The biggest bank in the western world has just come out and declared that the global economy is “already in a recession”. According to British banking giant HSBC, global trade is down 8.4 percent so far this year, and global GDP expressed in U.S. dollars is down 3.4 percent. So those that are waiting for the next worldwide economic recession to begin can stop waiting. It is officially here. As you will see below, money is fleeing emerging markets at a blistering pace, major global banks are stuck with huge loans that will never be repaid, and it looks like a very significant worldwide credit crunch has begun. Just a few days ago, I explained that the IMF, the UN, the BIS And Citibank were all warning that a major economic crisis could be imminent. They aren’t just making this stuff up out of thin air, but most Americans still seem to believe that everything is going to be just fine. The level of blind faith in the system that most people are demonstrating right now is absolutely astounding.
The numbers say that the global economy has not been in this bad shape since the devastating recession that shook the world in 2008 and 2009. According to HSBC, “we are already in a dollar recession”…
Global trade is also declining at an alarming pace. According to the latest data available in June the year on year change is -8.4%. To find periods of equivalent declines we only really find recessionary periods. This is an interesting point. On one metric we are already in a recession. As can be seen in Chart 3 on the following page, global GDP expressed in US dollars is already negative to the tune of USD 1,37trn or -3.4%. That is, we are already in a dollar recession.
Here is the chart that Zero Hedge posted along with the quote above. As you can see, the only time global GDP expressed in U.S. dollars has fallen faster in recent years was during the horrible recession of seven years ago…
But there are still a whole lot of incredibly clueless people running around out there claiming that “nothing is happening” even though more signs of trouble are erupting all around us every single day.
For instance, just today CNBC published an article entitled “The US is closer to deflation than you think“, and Twitter just announced that it plans to lay off 8 percent of its entire workforce.
But of course the biggest problems are happening in “emerging markets” right now. The following is an excerpt from an article that was just published in a major British news source entitled “The world economic order is collapsing and this time there seems no way out“…
Now act three is beginning, but in countries much less able to devise measures to stop financial contagion and whose banks are more precarious. For global finance next flooded the so-called emerging market economies (EMEs), countries such as Turkey, Brazil, Malaysia, China, all riding high on sky-high commodity prices as the China boom, itself fuelled by wild lending, seemed never-ending. China manufactured more cement from 2010-13 than the US had produced over the entire 20th century. It could not last and so it is proving.
China’s banks are, in effect, bust: few of the vast loans they have made can ever be repaid, so they cannot now lend at the rate needed to sustain China’s once super-high but illusory growth rates. China’s real growth is now below that of the Mao years: the economic crisis will spawn a crisis of legitimacy for the deeply corrupt communist party. Commodity prices have crashed.
Money is flooding out of the EMEs, leaving overborrowed companies, indebted households and stricken banks, but EMEs do not have institutions such as the Federal Reserve or European Central Bank to knock up rescue packages. Yet these nations now account for more than half of global GDP. Small wonder the IMF is worried.
It is one thing for The Economic Collapse Blog to warn that “the world economic order is collapsing”, but this is one of the biggest newspapers in the UK.
I was writing about these emerging market problems back in July, but at that time very few really understood the true gravity of the situation. But now giant banks such as Goldman Sachs are calling this the third stage of the ongoing global financial crisis. The following comes from a recent CNBC piece entitled “Is EM turmoil the third wave of the financial crisis? Goldman thinks so“…
Emerging markets aren’t just suffering through another market rout—it’s a third wave of the global financial crisis, Goldman Sachs said.
“Increased uncertainty about the fallout from weaker emerging market economies, lower commodity prices and potentially higher U.S. interest rates are raising fresh concerns about the sustainability of asset price rises, marking a new wave in the Global Financial Crisis,” Goldman said in a note dated last week.
The emerging market wave, coinciding with the collapse in commodity prices, follows the U.S. stage, which marked the fallout from the housing crash, and the European stage, when the U.S. crisis spread to the continent’s sovereign debt, the bank said.
You know that it is late in the game when Goldman Sachs starts sounding exactly like The Economic Collapse Blog. I have been warning about a “series of waves” for years.
When will people wake up?
What is it going to take?
The crisis is happening right now.
