How will you handle all of the people that will show up at your door when a major crisis strikes because they haven’t been making any preparations of their own? Earlier today somebody asked me about this on Facebook, and I thought that it was a very good question, because thousands of my readers will be faced with this precise dilemma at some point. When America’s day of disaster arrives, it is inevitable that most of us that are prepping will have family, friends and neighbors showing up at our door asking for help. When that happens, what will you do?
There are some people out there that are very honest about the fact that they do not plan to share what they have stored up with anyone, and that even close family members will be greeted with a shotgun if they show up unannounced.
Personally, I could never do that. My wife and I have always had the philosophy that we need to work extra hard to prepare because there will be people that need to depend on us when times get really hard. And turning away those that are in desperate need would go against everything that we stand for. After all, I am even writing a book that is all about the true meaning of love, and so it would be quite hypocritical of me to turn away those that I care about when they need me the most.
And even if I wanted to be cold-hearted, my wife would never let me get away with it. She has such a soft heart that she literally can’t bear to even see a bug die. We often have spiders invade our place, and when she sees one she gently captures it and sets it free outside. I tell her that they will just breed and come back in even bigger numbers, but that doesn’t seem to matter to her. So needless to say we are going to have to find a non-violent way to deal with our spider problem.
But I certainly understand the frustrations of those that have been trying to warn family and friends about what is coming for years and they never seem to listen.
And it is true that resources are limited. For the vast majority of us, there is only so much money and energy that we can put into prepping, and so why should those that have refused to listen to the warnings and prepare in advance be able to benefit from all of our hard work?
Unfortunately, life is not always fair. And we also need to realize that there is a tremendous amount of deception going on out there these days. Some of the deceptions that are currently circulating are very strong, and it can be very easy to be sucked into them. So we need to have compassion for those that have been led into confusion.
Look, there are literally thousands of watchmen all across this country that have never wavered from warning America about what is coming even for a moment. That is because they are standing on the truth and not on wishful thinking that is the product of overactive imaginations.
The ingredients for the “perfect storm” that so many watchmen have been warning about for ages are starting to come together right before our eyes. We are closer to World War III than we have been in decades, our politicians are openly admitting that our relations with Russia are at “an all-time low”, the federal government is 20 trillion dollars in debt, our nation is on the verge of being torn apart by strife and civil unrest, the financial markets are primed for a crash of epic proportions, there are mass die-offs of animals all over the globe, and natural disasters are happening with frightening regularity as the crust of our planet rattles and shakes.
But we are somehow supposed to believe that “everything is going to be wonderful” even though we continue to kill babies on an industrial scale, just about every form of sexual immorality that you can possibly imagine is exploding all around us, our “entertainment” industry is an open sewer, and we lead the world in both legal and illegal drug use.
I’ve got dozens more facts that I could quote regarding our moral decay, but I think that you get the point.
If we actually changed our behavior, I could understand why it would make sense for America to be blessed.
But we haven’t changed our behavior, and there are no signs that this is going to happen any time soon.
As humans, we have the freedom to choose, but those choices inevitably have consequences.
The same thing is true for our nation as a whole. We have made a whole bunch of exceedingly bad choices, and those choices are going to result in some incredibly painful consequences.
So you can do whatever you want, but my wife and I are going to continue to get prepared. America is headed for a date with disaster, and those that are suggesting otherwise are not being honest with you.
You may not be getting prepared for a major national disaster, but the government sure is. I have been informed that in recent months numerous emergency food companies have been contacted by the government, and they have been told that their inventories could potentially be seized in the event of a significant emergency. And as you will see below, the government recently participated in an exercise that simulated “an unprecedented global food crisis lasting as long as a decade”. In addition, NPR has just revealed details about the very secretive Strategic National Stockpile program that is storing billions of dollars worth of medical supplies in warehouses around the nation. This is a program that most Americans do not even know exists. On top of everything else, strange reports of military vehicles with UN markings have been coming in from all over the nation. So what in the world is the government up to? Why are they working so feverishly hard to get prepared?
Let’s begin our discussion with the Strategic National Stockpile. According to NPR, there are at least six of these warehouses at various locations around the country, and they are holding at least seven billion dollars worth of supplies…
Thousands of lives might someday depend on this stockpile, which holds all kinds of medical supplies that the officials would need in the wake of a terrorist attack with a chemical, biological or nuclear weapon.
The location of these warehouses is secret. How many there are is secret. (Although a former government official recently said at a public meeting that there are six.) And exactly what’s in them is secret.
“If everybody knows exactly what we have, then you know exactly what you can do to us that we can’t fix,” says Burel. “And we just don’t want that to happen.”
What he will reveal is how much the stockpile is worth: “We currently value the inventory at a little over $7 billion.“
Could it be possible that the government is anticipating a major pandemic in our near future?
