deeply disturb all of us…

#1 In April, U.S. auto sales were down 6.1 percent.  That was the worst decline in 8 years.

#2 The number of mortgage applications has fallen for four weeks in a row.

#3 We just witnessed the largest crash in luxury home sales in about 9 years.

#4 Existing home sales have now fallen for 13 months in a row.

#5 In March, total residential construction spending was down 8.4 percent from a year ago.

#6 U.S. manufacturing output was down 1.1 percent during the first quarter of this year.

#7 Farm incomes are falling at the fastest pace since 2016.

#8 Wisconsin dairy farmers are going bankrupt “in record numbers”.

#9 Apple iPhone sales are falling at a “record pace”.

#10 Facebook’s profits have declined for the first time since 2015.

#11 We just learned that CVS will be closing 46 stores.

#12 Office Depot has announced that they will be closing 50 locations.

#13 Overall, U.S. retailers have announced more than 6,000 store closings so far in 2019, and that means we have already surpassed the total for all of last year.

#14 A shocking new study has discovered that 137 million Americans have experienced “medical financial hardship in the past year”.

#15 Credit card charge-offs at U.S. banks have risen to the highest level in nearly 7 years.

#16 Credit card delinquencies have risen to the highest level in almost 8 years.

#17 More than half a million Americans are homeless right now.

#18 Homelessness in New York City is the worst that it has ever been.

#19 Nearly 102 million Americans do not have a job right now.  That number is worse than it was at any point during the last recession.

But at least the stock market has been doing well, right?

Actually, the Dow Jones Industrial Average has been down for two days in a row, and investors are getting kind of antsy.

Hopes of a trade deal with China had been propping up stocks in recent weeks, but it looks like negotiations may have hit “an impasse”

The latest round of US-China trade talks may have hit an impasse, raising doubts about the chances of an early trade deal between the world’s two leading economies, Chinese official media reported on Thursday.

Unlike the previous negotiations, the 10th round of high-level economic and trade talks, which concluded here on Wednesday, had fewer details about specific discussions and results, state-run Global Times reported.

I warned my readers repeatedly that this would happen.  The Chinese are going to negotiate, but they are going to drag their feet for as long as possible in hopes that the U.S. will free Meng Wanzhou.

Of course that isn’t going to happen, and so at some point the Chinese will have to decide if they are willing to move forward with a trade deal anyway.

But if the Chinese drag their feet for too long, Trump administration officials may lose patience and take their ball and go home.

In any event, the truth is that the U.S. economy is really slowing down, and no trade deal is going to magically change that.

And a lot of other pundits are also pointing out that a substantial economic slowdown has now begun.  For example, the following comes from Brandon Smith’s latest article

The bottom line is, the next crash has already begun. It started at the end of 2018, and is only becoming more pervasive with each passing month. This is not “doom and gloom” or “doom porn”, this is simply the facts on the ground. While stock markets are still holding (for now), the rest of the system is breaking down right on schedule. The question now is, when will the mainstream media and the Fed finally acknowledge this is happening? I suspect, as in 2008, they will openly admit to the danger only when it is far too late for people to prepare for it.

Hopefully things will remain relatively stable for as long as possible, because nobody should want to see a repeat of 2008 (or worse).

Unfortunately, we can’t stop the clock.  We are already more than a third of the way through 2019, and we will be into 2020 before we know it.

It has been an unusual year so far, but I have a feeling that it is about to get much, much more interesting.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Do You Remember The Oil Crisis And “Stagflation” Of The 1970s? In Many Ways, 2019 Is Starting To Look A Lot Like 1973…

The price of gasoline is rapidly rising, economic activity is slowing down, the Middle East appears to be on the brink of war, and Democrats are trying to find a way to remove a Republican president from office.  In many ways, 2019 is starting to look a lot like 1973.  For many Americans, the 1970s represent a rather depressing chapter in U.S. history that they would just like to forget, but the truth is that if we do not learn from history it is much more likely that we will repeat our mistakes.  And without a doubt, right now a lot of things are starting to move in a very ominous direction.

“Stagflation” was a term that was made popular in the 1970s, and it occurs when there is a high rate of inflation but economic growth is declining or stagnant.

The U.S. hasn’t had a serious bout with stagflation in quite a while, but it appears that we may be moving in that direction.

