The Trade Deficit Continues To Explode, Factories Continue To Be Closed, And U.S. Jobs Continue To Be Sent Overseas

The long-term trends that are gutting the U.S. economy continue to get even worse.  As you will see below, our goods trade deficit with the rest of the world hit a brand new record high in 2018, and most Americans simply do not understand why this is such a massive problem.  Every year, we buy far more from the rest of the world than they buy from us, and that means that the amount of money going out of the country far surpasses the amount that is coming in.  This constant outflow of cash is one of the reasons why we are unable to pay our bills, and so we have to keep begging the rest of the world to lend us our money back.  Needless to say, this is one of the big factors that has fueled our 22 trillion dollar national debt.  In addition, when we run absolutely massive trade deficits we lose factories and workers to other countries.  Since China joined the WTO in 2001, the United States has lost more than 60,000 factories.  As factories keep closing down, community after community is being gutted all across America, and without a doubt this is truly a major national crisis.

Many had been hoping that we could start to turn things around, but instead last year was an absolute disaster.

According to the Commerce Department, our goods trade deficit with the rest of the world was 891.3 billion dollars in 2018.  That was a 12.4 percent increase from the year before, and it represented a brand new all-time record high.

If we stay on this path, it is a recipe for national economic suicide.  We will continue to be unable to pay our bills, we will continue to have to beg the rest of the world for increasing amounts of money, and our national debt will continue to explode.

And of course countless numbers of factories will continue to shut down and countless numbers of workers will continue to lose their jobs.

We can see this happening all around us, but most Americans are not mentally connecting the factory closings and the layoffs to our horrific trade deficit.  On Wednesday, the very last vehicle rolled off the assembly line at the GM plant in Lordstown, Ohio

General Motors is ending production at its Lordstown, Ohio plant Wednesday — two days earlier than previously expected.

A GM (GM) spokesperson said that’s when the plant will churn out its last Chevy Cruze sedan. At that point, the factory will be unallocated, which means no vehicles will be assigned to that facility.

That factory is just the first of four U.S. factories that GM is shutting down this year.

Needless to say, a lot of those workers don’t know what they are going to do next.  One worker that had worked at the plant for 17 years said that seeing that last car roll off the assembly line “was a kick in the gut”

Signs with sayings such as ‘Save this Plant’ were scattered outside the plant where about 100 workers gathered to say goodbye in the cold.

‘It’s frustrating,’ said Jeff Nance, who has worked at Lordstown for 17 years. ‘I’m angry and bitter. Watching that last car go by was a kick in the gut.’

In the end, Lordstown is probably destined to become another rotting, decaying shell of a town just like we have seen happen to so many other formerly great communities in the Rust Belt.

Of course it isn’t just big corporations like GM that are cutting jobs.

Right now, small businesses are getting rid of workers at the fastest pace that we have seen in more than five years.  A major economic slowdown is here, but most Americans still don’t seem to realize what is happening.

In recent days, there had been some optimism that a new trade deal with China would soon bring some positive momentum to the economy, but the status of that deal is very much up in the air.

And the U.S. military seriously angered China this week when they flew two B-52 bombers over disputed airspace in the South and East China Seas…

Two US Air Force B-52H Stratofortress long-range bombers, based in Guam, participated in “routine training missions” on Monday by flying through the disputed airspaces over the South and East China Seas. As one bomber “conducted training in the vicinity of the South China Sea,” the other practiced off the coast of Japan in “coordination with the US Navy and alongside our Japanese air force,” US Pacific Air Forces said in a statement.

Meanwhile, the trade war between Canada and China continues to escalate as well

Canada’s largest grain processor said Tuesday that Beijing has canceled its registration to ship canola seed to China, fueled by the arrest of a top executive for the Chinese tech giant Huawei, The Wall Street Journal reported.

The move suggests that rising diplomatic tensions between China and Canada are damaging commerce between the two countries. Tensions have already crushed hopes that senior officials in Ottawa and Beijing would develop further trade ties.

As long as the U.S. and Canada are holding Huawei CFO Meng Wanzhou, relations with China are going to continue to deteriorate.

And the truth is that the U.S. and Canada are not going to let her go.

Meanwhile, the U.S. economy continues to slide toward a new recession, and even the president of the New York Fed is now warning that economic conditions are likely to slow down “considerably” this year…

The US economy should slow “considerably” in 2019 as the boost from last year’s economic stimulus fades, the president of the New York Federal Reserve Bank said Wednesday.

Amid economic uncertainty, the Federal Reserve could “wait” before raising interest rates again, John Williams said in remarks to the Economic Club of New York.

There is a reason why everyone seems so pessimistic about the economy right now.  All of the numbers say that another recession is coming, and it may arrive a lot sooner than most people had anticipated.