As I mentioned above, the government has also been preparing for a major food crisis. The following comes from Vice…
The US national security industry is planning for the impact of an unprecedented global food crisis lasting as long as a decade, according to reports by a government contractor.
The studies published by CNA Corporation in December 2015, unreported until now, describe a detailed simulation of a protracted global food crisis from 2020 to 2030.
The simulation, titled ‘Food Chain Reaction’, was a desktop gaming exercise involving the participation of 65 officials from the US, Europe, Africa, India, Brazil, and key multilateral and intergovernmental institutions.
So could we actually see such a major food crisis during the years ahead?
Well, according to Reuters global demand for food has already been surging, and one new report indicates that it won’t be too long before we could see “a doubling of food prices”…
Swelling populations and demand for food combined with ever scarcer water and land resources could lead to a doubling of food prices and trigger civil unrest in some developing countries, a new report says.
Demand for food with a higher environmental impact, such as meat, has surged as emerging countries like China and India grow in size and in wealth, said Martin Halle, policy analyst at Global Footprint Network (GFN).
“A few things are very clear: the demand for food is going up tremendously because of population growth,” he told the Thomson Reuters Foundation.
Of course it is the job of the government to prepare for various apocalyptic scenarios. If government officials weren’t planning for how our nation would make it through a major disaster, they wouldn’t be doing their jobs.
But what are we to make of all of the strange sightings of UN vehicles all over America recently?
Is all of this activity unusual? If so, should we be alarmed by it? Brandon Turbeville apparently thinks so…
For the past day or so, military convoys have been witnessed traveling both North and South, with lines of equipment ranging from Humvees, troop transport trucks, and tankers to military personnel following the convoy in civilian vehicles. Interestingly enough, many of the soldiers traveling in the convoy were seen wearing helmets, an unusual procedure for a simple convoy. In addition, the convoys were carrying what appeared to be construction equipment.
Although the troop movement may indeed have been a routine convoy and the United Nations vehicles may also have been a routine shipment from a manufacturing facility or even a simple and benign transport, the controversy brewing in the United States elections and the potential for civil unrest, the dangers of economic collapse, and the potential conflict with Russia are all potentials for use of United Nations “peace keepers” inside the United States as many have posited in the past as well as for some type of “martial law” scenario.
The armored UN vehicles that were spotted being transported through Virginia are quite impressive. Here is some info on them from the Daily Mail…
The VX weighs in at 16,600lbs.
Seating for two plus eight crew.
Windows do not roll down, instead there are locked gun ports on the vehicle that can be opened to shoot bullets out or accept documents in and are even big enough to pass through a can of soda.
Internal fans can keep bad air out, such as in the event of a gas attack, or bring fresh air in when reversed.
PA system to speak to the outside world.
Remote-controlled spotlights on the roof and pairs of red and blue strobe lights are mounted to each four sides of the vehicle.
Every window on the vehicle is filled with ballistic glass that’ll shed small arms fire like they’re pebbles and even resist a close-range shot from a high-powered rifle.
Each vehicle has nine gun ports, and so when they are fully manned they can lay down a very impressive field of fire.
At the end of the day, I don’t know what all of this means.
Everything that I just detailed could just be part of normal government activity that is simply receiving some unusual attention right now.
Or of course it could also be possible that the government is getting prepared for something really big, but even if they were, they would not tell us in advance anyway.
Personally, I am convinced that this period of time leading up to the election will be highly chaotic in America, and so my eyebrows definitely perked up when I came across these various news stories.
But ultimately the significance of all of this will be determined by what happens during the weeks and months to come. Without a doubt things have become much more serious in this nation lately, and I have a feeling that they are about to get a whole lot more serious…
This is exactly what we have been expecting to happen. On Friday, the Bureau of Labor Statistics announced that the U.S. economy only added 38,000 jobs in May. This was way below the 158,000 jobs that analysts were projecting, and it is also way below what is needed just to keep up with population growth. In addition, the number of jobs created in April was revised down by 37,000 and the number of jobs created in March was revised down by 22,000. This was the worst jobs report in almost six years, and the consensus on Wall Street is that it was an unmitigated disaster.
The funny thing is that the Obama administration says that the unemployment rate actually went down last month. Almost every month since Obama has been in the White House, large numbers of Americans that have been unemployed for a very long time are shifted from the “unemployment” category to the “not in the labor force” category. This has resulted in a steadily falling “unemployment rate” even though the percentage of the population that is actually working has not changed very much at all since the depths of the last recession.
The Bureau of Labor Statistics claims that the number of Americans “not in the labor force” increased by 664,000 from April to May. If you believe that, I have a giant bridge on the west coast that I would like to sell you. The labor force participation rate is now down to 62.6, and it is hovering just above a 38 year low.
When you add the number of working age Americans that are “officially unemployed” (7.4 million) to the number of working age Americans that are considered to be “not in the labor force” (an all-time record high of 94.7 million), you get a grand total of 102.1 million working age Americans that do not have a job right now.