Of course many Americans will refuse to acknowledge what is going on until the Dow Jones Industrial Average collapses by several thousand more points. And that is coming. But let us all hope that day is delayed for as long as possible, because all of our lives will become much crazier once that happens.
And the truth is that many Americans do understand that bad times are on the horizon. Just check out the following numbers that were recently reported by CNBC…
The CNBC All-America Economic Survey finds views on the current state of the economy about stable, with 23 percent saying it is good or excellent and 42 percent judging it as fair. About a third say the economy is poor, up 3 points from the June survey.
But the percentage of Americans who believe the economy will get worse rose 6 points to 32 percent, the highest level since the government shutdown in 2013. And just 22 percent believe the economy will get better, 2 points lower than June and the lowest level since 2008, when the nation was gripped by recession.
If you want to believe that everything is going to be just fine somehow, then go ahead and believe that.
All I can do is present the facts. For months I have been warning about this financial crisis, and now it is playing out as a slow-motion train wreck right in front of our eyes.
We are moving into a period of time during which events are going to start to move much more rapidly, and life as we know it is about to change in a major way for all of us.
Hopefully you have already been preparing for what is about to come.
If not, I wouldn’t want to be in your position.
If we are not heading into a recession, why does our economy continue to act as if that is precisely what is happening? As you will see below, we learned this week that factory orders have declined year over year for six months in a row. That is something that has never happened outside of a time of recession. We have also seen new orders for consumer goods fall dramatically. In fact, the only time we have seen a more dramatic decline in that number was during the last recession. And when you add these two items to what I have written about previously, the overall economic picture becomes even more disturbing. Corporate profits have fallen for two quarters in a row, our exports fell by 7.6 percent during the first quarter of 2015, and U.S. GDP contracted by 0.7 percent during Q1. Even though Barack Obama and the mainstream media are willingly ignoring them, the truth is that these numbers are absolutely screaming that we are going into a new recession.
Sometimes, a picture is worth more than a thousand words, and I believe that is certainly the case with the chart that I have posted below. It comes from Zero Hedge, and it shows that factory orders have declined year over year for six months in a row. The only times when this has ever happened before have been when the U.S. economy has been in recession…
When we look at new orders for consumer goods, we see a similar thing happening. This next chart comes from Charles Hugh Smith, and it really doesn’t need much explanation…
Here is another chart from Charles Hugh Smith. This one shows the percentage change in new orders for consumer goods on a year over year basis…
These charts that I just shared with you are rather compelling. How anyone can see them and still believe that we are in an “economic recovery” is beyond me.
When the economy starts to turn, there are certain things that we look for. As I have written about over and over on my website, so many of the exact same patterns that we have seen emerge just prior to previous economic downturns are happening again right now.
Yes, the stock market is still sitting pretty for the moment. But almost everyone can see that it is massively overvalued and could start tanking at any time. And when the market does start crashing it is just going to cause our economic problems to accelerate even more.
Sadly, most Americans are totally oblivious to all of this.
Most Americans just continue to do the same things that they have always done. That includes going into ridiculous amounts of debt. For instance, this week we learned that the percentage of auto loans that are being stretched out for periods of greater than 6 years is at an all-time high…
The average new car loan has reached a record 67 months, reports Experian, the Ireland-based information-services company. The percentage of loans with terms of 73 to 84 months also reached a new high of 29.5% in the first quarter of 2015, up from 24.9% a year earlier.
Long-term used-vehicle loans also broke records with loan terms of 73 to 84 months reaching 16% in the first quarter 2015, up from 12.94% — also the highest on record.
But you know what?
Even though most Americans are being exceedingly foolish and are living paycheck to paycheck, that still isn’t good enough for the boys and girls on Wall Street.
Just consider the following excerpt from a recent Wall Street Journal piece entitled “A Letter To Stingy American Consumers”…
Do you know the American economy is counting on you? We can’t count on the rest of the world to spend money on our stuff. The rest of the world is in an even worse mood than you are. You should feel lucky you’re not a Greek consumer. And China, well they’re truly struggling there just to reach the very modest goal of 7% growth.
The Federal Reserve is counting on you too. Fed officials want to start raising the cost of your borrowing because they worry they’ve been giving you a free ride for too long with zero interest rates. We listen to Fed officials all of the time here at The Wall Street Journal, and they just can’t figure you out.
