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Copper, China And World Trade Are All Screaming That The Next Economic Crisis Is Here

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Screaming Smiley - Public DomainIf you are looking for a “canary in a coal mine” type of warning for the entire global economy, you have a whole bunch to pick from right now.  “Dr. Copper” just hit a six year low, Morgan Stanley is warning that this could be the worst oil price crash in 45 years, the Chinese economy is suddenly stalling out, and world trade is falling at the fastest pace that we have seen since the last financial crisis.  In order not to see all of the signs that are pointing toward a global economic slowdown, you would have to be willingly blind.  In recent months, I have been writing article after article detailing how the exact same patterns that happened just before the stock market crash of 2008 are playing out once again.  We are watching a slow-motion train wreck unfold right before our eyes, and things are only going to get worse from here.

Copper is referred to as “Dr. Copper” because it does such an excellent job of indicating where economic conditions are heading next.  We saw this in 2008, when the price of copper started crashing big time in the months leading up to the stock market implosion.

Well, now copper is crashing again.  Just check out this chart.  The price of copper plunged again on Wednesday, and it is now the lowest that it has been since the last financial crisis.  Unfortunately, the forecast for the months ahead is not good.  The following is what Goldman Sachs is saying about copper…

“Though we have been bearish on copper on a 12-mo forward basis for the past two and a half years, we have maintained a more bullish medium to long-term stance on the assumption of Chinese copper demand growth of 4% per annum and a major slowing in supply growth around 2017/2018 … we substantially lower our short, medium, and long-term copper price forecasts, on the back of lower Chinese copper demand growth forecasts (we have been highlighting that the risk has been skewed to the downside for some time), increased conviction in copper supply growth over the next three years, and increased conviction in the outlook for mining cost deflation in dollar terms.”

It is funny that Goldman mentioned China so prominently.  Even though China’s fake GDP figures say that everything is fine over there, other numbers are painting a very dismal picture.

For instance, Chinese electrical consumption in June grew at the slowest pace that we have seen in 30 years, and capital outflows from China have reached a level that is “frightening”

Robin Brooks at Goldman Sachs estimates that capital outflows topped $224bn in the second quarter, a level “beyond anything seen historically”.

The Chinese central bank (PBOC) is being forced to run down the country’s foreign reserves to defend the yuan. This intervention is becoming chronic. The volume is rising. Mr Brooks calculates that the authorities sold $48bn of bonds between March and June.

Charles Dumas at Lombard Street Research says capital outflows – when will we start calling it capital flight? – have reached $800bn over the past year. These are frighteningly large sums of money.

Just last month, the Chinese stock market started to crash, but the crash was interrupted when the Chinese government essentially declared a form of financial martial law.

And I don’t think that “financial martial law” is too strong of a term to use in this case.  Just consider the following excerpt from a recent article in the Telegraph

Half the shares traded in Shanghai and Shenzhen were suspended. New floats were halted. Some 300 corporate bosses were strong-armed into buying back their own shares. Police state tactics were used hunt down short sellers.

We know from a vivid account in Caixin magazine that China’s top brokers were shut in a room and ordered to hand over money for an orchestrated buying blitz. A target of 4,500 was set for the Shanghai Composite by Communist Party officials.

So a stock market crash was halted, but in doing so Chinese officials have essentially destroyed the second largest stock market in the world.  China’s financial markets have lost all legitimacy, and foreigners are going to be extremely hesitant to put any money into Chinese stocks from now on.

Meanwhile, there is no hiding the fact that trade activity in China and in most of the rest of the planet is slowing down.  In fact, world trade volume has now dropped by the most that we have seen since the last global recession.  The following comes from Zero Hedge

As goes the world, so goes America (according to 30 years of historical data), and so when world trade volumes drop over 2% (the biggest drop since 2009) in the last six months to the weakest since June 2014, the “US recession imminent” canary in the coalmine is drawing her last breath

World Trade Volume - Zero Hedge

As Wolf Street’s Wolf Richter adds, this isn’t stagnation or sluggish growth. This is the steepest and longest decline in world trade since the Financial Crisis. Unless a miracle happened in June, and miracles are becoming exceedingly scarce in this sector, world trade will have experienced its first back-to-back quarterly contraction since 2009.

As you probably noted in the chart above, a decline in world trade is almost always associated with a recession.

That was certainly the case back in 2008 and 2009.

Another similarity between the last crisis and what is happening now is a crash in the price of oil.

According to Business Insider, we have just officially entered a brand new bear market for oil…

Oil is officially in a bear market.

On Thursday, West Texas Intermediate crude oil futures fell more than 1% to settle near $48.55 per barrel in New York.

A bear market is roughly defined as a 20% drop from highs. Crude has now fallen by about 20% in the last six weeks.

So what does all of this mean?