This is not a game.
So far in 2016, three members of my own extended family have lost their jobs.
According to Challenger, Gray & Christmas, layoffs at major firms are running 24 percent higher up to this point in 2016 than they were during the same time period in 2015.
It was only a matter of time before those layoffs started showing up in the official employment numbers, and I fully expect that this trend will accelerate in the months ahead.
And here are some other brand new numbers for you to consider…
-Since Barack Obama entered the White House, 14,179,000 Americans have “left the labor force” according to the Bureau of Labor Statistics.
-We just learned that U.S. factory orders have declined once again. This marks the 18th month in a row that this has taken place, and we have never seen such an extended decline outside of a major recession.
Needless to say, the financial community is pretty horrified by all of this news. They were expecting a much better jobs report, and many of them are not hiding their disappointment. Here is one example from the Wall Street Journal…
“This was an unqualified dud of a jobs report,” said Curt Long, chief economist at the National Association of Federal Credit Unions, noting “the unemployment rate fell, but for the wrong reason as labor force participation declined for the second consecutive month.”
And here is another example that comes from David Donabedian, the chief investment officer at Atlantic Trust Wealth Management…
“We can’t find a positive nugget in today’s job report. If we were looking for signs of strength in this report, there is nothing to hang onto here.”
The White House doesn’t get “too disappointed” over the number of unemployed and underemployed Americans.
“I’ve been reacting to jobs numbers here at the White House for more than seven years, and what is true today has been true in the past, which is, we don’t get too excited when jobs numbers are better than expected and we don’t get too disappointed when jobs numbers one-month are lower than expected,” White House Press Secretary Josh Earnest told CNBC.
But the employment numbers had remained fairly decent up until now. Employment is typically considered to be a “lagging indicator”, which means that it isn’t one of the first places we would expect to see signs of a recession show up. However, it is inevitable that the official unemployment numbers will reflect an economic downturn eventually, and that is what we are starting to see now.
The U.S. economy has already entered the early chapters of the next great economic crisis, and most of the population is going to be caught totally off guard and will suffer tremendously.
If our leaders had made better decisions since the last crisis, things could have turned out differently. But instead, they continued to conduct business as usual, and now we will reap what they have sown.
*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.*
When Barack Obama speaks to the public, it is very rare that he does so without a specific purpose in mind. So why is he urging Americans “to be prepared for a disaster” all of a sudden? On May 31, Obama took time out of his extremely busy schedule to deliver an address at the FEMA National Response Coordination Center in Washington. During his speech, he stressed that every American is responsible for preparing for disasters, and that includes “having an evacuation plan” and “having a fully stocked disaster supply kit”. These are basic steps that I have been encouraging people to do for years, but if they won’t listen to me, perhaps they will listen to the man currently residing in the White House. The following excerpt from Obama’s speech comes directly from the official White House website…
One of the things that we have learned over the course of the last seven and a half years is that government plays a vital role, but it is every citizen’s responsibility to be prepared for a disaster. And that means taking proactive steps, like having an evacuation plan, having a fully stocked disaster supply kit. If your local authorities ask you to evacuate, you have to do it. Don’t wait.
This speech was timed to coincide with the beginning of the hurricane season, although hurricanes have not posed much of a threat lately.
In fact, a major hurricane has not made landfall in the United States for 127 straight months.
But without a doubt, we all need to be preparing for disaster. Hurricanes can create a short-term emergency that can last for a few days, but there are other threats that could create a major emergency that could potentially last for an extended period of time. That list of potential threats includes a major volcanic eruption, a natural or engineered pandemic, a west coast earthquake, a New Madrid earthquake, a tsunami on either the east or west coasts, a meteor impact, Islamic terror, war, an EMP burst that takes down the power grid, cyberwarfare, economic collapse, and civil unrest resulting in the imposition of martial law.
Of course the items that I just mentioned are not mutually exclusive. In fact, in different scenarios we could actually see multiple events happen in rapid succession.
It is interesting to note that during his speech Barack Obama also noted that the American people seem to have become very complacent about getting prepared…
And what we’ve been seeing is some public complacency slipping in; a large portion of people not having preparedness kits, not having evacuation plans.
This is exactly what I have been noticing as well. There appears to be a tremendous amount of apathy out there, and relatively few people really seem to feel much urgency to get prepared these days.
My contacts in the emergency preparedness industry have been telling me that sales are way down right now. There was a big peak last fall, but since then it is like interest in prepping has just fallen off the map.
Ultimately, those companies are going to be okay because interest will pick back up shortly as global events begin to spiral completely out of control. However, of much greater concern is the fact that people have not been using this period of relative calm constructively.
