It would be a grave mistake to understate the amount of damage that has been done to the U.S. economy over the past eight years. In this article, I am going to share some economic numbers with you that are extremely sobering. Anyone that takes a cold, hard, honest look at the numbers should be able to see that our economy is in terrible shape. Unfortunately, the way that we see things is often clouded by our political views. Up until the election, Democrats were far more likely then Republicans to believe that the economy was improving, but now that is in the process of completely reversing. According to Gallup, only 16 percent of Republicans believed that the economy was getting better before the election, but that number has suddenly jumped to 49 percent after Trump’s election victory. And the percentage of Democrats that believe that the economy is getting better fell from 61 percent to 46 percent after the election. Here are some additional details from Gallup…
After Trump won last week’s election, Republicans and Republican-leaning independents now have a much more optimistic view of the U.S. economy’s outlook than they did before the election. Just 16% of Republicans said the economy was getting better in the week before the election, while 81% said it was getting worse. Since the election, 49% say it is getting better and 44% worse.
Conversely, Democrats and Democratic-leaning independents’ confidence in the economy plummeted after the election. Before the election, 61% of Democrats said the economy was getting better and 35% worse. Now, Democrats are evenly divided, with 46% saying it is getting better and 47% saying it is getting worse.
The truth, of course, is that the result of the election did not somehow magically alter the outlook for the U.S. economy.
We still have a giant mess on our hands, and the following are 11 very depressing economic realities that Donald Trump will inherit from Barack Obama…
#1 Nearly 7 out of every 10 Americans have less than $1,000 in savings. That means that about two-thirds of the country is essentially living paycheck to paycheck at this moment.
#2 Reuters is reporting that U.S. mall investors are poised to lose “billions” of dollars as the “retail apocalypse” in this nation deepens.
#3 Credit card delinquencies have hit the highest level that we have seen since 2012.
#4 Approximately 35 percent of all Americans have a debt that is at least 180 days past due.
#5 The rate of homeownership has fallen for eight years in a row and is now hovering near a 50 year low.
#6 The total number of government employees now outnumbers the total number of manufacturing employees in this country by almost 10 million.
#7 The number of homeless people in New York City (where Donald Trump is from) has hit a brand new record high.
#8 About 20 percent of all young adults are currently living with their parents.
#9 Total household debt in the United States has now reached a grand total of 12.3 trillion dollars.
#10 The total amount of corporate debt in the U.S. has nearly doubled since the end of 2007.
#11 When Barack Obama entered the White House, the U.S. government was 10.6 trillion dollars in debt. Today, the U.S. national debt is currently sitting at a staggering total of $19,842,173,949,869.58.
Despite nearly doubling the national debt during his eight years in the White House, Barack Obama is going to be the only president in United States history to never have a single year when U.S. GDP grew by at least three percent.
So will Donald Trump waltz in and suddenly turn everything around?
Just like when George W. Bush was elected, there is a lot of optimism about the future right now among Republicans.
And in 2017, Republicans are going to have control of the Senate and the House in addition to being in control of the White House.
But does that mean that they will actually get anything done?
For a moment, let’s review what didn’t happen the last time the Republicans were in this position. The following is an extended excerpt from an article by author Devvy Kidd…
The Republicans had control of both houses of Congress part of the time during Bush, Jr.’s two terms. Did they lock down our borders? NO.
Did they pass legislation to stop ALL funding for illegals which would self-deport millions of liars, cheats and thieves? NO. (READ, please: How to Self-Deport Millions of Illegals)
Did they stop trillions in unconstitutional spending? NO.
Did they get rid of any of Clinton’s unconstitutional Executive Orders? One or two but otherwise let Comrade Bill Clinton crap in our faces.
Did they get rid of one unconstitutional cabinet like HHS, Department of Education and EPA? NO.
Did they stop the unconstitutional foreign aid? NO.
Did they stop unconstitutional spending for Planned Parenthood? NO. Congress just continues to use borrowed money to spend more debt.
Did they stop unconstitutional spending for the gigantic hoax called global warming or climate change? NO. Trump: The Left Just Lost The War On Climate Change
Did Bush, Jr., get us out of all the destructive trade treaties killing American jobs? NO.
Did they crack down on visas bringing in tens of thousands of foreign workers when American workers who want to work are left in the unemployment line? NO.
Did they stop more and more federal regulations strangling America’s businesses? NO.
Did they impeach one single activist judge destroying our freedom and liberty? NO.
A Republican controlled Congress with a Republican in the White House and they did virtually NOTHING to restore America to a constitutional republic and constitutional spending.
So will things be any different under a Trump administration?
We shall see.
There will be tremendous pressure to maintain the status quo in many instances, because the process of fixing things would undoubtedly make conditions worse in the short-term.
A great example of this is the national debt. As I discussed yesterday, the only reason why we are able to enjoy such a massively inflated standard of living in this country is because we have been able to borrow trillions upon trillions of dollars from the rest of the world at ultra-low interest rates.
If the federal government started spending only the money that it brought in through taxes, our ridiculous debt-fueled standard of living would begin collapsing immediately.
We consume far more wealth than we produce, and the only way that we are able to do this is by borrowing insane amounts of money.
Either Donald Trump will continue to borrow money recklessly, or we will go into a major league economic downturn.