All of these signs are indicating that another great economic crisis is here, and that a global financial implosion is just around the corner.

At this point, even many of the “bulls” are sounding the alarm.  For example, just consider what Henry Blodget of Business Insider is saying…

As regular readers know, for the past ~21 months I have been worrying out loud about US stock prices. Specifically, I have suggested that a decline of 30% to 50% would not be a surprise.

I haven’t predicted a crash. But I have said clearly that I think stocks will deliver returns that are way below average for the next seven to 10 years. And I certainly won’t be surprised to see stocks crash. So don’t say no one warned you!

For those that don’t know, Henry Blodget is definitely not a bear.  In fact, he is one of Wall Street’s biggest cheerleaders.

So for Blodget to suggest that we could see the stock market drop by half is a really big deal.

The closer that we get to this next crisis, the clearer that everything is becoming.

Where are things going to go from here?  Please feel free to add to the discussion by posting a comment below…

  • Lew Hone

    Well the Chinese certainly sorted that little downturn out! Cant have people acting like they are free. Can’t wait to invest in Chinese stocks now. Their market will stay healthy at gunpoint. Perfect!

    • kfilly

      Yep, you got nothing to lose there.

    • lol…True…That’s Kung Fu Economics :)

      • lol…
        Kung-Fu Economic that’s a good one. I think someone should probably take this in a financial article one day concerning China’s way of dealing with Financial Trouble, and pay you royalties 😉

        • jaxon64

          truly–you just landed a superbly catchy description for the Shanghaid market–you must somehow get credit for this as the term catches on.

    • MichaelfromTheEconomicCollapse

      But you might not ever be able to sell your stocks if the Chinese government decides that would be bad for their financial system.

      • Lew Hone

        Exactly. What a way to destroy their stock market. Nothing like a soldier in green holding an SKS to quell the excitement

    • SunnyFlaSnotress

      Hey, it hasn’t been all that much better in the USA with the markets being manipulated by special interest sweetheart deals by the government creating masquerades of strength with public vs corporate liability.
      The Chinese government apparently doesn’t like the kick-the-can down-the-road carnival game as much as the USA.
      Our markets have crash prevention stops too. We have short selling restrictions too.

      • Rick

        You nailed it. You have just differentiated Fascism (USA) from Communism (China). Unfortunately it won’t be long until we are wearing sickles and hammers as well.

        • SunnyFlaSnotress

          Rick, we still live in a Democracy where we are free to vote and choose our leaders (except maybe in Florida where votes occasionally have gotten discarded).
          Like to admit it or not, the public and corporations at large have directly or indirectly created this financial fiasco.. consciously or not.
          Unfortunately, after we choose our leaders, we don’t get a lot power in governing, unless we want to go through lengthy petitioning, lobbying, or illegal coup, but Fascist we are not..

          • Gay Veteran

            wrong, fascism is the merger of state and corporate powers, and our korporations and government are in bed together.
            we are definitely a fascist country where we are given the illusion of choice at the ballot box

          • SunnyFlaSnotress

            I am NOT wrong. Any standard definition such as Merriam Webster will tell you it involves a dictatorship. We are NOT a dictatorship.
            :a way of organizing a society in which a government ruled by a dictator controls the lives of the people and in which people are not allowed to disagree with the government

          • Rick

            According to the official definition from Mussolini, you are wrong. He says a governing body, “often” a dictator.

            The only official definition of Fascism comes from Benito Mussolini, the founder of fascism, in which he outlines three principles of a fascist philosophy.
            1.”Everything in the state”. The Government is supreme and the country is all-encompasing, and all within it must conform to the ruling body, often a dictator.
            2.”Nothing outside the state”. The country must grow and the implied goal of any fascist nation is to rule the world, and have every human submit to the government.
            3.”Nothing against the state”. Any type of questioning the government is not to be tolerated. If you do not see things our way, you are wrong. If you do not agree with the government, you cannot be allowed to live and taint the minds of the rest of the good citizens.
            The use of militarism was implied only as a means to accomplish one of the three above principles, mainly to keep the people and rest of the world in line. Fascist countries are known for their harmony and lack of internal strife. There are no conflicting parties or elections in fascist countries.

          • SunnyFlaSnotress

            We are still very welcome to disagree with the government without fear of reprisal as long as our actions aren’t otherwise illegal.

          • Papa J

            SunnyFS, try demonstrating while the president is in your town. Ever wonder why there are no protestors? Defacing a picture at the range will get you thrown in the slammer too. Read the NDAA also

          • Gay Veteran

            we’re free to disagree with the government because the government doesn’t care, the second government starts caring you get beat down (see Occupy Wall Street)

          • Gay Veteran

            you think the people have ANY influence with the U.S. government?


          • algol2000

            If we are NOT in a dictatorship, what do you call the two (rigged) pony horse race that is an excuse for democracy in the US? There is often no difference between voting for dumb or dumber.