Just like we have seen in Venezuela, time to prepare eventually runs out. And someday there will be millions of parents that are absolutely horrified when their children come to them crying out for food and they don’t have anything to give to them because they didn’t heed the warnings and they didn’t get prepared.
When that day arrives, many of those families may be forced to turn to whatever help the government is offering at the time.
One more thing that I found particularly noteworthy about Obama’s speech was that he said that there is now “a FEMA app” that can direct you to the nearest “FEMA shelter” in the event of a major emergency.
If you need information about how to put together an evacuation plan, how to put together a disaster preparedness kit, as Craig said, we’ve got an app for everything now. We have a FEMA app in English and in Spanish to help you prepare your family for a disaster. You can update the National Weather Service alerts. You can get safety tips for more than 20 kinds of hazards. It provides you directions to nearby shelters.
Could you envision yourself and your family having to take refuge in a “FEMA shelter” someday?
If not, you should do what you can to get prepared now. Over the next couple of days, my wife and I will be releasing a couple of new videos about preparation on our YouTube channel. In fact, I just checked and the first one is already up…
Unlike Venezuela, it looks like we may still have a little bit more time to prepare for what is ahead. Some people will relax and use this time to party, but those that are wise will work diligently and will do what they can to get ready for the exceedingly challenging times that are rapidly approaching.
Hopefully you are listening to the warnings and are heeding what the watchmen are saying.
If not, the consequences for what will happen to you and your family will ultimately be on your own hands.
*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.*
The gigantic wildfire that has forced the evacuation of the entire city of Fort McMurray in northern Alberta has been nicknamed “the Beast“, and mainstream news reports are telling us that it is now approximately 25 percent larger than New York City. 88,000 people have already been forced out of their homes, at least 1,600 buildings have been destroyed, and smoke from the fire has been spotted as far away as Iowa. To say that this is a “disaster” is a massive understatement. Northern Alberta is “tinder dry” right now, and authorities say that high winds could result in the size of the fire doubling by the end of the weekend. One-fourth of Canada’s oil output has already been shut down, and the edge of the fire is now getting very close to the neighboring province of Saskatchewan. This is already the most expensive natural disaster in the history of Canada, and officials fully expect to be fighting this blaze for months to come.
At this point, only rain is going to stop this fire. Canadian authorities insist that they are not going to be able to defeat this raging inferno no matter how many resources they throw at it. The best that they can hope for is to try to steer it away from heavily populated areas until the rain comes.
Nobody knows precisely how this tragedy is going to end, but everyone agrees that it is going to last for quite some time. According to the Washington Post, this fire has the potential to keep on burning “for months”…
The images are ones of devastation — scorched homes, virtually whole neighborhoods burned to the ground. And Canadian officials say they expect to fight the massive wildfire that has destroyed large parts of Alberta’s oil sands town for months.
There’s fear the growing wildfire could double in size and reach a major oil sands mine and even the neighboring province of Saskatchewan.
I have relatives that live up in Alberta, and this is the biggest thing to hit that part of the world in many, many years.
This massive fire is making headlines all over the planet, and some of the video footage that is emerging is so shocking that it can be hard to believe. Some of the terms being used to describe the devastation are “hell”, “the end of the world” and “Armageddon”…
“It was something like Armageddon,” said Morgan Elliott, who traveled with his fiancee, Cara Kennedy, and their baby, Abigail. “Everything was burnt, houses gone. Leaving the city, it was like a scene out of a movie. It reminded me of the TV show ‘The Walking Dead’ where you’re going on the highway, and there’s just abandoned vehicles everywhere; hundreds of cars, just abandoned vehicles.”
In this YouTube video, you can watch vehicles attempt to escape Fort McMurray as hot embers from towering flames just a few feet away rain down on them. What would you do in this kind of situation?…
The amount of resources that has been committed to fighting this fire has been unprecedented, and yet it just continues to rage wildly out of control. The following comes from CNN…
The blaze is moving in a northeast direction and could reach the border with Saskatchewan by the end of Saturday, Alberta Premier Rachel Notley said.
The response has been massive. Notley said more than 500 firefighters are battling the blaze around Fort McMurray, with the help of 15 helicopters and 14 air tankers. More than 1,400 firefighters and 133 helicopters are fighting blazes across the province.
Unfortunately, a lot of Americans simply are not going to care what is happening up in Alberta because it is in Canada.
I just checked the U.S. Drought Monitor, and much of the western third of the country is still extremely dry. Conditions are certainly ripe for another horrible wildfire season, and so let us pray for lots of rain between right now and the end of the summer.
Because all we have to do to see what a worst case scenario looks like is to watch what is going on in Fort McMurray right now.