It really is that simple.
But when our politicians borrow money, they are literally destroying the future of this country. So the choice is pain in the short-term or greater pain in the long-term.
There is a way out, and that would involve shutting down the Federal Reserve and going to a completely debt-free form of money, but that is a topic for another article.
And unfortunately that is not something that is even on Donald Trump’s radar at this point.
No matter who won the election, the next president was going to be faced with some very harsh economic realities.
There are many out there that have faith that Donald Trump can pull off an unprecedented economic miracle, but there are others that are deeply skeptical.
Let us hope for the best, but let us also keep preparing for the worst.
I hope that I am wrong. On Tuesday night we will find out who our next president will be, and I have a very ominous feeling about what is going to happen. But all around me there are people telling me that Trump is going to win. They tell me to disregard the polls because they cannot be trusted, and that very well may be true. They tell me that new voters and independent voters will overwhelmingly vote for Trump, and they tell me that it is obvious that Trump has more enthusiasm for his campaign because of the size of his rallies. I have even heard some people say that God told them that Donald Trump is going to win the election. Well, we will find out on Tuesday night who was right and who was wrong. Personally, I don’t know what is going to happen, but I am quite skeptical of Trump’s chances and I can’t shake this ominous feeling about what Tuesday night will bring.
Even if Trump could legitimately get the votes that he needs, would the elite just stand by and allow him to win the election? There was evidence of widespread fraud in the last election, and there have already been reports of vote switching in this election. Bev Harris of blackboxvoting.org has been documenting how our elections have been stolen for many years, and at this point I have very little faith in the integrity of our system.
But I still voted.
Early voting is available where I live, and on Friday I voted for Donald Trump.
I just wish that I could believe that my vote is going to matter. On Sunday we got another glaring example of how rigged the system is. In a letter to Congress, FBI Director James Comey announced that his agency is ending the investigation into Hillary Clinton’s emails. By some miracle, the FBI was able to examine approximately 650,000 emails in just eight days. But there are only 691,200 seconds in eight days. So the FBI somehow reviewed these emails at the rate of about one every second, and now they have conveniently come to the conclusion that Hillary Clinton is totally innocent just two days before the election.
When this story broke, it really did hit me on an emotional level, and I already detailed my thoughts in an article for The Most Important News entitled “I Just Lost All Faith In Our Deeply Corrupt Legal System And In The Rule Of Law In The United States“. I don’t know how any American is going to be able to have faith in our system of justice after this. We truly do live in a lawless nation, and if the American people elect Hillary Clinton they are willingly choosing lawlessness.
But let’s pretend for a moment that our elections are completely and totally fair and that Donald Trump has an honest chance. Even though the polls have tightened up over the past week, it is still very difficult to see a path to victory for Trump.
Virtually everyone agrees that the electoral map gives the Democrats a built-in advantage. In order to win the election, Donald Trump is going to have to win all of the “battleground states” plus steal a mid-size state from Hillary’s column.
For Hillary, there are many paths to victory for her.
If Hillary Clinton wins Florida, she wins the election.
If Hillary Clinton wins Ohio, she wins the election.
If Hillary Clinton wins North Carolina or Arizona, she almost certainly wins the election.
In order for Donald Trump to win, he has got to win Florida, Georgia, North Carolina, Ohio, Iowa, Arizona, Nevada and either Pennsylvania or Michigan.
Of course that is possible, but it is not probable even if the fight was fair.
And apparently I am not the only one that has an ominous feeling about what is coming. NBC News is reporting on a tremendous surge in emergency food sales as preppers get ready for the outcome of this election…
In case of an election night Doomsday, preppers are running up sales of emergency survival food.
While sales for “long term food” typically see an increase around natural disasters and elections, “this is more intense than what we saw in 2012,” said Keith Bansemer, VP of marketing for My Patriot Supply, a manufacturer and seller of survival food. During the previous election his company saw sales double. This time it’s triple.
“We have everyone we can on the phones,” he said. “We are overwhelmed.”
And a Yahoo article is warning that militia groups “are preparing for the possibility of a stolen election”…
As the most divisive presidential election in recent memory nears its conclusion, some armed militia groups are preparing for the possibility of a stolen election on Nov. 8 and civil unrest in the days following a victory by Democrat Hillary Clinton.
They say they won’t fire the first shot, but they’re not planning to leave their guns at home, either.
Tens of millions of Americans are very deeply emotionally invested in this campaign, and undoubtedly some of my readers will get upset with me for writing this article.
But I am not writing this article to get people down. In fact, I am strongly urging everyone to vote.
If you don’t vote now, you may never get a chance to vote in a pivotal election such as this one ever again.
And everyone needs to be watching for signs of election fraud when they go to vote. People are freaked out about the potential for a stolen election because of what has happened in the past, and we want to do our very best to make sure that it doesn’t happen this time.
If Donald Trump wins on Tuesday, I will be very, very happy to have been proven wrong.
And if Hillary Clinton wins, I will take absolutely no joy in being right.
I truly do believe that this election represents America’s “last chance”. The most evil politician in the entire country is on the verge of becoming our next president, and the American people have a decision to make.
If the American people willingly choose Hillary Clinton, I believe that will be the final nail in our coffin.