Please let us know the problem. You can reach us at any of the emails below.
The Wall Street Journal’s Central Bank Team
-By Jon Hilsenrath
They just want all of us to keep borrowing and spending our way into oblivion. But of course when things do fall apart and millions of Americans can’t pay their debts, they will be there to foreclose on our homes and repossess our vehicles without any hesitation.
And when the next major economic downturn does strike, don’t expect the rest of the planet to feel sorry for us. We like to think that the rest of the world looks up to us, but the exact opposite is actually true. At this point, much of the globe is pointing fingers at us and mocking us. Just consider the following excerpt from an article that appeared in Pravda…
The land of illusion; the land of entertainment producing songs and movies to warp reality. People pretending to be something they are not. Likewise, Washington DC has people who pretend to represent the people’s interests. Pretending to bring hope and a change for the better. Pretending to bring unity and peace among all races. Lying through their teeth and laughing like clowns behind closed doors. Setting up a consumer based economy forcing the once mighty middle class to shrink and work at customer service jobs. “Ya want fries with that?“
It would be easy to dismiss that paragraph as “Russian propaganda”, but the cold, hard reality of the matter is that there is nothing in that quote that is not true.
They are mocking us, and they are dead on. We are the land of illusion. We do have a shrinking middle class. And we are definitely addicted to entertainment. If you doubt this, just check out what one study recently found…
If you weren’t reading this article, you would probably be scanning something else on the internet, watching TV, or maybe—just maybe—reading a newspaper or magazine. In short, you would be consuming media.
On average, people spend more than 490 minutes of their day with some sort of media, according to a new report by ZenithOptimedia. Television remains dominant, accounting for three hours of daily consumption—an hour more than the internet, in second place.
Other studies have actually discovered that the amount of time that Americans spend connected to media is even greater. This is something that I discussed in a previous article entitled “How Much Time Do Americans Spend Plugged Into The Matrix Every Day?”
For the moment, the mainstream media is assuring everyone that everything is going to be just fine and that they should go out and spend lots and lots of money.
But instead of spending your money on frivolous things like boats, electronic toys and expensive vacations, I believe that now is the time to get prepared for the great economic crisis which is currently starting to unfold.
Right now, I know that most people don’t actually believe that life in America is about to dramatically change.
So many of the things that people (including myself) have been warning about for so long are about to happen. Our politicians and national leaders have turned a deaf ear to all of the warnings and have continued to conduct business as usual. Soon, the error of their ways will be apparent to all.
We are heading into the greatest economic crisis in U.S. history, and there is going to be no coming back to the false, debt-fueled “prosperity” that we are enjoying today.
The number of Americans receiving money directly from the federal government has grown from 94 million in the year 2000 to over 128 million today. A shocking new research paper by Patrick Tyrrell and William W. Beach contains that statistic and a whole bunch of other very revealing numbers. According to their research, the federal government hands out money to 41.3 percent of the entire population of the United States each month. Overall, more than 70 percent of all federal spending goes to what they call “dependence-creating programs”. It is the most massive wealth redistribution scheme in the history of the world, and it continues to grow at a very rapid pace with each passing month. But can we really afford this? Of course we never want to see a single person go without food to eat or a roof to sleep under, but can the federal government really afford to support 128 million Americans every month? If millions more Americans keep jumping on to the “safety net” each year, how long will it be before it breaks and it is not there for anyone? The federal government is already drowning in debt. This year the U.S. national debt will easily blow past the 17 trillion dollar mark and we are rapidly heading toward financial oblivion. We are stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day with no end in sight. If we don’t get our finances in order as a nation, what will the end result be?
According to Tyrrell and Beach, federal spending on entitlement programs has been rising more than 6 times as fast as population growth has in recent years…
Between 1988 and 2011, spending on dependence-creating federal government programs has increased 180 percent versus “only” a 62 percent increase in the number of people who are enrolled in federal government programs, and a 27 percent increase in the population. Not only are more people enrolled in government programs than ever before, but more US taxpayer dollars are being spent on each recipient every year.
But even though the numbers that Tyrrell and Beach present in their paper are incredibly shocking, the truth is that they have probably underestimated the true scope of government dependence in America today. Just consider the following numbers…
Back in the year 2000, there were about 17 million Americans on food stamps. That number has exploded to more than 47 million today.