          • Peter

            Hitler was democratically elected.

          • Rick

            Sunny, much of what you say is true, however, in looking at definitions of Fascism. I think we qualify.

            a. A system of government marked by centralization of authority under a dictator, a capitalist economy subject to stringent governmental controls, violent suppression of the opposition, and typically a policy of belligerent nationalism and racism.
            b. A political philosophy or movement based on or advocating such a system of government.
            2. Oppressive, dictatorial control.

          • SunnyFlaSnotress

            Rick, I don’t see any violent suppression of opposition from the Federal Government.. now local police forces on the otherhand can be quite problematic.

          • Rick

            Do you forget Ruby Ridge, Waco, what just happened in NV with the rancher? The illegal stunts the Feds pull such as their Sandy Hook involvement? 911 the inside job? Our government is our worst enemy, but luckily the people are still strong and independent for the most part, and haven’t totally caved to this power hungry elite crowd of criminals.

          • alan

            You simply vote for the banker selected candidate. The bankers never loose.

          • Gay Veteran

            “…we still live in a Democracy where we are free to vote and choose our leaders….”

            ROFLOL, we are given the illusion of choice at the ballot box since

          • M.

            Those who run things control every candidate who is allowed to stand for election. They know who feeds them and won’t dare contradict their owners. It’s all a ruse like a roulette wheel with a magnet underneath, designed to take in the chumps and make them think they’ve got a chance. Like Stalin said, those who vote decide nothing, those who count the votes decide everything.

          • Roger Smith

            You are right on the mark…..Look at the connection between Obama and the Annenbergs (Annenberg Foundation). These folk have been Barry’s puppet master for decades. Check into the “Annenberg Chicago Challenge” and the fact that Obama was appointed in the 90’s to pass out 500 million of Annenberg money in Chicago. Who got some of that dough? Bill Ayers and others. Did Chicago schools improve? Puh-leeeeez…… Where does Barry go golfing every time he goes to Rancho Mirage?…..The Annenberg private Sunnyland golf course. This is also where he will be moving after he’s done with his mission: The Thunderbird neighborhood in Rancho Mirage. By the way, who used to be besties with the Annenbergs and vacationed with them at Sunnyland? The Reagans. This whole thing is one giant scam……Wake the F up America!

          • Dan Hanner

            We live in a Constitutional Republic with a Democratic process, not a Democracy!

          • kfilly

            That was how our government was intended to run. You now live under democratic socialism. Mob rule were the people get to vote away their rights and get “free” stuff from the treasury. His royal majesty also has a pen and phone to creat laws without consent from the governed.

        • alan

          I got a couple hats with red stars in Beijing, I am ready…Hillary 2016!

      • TheLulzWarrior

        Suspicious timing, the Chinese governement is likely behind the financial downturn there, in September-October 2015 they will simply declare that they can´t bail-out the US economy like in 2008 and that will be the end of the dollar.

  • durango

    I always thought that high stock prices indicate a crash of the economy ie, investors have to pay a lot more for the same return. If stocks crash this indicates that investors get a much higher return for money invested.

    • Douglas M. Green

      Only investors who buy at the crashed stock prices, and that assumes that earnings projections don’t continue to plummet or it could be catching a falling knife with stock prices falling further.

      • MichaelfromTheEconomicCollapse

        Great points Douglas.

      • Gay Veteran

        true, but you can’t predict the bottom or the top

    • SunnyFlaSnotress

      Stock prices are set subjectively. A stock could be $100 or $50 just by company arbitration of a split.

    • Mike Smithy

      In a sane world, high stock prices would suggest that a company has good prospects for long term growth and profitability. It is what we used to refer to as fundamentals. However, fundamentals no longer matter because there are no true markets and what they refer to as a market is little more than a ponzi scheme.

  • Alwaystomorrow

    The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015

    Published 6/25/2015

    162 days until 12/31/2015.

    For fun, lets do a count down every day until the end of 2015 and see just what happens.

    • Frijebai

      So should we start taking bets to see who gets the closest to when the wall street bubble pops? I bet 34 days until 12/31/2015. That would be on Black Friday.

      • gary hillerich

        will predict some time in Sept,2015 along with Martin Armstrong…the ruling scum just luuuuuuv blowing things up in Sept.. are the ruling scum manipulating this world slowdown to extend the shelf life of the phony fiat dollar? probably so..& they’re torpedoing the Chinese economy for same reason..to keep the non-federal no-reserve currency counterfeiting corporation’s ink,paper,& computer digits aka “the petrodollar”..the world reserve currency..

      • SunnyFlaSnotress

        1/16/2016.. outside Mikes panic button range

      • Rick

        That’s a good guess, I’m placing my two cents on the final blood moon in September. Just something about past history. There will be an event, and it will involve Israel.