So please vote on Tuesday, because the fate of our nation hangs in the balance.
An epidemic of creepy clown sightings is sweeping America, and authorities don’t know who or what is behind it. In some instances, clowns with horrific expressions painted on their faces have been spotted standing on the side of the road, lurking near the edge of the woods or just roaming about town staring at random people. But in other instances there have been reports of clowns actually attempting to lure children with gifts, and there have even been some reports of children running away from creepy clowns that were chasing after them. While doing research for this article, I came across recent creepy clown sightings from South Carolina, North Carolina, Ohio, Florida, Wisconsin, California, Alabama, Georgia and West Virginia. This is truly a nationwide phenomenon, and many believe that it will get even worse as Halloween approaches.
This creepy clown trend appears to have begun with a very disturbing case at an apartment complex in South Carolina…
Donna Arnold, one of the people residing at the complex who received the letter, said she called the Greenville County Sheriff’s Office to come out to Fleetwood Manor after her son and others reported seeing clowns behind the basketball court.
“I thought my child was seeing things,” Arnold said. “And then the next day I had about 30 kids come up to me and say, ‘Did you see the clown in the woods?”
Community activist Bruce Wilson said he is getting involved at the apartments to make sure children are safe, even if the sightings turn out to be harmless.
Authorities say that their investigation into this incident found that the clowns were approaching children with the intent “to persuade them into the woods further by displaying large amounts of money“.
At least one child that personally interacted with these clowns testified “that they had candy and they would give it to them if they came there“.
Whether people are dressed as clowns or not, attempting to abduct children in no joke.
Unsurprisingly, this case made national headlines, and at that point it appears that a whole host of copycats started to come out of the woodwork. The following is how an article in the Week summarized what happened next…
A week later, a boy at an apartment ten miles away reported seeing a man in a clown mask in the woods near his home. Later that night, a boy at an apartment just three miles from Fleetwood Manor reported seeing another clown. That apartment also sits on the edge of a wooded area. There was another local sighting the next day. The following day, a woman told police she saw a clown standing outside a Greenville laundromat, simply staring at her.
By then, the clowns had begun to mobilize. The previous day, a 14-year-old boy in Columbus, Ohio, said that a man wearing a clown mask chased him with a knife while the boy was walking to his school bus stop. Less than a week later, on Sept. 5, two children in Winston-Salem, N.C., claimed a clown was offering candy, as long as they would follow him into the woods. Later that night, a woman in the area claimed that a clown tried to coax her into the woods, except this one was carrying a machete. He wore black gloves and a black tie. The next morning, in the nearby town of Greensboro, a man said he saw a clown in the woods behind his apartment. Yellow polka-dotted shirt, blue pants.
Since that time the creepy clown sightings have not stopped, and one of the most alarming incidents of all just took place in McDuffie County, Georgia…
“It was this morning at 6:30 when we were leaving at the house,” said Cameron Frails, who saw the clown.
But as Frails and his neighbor, Hannah Rice, started walking, they noticed something.
“I was standing over there,” said Rice. “And I was like, ‘who’s that guy following Cameron?'”
“We saw a man with all black on, clown mask and a red wig,” said Frails.
They said they saw at least two men dressed in all black coming toward them between two trailers, so they started running.
But that isn’t the only report of these creepy clowns trying to chase down children. Here is another one from Georgia…
According to the police report, the woman said the children told her they were leaving the community center as it was getting dark Monday evening when five people dressed as clowns and wearing masks emerged from a white panel van and began chasing them.
The 48-year-old woman also told police she saw a white panel van slowly driving past her home prior to the supposed incident at the community center around the corner, on McKinley Drive.
A lot of the copycats out there may be doing this sort of thing as a prank, but law enforcement authorities are beginning to take this threat very seriously.
In fact, Time Magazine is reporting that two schools in Alabama “were put on lockdown” on Friday due to threats from a group known as “Flomo Clowns”…
Two southern Alabama schools were put on lockdown Friday because of threatening Facebook messages and emojis posted on the now-deleted page of a group called the ‘Flomo Klowns.’
The sinister Facebook messages said “It’s going down tonight,” followed by revolver emojis, and “I love kids.” A parent also contacted the Flomaton Police Department to say her child had been sent threatening messages by the group.
The entrances to Flomaton High School, which has around 400 students, and Flomaton Elementary School, which has about 300, were locked, as well as internal doors. Local officers and sheriff deputies secured the school grounds and searched the area, AL reports.
I think that this is another example of how sick and twisted our society has become. There are a lot of unbalanced people out there that get a thrill from spreading terror, and the initial clown stories have inspired them to capitalize on this trend.
If you are able to take a photograph or some video of these creepy clowns, please feel free to contact me. “Killer clown” costumes are always extremely popular during the Halloween season, and I have a feeling that this wave of terror is only going to intensify as we approach the end of October.
One photograph of a creepy clown that was taken on Simmons River Road near Duhring, West Virginia has gotten a lot of attention on social media. It was originally posted by Karen Mann Hicks on Facebook, and you can view it right here…
Hopefully this creepy clown craze will soon fade, but it is a quick way for deeply disturbed individuals to “get on the news”, and so it seems likely that there will be even more copycats.
But those that are tempted to dress up like creepy clowns and terrorize children should be aware that police all over the nation are taking this very seriously, and arrests will likely be made at the first sign of trouble.