If you can believe it, today more than 70 million Americans are on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
Right now, there are more than 53 million Americans on Social Security, and that number is projected to absolutely explode as huge waves of Baby Boomers retire in the coming years.
As I wrote about in a previous article, the number of Americans on Medicare is expected to grow from 50.7 million in 2012 to 73.2 million in 2025.
And those are only four examples of government programs that have seen their numbers explode in recent years. There are so many more that could be mentioned. Overall, the federal government runs nearly 80 different “means-tested welfare programs“, and almost all of them are experiencing explosive growth.
So is the “128 million” figure that Tyrrell and Beach have come up with actually too low? I believe that it is. But in any event, nobody can deny that the “welfare state” in the U.S. has absolutely mushroomed in size since the turn of the century.
According to one recent poll, 55 percent of all Americans say that they have received money from a safety net program run by the federal government at some point in their lives. We are a nation that has become very comfortable leaning on Uncle Sam for help.
And poor people from all around the globe see how good things are here and they are eager to get a seat at the table. In a previous article, I talked about a federal government website (“WelcomeToUSA.gov“) that actually teaches new immigrants how to apply for welfare once they are able to get into the United States.
Will we all eventually becoming dependent on the government? If that happens will we still be free men and women?
Once someone is dependent on the government, they become forced to do what the government tells them to do in order to survive. If we all eventually become dependent on the federal government, how much power will that give them over us?
That is something to think about.
Another thing to ponder is how the U.S. middle class is rapidly disappearing.
There will always be poor people, and we should always take care of them, but what we should be truly alarmed about is how the middle class in America has been dramatically shrinking in recent years.
One of the biggest reasons why so many Americans are applying for government assistance these days is because there simply aren’t enough jobs for everyone. Politicians from both political parties have fully embraced the one world “free trade” economic agenda of the global elite, and as a result millions of our jobs are being shipped out of the country. Big corporations can either choose to pay U.S. workers a living wage with benefits, or they can choose to set up shop on the other side of the globe where it is legal to pay workers slave labor wages with no benefits. Plus there are much fewer taxes and regulations to deal with typically on the other side of the globe.
As long as this nation pursues this “one world economic agenda”, there will never be enough jobs in the United States ever again. Chronic unemployment will become the new normal. Our formerly great manufacturing cities will continue to degenerate into gang-infested war zones.
Apologists for the current system continue to insist that the answer is “more education”, but the truth is that government dependence is even exploding among those with advanced degrees. The following is a brief excerpt from a recent article on The Chronicle Of Higher Education…
People who don’t finish college are more likely to receive food stamps than are those who go to graduate school. The rolls of people on public assistance are dominated by people with less education. Nevertheless, the percentage of graduate-degree holders who receive food stamps or some other aid more than doubled between 2007 and 2010.
During that three-year period, the number of people with master’s degrees who received food stamps and other aid climbed from 101,682 to 293,029, and the number of people with Ph.D.’s who received assistance rose from 9,776 to 33,655, according to tabulations of microdata done by Austin Nichols, a senior researcher with the Urban Institute. He drew on figures from the 2008 and 2011 Current Population Surveys done by the U.S. Census Bureau and the U.S. Bureau of Labor.
After reading that, does anyone still believe that “more education” is the answer to our problems?
What we need is more jobs, and lots of them. Unfortunately, our politicians continue to pursue policies that absolutely kill American jobs.
So the number of Americans that are forced to turn to the government for assistance will continue to grow, as will our national debt.
Sadly, most Americans still don’t realize what is happening. Most of them are still listening to those in the mainstream media that are insisting that everything is going to be just fine.
For example, the most famous economic journalist in the country, Paul Krugman of the New York Times, recently wrote that the deficit crisis has been “solved”…
True, there are projected problems further down the road, mainly because of the continuing effects of an aging population. But it still comes as something of a shock to realize that at this point reasonable projections do not, repeat do not, show anything resembling the runaway deficit crisis that is a staple of almost everything you hear, including supposedly objective news reporting.
So you heard it here first: while you weren’t looking, and the deficit scolds were doing their scolding, the deficit problem (such as it was) was being mostly solved.
I don’t know how in the world Paul Krugman can get paid to write such nonsense, but the truth is that our government debt problems are only just beginning.