      • jaxon64

        If we all get to take a date and place a monopoly money guess, then write me down for November 2nd–the first Monday after Halloween…….

      • Alwaystomorrow

        Stop betting. You will never get out of debt that way. :-)

    • retired22

      Does this guy get up & out of bed every day long enough to post this comment?After that does he go back to sleep?

    • nevergiveup

      And of course nothing has happened since that alert that would warrant concern. Nah – just the Greek Crisis, Chinese Stock Market crash, emerging markets getting a hiding, oil price diving etc. etc.

      • Rick

        Let’s not forget the elite big bank manipulates driving precious metals to the floor so they can get out of the worthless paper/electronic transfers they’ve oversold.

      • SunnyFlaSnotress

        Well the Greek Crisis and oil price diving have been in the works for quite a while and oil tends to drag emerging markets with it.
        The Chinese Stock Market crash is however, new.

        • nevergiveup

          Sunny, it just seems that there are a lot of red and yellow lights on the dashboard. As I wrote elsewhere, I don’t advocate burying our heads in the sand. I just think a different strategy will be required to endure reasonably well through the next “big one”

          • SunnyFlaSnotress

            Oh I agree, though I’m saying that the “imminent collapse” may not be quite so imminent, and may not be as severe as many are working themselves up for. Better safe than sorry, but I personally would not run off to the woods or farmland. Cities have their good areas/bad areas, but I don’t see abandonment as a good thing.

      • Alwaystomorrow

        Personally I like to define collapse as to how it affects ME. What is collapse to you may not be to me.

        If you have lots of your net worth in gold, then you are going through a micro collapse now regardless of the Greek or Chinese situation.

        If you are heavily invested in WTI crude, again you are going through a micro collapse now regardless of the Greek or Chinese situation

        When the last so called collapse hit in 2008, I was not effected one bit. ZERO. Life went on as usual. I went to work as usual. We went on vacation as usual, etc.

        I personally believe if you NO debt, NONE, and live well below your means you might be surprised just how little a downturn in the economy might mean to you.

        Now I would like to hear from all the people shackled to debt tell me how wrong I am.

        • nevergiveup

          AT, I agree with your definition and you make some great points. I was also not affected in 2008. I got out of debt by about 2004 and have various sources of passive income. I drive a car that most people in my industry lift their noses to and My family and I live in a house that’s comfortable but below our means. And as you say life goes on. I just feel that the next one is going to be different and that it is the resulting destabilisation that will affect people primarily…not so much the crash itself. I live in South Africa and our currency has taken a hiding from the dollar. Buying Gold has a dual purpose. I bought it not primarily to make a profit but to help my family if things really go south. It was also a legal way to buy lots of dollars…our forex is controlled. Interestingly, even though the gold devalued since I bought it, I made more profit than if I invested it in most stocks recently. Your point I think is that we cannot bury our heads in the sand and just give up on living. I wholeheartedly agree.

        • SunnyFlaSnotress

          I pulled out of the market before the 2008. A veteran financial worker had warned me. Trading Lehman was a joyride to me. Unfortunately, I could never get myself to trust the markets as well afterwards, so I lost out on the rebound.

        • Whisper

          The 2008 crash didn’t affect me in a negative way, in fact I lost my business but gained a better job that got me even a better job. This caused me to pay off my debts, buy and harvest a years worth of food and supplies, and save a years worth of cash which I haven’t done before. I believe with God, when one door shuts, another one opens.

        • Gay Veteran

          “…If you have lots of your net worth in gold, then you are going through a micro collapse now….”

          only if you sell now

          • Alwaystomorrow

            Calculating net worth takes assets owned at current market value.

            You are correct that you do not loose until you sell but a reduction in net worth to me is a micro collapse.

    • sre

      This is an all-purpose comment. I like it.

    • Orange Jean

      To tell the truth, one of the things I do most days is check this site because it actually relieves my anxiety if that day hasn’t gotten as bad as the worse predictions.

      It doesn’t mean it can’t happen and doesn’t mean I think it won’t… but if I am feeling worried about something (work lately) and pn that day we didn’t fall into a tailspin… it helps me put my worries about the day behind me. You know Michael puts a lot of effort into what he posts, if you don’t like it or find it informative… why do you bother coming here?

      • SunnyFlaSnotress

        They call that a catharsis.
        Well Jean, I have noticed that some people have been allowed to run amuck on the boards. I’ve been flagging someone who called someone an s*bag merely because the other’s political views differed. Nothing got done. This kind of thing is not an isolated incidence. Personally, I don’t like Michael or his politics and I don’t mind saying so, but that doesn’t mean that his articles aren’t interesting and at least somewhat informative even if alarmist.

    • alan

      More debt, more creating money, bombing ISIS on the north pole, Unemployment at .1%, stawk market at 19,000, gold flat, Greece on its 4th / 5th bailout.
      This is what it will be for the next 10 years.