To me, this is the closest thing that we have seen to “hell on Earth” in a very long time…
Why are so few voices warning the people about what is coming? We stand at the door of a period of distress that will be unlike anything that any of us have ever known before. And even though the signs are all around us, very few individuals appear to be willing to stand up and sound the alarm. Instead, there seems to be a large number of people that are quite eager to criticize the watchmen. Earlier today, I was having a conversation with a very prominent voice in the alternative media, and we were reflecting on this. There are so many individuals out there that love to shoot arrows at those that are sounding the alarm, and yet they are doing so little to make a difference themselves.
It is easy to sit back on your sofa munching on potato chips as the world around you goes to hell, and it is easy to criticize those that have chosen to have the courage to stand up and warn the people.
But it is not easy to stand up and say the hard things that need to be said in a society that does not want to listen.
Yes, there are some watchmen out there that are doing a great job of proclaiming the warning message. I have personally met a number of them, and I am proud to be their friends.
Unfortunately, they are few and far between. Most people either don’t believe that we are on the precipice of disaster, they don’t care enough to warn others, or they are too busy criticizing those that are trying very hard to warn others.
And of course you don’t need a media platform to sound the alarm. We all have family members that need to be warned about what is coming. We all have friends that need to be warned about what is coming. Each one of us is uniquely positioned to reach others that may not be able to be reached any other way.
In the end, we all have a choice to make. If we sound the alarm and people choose not to listen, the responsibility for failing to act falls on them.
But if we know what is coming and we choose to do nothing to warn others, then we may end up being responsible for their blood. This is a principle that we even seen in the Scriptures. The following is what Ezekiel 33:1-6 says…
Again the word of the Lord came to me, saying: 2 Son of man, speak to the children of your people and say to them: If I bring a sword upon a land, and the people of the land take a man from among them and set him for their watchman, 3 and he sees the sword come upon the land and blows the trumpet and warns the people, 4 then whoever hears the sound of the trumpet and does not take warning, and a sword comes and takes him away, his blood shall be upon his own head. 5 He heard the sound of the trumpet yet did not take warning. His blood shall be upon himself. But he who takes warning delivers his soul. 6 But if the watchman sees the sword come and does not blow the trumpet and the people are not warned and a sword comes and takes a person from among them, he is taken away in his iniquity. But his blood I will require from the hand of the watchman.
Sadly, the few voices that are proclaiming the warning message in our society are being almost completely drowned out by everyone else.
Just look at our political leaders. None of them are warning the American people about what is really coming. Yes, they are warning that some bad things may happen if the wrong candidate gets elected, but all of them are promising that they can get this country completely turned around if they are elected.
Unfortunately, all of them are dead wrong. None of them are going to be able to keep America from experiencing the great storm that is directly ahead of us.
The mainstream media is even worse. According to the mainstream media, everything is great and things are only going to get even better in the years ahead. Of course the mainstream media is owned and controlled by the global elite, and just six giant media corporations produce more than 90 percent of the news and entertainment that we all consume.
Perhaps most disappointing of all are the religious leaders. You would think that if anyone should be “sounding the alarm” it would be them. But instead, ministers all over this country have become absolutely terrified of offending anyone. Church attendance has been declining for years, and most churches are desperate to do whatever they can to keep people coming back and putting money in the offering plate.
So many preachers know what is coming, and yet they have willingly chosen to be silent. They know that disaster is coming to America, and yet they have decided not to warn the people.
Yes, there are some good churches out there, but in general the church in America has failed. There is very little preaching about sin, repentance or the blood of Jesus anymore. Rather, most of what is coming from the pulpits these days are just feel good messages that sound like they were directly ripped off from the self-help gurus.
Sometimes I get frustrated because I wish that I could do a better job of warning the people. My articles are far from perfect, but I work very hard on them. And nobody can accuse me of not trying to sound the alarm. I have written more than a million words on The Economic Collapse Blog, and I have written more than a million words on End Of The American Dream. In addition, soon my wife and I will be doing a television show, and we will be posting the videos up on YouTube for free.
I am just an ordinary guy that is trying to warn the people as loudly as I can from my little spot on the wall. When I first started, my readership could have been measured with a microscope, but over time it has grown far beyond what I could have possibly ever imagined.
People know that they aren’t getting the truth from the “leaders” of our society, and so they are seeking out alternative sources of information. Thankfully, the Internet has allowed ordinary people like myself and others to get the warning message out.
And of course the warning message is only part of my mission. I also carry a message of hope, and that is going to be greatly needed in the days ahead.
As things completely fall apart during the years to come, millions are going to give in to depression and despair. Those people are going to need to know that there is hope even in the midst of all the chaos and all the darkness. My wife and I seek to live in a constant state of “shalom” (the Hebrew word for peace), and we believe that the greatest chapters of our lives are still ahead of us. Yes, we are heading for times that are going to be more challenging than most people would ever dare to imagine, but there is no other time in human history that we would have rather been alive for. We boldly look forward to the future, and we plan to bring light to a world that will be drowning in darkness.