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

Investors Brace For Impact As The Cancer That Is Ravaging “The Real Economy” Starts To Spread

2019 sure has been a weird year so far.  On Wall Street, everything has been coming up roses for investors up to this point.  Stock prices have risen more than 10 percent year-to-date, and the horrible crashes of late last year are quickly fading from memory.  Meanwhile, the real economy is literally falling to pieces right in front of our eyes.  Debt delinquencies are at unprecedented levels, bankruptcies are soaring, retail stores are closing at a record pace, this is the worst economy for farmers since the early 1980s, exports are plummeting and a brand new real estate crisis has now begun.  Economic cancer is rapidly spreading throughout our country, and the U.S. economy is deteriorating at the fastest pace that we have seen since the last recession.  So how long will it be before Wall Street catches up with economic reality?

The retail industry is being hit particularly hard.  At the end of last week, major retailers announced 465 store closings in a single 48 hour period…

The ‘retail apocalypse’ is alive and well this week with major chains such as Gap, JCPenney, Victoria’s Secret and Foot Locker all announcing massive closures, totalling the death of more than 465 stores over the last 48 hours.

And those closings already bring the grand total for 2019 to “a whopping 4,309 store closures”

That builds on recent store closure announcements by Gymboree, Payless ShoeSource, Charlotte Russe and Ann Taylor parent company Ascena Retail, to name a few. A whopping 4,309 store closures were announced by retailers just in the first two months of this year, Coresight Research said in a research note on Friday. That’s well ahead of the number of announcements the market research firm was tracking this same time a year ago, it said.

The term “retail apocalypse” is being thrown around so frequently these days that it has almost lost its meaning, but the worst is yet to come.

Meanwhile, layoffs are starting to come fast and furious now.  For example, I was recently made aware of major job cuts that just happened in North Carolina

Duke Energy Corp. eliminated 1,900 positions in its latest round of job reductions, largely through voluntary buyouts but with some involuntary layoffs included.

For the first time since the last recession, I think that it is time to start visiting sites like Daily Job Cuts on a regular basis once again.  Millions of Americans lost their jobs in 2008 and 2009, and a lot of you can still remember how painful that was.

In the middle of the country, the big news is “the farm apocalypse”.  Last week, we learned that farm debt has now jumped 30 percent since 2013…

“Farm debt has been rising more rapidly over the last five years, increasing by 30% since 2013 – up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year – to levels seen in the 1980s,” Perdue said in his testimony to the House Agriculture Committee.

As a result of this giant mountain of debt, a ton of small and mid-size farms are going under.  As I noted the other day, farm debt delinquencies have now reached the highest level that we have witnessed in 9 years.

I really, really don’t understand the people that are telling us that everything is going to be okay.

Everything is not okay, and things are getting worse with each passing day.  ISM’s manufacturing survey just hit the lowest level in 26 months, and for a whole bunch more extremely ominous economic numbers please see my previous article entitled “18 Really Big Numbers That Show That The U.S. Economy Is Starting To Fall Apart Very Rapidly”.

Of course it isn’t just the U.S. that is hurting.  Up north, Canada is literally teetering on the brink of recession

The Canadian government shocked the professional financial and economic media with their latest fourth quarter GDP release showing the economy has essentially come to a grinding halt at 0.1% growth.

And over in Europe, things are arguably even worse.  Germany is supposed to have the strongest economy in the entire region, but they are also right on the brink of recession

The country’s economy just escaped entering recession territory last month, with GDP growing at just zero percent following a 0.4 percent contraction in the previous three-month period. But Germany could be just weeks away from a recession-threatening double whammy as a potential no-deal Brexit and Donald Trump’s warning to hike car tariffs by up to 25 percent could send the economy tumbling. Chancellor Angela Merkel’s ministers have entered into a frantic plan to avert an economic catastrophe which could end Europe’s biggest economy’s golden growth for a decade.

This is a global economic slowdown, and many believe that it will be even worse than what we experienced in 2008.

But as I have previously warned, we aren’t just heading toward an economic storm.  Everything that can be shaken will be shaken, and that includes our governmental institutions.

On Sunday, we learned that the House Judiciary Committee is opening an investigation into obstruction of justice by President Trump.  The following comes from Reuters

The House Judiciary Committee will seek documents from more than 60 people and organizations as it begins investigations into possible obstruction of justice and abuse of power by President Donald Trump, the panel’s chairman said on Sunday.

Committee Chairman Jerrold Nadler told ABC’s “This Week” the panel wanted documents from the Department of Justice, the president’s son Donald Trump Jr. and Trump Organization chief financial officer Allen Weisselberg, among others.

This is going to be a year of great governmental shaking.  And no matter which side emerges victorious from the legal struggles and from the election of 2020, the truth is that our governmental institutions will never be the same again.