Let’s talk about the slowdown in the economy first.  On Monday, we learned that sales of existing homes in the U.S. were way down in March

Home sales are struggling to rebound after slumping in the second half of last year, when a jump in mortgage rates to nearly 5% discouraged many would-be buyers. Spring buying is so far running behind last year’s healthy gains: Sales were 5.4% below where they were a year earlier.

On a year over year basis, existing home sales have now fallen for 13 months in a row.

That is terrible, and there is no way to “spin” that fact to make it look good.

We also learned on Monday that Office Depot is closing 50 stores.  Of course this is just the continuation of a trend that The Economic Collapse Blog has been tracking for quite some time.

Overall, U.S. retailers have already announced more store closings in 2019 than they did all of last year, and we are on pace for the worst year for store closings in all of U.S. history.

Ouch.

I could go on and on listing more numbers that indicate that the U.S. economy has been slowing down, but I don’t want to repeat much of what I have already shared over the past several weeks.

Meanwhile, inflation is starting to rise significantly in some pretty key areas.  Previously I have explained why food prices are beginning to move up aggressively, and now gas prices are starting to make national headlines once again.

For example, the price of gas in the state of California just hit the highest level in nearly five years

California’s gas prices continued to climb Wednesday, hitting the highest levels in almost five years.

Motorists throughout the Golden State are paying an average of $4.01 for a gallon of regular gasoline, by far the highest in the country and well above the national average of $2.83, according to a news release from AAA.

The primary factor driving up the price of oil is geopolitical wrangling in the Middle East.  According to CNBC, President Trump intends to stop Iran from exporting any oil at all…

Oil prices surged about 3% at midday on Monday, hitting fresh 2019 highs, after the Trump administration announced that all oil buyers will have to end imports from Iran in just over a week or be subject to U.S. sanctions.

The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2.

If President Trump is successful, it will eliminate approximately a million barrels of oil per day from the global marketplace.

That is a big deal.

And this comes at a time when oil prices have already been steadily rising.

Unfortunately, Iran doesn’t plan to take this move lying down, and their response could potentially spark a full-blown oil crisis.

According to Bloomberg, Iran is actually threatening to close the Strait of Hormuz for all commerce…

Iran will close the Strait of Hormuz, a waterway vital for global oil shipments, if the country is prevented from using it, a senior military official said on Monday in what appears to be a response to the U.S. plan to end waivers on Iranian oil exports.

“If we are prevented from using it, we will close it,” the state-run Fars news agency reported, citing Alireza Tangsiri, head of the Revolutionary Guard Corps navy force. “In the event of any threats, we will not have the slightest hesitation to protect and defend Iran’s waterway.”

If Iran did such a thing, it would throw global oil markets into a state of tremendous turmoil, and it would bring us much, much closer to war with Iran.

In recent days the Iranians and the Trump administration have been trading very angry words, and it certainly doesn’t help that the Iranians just appointed a certified hothead as the leader of the Republican Guards

Salami has frequently vowed to destroy Israel and “break America.” Iran was “planning to break America, Israel, and their partners and allies. Our ground forces should cleanse the planet from the filth of their existence,” Salami said in February. The previous month, he vowed to wipe Israel off the “global political map,” and to unleash an “inferno” on the Jewish state.

He also said “Iran has warned the Zionist regime not to play with fire, because they will be destroyed before the US helps them.” Any new war, he said, “will result in Israel’s defeat within three days, in a way that they will not find enough graves to bury their dead.”

Hossein Salami is a complete and total nutjob, and I am entirely convinced that he actually wants a war with the United States and Israel.

For a long time I have been warning that we need to watch the Middle East, and a major regional war could potentially erupt at any time.

Let us hope that cooler heads prevail, because a full-blown war involving Iran, Israel and the United States would mean an immense amount of death and destruction.

For the moment, things are relatively calm in the United States, but most Americans don’t realize that we are actually in a very precarious position.