Why are so many men in their prime working years unemployed? The Obama administration would have us believe that unemployment is low in this country, but that is not true at all. In fact, one author quoted by NPR says that “it’s kind of worse than it was in the depression in 1940″. Most Americans don’t realize this, but more men from ages 25 to 54 are “inactive” right now than was the case during the last recession. We have millions upon millions of strong young men just sitting around doing nothing. They aren’t employed and they aren’t considered to be looking for employment either, and so they don’t show up in the official unemployment numbers. But they don’t have jobs, and nothing the Obama administration does can eliminate that fact.
According to NPR, “nearly 100 percent of men between the ages of 25 and 54 worked” in the 1960s.
In those days, just about any dependable, hard working American man could get hired almost immediately. The economy was growing and the demand for labor was seemingly insatiable.
But today, one out of every six men in their prime working years does not have a job…
In a recent report, President Obama’s Council of Economic Advisers said 83 percent of men in the prime working ages of 25-54 who were not in the labor force had not worked in the previous year. So, essentially, 10 million men are missing from the workforce.
“One in six prime-age guys has no job; it’s kind of worse than it was in the depression in 1940,” says Nicholas Eberstadt, an economic and demographic researcher at American Enterprise Institute who wrote the book Men Without Work: America’s Invisible Crisis. He says these men aren’t even counted among the jobless, because they aren’t seeking work.
So why is this happening?
If you look at the inactivity rate for men in the 25 to 54 age bracket, it was sitting at just 8.1 percent in January 2000.
In January 2008, right at the beginning of the last recession, it was sitting at 9.2 percent, and by the end of the recession it had risen to 10.3 percent.
Today, it is sitting at 11.5 percent.
Remember, these are men that don’t even count toward the official unemployment rate. They are not working, but they are not considered to be “looking for work” either.
So what are these men doing?
You may be tempted to think that many of them have decided to stay home and raise the kids as their wives go off to work. But according to NPR, that is not what is happening…
What the missing men aren’t doing in large numbers is staying home to take care of family. Forty percent of nonworking women are primary caregivers; that’s true of only 5 percent of men out of the workforce.
We do have the largest prison population in the entire world by far, and without a doubt that does play a role in these numbers. However, a far bigger factor is the millions of men that have become content being dependents of the federal government. More than 100 million Americans receive money from the government each month, and a lot of people (both men and women) have found that it is just easier to sit back and collect government checks than it is to go out and try to work hard for a living.
But of course the number one factor is the lack of jobs available. I personally know people that have been looking for work in their fields for years and have not been able to get hired. We have a major employment crisis in this nation, and it is only going to get worse in the years ahead as we continue to lose jobs to technology and millions more good jobs get shipped overseas.
And a lot of the “jobs” that have been created during the Obama administration have been very low quality jobs. Since December 2014, we have gained about half a million jobs for waiters and bartenders, but meanwhile we have actually lost good paying manufacturing jobs. If we continue down this road, the middle class will continue to shrink.
In addition to everything that I have just shared, here are some other facts that are pertinent to this discussion…
-Right at this moment, there are approximately 102 million working age Americans that do not have a job.
-Nearly one out of every five young adults are currently living with their parents.
-The Wall Street Journal recently declared that this is the weakest “economic recovery” since 1949.
-Barack Obama is on track to be the only president in U.S. history to never have a single year when the U.S. economy grew by at least 3 percent.
The economy is far weaker than you are being told, the employment crisis is far worse than you are being told, and as I mentioned yesterday, the stage is clearly set for a new financial crisis of epic proportions.
And if we are going to see markets crash, this time of the year is a good time for it. In fact, CNBC says that history tells us that this is the “worst period of the year for stocks”…
The worst period of the year for stocks has just begun — at least based on market history.
Over the entire 120-year history of the Dow Jones industrial average, Sept. 6 to Oct. 29 tends to be the worst period for the market. And more specifically, the last few weeks of September have been an especially bad time.
Someday when people look back at this time in history, they will not be surprised by how horrific the coming collapse will be. The truth is that anyone with a lick of common sense can see that the greatest debt bubble in the history of the world is going to end badly.
No, what is going to amaze them is that the system was able to hold together as long as it did. It truly is incredible that the debt-based, fiat currency Ponzi scheme that the central banks of the world have been desperately trying to prop up has been able to keep chugging along all the way to the middle of 2016.
How much longer can they keep the magic going?
I don’t know, but history tells us that time is not on their side…
On June 23rd, a vote will be held in the United Kingdom to determine if Britain will stay in the European Union or not. This is most commonly known as the “Brexit” vote, and that term was created by combining the words “Britain” and “exit”. If the UK votes to stay in the European Union, things over in Europe will continue on pretty much as they have been. But if the UK votes to leave, it will likely throw the entire continent into a state of economic and financial chaos. And considering how bad the European economy is already, this could be the trigger that plunges Europe into a full-blown depression.
So if things will likely be much worse in the short-term if Britain leaves the EU, then it makes sense for everyone to vote to stay, right?
Unfortunately, it isn’t that simple. Because this choice is not about short-term economics. Rather, the choice is about long-term freedom.