      Never underestimate the power of the printer!

  • Sandbagger

    Just learned that a friend’s husband is going to North Dakota to work in the oil industry there. They are all moving (four kids) for this job. :(

    • foot in the forest

      Good Luck my friends all bailed as the rigs shut down

    • Rebel w/out a Cause

      Probably not a good idea. The Arabs are bankrupting the oil shale and fracking companies. We can’t produce oil as cheaply as they have it priced. Things in ND are slowing down.

    • MichaelfromTheEconomicCollapse

      Hopefully there will still be a job once they get there.

    • SunnyFlaSnotress

      Geez.. talk about being late to the party. Good luck to them.. they may need it.

  • kfilly

    Most Amerikans still cannot figure out that they are in the train tunnel, and the bright light and loud noise heading right at them is the train coming full speed. Wow, people in this country are IGNORANT!

    • MichaelfromTheEconomicCollapse

      Well said kfilly.

      • John Byde

        Perhaps, but at least the yanks have some people talking reality. Here in Europe, the culture of death and defeatism is like a fog.

    • SunnyFlaSnotress

      Now, now..self-driving trains aren’t in use at this time. There’s always the chance the conductor will stop in time and offer them a ride out of the tunnel.

  • JAY

    But the fed can buy up all the commodities, buy chinese stocks, to keep them up. as long as the bankers have a printing press and population that feels entitled to have everything free, and other central bankers willing to buy the dollar-no economic collapse coming!

    • MichaelfromTheEconomicCollapse

      I think that you overestimate the power of the dark side Jay.

    • Tommy Lee

      You got that right Jay ! What all the chicken little’s have forgotten is the printing press. The U.S. can print their way out of this entire mess and will.

      • Gay Veteran

        the printing press devalues the money

    • You should stop thinking that the US Fed is all powerful. The USA does not live in a vacuum, whatever they do as an impact on others, and I’m not too sure that other nations will likely continue to accept the dictate of the Fed… especially if it creates more problems than it resolves.

      But what you say is the perfect illustration of people refusing to accept the inevitable – the collapse of the American Empire. It must, and will happen, as any other Empire before. That’s how things work.

      Now who will take over is a question in balance, but before it happen there are always Dark Ages of transition, and that is precisely what we see on the horizon…

  • K

    No question the indicators are all showing bad news. And I agree anyone who did not see this coming, was willfully ignorant. One of the reasons I expect things to be much worse this time. Is far more people seem to be totally out of touch with reality. This downturn is really going to snap those people back to reality. And do to that same group, lacking in maturity. They will blame everyone else, but themselves, for this sudden change. In many cases I would expect them to act out violently. Thus my advice to be ready to leave the cities quickly.

    • MichaelfromTheEconomicCollapse

      Good points. Without a doubt, we are extremely out of touch with reality as a society. When we started allowing our televisions to define reality for us, that was a very dangerous thing.

      • JAY

        wow, Michael, I am honored that a great person like you replied to my post. I am humbled!

        • IsReal

          You should speak to God, he’s there for you 24/7 if you accept Jesus as your Savior (he doesn’t listen to prayers of the unsaved). Never put any human as an idol before Him.

    • Frijebai

      Like Ron Paul said get to know your neighbors.

    • SunnyFlaSnotress

      I LOVE low copper. It means the Florida bozos won’t be destroying houses for wiring/piping or killing themselves going after public utility/electrical wiring.
      I’m still looking for a house in the city by the Jade Helm center.. or a short-term apartment more directly in the city. I LOVE city amenities.

      • alan

        Depends where you live, even though the price of copper goes down it translates to the price of crack went up. So now you have to strip twice as much copper for the same amount of crack.
        If the Gov could subsidize crack it would save Florida a lot of money in replacing all that copper ripped out of houses. /sac.

    • Rick

      And exercise your Second Amendment rights! You’d be foolish not to.

    • Orange Jean

      K, as usual I agree with you totally!

      It’s funny, people where I work and some of my family keep trying to get me to move out of the country into the city (which I have no intention of doing)…. supposedly because they think it’s not safe where I live. Which is nonsense, but I can’t convince them.

      • K

        I think that mostly has to do, with friends and family, being concerned you are too far from a hospital. My friends and family have had to adapt. They know I believe, when it is my time, it’s my time. Jean, I have gone to low profile talking to people too much about where I live. Yeah, I think it is getting that close. Do not need twenty people at my door the first week of a crisis.

  • At this point there is not many reasons anymore to continue trying to convince anyone if they don’t want to accept the numbers, data and other articles from other platform (except because we really want people to save themselves of this problem). If even “Bulls” are now sending big warning signals we should worry even more because THAT is quite unusual…

    But most are sticking their heads in the sand either in America or Europe it is the same song…

    • MichaelfromTheEconomicCollapse

      But there are some people out there that ARE listening.