This optimistic view of the future is going to be a central theme of my new book which should be coming out later this month. The things that I am going to share about Bible prophecy, the book of Revelation and the challenging years ahead of us are going to really shake up a lot of people out there, and it will likely be one of the most controversial Christian books of 2016.
But once again, someone needs to stand up and say the hard things that need to be said.
I am sure that I will get some criticism for this article, but that is okay. I just hope that I can inspire a few others to come up on the wall and help warn America (and the world) about what is rapidly approaching.
It doesn’t matter if your voice is big or small.
What matters is whether or not you are faithful with what you have been given.
Let us sound the alarm while we still can, because time is quickly running out.
Why does this keep happening to America? Since the month of September, the United States has been absolutely pummeled by a devastating series of disasters, and this most recent one may be the worst of all. Right now, communities all along the Mississippi, Missouri and Arkansas rivers are dealing with “historic” flooding. In Missouri, it is being said that nobody “that is living has ever seen anything like this“, and it is being projected that rivers could reach levels not seen since “the Great Flood” of 1993. Portions of Interstate 44 have been totally shut down, and thousands of people have either already been evacuated from their homes or are preparing to evacuate. It would be difficult to overstate the utter devastation that we are witnessing. Personally, I have some very good friends in southern Missouri, and I will definitely be keeping them in my prayers.
The governor of Missouri, Jay Nixon, is warning people to be very careful. Thirteen people have already been killed by the flooding, and Nixon says that the waters are going “places they’ve never been before”…
Thirteen people in Missouri have died in floods caused by severe storms over the weekend, and although the rain has moved on, swollen rivers are still rising and won’t crest for days, Gov. Jay Nixon said.
“It’s very clear that Missouri is in the midst of a very historic and dangerous flooding event,” Nixon told reporters Tuesday. “The amount of rain we’ve received, in some places in excess of a foot, has caused river levels to not only rise rapidly, but to go to places they’ve never been before.”
A state of emergency was declared in Missouri on Monday, and yesterday Governor Nixon activated the National Guard. But the river is still rising, and the worst is yet to come.
At this point, some communities have already been totally wiped out. This includes the little town of Rockaway Beach, which is not too far away from Branson. The following comes from USA Today…
In Missouri, some areas have already been hit hard by the first wave of rising water. Rockaway Beach, located near Branson in southwest Missouri, was swamped by waters from the swollen White River.
The tourist town of 800 “has just been demolished,” Mayor Don Smith told KYTV. “It’s devastating, and we are all so exhausted.”
In some parts of the Missouri, rivers are expected to crest as high as they did during devastating flooding in 1993, which is known as the “great flood,” Nixon said.
The National Weather Service predicted that the Mississippi River at Chester, Illinois, would crest at 49.7 feet Friday, matching the 1993 record, the governor’s office said. The Mississippi at Thebes was expected to crest Saturday at a record-breaking 47.5 feet.
The Mississippi River is expected to reach nearly 15 feet above flood stage on Thursday at St. Louis, which would be the second-worst flood on record, behind only the devastating 1993 flood.
What is happening in the center of the country right now is just the continuation of a trend that has been building for months. Just check out this list of flooding events that we have seen in the U.S. since the end of the summer…
-Moisture from Hurricane Joaquin caused the worst flooding in the history of the state of South Carolina.
-Flash flooding caused “rivers of mud” to cover highways in southern California.
-The remnants of Hurricane Patricia caused tremendous flooding in many parts of Texas.
-One of the strongest El Ninos ever recorded has sent an endless stream of storms barreling into coastal areas of Oregon and Washington. This has caused horrible flooding in some areas.
Meanwhile, we continue to witness a rise in earthquake activity as well.
Oklahoma, which had already shattered an all-time state record for earthquakes in 2015, was hit by a 4.3 magnitude earthquake yesterday.
Also, let’s not forget all of the wildfires that have been happening. On Christmas Day, a massive 1,200 acre blaze erupted near Ventura, California, and that topped off a year during which wildfires burned more acres in America than ever before.
On top of everything else, a huge solar storm is going to hit our planet on New Year’s Eve. Fortunately, authorities do not expect that it will do that much damage.
Nobody can deny that our weather is getting really, really crazy.
So precisely why is this happening?
There is certainly a lot of debate about this. It is almost as if someone flipped a switch in September and turned on a disaster machine, because since that time there has been an endless parade of major events.
Do you have a theory that can explain what we are witnessing?
If so, please feel free to share it with the rest of us by posting a comment below…
Why won’t the American people listen to the warnings? David Stockman was a member of the U.S. House of Representatives from 1977 to 1981, and he served as the Director of the Office of Management and Budget under President Ronald Reagan from 1981 to 1985. These days, he is running a website called “Contra Corner” which I highly recommend that you check out. Stockman believes that a global “debt super-cycle” that has been building for decades is now bursting, and he is convinced that the consequences for the U.S. and for the rest of the planet will be absolutely catastrophic. His findings are very consistent with what I have been writing about on The Economic Collapse Blog, and if Stockman is correct the times ahead of us are going to be exceedingly painful.