The EU is a horribly anti-democratic bureaucratic monstrosity that is suffocating the life out of most of Europe a little bit more with each passing year. So if I was British, I would most definitely be voting to leave the EU.
And in recent days, the campaign to leave has been rapidly picking up steam. In fact, two of the latest major surveys show that “leave” has taken the lead…
An ORB poll for the Telegraph showed 48 percent of Britons would vote to remain in the European Union, while 49 percent would vote to leave.
A YouGov poll for the Times of London showed 46 percent preferred to leave, while 39 percent wanted to remain.
Two other recent polls have “leave” ahead by 10 points, and there is another that actually has “leave” winning by 19 points.
The “leave” movement got a big boost just recently when the Sun officially endorsed that position. The following is an excerpt from the editorial that announced this decision…
WE are about to make the biggest political decision of our lives. The Sun urges everyone to vote LEAVE.
We must set ourselves free from dictatorial Brussels.
Throughout our 43-year membership of the European Union it has proved increasingly greedy, wasteful, bullying and breathtakingly incompetent in a crisis.
Next Thursday, at the ballot box, we can correct this huge and historic mistake.
It is our last chance. Because, be in no doubt, our future looks far bleaker if we stay in.
I must say that I agree entirely with the Sun. However, everyone needs to understand that a Brexit would be incredibly painful for the UK and for the rest of Europe in the short-term. I think that Ambrose Evans-Pritchard of the Telegraph made this point very well in his recent column…
Let there be no illusion about the trauma of Brexit. Anybody who claims that Britain can lightly disengage after 43 years enmeshed in EU affairs is a charlatan or a dreamer, or has little contact with the realities of global finance and geopolitics.
So what could we potentially see happen?
Well, for one thing big banks like Morgan Stanley are warning that the euro and the British pound could take big hits…
The pound and the euro will be hit on a Leave vote, but even if Britain decides to stay in the EU, there will be only “modest gains.” Morgan Stanley expects the pound “to weaken immediately on a vote to Leave, but by year-end we think Euro could weaken even more.”
Secondly, there is a very strong probability that financial markets all over Europe could horribly crash, and the European Central Bank and the Bank of England are already promising to provide artificial support for the markets if that happens. The following comes from Reuters…
The European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union, officials with knowledge of the matter told Reuters.
The preparations illustrate the heightened state of alert ahead of the June 23 referendum, which will help determine Britain’s future in trade and world affairs and also shape the EU. The pound and euro have lost value on fears a Brexit could tip the 28-member bloc into recession.
Such an announcement from the ECB would come on June 24 if an early-morning result showed that British voters had chosen to leave the EU, according to the sources.
But no matter what the consequences are, British voters should do what is right for their future and for the future of their children.
If that means leaving the EU, then so be it.
Needless to say, the prospect of “leave” winning has many among the European elite in full-blown panic mode. For instance, just consider what the current chairman of the Bilderberg Group is saying…
Just day after their mysterious annual meeting in Dresden, it appears The Bilderberg Group’s gravest concern is Brexit. While everything from The Middle East to Donald Trump was on the agenda, the remarks this week from AXA CEO (and Chairman of The Bilderberg Group) Henri de Castries that there is an “extremely high” probability that the U.K. will vote to leave the European Union and investors will face “a true landscape of uncertainties,” suggest the establishment is concerned.
If you are not familiar with the Bilderberg Group, please see my recent article on them. Certainly the potential of a coming “Brexit” was high on the list of priorities during their recent conference, and it has been documented that the Bilderberg Group played a key role in the creation of the European Union in the first place. So of course they are not exactly pleased that their grand experiment may now be unraveling right in front of their eyes.
Meanwhile, even without taking into account a potential “Brexit” things just continue to steadily get worse over in Europe. On Tuesday, European stocks hit their lowest levels since the stock market crash that ended in February, and the stocks of both Deutsche Bank and Credit Suisse hit all-time record lows…
The truth is that those extremely prominent European banks are headed for a collapse even without a “Brexit”. But if there is a “leave” vote, that will just accelerate the process.
And let us not forget that major stock indexes all over Europe are already in a bear market…
Meanwhile, German stocks are in a bear-market, with the DAX down 23.2% from its April 2015 peak. The French CAC 40 is down 21.8%. The Spanish Ibex 35 and the Italian MIB are down 31.4% and 32.6% respectively.
Here in the United States, the smart money is dumping stocks like crazy right now, and major investors such as George Soros are feverishly buying gold.
So why are these things happening?
Do those “in the know” have some information regarding what is about to happen over in Europe?
For a long time, I have been sounding the alarm about Europe. If the British people vote to stay in the European Union on June 23rd, the crisis in Europe will certainly continue to escalate, it will just be at a slower pace. But if the British people vote to leave (which they should) that could be the trigger that changes everything.
I don’t know exactly what is going to happen on the 23rd, but without a doubt we should all be watching the outcome very, very closely…
*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*
We continue to get more evidence that the U.S. economy has entered a major downturn. Just last week, I wrote about how U.S. GDP growth numbers have been declining for three quarters in a row, and previously I wrote about how corporate defaults have surged to their highest level since the last financial crisis. Well, now we are getting some very depressing numbers from the rail industry. As you will see below, U.S. rail traffic was down more than 11 percent from a year ago in April. That is an absolutely catastrophic number, and the U.S. rail industry is feeling an enormous amount of pain right now. This also tells us that “the real economy” is really slowing down, because less stuff is being shipped by rail all over the nation.