From 2016 through 2018, America experienced a time of relative peace and prosperity, and a lot of people out there were convinced that this bubble of unsustainable false prosperity could continue indefinitely.

Now it is becoming very clear what is ahead of us, and a lot of people are starting to freak out.

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

18 Really Big Numbers That Show That The U.S. Economy Is Starting To Fall Apart Very Rapidly

Virtually every piece of hard economic data is telling us that the U.S. economy is slowing down dramatically.  Many of the pundits have been warning that we could officially enter recession territory later this year or next year, but these numbers seem to indicate that it could happen a whole lot sooner than that.  But the stock market has been surging over the last two months, and at this point stocks are off to their best start to a year since 1987, and as long as stock prices are rising a lot of people are simply not going to pay much attention to the economic alarm bells that are ringing.  But everyone should be paying attention, because things are really starting to get bad out there.  The following are 18 really big numbers that show that the U.S. economy is starting to fall apart very rapidly…

#1 Farm loan delinquencies just hit the highest level that we have seen in 9 years.

#2 We just learned that U.S. exports declined by 4 billion dollars during the month of December.

#3 J.C. Penney just announced that they will be closing another 24 stores.

#4 Victoria’s Secret has just announced plans to close 53 stores.

#5 On Thursday, Gap announced that it will be closing 230 stores over the next two years.

#6 Payless ShoeSource has declared bankruptcy and is closing all 2,100 stores.

#7 Tesla is also closing all of their physical sales locations and will now only sell vehicles online.

#8 PepsiCo has started laying off workers and has committed to “millions of dollars in severance pay”.

#9 The Baltic Dry Index has dropped to the lowest level in more than two years.

#10 This is the worst slump for core U.S. factory orders in three years.

#11 We just witnessed the largest decline in the Philly Fed Business Index in more than 7 years.

#12 In January, sales of existing homes fell 8.9 percent from a year earlier.  That was the third month in a row that we have seen a decline of at least 8 percent.  This is an absolutely catastrophic trend for the real estate industry.

#13 U.S. housing starts were down 11.2 percent in December compared to the previous month.

#14 Compared to a year earlier, home sales in southern California were down 17 percent in January.

#15 In December, home sales in Sacramento County fell a whopping 22.5 percent compared to a year earlier.

#16 Pending home sales in the United States have now fallen on a year over year basis for 13 months in a row.

#17 More than 166 billion dollars in student loan debt is now “seriously delinquent”.  That is an all-time record.

#18 More than 7 million Americans are behind on their auto loan payments.  That is also a new all-time record, and it is far higher than anything that we witnessed during the last recession.

It appears that “the recovery” has finally come to an end.  After seeing all of those numbers, there is no way that anyone can possibly claim that economic conditions are “getting better”.

And even though the official government numbers are highly manipulated, we never even had one “boom year” throughout the entire “recovery”.

The final numbers for 2018 are now in, and last year was the 13th year in a row when U.S. GDP growth was below 3 percent.

The last time we had a “boom year” when economic growth was above 3 percent was all the way back in 2005.  That was in the middle of the Bush administration.

We have never seen a bad streak like this before in modern American history.  The following comes from CNS News

But prior to the current 13-year period when real GDP has failed to grow by 3.0 percent in any year, there has been no stretch (in the years since 1930) when the United States went as long as five straight years with real GDP failing to grow by at least 3 percent.

Even though the Federal Reserve pumped trillions of dollars into the financial system over the last decade, and even though we added nearly 12 trillion dollars to the national debt, the best that the authorities have been able to do is to stabilize the system for a while.  Now it is starting to sputter once again, and many believe that the next crisis will be far worse than the last one.

By contrast, the Great Depression of the 1930s featured some really bad years, but following those bad years the U.S. experienced a tremendous economic boom

By contrast, after the stock market crash in 1929, the United States saw four years of negative annual GDP—1930 (-8.5), 1931 (-6.4), 1932 (-12.9) and 1933 (-1.2). But then in the nine full years from 1934 through 1942, real GDP grew by an average of 9.75 percent.

We should have had some boom years too, but we didn’t, and now things are going to get bad again.

The Democrats are going to blame the Republicans and the Republicans are going to blame the Democrats, but all of that arguing isn’t going to solve anything.

What is coming next has been a central focus of my work for a very long time.  The last recession was very painful, but it did not fundamentally alter life in America.

This next crisis will.

The “Everything Bubble” is bursting, the “Perfect Storm” is coming, and all of our lives will never be the same again.

But that doesn’t mean that there isn’t hope.  In fact, once things really start getting crazy hope is going to be one of the major themes in my work because people are really going to need it.

There will be great challenges, and life will be very different, but that doesn’t mean that life is over.

America is about to experience the consequences of decades of exceedingly foolish decisions, and the pain will be extreme.  But difficult times also offer an opportunity for dramatic change, and that is something that we will need to embrace.

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

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