In a previous article, I explained that the unfunded liabilities of the federal government are growing so rapidly that we could not cover them even if we raised the highest tax rate to 100%…
According to Chris Cox and Bill Archer, two men who served on Bill Clinton’s Bipartisan Commission on Entitlement and Tax Reform, there is no way in the world that we could raise taxes high enough to pay for all of the obligations that we are currently taking on. They say that even if we taxed all corporations and all individuals at a 100% tax rate on all income over $66,193, “it wouldn’t be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities.“
Yes, Paul Krugman, we do have a spending problem. Even if Bill Gates gave every single penny of his fortune to the federal government, it would only cover the U.S. budget deficit for about 15 days. We simply cannot go on spending money like this.
If anyone out there believes Paul Krugman and is convinced that the federal government is no longer facing a massive debt problem, please read this article: “55 Facts About The Debt And U.S. Government Finances That Every American Voter Should Know“.
But if we can’t afford to do all of this spending, then why are we doing it?
Well, it is because there are a whole lot of people out there that are really hurting. Poverty in the U.S. is absolutely exploding, and the gap between the wealthy and the poor has grown to unprecedented heights.
According to a recent article posted on Economy In Crisis, the bottom 60 percent of all Americans only own 2.3 percent of all the financial wealth in the nation combined.
That is astounding.
If you live in a wealthy area of the country, you may look around and things may look really good to you. But in many other areas of the country things are worse than they have ever been in the post-World War II era. For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.
Can you imagine that? We have over a million kids that are attending our public schools that do not have a home to go back to at night.
Our economy desperately needs more jobs, but we just continue to lose more of them. On Thursday, it was announced that American Express is eliminating 5,400 more jobs. More announcements like this come out just about every day now. 65 percent of all Americans expect 2013 to be a year of “economic difficulty”, and there aren’t a whole lot of reasons to be optimistic about things at this point.
When you lose your job, it can feel like your entire life is falling apart. The competition for jobs is absolutely fierce, and a lot of workers have fallen through the cracks. In this rough economic environment, there are millions of Americans that have never been able to put the pieces of their lives back together. A recent CNN article profiled a 42-year-old woman up in Oregon named Lynette who has had her life totally turned upside down by unemployment…
I’m a single mom with a son in high school.
Three years ago, I was laid off from a job working at a propane company. I had just gotten back on my feet after battling breast cancer, then cervical cancer, but the economy tanked, and I was the first to go.
I am now 42, and the cancer is gone. But it appears my employability is also gone.
She used to work in a position that helped others find government assistance, but now she is the one who has been forced to seek it…
Before I was diagnosed with cancer, I worked for the state of Oregon and was the number one service manager for the Department of Human Services. My job was to help low income families find work and get food stamps and insurance. Now, I cannot even get a job at McDonalds, and I’m the one living on social assistance.
Does anyone out there have a similar story to share? If so, please feel free to share it below…
According to the Obama administration, the unemployment rate in the United States has been slowly coming down over the past couple of years. But is that actually true? When you take a closer look at the data you quickly realize that the real unemployment numbers are much worse than we are being told. For example, if the labor force participation rate was the same today as it was back when Barack Obama first took office, the unemployment rate in the United States would be a whopping 11.2 percent. But every month the Obama administration has been able to show “progress” because of the fiction that hundreds of thousands of Americans are “disappearing” from the labor force each month. Frankly, the way that they come up with these numbers is an insult to our intelligence. Personally, I much prefer the employment-population ratio. It is a measure of the percentage of working age Americans that actually have jobs. I like to call it “the employment rate”. So what happened to the “employment rate” in August? It fell slightly to 58.3 percent. It is lower than it was when the last recession supposedly ended, and it is almost as low as it has been at any point since the very beginning of this crisis. A few times during this economic downturn it has actually hit 58.2 percent. Needless to say, things are not getting any better. So why aren’t the American people being told the truth?
After every other recession in the post-World War II era, the employment rate has always rebounded.
But not this time.
Does this look like a recovery to you?….
So how in the world can Barack Obama claim that we are better off now?
In August 2010, 58.5 percent of working age Americans had jobs.
In August 2012, 58.3 percent of working age Americans had jobs.
So where is the recovery?
It is two years later and a smaller percentage of Americans are employed.