One of the economic commentators that I have really come to respect is Wolf Richter of WolfStreet.com. He has a really sharp eye for what is really going on in the economy and in the financial world, and I find myself quoting him more and more as time goes by. If you have not checked out his site yet, I very much encourage you to do so.
On Wednesday, he posted a very alarming article about what is happening to our rail industry. The kinds of numbers that we have been seeing recently are the kinds of numbers that we would expect if an economic depression was starting. The following is an excerpt from that article…
Total US rail traffic in April plunged 11.8% from a year ago, the Association of American Railroads reported today. Carloads of bulk commodities such as coal, oil, grains, and chemicals plummeted 16.1% to 944,339 units.
The coal industry is in a horrible condition and cannot compete with US natural gas at current prices. Coal-fired power plants are being retired. Demand for steam coal is plunging. Major US coal miners – even the largest one – are now bankrupt. So in April, carloads of coal plummeted 40% from the already beaten-down levels a year ago.
Because rail traffic is down so dramatically, many operators have large numbers of engines that are just sitting around collecting dust. In his article, Wolf Richter shared photographs from Google Earth that show some of the 292 Union Pacific engines that are sitting in the middle of the Arizona desert doing absolutely nothing. The following is one of those photographs…
As Wolf Richter pointed out, it costs a lot of money for these engines to just sit there doing nothing…
These engines are expensive pieces of equipment. When they just sit there, not pulling trains, they become “overcapacity,” and they get very expensive. Then there are engineers and other personnel who suddenly become unproductive. Some of them have already been laid off or are getting laid off.
All over the world, similar numbers are coming in. For example, the Baltic Dry Index fell 30 more points on Wednesday after falling 21 on Tuesday. Global trade is really, really slowing down during the early portion of 2016. What this means on a practical level is that a lot less stuff is being bought, sold and shipped around the planet.
It is becoming increasingly difficult for authorities to deny that a new global recession has begun, and at this moment we are only in the very early chapters of this new crisis.
Another thing that I watch very closely is the velocity of money. When an economy is healthy, people feel pretty good about things and money tends to circulate fairly rapidly. For example, I may buy something from you, then you may buy something from someone else, etc.
But when times get tough, people tend to hold on to their money more tightly, and that is why the velocity of money goes down when recessions hit. In the chart below, the shaded areas represent recessions, and you can see that the velocity of money has declined during every single recession in the post-World War II era…
During the last recession, the velocity of money declined precipitously, and that makes perfect sense. But then a funny thing happened. There was a slight bump up once the recession was over, but then it turned down again and it has kept going down ever since.
In fact, the velocity of money has now dropped to an all-time low. The velocity of M2 just recently dipped below 1.5 for the first time ever.
This is not a sign of an “economic recovery”. What this tells us is that our economy is very, very sick.
And we can see evidence of this sickness all around us. For instance, the Los Angeles Times is reporting that homelessness in Los Angeles increased by 11 percent last year, and this marked the fourth year in a row that homelessness in the city has increased…
Homelessness rose 11% in the city of Los Angeles and 5.7% in the county last year despite an intensive federal push that slashed the county ranks of homeless veterans by nearly a third, according to a report released Wednesday.
The increase marks the fourth consecutive year of rising homelessness in L.A., as local officials struggle to identify funding for billion-dollar plans they approved to solve the nation’s most intractable homeless problem.
Let us also not forget that about half the country is basically flat broke at this point.
Just recently, the Federal Reserve found that 47 percent of all Americans could not pay an unexpected $400 emergency room bill without selling something or borrowing the money from somewhere.
With numbers such as these being reported, how in the world can anyone possibly claim that the U.S. economy is in good shape?
It boggles the mind, and yet there are people out there that would actually have you believe that everything is just fine.
The current occupant of the White House is one of them.
With each passing month, the real economy is getting even worse. We may not have slipped into a full-blown economic depression just yet, but it is coming.
For now, let us be thankful for whatever remains of our debt-fueled prosperity, because we don’t deserve the massively inflated standard of living that we have been enjoying.
We have been consuming far more than we produce for decades, but it won’t last for much longer. And when those days are gone for good, we will mourn them bitterly.
Ten years ago, a major Hollywood film entitled “Idiocracy” was released, and it was an excellent metaphor for what would happen to America over the course of the next decade. In the movie, an “average American” wakes up 500 years in the future only to discover that he is the most intelligent person by far in the “dumbed down” society that he suddenly finds himself in. Sadly, I truly believe that if people of average intellect from the 1950s and 1960s were transported to 2016, they would likely be considered mental giants compared to the rest of us. We have a country where criminals are being paid $1000 a month not to shoot people, and the highest paid public employee in more than half the states is a football coach. Hardly anyone takes time to read a book anymore, and yet the average American spends 302 minutes a day watching television. 75 percent of our young adults cannot find Israel on a map of the Middle East, but they sure know how to find smut on the Internet. It may be hard to believe, but there are more than 4 million adult websites on the Internet today, and they get more traffic than Netflix, Amazon and Twitter combined.