It isn’t going to take much for global events to reach a tipping point, and once they do there will be no going back.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

It’s Only April, And U.S. Retailers Have Already Closed More Stores Than They Did ALL Of Last Year

If the U.S. economy is in good shape, why have retailers already shuttered more stores than they did in all of 2018?  Not only that, we are also on pace to absolutely shatter the all-time record for store closures in a single year by more than 50 percent.  Yes, Internet commerce is growing, but the Internet has been around for several decades now.  It isn’t as if this threat just suddenly materialized.  As Internet commerce continues to slowly expand, we would expect to see a steady drip of brick and mortar stores close, but instead what we are witnessing is an avalanche.  If the U.S. economy really was “booming”, this wouldn’t be happening.  But if the U.S. economy was heading into a recession, this is precisely what we would expect to see.

Last year, U.S. retailers closed 5,864 stores.

That was a rather depressing number, but here we are in April 2019 and we have already surpassed it.  The following comes from CNN

This year, US retailers have announced that 5,994 stores will close. That number already exceeds last year’s total of 5,864 closure announcements, according to a recent report from Coresight Research.

At this time last year, there was a lot of optimism for the retail industry.  Foot traffic at our shopping centers rose steadily throughout the early portion of the year before peaking in August.

But then something changed, and since that time there has been a clear downward trend

Foot traffic at some of the best shopping centers across the country peaked around August 2018 and has since started to fall, after rebounding for much of last year, according to a new report from data analytics firm Thasos, which uses more than 100 million mobile phones to track when consumers enter and leave certain trade areas.

Once again, you can’t blame this on Internet commerce.  Foot traffic was rising for quite a while, but now what we are seeing is perfectly consistent with an economic slowdown.

Sadly, this could be just the beginning.  In fact, one expert quoted by CNBC expects total store closures in the U.S. to hit 12,000 by the end of 2019…

“I expect store closures to accelerate in 2019, hitting some 12,000 by year end,” Deborah Weinswig, founder and CEO of Coresight, said.

If that happens, we will shatter the old yearly record by about 4,000.

We are in the early innings of America’s “retail apocalypse”, and it is going to get much, much worse.

Of course it isn’t just the retail industry that is hurting right now.  With each passing day, we continue to get more signs that the U.S. economy is sliding into a new recession.  For example, we just learned that during the first quarter of 2019 U.S. manufacturing was down 1.1 percent compared to a year ago…

Manufacturing fell 1.1 percent in the first three months of the year compared to the same period of 2018, the Fed reported.

The biggest reason for the decline in manufacturing is quite obvious.  Businesses are absolutely swamped with unsold inventory, and the inventory to sales ratio in the U.S. has been steadily rising for months.

Earlier today, a Bloomberg article commented on the bloated inventories that we are seeing all over the nation…

One overhang is the auto market, where the six-month average of dealer stocks of cars and trucks matches the highest since 2009 at 75 days. Manufacturers and sellers of furniture and clothing share the same problem, as do small businesses. The inventory swing is likely to exacerbate the U.S. slowdown, with the economy already facing headwinds from the waning impact of tax cuts, slowing global growth and continuing trade tensions.

As economic activity slows down, less stuff is being shipped around the nation by air, rail and truck.  We just got a new update from the Cass Freight Index, and it shows that freight shipment volume in the U.S. has now fallen for four months in a row

Freight shipment volume in the US across all modes of transportation – truck, rail, air, and barge – in March fell 1% from last year, according to the Cass Freight Index. It was the fourth month in a row of year-over-year declines, and the first declines since the transportation recession of 2015 and 2016.

For my regular readers, these new numbers should be no surprise, because I have been tracking these trends for an extended period of time.

All of the numbers are telling us that economic conditions are getting worse, and all of the experts are telling us that we are way overdue for another recession.

Unfortunately, it isn’t likely to be “just another recession”.  As I have repeatedly stressed, all of our long-term economic and financial problems have gotten far worse since the last recession.  We have never seen bubbles like the bubbles that we are facing now, and the stage is set for the greatest meltdown in American history.

The only reason why we have even been able to get this far is by ruthlessly mortgaging the future.  We borrowed trillions upon trillions of dollars that we should not have borrowed, and the Federal Reserve relentlessly pumped “hot money” into overheated financial markets.

Those “emergency measures” were able to stabilize the U.S. economy for a while, but in the process they made our long-term problems much, much worse.