But right now, most people don’t seem to be in the mood to listen to these types of warnings. Even though there is a mountain of evidence that the global economy has already plunged into recession, U.S. stocks had a great month in October, and so most Americans seem to think that the crisis has passed.
Of course the truth is that the stock market is not an accurate barometer of the economy and it never has been. Back in 2008, almost everything else started to go downhill before stocks did, and the same thing is happening once again. In a recent article, Stockman explained that stocks are surging to absolutely ridiculous levels even though corporate earnings are actually way down…
At this point, 75% of S&P 500 companies have reported Q3 results, and earnings are coming in at $93.80 per share on an LTM basis. That happens to be 7.4% below the peak $106 per share reported last September, and means that the market today is valuing these shrinking profits at a spritely 22.49X PE ratio.
And, yes, there is a reason for two-digit precision. It seems that in the 4th quarter of 2007 LTM earnings came in at 22.19Xthe S&P 500 index price. We know what happened next!
Why do so many refuse to see the parallels?
This crisis is unfolding so similarly to 2008, and yet most of the “experts” are willingly blind.
Much of the stock buying that has been happening in 2015 has been fueled by stock buybacks and by M&A (merger and acquisitions). Many firms have even been going into debt to buy back their own stocks, but now sources of financing are starting to dry up. This year we have already seen the most corporate debt downgrades since 2009, and big financial institutions are now becoming much more hesitant to loan giant stacks of cash to these large corporations at super low interest rates.
So it is very, very difficult to see how the equity markets are going to move much higher than they are right now.
Meanwhile, the global economy is starting to unravel right in front of our eyes. In his recent piece, Stockman discussed some of these data points…
In the last two days we posted the latest data on two crucial markers of global economic direction——-export shipments from Korea and export orders coming into the high performance machinery factories of Germany.
In a word, they were abysmal, and smoking gun evidence that the suzerains of Beijing have not stopped the implosion in China, and that their latest paddy wagon forays—–arresting the head of China’s third largest bank and hand-cuffing several hedge fund managers including the purported “Warren Buffett” of China—-are signs not of stabilization, but sheer desperation.
So it is not surprising that Korea’s October exports—–the first such data from anywhere in the world—were down by a whopping 16% from last year, and have now been down for 10 straight months. Needless to say, China is the number one destination for Korean exports.
Likewise, German export orders plummeted by 18% in September, and this was no one month blip.
A.P. Moeller-Maersk A/S is scaling back capacity and cutting jobs in the world’s largest shipping line to adapt to a drop in demand.
The Danish company, which last month lowered its profit forecast for 2015 citing a gloomier outlook for the global shipping market, will shed 4,000 jobs in its Maersk Line unit as part of a program to “simplify the organization,” it said in an e-mailed statement on Wednesday.
Standard Chartered Plc became the third European bank in less than two weeks to announce sweeping job cuts, bringing the total planned reductions to more than 30,000, or almost one in seven positions.
The London-based firm said Tuesday it will eliminate 15,000 jobs, or 17 percent of its workforce, as soaring bad loans in emerging markets hurt earnings. Deutsche Bank AG, based in Frankfurt, last week announced plans for 11,000 job cuts, while Credit Suisse Group AG said it would trim as many as 5,600 employees.
And if things are so great in the United States, why is Target suddenly closing stores?
The truth, of course, is that things are not great. Global GDP expressed in U.S. dollars is down 3.4 percent so far this year, and total global trade has plummeted 8.4 percent.
We have entered a major global economic slowdown, and like usual, equity markets will be the last to get the memo.
But when they finally do react, that is likely going to greatly accelerate our problems. Just like we saw in 2008, when there is fear and panic in the financial markets that tends to cause the flow of credit to freeze up. And that is something that we simply cannot afford, because the flow of credit has become the lifeblood of the global economy.
So no, “the crisis” is not “over”.
Rather, the truth is that “the crisis” is just beginning, and it will soon be making front page headlines all over the planet.
Are we about to witness the most important global financial event since the collapse of Lehman Brothers in 2008? Glencore has been known as the largest commodities trading company on the entire planet, and at one time it was ranked as the 10th biggest company in the world. It is linked to billions of dollars of derivatives trades globally, and if the firm were to implode it would be a financial disaster unlike anything that we have seen in Europe since the end of World War II. Unfortunately, all signs are pointing to an inescapable death spiral for Glencore at this point. The stock price was down nearly 30 percent on Monday, and overall Glencore stock has plunged nearly 80 percent since May. There are certainly other candidates for “the next Lehman” (Petrobras and Deutsche Bank being two perfect examples), but Glencore has definitely surged to the front of the pack. Right now many analysts are openly wondering if the firm will even be able to survive to the end of next month.