      • Leebo Venable

        Ya, me. Ever since the tornado outbreak in april 2011

      • I concur… but it is more and more a sad situation to witness so many people refusing – even willingly – to see what is clear in front of their eyes – No matter what we say or do.

        These are the same people who will get on our nerves later on complaining about their situation..

      • Bill G Wilminton NC

        Michael thanks for the work you do……your friend from Wilmington NC met you as you were going to visit battleship North Carolina 2 years ago.
        Yes there are people listening.

      • VigilanteCaregiver

        Great articles, Mike!

    • SunnyFlaSnotress

      But there are still some “Bulls” out there saying the Bull Run will last for several more years.. such as Mr.Golub.. though to be honest, when men of his “genre” say that, it’s like the Fat Lady singing to me.

  • Nicholas Fowler

    in answer to the last question of where do we go from here, this was asked by a group of people who had reached the top of a rollercoaster., where do we go from here, as they slowly began to descend..gathering speed….!!!

    • MichaelfromTheEconomicCollapse

      A very apt analogy.

    • Bob332

      As I always said, ” When you get on that roller coaster ride, your going to pay at the beginning or at the end, BUT your going to pay for that ride” We WILL pay dearly for that ride!

      • Rick

        And some of us vomit on the way up and on the way down.

    • SunnyFlaSnotress

      I’ll tell you. We go home from the amusement park and cook dinner.

      • Rick

        But first we need to find dinner. Most of America lives in the land of Mother Hubbard.

        • SunnyFlaSnotress

          It’s at the grocery store. Americans know this.. even the EBTers

  • Stop Republican Obstruction

    One of the perks of attending a democratic convention is you get a free tin foil hat. I make sure I never leave home without it. I wear it at all times when I surf the net.

    The advantages of wearing the tin foil hat are as follows.

    You believe that you can get out of debt by incurring more debt.

    You believe that Obama is the best president ever.

    You believe the unemployment rate is 5.3%

    You attain a limitless ability to ignore metrics such as the labor participation rate, velocity of money, unfunded liabilities, and debt to GDP ratio.

    You can watch MSNBC for hours on end.

    So I urge all of you to get a tin foil hat. It will make you giddy

    • MichaelfromTheEconomicCollapse

      Yes, the real “conspiracy theorists” are hardcore supporters of the Democratic party.

      • SunnyFlaSnotress

        The Republicans created their own pain and whine and point their fingers in the other direction for four years. Lather Rinse Repeat

      • Gay Veteran

        really, I’ve seen some right-wing sites saying Obama will declare martial law. why would he when we are given the illusion of choice at the ballot box.
        you should know by now that

        • Bill G Wilminton NC

          Mr Veteran, demos = repubs well said but martial law is on its way………one way or the other.

          • Gay Veteran

            but no martial law to keep Obama in office

          • Bill G Wilminton NC

            That is how he stays in office………

    • SunnyFlaSnotress

      I thought everyone on this board already had one.

  • Renard Johnson

    First may I state that in my opinion this is all ramifications from the disaster of 2007-2008. This is just the tentacles continuing to extend themselves. There’s no next GFC. This is the same one. I have been in the state of mind where the situation warrants that you yell out “It’s Here Now”! Let’s stop using the phrase it’s coming. Time for all to accept this reality but this is only a part of the story of our destiny. The best is yet to come!

    • MichaelfromTheEconomicCollapse

      The best is yet to come? I am not sure I understand…

    • SunnyFlaSnotress

      I hate uncommon acronyms.

    • Bill G Wilminton NC

      Mr Johnson, well said…… we are in IT now and never left IT…… from 2008 till now all fake economy….. the final ACT is soon which will allow the NEW WORLD ORDER to be enacted. This will start the intense persecution of the true believers of Jesus Christ.

  • MichaelfromTheEconomicCollapse

    By the way, what does everyone think of the new social sharing buttons at the top of each article?

    From a technical standpoint, they work far better than the buggy ones that used to be there.

    • Frijebai

      When I click on the facebook share icon it tries to load the page but pauses with a blank screen. To get it to load I have to click on the address bar and click enter; Then it loads the page. The picture icon is over sized. Anyway your blog is going to see more visitors in the coming months; As far as I know there isn’t anything else like it on the web.

    • guest

      I don’t know if you know this ot not but, Lyn Leahz frequently uses your sites / articles in her you tube programs.

    • SunnyFlaSnotress

      If I recommend a site to someone, I usually chat with them directly to see their interest vs barraging them w/spam/ads.
      I did mention this site to one of my comrades, and he did give it a look see, and though he found it interesting, he apparently doesn’t care to pursue it.