In the end, it isn’t just the retail industry that is heading for an “apocalypse”.  Our entire economy is built on a foundation of sand, and a giant storm is rapidly approaching our shores.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Uh Oh: The Number Of Job Openings In The U.S. Dropped By More Than Half A Million In Just One Month

According to the Labor Department, the number of job openings in the United States just plunged by the largest amount we have seen in nearly four years.  The latest JOLTS report shows that the number of job openings has declined by 538,000, and that is a really big number for just a single month.  But we shouldn’t be surprised by this at all, because it is perfectly consistent with all of the other dismal economic numbers that have been coming in recently.  An economic slowdown is here, and many believe that it is just getting started.

Very briefly, let’s review some of the reasons why we should expect to see the employment numbers get worse.  As the economy slows down, goods begin to pile up in our warehouses, and that is precisely what the numbers show.  In fact, the inventory to sales ratio in the U.S. has now increased for five months in a row.

Fewer sales should result in less stuff being shipped around the nation by freight, rail and air, and this is yet another thing that we see happening right now.  Overall, U.S. freight shipment volume has dropped for three months in a row.

Once businesses realize that economic conditions have changed, then they start reducing the number of job openings and laying off workers.  That is why employment statistics are often referred to as “trailing indicators”.  The employment numbers don’t usually start to go down until other indicators start dropping first.

And without a doubt, the employment numbers are starting to move.  Continuing jobless claims have been rising at the most rapid pace in 10 years, and U.S. businesses have been adding jobs at the slowest pace in 18 months.

With all of that in mind, we should not be surprised at all by this latest number

Job openings, a measure of labor demand, tumbled by 538,000 to a seasonally adjusted 7.1 million, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS, report on Tuesday. The drop was the biggest since August 2015.

That is a really dreadful number, and there is no way to spin it to make it look good.

One factor that is shifting the employment environment is all of the minimum wage laws that are being passed around the country.

A number of liberal enclaves have raised the minimum wage to 15 dollars an hour, and as a result a lot of small businesses have been forced to let workers go

In what has become just one more example of government intervention going the exact opposite of what socialists intend, minimum wage laws are driving a “payroll tsunami.”  Small businesses are being forced to lay off workers in order to comply with a law demanding an increase in wages.

This isn’t all that surprising. Economists, small business owners, and other analysts have said that the net result of higher wages is a loss of jobs. And small businesses, who don’t have the capital or return that large corporations do, are feeling the proverbial pinch. According to Fox News, several mom-and-pop coffee shops and restaurants, are responding by cutting hours, eliminating jobs or closing down entirely because they can’t keep up with rising wages under the law.

My very first job was flipping burgers for McDonald’s, and I made $3.35 an hour doing it.  As a teenager, I was grateful to have such a job, but now such minimum wage jobs are in danger.  Wal-Mart and other major corporations are already making extensive use of robots to perform basic tasks, and making human workers more expensive is going to hurt those at the bottom of the economic food chain the most.

But for the moment, things are still relatively stable.  Most Americans still seem to believe that the bubble of debt-fueled economic “prosperity” that we are currently enjoying is going to continue for the foreseeable future, and they are spending money as if tomorrow will never come.

According to Zero Hedge, U.S. consumer credit has now surged past the 4 trillion dollar mark…

After a few months of wild swings in mid 2018, in February US consumer credit continued to normalize, rising by $15.2 billion, slightly below the $17 billion expected, following January’s $17.7 billion increase. The continued increase in borrowings saw total credit storm above $4 trillion, and hit a new all time high of $4.045 trillion on the back of a America’s ongoing love affair with auto and student loans, and of course credit cards.

We better hope that the U.S. economy is able to pull out of this new slowdown, because most of us are living right on the edge financially.

Sadly, we never seem to learn.  The same mistakes that we made last time around are all happening again, and Americans are completely and totally unprepared for what is coming.

And the warnings are all around us.  On Tuesday, the IMF downgraded their forecast for global economic growth for the third time in six months.  Commenting on this downgrade, IMF executive director Christine Lagarde noted that this is a “delicate moment” for the global economy…

Christine Lagarde, the IMF’s executive director, said the global economy is in a “delicate moment.”

“Only two years ago, 75% of the global economy experienced an upswing,” Lagarde said, according to the text of a speech she’s due to give at the US Chamber of Commerce. “For this year, we expect 70% of the global economy to experience a slowdown in growth.”