It is very frustrating to me that we are not being told the truth about the unemployment numbers. The following are some more indications that the real unemployment numbers are much worse than we are being told….
-In July, 142,220,000 Americans were working. In August, only 142,101,000 Americans were working. So the number of Americans working fell by 119,000 and yet the government would have us believe that the unemployment rate actually declined from 8.3 percent to 8.1 percent.
-According to the federal government, 96,000 jobs were added to the economy in August and the U.S. labor force shrank by 368,000 even though our population is continually growing. If the size of the U.S. labor force had stayed the same, the official unemployment rate would have actually gone up to 8.4 percent.
-Almost all of the new jobs added in August were the result of the “birth-death” model used by the Labor Department to estimate jobs added by new businesses. That model has been heavily criticized for being inaccurate. If you take the 87,000 jobs added by that model out of the equation, then the U.S. economy only added 9,000 jobs in August. But it takes somewhere around 125,000 new jobs each month just to keep up with the growth of the population.
-If the labor participation rate was sitting where it was when Barack Obama first took office, the unemployment rate in the United States would actually be 11.2 percent.
-If the labor participation rate was sitting at the 30 year average of 65.8 percent, the unemployment rate in the United States would actually be 11.7 percent.
-John Williams of Shadow Government Statistics would put the “real” rate of unemployment up around 23 percent after adding in all workers that have given up looking for work and all underemployed workers.
-The labor participation rate for men has fallen to 69.9 percent. This is the lowest level that it has been since the U.S. government began tracking this statistic back in 1948.
-There was more bad news for manufacturing in this latest report. During the month of August the U.S. manufacturing sector lost approximately 15,000 jobs.
-The official unemployment rate has now been above 8 percent for 43 months in a row.
-The percentage of working age Americans with a job has been below 59 percent for 36 months in a row.
-The employment numbers for both June and July were revised downward significantly. For June, it turns out that only 45,000 jobs were added to the economy as opposed to the 64,000 that were originally reported. For July, it turns out that only 141,000 jobs were added to the economy as opposed to the 163,000 that were originally reported.
-Incredibly, 58 percent of the jobs created since the end of the last recession have been low income jobs.
-The U.S. economy currently has 4.7 million less jobs than it did when the last recession started.
So what is the solution to these problems?
The media is breathlessly proclaiming that more quantitative easing is on the way and that the Federal Reserve will save the economy and send the stock market soaring to new heights.
A headline on CNBC on Friday boldly declared the following: “Market Sees ‘Helicopter Ben’ Coming to the Rescue“.
You can almost hear the chopper blades whirling now.
Apparently Bernanke has had a love of showering the economy with money for a very long time. For example, you can see a picture of a young Ben Bernanke in action right here.
Of course that is a joke, but you get the point.
In recent years Federal Reserve Chairman Ben Bernanke and the rest of his cohorts have printed money like there is no tomorrow.
So have the previous rounds of quantitative easing solved our problems?
Of course not.
The employment rate is even lower today than it was two years ago.
But all of that money printing has sent the stock market soaring and it has enabled the big Wall Street banks to make an obscene amount of money.
The truth is that the Federal Reserve, the Obama administration and the big Wall Street banks don’t really care about you.
They don’t really care that the middle class is rapidly shrinking and that the number of Americans on food stamps has risen by more than 14 million since Barack Obama became president.
What they care about is what is good for them.
As I have written about previously, if we continue on the same path that we have been on for the past several decades, there will never be enough jobs in America ever again.
On our current trajectory, we will end up just like Greece where the unemployment rate is now up to 24.4 percent.
Once upon a time the economy of Greece was thriving.
But today, many formerly middle class Greek citizens are leaving Greece and are picking up whatever work they can find….
As a pharmaceutical salesman in Greece for 17 years, Tilemachos Karachalios wore a suit, drove a company car and had an expense account. He now mops schools in Sweden, forced from his home by Greece’s economic crisis.
“It was a very good job,” said Karachalios, 40, of his former life. “Now I clean Swedish s—.”
Karachalios, who left behind his 6-year-old daughter to be raised by his parents, is one of thousands fleeing Greece’s record 24 percent unemployment and austerity measures that threaten to undermine growth.
Would you be willing to do that?