  • DJohn1

    IF the crash is allowed to happen here it will be as described a financial disaster effecting everyone.
    Everyone seems to forget the police over the system. The Hunts forgot about the police over the system and look what it got them with their huge portfolio of silver.
    They are not alone.
    Right now Congress is heavily invested on inside trading and they have legislated themselves immune from prosecution.
    What I see happening is a 3 week bank holiday in which all the banks in the country will remain closed.
    Only people with cash money will be able to purchase things.
    At the end of that time, the banks will open up under new rules. What those rules will entail is anyone’s guess. But Michael has suggested a few options they might take such as reducing people’s actual money supply with the banks.
    I suggest anyone on a pension is truly messed over by what is about to happen because the pensions will not be capable of surviving the stock market crash as described.
    None of them are in good shape to begin with.
    I suggest that Congress people will be looking to steal Social Security funds as well.
    Never mind the 300 billion given out to foreigners as foreign aid.
    Or any of the favored programs promoted in Congress by our representatives. Those things are safe.
    The 15% parasitic group on top of the country’s laws will make it through with little trouble. It is difficult to destroy a job where one does not work for a living and this bunch fits the bill.
    The rest of us? Probably we have all been sold down the river once again.

    • Gay Veteran

      what Social Security funds are you talking about?

  • Michael Lever

    Here in UK i’ve been writing about the negative consequences of investor exuberance for decades. The capitalist system thrives on ups-and-downs, that’s the nature of the beast. The challenge is ride the cycles: we are not supposed to come unstuck in times of change.

    One way to avoid downturns is to not take part, but that means missing out on the rewards of upturns. Attitudes of that nature are symptomatic of fear. In extreme, fear leads to panic. The function of panic is to put wind in our sails, metaohorically-speaking. Whether we go with the flow or put the brakes on depends upon our emotional self-confidence and trust in our sense of timing.

    Get the formula right and it is possible to be long- term consistently successful. it is to that objective for which I use my talents to help others. I enjoy reading Michael’s blog but with respect anyone can highlight warning signs. The real benefit, at least as far as I am concerned, is in helping others to understand the purpose of change.

    • Michael Lever

      PS – I should’ve added after understanding the purpose of change to know how to capitalise.

      Generally, when change is needed but for whatever reason we don’t change willingly then change is forced upon us.

      I have always believed the 2008 sub- prime crisis was deliberately orchestrated by a few extremely shrewd people who made a fortune out of the debacle. And to their delight have continued to do so, thanks to the central banks, etc cutting interest rates to next to nothing. By playing into the perpetrators’ hands, the authorities made a serious error of judgement. Instead of reducing interest rates, they should have increased them. A short sharp shock to the system to kick-start the growth engine would have been better than a kong-drawn out and painful economic collapse.

      • SunnyFlaSnotress

        I think it was more than just a few shrewd people. While short sharp shocks may have worked.. working wasn’t the true intention.

  • Rachet Down

    The thing is, the expectations of the masses will continue to direct conditions. No fears? We’ll keep buying. Catch some paranoia? We’ll stop buying and start hoarding. Until the intentions of the masses change, this thing will stay afloat. BUT, the truth is slipping out more and more and the ‘Big Lie’ is beginning to spawn town criers in every sector. If China is using “Kung Fu” economics, the west is using “Sucker Punch” economics! Its coming, but the dumbed down population will take a bit longer to catch on than we might predict…

  • sherlock32555

    Don’t worry the elite will not let it happen again. They would do what they did last time and stick it to the dumb Americans to pay for.

  • SunnyFlaSnotress

    “The Next Economic Crisis Is Here”.. Well on an anecdotal semi-personal level vs the allegoric that the board leans towards..
    A comment on “zombie” machines, and “zombie” business indicators..
    I went to prepare my car for trade-in yesterday, & thought I’d jazz it a lil w/interior shampoo. I knew the shampoo machine at the nearby Shell was unlikely to be working per the worker comment & my doublecheck, so I went to try less-frequented stations in the other direction. I saw a car wash place that I had forgotten & thought “oh good”. Despite the small “for sale” sign & fact nobody else was there, I went to machines. Though lit, they didn’t say anything for the majority. At that point, all machines even if apparently working, became questionable. I noticed an abandoned business next door. I traveled on.
    As I drove further, I noticed the tavern looked closed.. time of day reasons? maybe.. The little landscaping biz near it looked weedy/overgrown.
    I saw the 2 gas stations, gave up on the shampoo notion, & went for the vacuum. I’ve bought gas at one station before,but never went inside, but I needed change. The guy behind the counter looked borderline emaciated & a lil wild-eyed which I typically attribute to drugs, though it can be illness or just a standard way of being. But he was apparently just an energy supplier per his shirt. The foreign counter person made way & indicated she couldn’t give change directly but took my $2 over to a guy who appeared manager and/or owner. He hesitated to give change w/o proof of prior gas fill, but did so.
    What I’m saying is, yes, the businesses were looking more dubious than previously.