If you are not familiar with Glencore, the following is a pretty good summary of the commodity trading giant from Wikipedia…
Glencore plc is an Anglo–Swiss multinational commodity trading and mining company headquartered in Baar, Switzerland, with its registered office in Saint Helier, Jersey. The company was created through a merger of Glencore with Xstrata on 2 May 2013. As of 2014, it ranked tenth in the Fortune Global 500 list of the world’s largest companies. It is the world’s third-largest family business.
As Glencore International, the company was already one of the world’s leading integrated producers and marketers of commodities. It was the largest company in Switzerland and the world’s largest commodities trading company, with a 2010 global market share of 60 percent in the internationally tradeable zinc market, 50 percent in the internationally tradeable copper market, 9 percent in the internationally tradeable grain market and 3 percent in the internationally tradeable oil market.
For months, I have been warning about the consequences of the crash that we have been witnessing in commodity prices. We saw a similar thing happen in 2008 just before the financial crisis that erupted in the fall of that year. If commodity prices kept going down (which they did), it was only a matter of time before firms like Glencore started imploding.
Now there is every chance the merged operation could implode. If it does, it will be the resources sector’s very own Lehman Brothers moment.
With debt approaching $US30 billion and a market value of just $US16 billion, shareholders and those holding the debt are desperately looking for an exit.
The cost of Glencore’s credit default swaps – a financial instrument that insures against a default – soared overnight.
Actually, “soared” is a horrible understatement.
The cost of insuring Glencore’s debt is absolutely screaming into the stratosphere. This is precisely what we would expect to see right before a “Lehman Brothers moment”. Here are some of the specific details from the Wall Street Journal…
Investors had to pay on Monday more than $790,000 a year to insure $10 million of Glencore debt against default for five years using credit default swaps, according to Markit, more than 40% higher than Friday. At the beginning of the year, the same insurance cost $154,000.
When Glencore goes down, they will take a whole lot of others with them. That is because Glencore is tied to trillions of dollars worth of derivatives trades all over the planet. According to Zero Hedge, we are looking at “the start of a self-fulfilling prophecy which leads to the Companys’s IG downgrade and the collapse of trillions in derivative notionals as what may be the trading desk of the biggest commodity counterparty quietly goes out of business.”
For years I have been ranting about the danger of derivatives. In article after article I warned that they would play a starring role in the next financial crisis.
Now the reality of what I was warning about is staring us right in the face.
The “nothing is happening” crowd is completely and utterly clueless. There are these people running around telling everyone that the stock market decline is “over” and that we aren’t about to experience another great financial crisis.
I don’t understand how these people can be so ignorant. Global giants such as Glencore, Petrobras and Deutsche Bank are imploding right in front of our eyes. As I write this, stocks in Hong Kong are down 744 points and stocks in Japan are down 677 points. The stock markets of the 10 largest economies on the entire planet are all crashing, but the mockers are going to continue to mock. They will continue to tell you that “nothing is happening” even in the face of undeniable evidence to the contrary.
And the sad thing is that many of these mockers are given air time on the big mainstream news networks. They will tell you that stocks are “oversold” and that you should “buy the dip” because stocks are going to be going back to record highs really soon.
I wish that was true. Unfortunately, the reality of the matter is that we are finally witnessing the bursting of the last great global financial bubble. I really like how Bill Holter put it recently…
In my opinion we are already well within the jaws of a meltdown/shutdown as liquidity is evaporating. There are a dozen developed countries with their stock markets already in bear markets (down 20% or more). All crashes come from oversold levels just as bank runs come on fast and are a surprise at the time. What is coming should be NO SURPRISE to anyone as we are looking at the end of not only an empire but of a flawed system which has endured for far too many years! This was a solvency problem in 2008 and “liquidity” was the incorrect tool used then. Now it is a bigger solvency problem with an illiquidity kicker attached …while the Fed has already used every tool imaginable and every last ounce of credibility. The loss of confidence in the issuer of the world’s reserve currency would be bad enough in an unlevered world, the loss of confidence in today’s “debt world” will be a DISASTER!
To wrap this up, do not let anything that may happen from here surprise you. The conditions are ripe for global currency crises and a shutdown of credit. The conditions are also ripe for hot war to explode in multiple venues. A meltdown or shutdown of markets will serve as a FINAL FLUSH of what remains left of the U.S. middle class.
We are steamrolling toward a global economic collapse that will be permanent and irreversible.
For months, I have been warning that we were witnessing a textbook example of what the lead up to a major financial crisis looks like, and now it is happening. All of this was completely and totally predictable for those that were willing to look at the signs.
Unfortunately, there are way too many people out there that think that they know it all and that have a tremendous amount of blind faith in the system.
Now the system is failing, and that blind faith is about to be shattered.