Someday when the unemployment rate in the United States gets that high we will see large numbers of desperate Americans leaving this country in search of work somewhere else.
Already, an increasing number of Americans are buying expired food at auctions.
Times are hard and people are trying to get by any way that they can.
More than 100 million Americans are already on welfare and things have not even gotten that bad yet.
This is nothing compared to what is coming.
As you can see from the chart posted near the top of this article, the last economic downturn appears to have permanently weakened the U.S. economy.
Now the next wave of the economic collapse is rapidly approaching.
How much worse will things get when it finally hits us?
That is something to think about.
Sometimes it can be easy to forget that behind all of the horrible economic numbers that we hear about are millions of real people that have had their lives absolutely devastated by this economy. Elderly couples are being brutally evicted from their homes, young families are living in their cars, terminally ill people are dying because they cannot afford medication that they need and millions of parents can’t sleep at night as they wrestle with anxiety over not being able to provide for their children. Often those that lose their jobs or their homes discover that people start looking at them very differently and that there is very little compassion out there these days. As you will read about below, one major U.S. bank is even kicking an elderly woman with stage 4 breast cancer out of her home because she cannot make her full mortgage payment each month. When the next major global financial catastrophe happens, we are going to see a whole lot more economic despair. Will society respond to that crisis by becoming warmer and more compassionate, or will the world around us become even more cold and even more cruel? As bad as things are right now, it truly is frightening to think about what the world is going to look like after the next major economic downturn.
Many of the stories that you are about to read are truly heartbreaking. Unfortunately, they represent thousands upon thousands of other stories that never make it into the news….
Foreclosing On An Elderly Woman With Stage 4 Breast Cancer
Wells Fargo is threatening to evict an elderly woman with stage 4 breast cancer named Cindi Davis from her family home in North Carolina….
“They want us to make a house payment of almost $900 a month,” Cindi told the station of their lender, Wells Fargo bank. “We can afford maybe half that. I pay $1,100 a month in prescription medications.”
The couple says they have tried to work with Wells Fargo, even sending notes from Cindi’s doctors explaining her condition, but haven’t been able to come to a workable solution.
“They’re just going to put us out and it’s like, we are willing to pay what we can pay, but it’s not enough,” Cindi said.
Her cancer is in her lungs, lymph nodes and on her liver and she’s gone through a double mastectomy and multiple chemotherapy treatments, but Cindi has handled her disease like a fighter.
Cindi and her husband say that if they are evicted they may have to move in to their pickup truck.
Can you imagine living your last days in a truck as you try desperately to battle stage 4 breast cancer?
Crushing Poverty In Greece
As I have written about before, Greece is essentially experiencing a full-blown economic depression at this point.
There is a severe shortage of medicine in Greece right now, and many doctors are essentially volunteers at this point because so few people can actually afford to pay their bills. The following description of the chaos in the Greek healthcare system comes from a recent Natural News article….
The economic situation in Greece is only continuing to worsen, as reports indicate that hospitals and care centers throughout the nation are running completely out of medicines, and many healthcare workers are now voluntarily providing care services without pay.
Strapped with spiraling debt, the Greek healthcare, which is government-run, has had to receive gobs of international financial aid just to keep operating with some semblance of normalcy. There has also been plenty of IOUs issued, and desperate patients quietly forking over cash “gifts” to doctors to receive treatments. All in all, the healthcare situation is in utter chaos, save for those that have sacrificed their own time, often free of charge, just to help those in need.
But it is not just the healthcare system that is deeply troubled.
Economic conditions have gotten so bad in Greece that some parents are actually abandoning their children in the streets according to the Daily Mail….
Children are being abandoned on Greece’s streets by their poverty-stricken families who cannot afford to look after them any more.
Youngsters are being dumped by their parents who are struggling to make ends meet in what is fast becoming the most tragic human consequence of the Euro crisis.
Could you ever do that to your children?
Sadly, it looks like things are going to get even worse in Greece. It is being projected that the unemployment rate in Greece will reach 30 percent by the end of the year.
Economic Shutdown In Portugal
Greece is not the only European nation that is going through an economic nightmare right now. The truth is that much of southern Europe is virtually shutting down right now.
Simon Black has described what he witnessed during a recent visit to Porto – the second largest city in Portugal….
Excluding the city’s still-bustling tourist areas, it’s very quiet around the city.