What in the world has happened to us? How is it possible that we have become so stupid? According to a brand new report that was recently released, almost 10 percent of our college graduates believe that Judge Judy is on the Supreme Court…
The American Council of Trustees and Alumni publishes occasional reports on what college students know.
Nearly 10 percent of the college graduates surveyed thought Judith Sheindlin, TV’s “Judge Judy,” is a member of the U.S. Supreme Court. Less than 20 percent of the college graduates knew the effect of the Emancipation Proclamation. More than a quarter of the college graduates did not know Franklin D. Roosevelt was president during World War II; one-third did not know he was the president who spearheaded the New Deal.
It can be tempting to laugh at numbers like these until you realize that survey after survey has come up with similar results.
Just consider what Newsweek found a few years ago…
When NEWSWEEK recently asked 1,000 U.S. citizens to take America’s official citizenship test, 29 percent couldn’t name the vice president. Seventy-three percent couldn’t correctly say why we fought the Cold War. Forty-four percent were unable to define the Bill of Rights. And 6 percent couldn’t even circle Independence Day on a calendar.
Even worse were the extremely depressing results of a study conducted a few years ago by Common Core…
*Only 43 percent of all U.S. high school students knew that the Civil War was fought some time between 1850 and 1900.
*More than a quarter of all U.S. high school students thought that Christopher Columbus made his famous voyage across the Atlantic Ocean after the year 1750.
*Approximately a third of all U.S. high school students did not know that the Bill of Rights guarantees freedom of speech and freedom of religion.
*Only 60 percent of all U.S. students knew that World War I was fought some time between 1900 and 1950.
Of course survey results can be skewed, and much hinges on how the questions are asked.
However, even studies that are scientifically conducted confirm how stupid America has become. In fact, a report from the Educational Testing Service found that Americans are falling way behind much of the rest of the industrialized world. The following comes from CBS News…
Americans born after 1980 are lagging their peers in countries ranging from Australia to Estonia, according to a new report from researchers at the Educational Testing Service (ETS). The study looked at scores for literacy and numeracy from a test called the Program for the International Assessment of Adult Competencies, which tested the abilities of people in 22 countries.
The results are sobering, with dire implications for America. It hints that students may be falling behind not only in their early educational years but at the college level. Even though more Americans between the ages of 20 to 34 are achieving higher levels of education, they’re still falling behind their cohorts in other countries. In Japan, Finland and the Netherlands, young adults with only a high school degree scored on par with American Millennials holding four-year college degrees, the report said.
Out of 22 countries that were part of the study, the Educational Testing Service found that Americans were dead last in tech proficiency, dead last in numeracy and only two countries performed worse than us when it came to literacy proficiency…
Half of American Millennials score below the minimum standard of literacy proficiency. Only two countries scored worse by that measure: Italy (60 percent) and Spain (59 percent). The results were even worse for numeracy, with almost two-thirds of American Millennials failing to meet the minimum standard for understanding and working with numbers. That placed U.S. Millennials dead last for numeracy among the study’s 22 developed countries.
So why has this happened?
Why have we become such an extremely stupid nation?
Well, at least a portion of the blame must be directed at our system of education. The following is an excerpt from an article written by reporter Mark Morford. In this article, he shared how one of his friends which had served for a very long time as a high school teacher in Oakland, California was considering moving out of the country when he retired due to the relentless “dumb-ification of the American brain”…
It’s gotten so bad that, as my friend nears retirement, he says he is very seriously considering moving out of the country so as to escape what he sees will be the surefire collapse of functioning American society in the next handful of years due to the absolutely irrefutable destruction, the shocking — and nearly hopeless — dumb-ification of the American brain. It is just that bad.
Now, you may think he’s merely a curmudgeon, a tired old teacher who stopped caring long ago. Not true. Teaching is his life. He says he loves his students, loves education and learning and watching young minds awaken. Problem is, he is seeing much less of it.
And of course things don’t get much better when it comes to our college students. In a previous article, I shared some statistics from USA Today about the rapidly declining state of college education in the United States…
-“After two years in college, 45% of students showed no significant gains in learning; after four years, 36% showed little change.”
-“Students also spent 50% less time studying compared with students a few decades ago”
-“35% of students report spending five or fewer hours per week studying alone.”
-“50% said they never took a class in a typical semester where they wrote more than 20 pages”
-“32% never took a course in a typical semester where they read more than 40 pages per week.”
I spent eight years studying at some of the finest public universities in the country, and I can tell you from personal experience that even our most challenging college courses have been pathetically dumbed down.
And at our “less than finest” public universities, the level of education can be something of a bad joke. In another previous article, I shared some examples of actual courses that have been taught at U.S. universities in recent years…
-“What If Harry Potter Is Real?”
-“Lady Gaga and the Sociology of Fame”
-“Philosophy And Star Trek”
-“Learning From YouTube”
-“How To Watch Television”
Could you imagine getting actual college credit for a course entitled “What If Harry Potter Is Real?”
This is why many of our college graduates can barely put two sentences together. They aren’t being challenged, and the quality of the education most of them are receiving is incredibly poor.
But even though they aren’t being challenged, students are taking longer to get through college than ever. Federal statistics reveal that only 36 percent of all full-time students receive a bachelor’s degree within four years, and only 77 percent of all full-time students have earned a bachelor’s degree by the end of six years.