It is not often that I agree with a globalist like Christine Lagarde, but she is quite right in saying that this is a “delicate moment”.

Global economic numbers have not been this bad since the last financial crisis, and many believe that we have now reached a major turning point.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Economic Slowdown Confirmed: Here Are 14 Very Alarming Numbers That Reveal The Current State Of The Economy

The economic numbers just continue to get worse and worse, and at this point it has become exceedingly clear that an economic slowdown is happening.  In fact, even the chair of the Federal Reserve is using the term “slowdown” to describe what is taking place.  But of course many are still hoping that the U.S. economy can pull out of this slump and avoid the sort of crippling recession that we experienced in 2008.  Unfortunately, that may be really tough because the entire global economy is slowing down right now.  Our world is more interconnected than ever before, and what happens on one side of the planet is invariably going to affect the other side of the planet.  Some parts of the globe are already mired in deep economic problems, and the U.S. appears to be following down the same path.

If you still think that the economy is in “good shape”, please read over the following list very carefully.

The following are 14 very alarming numbers that reveal the true state of the economy…

#1 Continuing jobless claims are rising at the fastest pace in 10 years.

#2 U.S. businesses are adding jobs at the slowest pace in 18 months.

#3 General Motors, Ford, Nissan and Fiat Chrysler all reported sales declines of at least 5 percent on a year over year basis in March.

#4 Tesla vehicle deliveries were down a whopping 31 percent during the first quarter of 2019.

#5 U.S. consumer confidence fell more than 7 points in March.

#6 Manhattan real estate sales have now fallen for six straight quarters.  That is the longest losing streak in 30 years.

#7 London real estate sales just dropped by the most we have seen in 10 years.

#8 The owner of Kay, Zales and Jared jewelers just announced that they will be closing 150 stores.

#9 Retail layoffs are 92 percent higher than they were at this time last year.

#10 U.S. freight shipment volume has fallen for three months in a row.

#11 The inventory to sales ratio in the United States has risen sharply for five months in a row.

#12 At this point, almost half of all renters in America spend more than 30 percent of their incomes on rent.

#13 The real median net income for Minnesota farmers was only $26,055 in 2018, and that was before many of them were absolutely devastated by the recent flooding.

#14 Overall, U.S. economic numbers are off to their worst start for a year since 2008.

We didn’t see economic numbers like this last year.

But now things have clearly changed.  It is starting to feel more like 2008 with each passing day, and this is a point that Mac Slavo made in his most recent article

The signs of yet another economic recession are everywhere. In fact, it seems hard to find any positive economic news anymore, even though a mere few months ago, it was difficult to find a report signaling the United States might be headed for some turmoil.

These days, many people get offended at the thought that the U.S. economy is heading for trouble.  But the truth is that we have been heading for trouble for a very long time.

Our economy is built on a foundation of sand.  More specifically, we have borrowed our way into “prosperity”.

The other day, I wrote an article about our $22,000,000,000,000 national debt.  It is the biggest single debt in the history of the world, and we continue to add to it at a rate that is absolutely insane.  In fact, our 234 billion dollar deficit in February broke the all-time record for a single month.  If we continue to do this, there is no way that our story ends well.

But that 22 trillion dollar debt is only a fraction of our overall debt.

When you add up all forms of debt in the United States, it comes to a grand total of more than 72 trillion dollars.  And that doesn’t even include a single dollar of our unfunded liabilities on the federal, state and local level.

When Ronald Reagan took office, the total amount of debt in the U.S. was less than 5 trillion dollars.

When historians look back on this time in history, they will not be surprised that our society ultimately collapsed.  What will surprise them is that it took so long for it to do so.

Sometimes I get criticized for urging people to get prepared.  But those that really deserve the criticism are those that are assuring everyone that everything is going to be just fine.  If we got the smartest minds in the entire country together and treated this like a major national emergency, perhaps we could find a way to engineer some sort of a soft landing when this debt bubble bursts.

But as it stands, there is no plan and our long-term problems get worse with each passing day.  Our economy is headed for a crash of epic proportions, and it isn’t going to matter who is in power in Washington when it happens.

And at the rate that our economy is currently slowing down, America may become an economic horror show a lot sooner than many people had anticipated.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

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