Street-level retail shops and restaurants are either devoid of customers or have been vacated. On many blocks I’ve seen more “for lease” signs than operating businesses.
Officially, the unemployment rate is 15.2% in Portugal, and the economy will contract 3% this year… yet the clear lack of economic activity suggests the real figures are much greater.
Without doubt, reality has set in. Locals have capitulated ‘hope’ that the good times will magically re-appear and have adjusted their habits accordingly.
American Families Living In Their Cars
In some areas of the United States you would never even know that an economic crisis is happening, but in other areas things are clearly falling apart very rapidly. There is a very serious shortage of decent jobs in most parts of the country, and we are seeing clear signs of societal breakdown in many of our major cities.
During the last recession, millions of Americans lost their jobs. Because a lot of them did not have much money saved up, many of those unemployed Americans also quickly lost their homes.
In the end, some of them ended up living in their vehicles.
And living in a car can be absolute hell. The following is from an ABC News report….
Three children — one suffering second-degree burns — were taken into protective custody Monday after they were discovered living with their parents in a “filthy” car in a Walmart parking lot.
Police were called to the parking lot Monday morning in Mount Dora, Fla., where they found the family of five living in a 1987 Cadillac Coupe de Ville full of clothes and garbage. Police told the Orlando Sentinel that days-old chicken bones were strewn about the car, along with a spoiled carton of milk and a bottle of tequila.
Other families try to make the best of it that they can. The following is one touching example from a recent 60 Minutes report….
This is the home of the Metzger family. Arielle, 15. Her brother Austin, 13. Their mother died when they were very young. Their dad, Tom, is a carpenter. And, he’s been looking for work ever since Florida’s construction industry collapsed. When foreclosure took their house, he bought the truck on Craigslist with his last thousand dollars. Tom’s a little camera shy – thought we ought to talk to the kids – and it didn’t take long to see why.
Pelley: How long have you been living in this truck?
Arielle Metzger: About five months.
Pelley: What’s that like?
Arielle Metzger: It’s an adventure.
Austin Metzger: That’s how we see it.
Pelley: When kids at school ask you where you live, what do you tell ’em?
Austin Metzger: When they see the truck they ask me if I live in it, and when I hesitate they kinda realize. And they say they won’t tell anybody.
Arielle Metzger: Yeah it’s not really that much an embarrassment. I mean, it’s only life. You do what you need to do, right?
Could you imagine being 13 years old or 15 years old and living in a truck?
Unfortunately, during the next major economic downturn a whole lot more families are going to end up living like this.
Desperately Hoping For Rain
Yesterday I wrote about how corn crops are dying all over the United States right now.
For most Americans, this will just mean higher prices at the grocery store.
But for corn farmers, a lack of rain can be absolutely devastating. The following are some recent comments from farmers about this crippling drought on agweb.com….
I am a small farmer, but my crops in Wayne County, Ill., are the worst I have had sine 1952-53. Corn will be lucky to make 10 bu. and beans are going downhill. It’s been over 100 degrees for 11 straight days. Bad crop.
Dryland corn is done! Some people in denial need to walk in field. Later corn tasseled and pollinating with no silks! No rain in seven days or low humidity 90 degrees and warmer by weekend. Yield range for corn on our farms…0 to 0 bpa. Soybeans…if it rains which is a big if may have some hope, not holding my breath!!
This is my 50th year of grain farming, so I think that I can say that I’ve seen it all. This is worse than 1988-Much worse for corn. Beans could still be fair if it starts to rain soon. Sat.-Sun. rains totaled only 1/4 inch.
This is worse than 1983 and 1988. Corn yield will be 30 to 40% of last year’s yield. The jury is still out on the beans. $10 corn is likely, because there will be so little of it relative to demand. Very sad…
You can see some incredible pictures of the drought in the middle part of the country right here.
When the economy falls to pieces, the politicians and the big banks get all the air time, but it is average hard working people that feel the most pain.
As the economy gets a lot worse (and it will) there is going to be a huge need for more love and compassion. The government is not going to be able “to save” everyone, and even now way too many people are falling through the cracks in the “safety net”.
Instead of looking down on the homeless and the unemployed, don’t be afraid to give them a helping hand up.
You never know, you might be the one in need of some assistance someday.