  • df NJ

    Until the interest payment on the national debt exceeds taxable receipts nothing major is going to happen. We have a very long time before the printing of money stops working.

    We probably need to stop being USA focused and look at world debt as a percentage of world GDP for all the countries that are using the dollar as their primary currency.

    When everyone is saying a crash is going to happen it probably won’t. It may already be priced into the market. Maybe next year we will see a collapse when everyone is bullish.

    • Bill G Wilminton NC

      We are already financially finished and the ONLY reason the collapse has not happened is that the move to NEW WORLD ORDER is not ready yet. But when ready the plug will be pulled on the financial WORLD and this economic crises will make 1929 look like childs play.
      The markets are fake and propped up by fake money created out of thin air by the criminal cabal named the federal reserve which is not federal nor a reserve.
      We are in the last days of the end times and the Days of Noah are upon us.

  • MichaelfromTheEconomicCollapse

    On Thursday, I was a guest on Pastor Dan Catlin’s radio program. If you
    would like to listen to the full interview, you can find it here…



    • GetReal4U2


  • dlewenz

    What is even more alarming is the amount of capital the fed has injected into the banking system (4 Trillion) which is one reason the market is at an all time high. When the fed takes back the money or unwinds the balance sheet, and we do
    not have a significant GDP growth rate, the end result will be a major suffocation of the economy. Just as the fed will not increase interest rates this year, as everyone is predicting. “This is a another fine mess you got us into Laurel.”

  • Bill G Wilminton NC

    Sure looks like things could happen in Sept but God is in control. I am hoping for the Blessed Coming ( the Rapture ) in Sept on Feast of Trumpets sept 13 , 14 but if not I just wait as this world is sinking into the darkness very quickly as The Days of Noah. All in The Bible.

  • Antonio Ossa


    • Orange Jean

      To some extent true, but it still can affect you. I spent years living on next to nothing… and while I’m better off at the moment, I never got rid of that knowledge… and I have no illusions at all about how bad things can get when you have nothing.

    • Alwaystomorrow

      Okay. True. So either way you have nothing. No thank you.

  • JAY

    Harry Dent has been consistently right

  • GetReal4U2

    Where are things going to go from here?
    September approaches quickly…Blodget’s warning seems like he is letting everyone know a collapse is definitely coming coming without saying it…time is very short…

  • VigilanteCaregiver

    Hope everyone got prepared!

  • CharlesH

    Michael – Thanks again for another enlightening and informative article. What really makes my blood boil is that NO one in authority – government, civilian or on the news (tv) even remotely indicates anything is wrong with the economy. Everything is just fine and buzzing right along as if there isn’t a care in the world. Those people damn well know what’s going on and are doing all people a huge disservice by not being upfront and honest with them. So many people don’t have a clue what’s coming down the pike and that will only magnify the chaos that’s going to happen. It’s unnecessary and it’s evil.

  • Ronni

    Need some sound reliable advice on closing out my 401K.
    I don’t want to be rash, but don’t understand enough about what would happen if I leave it alone.

  • rat28

    Our unemployment rate just hit a 7 years low and the number of Americans filing initial applications for unemployment benefits fell to a 42-year low last week. Amazon sales also increase 20 percent.. All is well within the USA.. China problem is not our problem!

    • Gay Veteran

      what about the labor participation rate?
      check that out, it will melt your rose colored glasses

    • rentslave

      Amazon sales are up because the rich fear what will happen to them at the hands of the unemployed at the malls.

  • David Fuhriman

    Jim Rickards was a participant in a secret meeting of global financial ministers and government leaders. They said the dollar would be replaced by a global money by October 2015. This global money would include the Chinese Yuan. It’s lights out for the dollar.

  • Heinrich van Rooi

    And so did the US Markets dropped, Well I am not surprise not at all….

  • Denial is a powerful drug. It is the hope that ‘this time is different’ wrapped in a cloak of delusional groupthink helping to reduce the cognitive dissonance that would come from admitting the world is going to hell in a hand basket.

  • Josiewales

    Don’t know if it’s denial or if people are trying to just cope and lives their lives. I think that many are on anti-depressants and such to get through stress. I’ve been seeing weird things out there Lidge…… people doin all sorts of crazy stuff and what not. Driving fast, getting drunk, flipping off people, cuckoo clock anger out bursts. It’s taking a toll.

  • grumpyhillbilly

    Everything is clearer? I get the coming collapse and the geopolitical game being played. What baffles me is the mass illegal immigration of primarily young males being thrust on western nations. What scheme being played?

  • Daniel Diggins

    intrigueing times ahead for sure .

  • cloutierfamily

    This is a self-fulfilling prophesy. Could you make another choice to not crash the economy instead…?

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