Of course our system of education is not entirely to blame. The truth is that young Americans spend far more time consuming media than they do hitting the books, and what passes for “entertainment” these days is rapidly turning their brains to mush.
According to a report put out by Nielsen, this is how much time the average American spends consuming media on various devices each day…
Watching live television: 4 hours, 32 minutes
Watching time-shifted television: 30 minutes
Listening to the radio: 2 hours, 44 minutes
Using a smartphone: 1 hour, 33 minutes
Using Internet on a computer: 1 hour, 6 minutes
When you add it all up, the average American spends more than 10 hours a day plugged into some form of media.
And if you allow anyone to pump “programming” into your mind for 10 hours a day, it is going to have a dramatic impact.
In the end, I truly believe that we all greatly underestimate the influence that the mainstream media has on all of us. We willingly plug into “the Matrix” for endless hours, but then somehow we still expect “to think for ourselves”.
There are very few of us that can say that we have not been exposed to thousands upon thousands of hours of conditioning. And all of that garbage can make it very, very difficult to think clearly.
It is not because of a lack of input that we have become so stupid as a society. The big problem is what we are putting into our minds.
If we continue to put garbage in, we are going to continue to get garbage out, and that is the cold, hard reality of the matter.
We just got more evidence that global trade is absolutely imploding. Chinese exports dropped 25.4 percent during the month of February compared to a year ago, and Chinese imports fell 13.8 percent compared to a year ago. For Chinese exports, that was the worst decline that we have seen since 2009, and Chinese imports have now fallen for 16 months in a row on a year over year basis. The last time we saw numbers like this, we were in the depths of the worst economic downturn since the Great Depression of the 1930s. China accounts for more global trade than any other nation (including the United States), and so this is a major red flag. Anyone that is saying that the global economy is in “good shape” is clearly not paying attention.
If someone would have told me a year ago that Chinese exports would be 25 percent lower next February, I would not have believed it. This is not just a slowdown – this is a historic implosion. The following comes from Zero Hedge…
Things are not getting better in China as Exports crashed 25.4% YoY (the 3rd largest drop in history), almost double the 14.5% expectation and Imports tumbled 13.8%, the 16th month of YoY decline – the longest ever. Altogether this sent the trade surplus down to $32.6bn (missing expectations of $51bn) to 11-month lows.
So much for that whole “devalue yourself to export growth” idea…
I don’t know how anyone can possibly dismiss the importance of these numbers. As you can see, this is not just a one month aberration. Chinese trade numbers have been declining for months, and that decline appears to be accelerating.
Another very interesting piece of news that has come out in recent days regards the massive layoffs that are coming at state industries in China. According to Reuters, five to six million Chinese workers are going to be losing their jobs during this transition…
China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, two reliable sources said, Beijing’s boldest retrenchment program in almost two decades.
China’s leadership, obsessed with maintaining stability and making sure redundancies do not lead to unrest, will spend nearly 150 billion yuan ($23 billion) to cover layoffs in just the coal and steel sectors in the next 2-3 years.
For years, the Chinese economic miracle has been fueling global economic growth, but now things are changing dramatically.
Another factor that we should discuss is the fact that the relationship between the United States and China is going downhill very rapidly. This is something that I wrote about yesterday. China has seized control of several very important islands in the South China Sea, and in response the Obama administration has been sailing military vessels past the islands in a threatening manner. Most recently, Obama decided to have an aircraft carrier task force cruise past the islands, and this provoked a very angry response from the Chinese…
The four-ship U.S. strike group that patrolled the disputed South China Sea was followed by Chinese warships, a show of force that prompted a hard-line response from China doubling down on its claim to nearly all of the resource-rich sea.
China’s foreign minister said his country’s sovereignty claims are supported by history and made a veiled reference to the 5-day patrol by the Stennis Carrier Strike Group, as well as recent passes by China’s man-made islands by destroyers Lassen and Curtis Wilbur in recent months.
“The South China Sea has been subject to colonial invasion and illegal occupation and now some people are trying to stir up waves, while some others are showing off forces,” Wang Yi said, according to an Associated Press report, a day after the Stennis CSG departed the South China Sea. “However, like the tide that comes and goes, none of these attempts will have any impact. History will prove who is merely the guest and who is the real host.”
Most Americans are not even paying attention to this dispute, but in China there is talk of war. The Chinese are absolutely not going to back down, and it does not look like Obama is going to either. Needless to say, a souring of the relationship between the largest economy on the planet and the second largest economy on the planet would not be a good thing for the global economy.
And of course China is far from the only country that is having economic problems. Yesterday, I discussed how Italy’s banking system is on the verge of completely collapse. A few days before that I discussed the economic depression that has gripped much of South America. A new global economic crisis has already begun, and just because the United States is feeling less pain than the rest of the world so far does not mean that everything is going to be okay.
There are huge red flags in Europe, Asia and South America right now. In addition, our neighbor to the north (Canada) is experiencing a very significant slowdown. The irrational optimists can continue to believe that the U.S. economy will somehow escape relatively unscathed if they would like, but that is not going to be what happens.
Just like virtually everyone else on the planet, we are heading into hard times too, and this is going to become a dominant theme in the presidential campaign as we move forward into the months ahead.