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The Bad Jobs Report Is Just A Very Small Taste Of The Economic Nightmare That Is Coming

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Another month, another bad jobs report.  For the month of May, the U.S. economy only added 69,000 jobs and the unemployment rate rose to 8.2%.  Many are calling this a total “disaster” and are worried that the U.S. economy could be headed back into another recession.  Economists had been expecting 150,000 payroll jobs would be added, so the 69,000 number really shocked a lot of people.  The truth is that the economy needs to add approximately 125,000 new jobs every single month just to keep the unemployment rate steady.  So yes, this bad jobs report is not welcome news at all – especially for the Obama administration.  When Barack Obama first took office the unemployment rate was sitting at 7.6 percent and now it is sitting at 8.2 percent.  Some “recovery”, eh?  But the reality is that this jobs report was really not that “devastating” even though the stock market had its worst day of the year.  Unemployment in America is still about at the same level as it was back at the beginning of 2012.  The tough stretch that we are going through right now is only a very small taste of the economic nightmare that is on the horizon.  If you think that things are a “disaster” right now, just wait until you see what is coming.

At the moment, 53 percent of all Americans with a bachelor’s degree under the age of 25 are either unemployed or underemployed, and there are more than 100 million working age Americans that do not currently have jobs.

But this is only just the beginning.

During the next major economic downturn, the unemployment rate in the United States is going to soar well up into the double digits.

Many Americans will look back on 2010, 2011 and 2012 as “the good old days”.

Right now, there are only small pockets of the country that are total economic hellholes.

For example, Yuma, Arizona has an unemployment rate of 26 percent, and El Centro, California has an unemployment rate of 26.2 percent.

In the future, those kinds of numbers are going to become the norm all over the nation.

Sadly, most Americans have no idea what is coming.

Today, I wanted to share with you all a couple of chilling economic forecasts that I have been made aware of recently.

The first is from Raoul Pal.  According to Zero Hedge, Raoul Pal “previously co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe… Raoul Pal retired from managing client money in 2004 at the age of 36 and now lives on the Valencian coast of Spain, from where he writes.”

The following is from a Zero Hedge summary of a recent presentation by Raoul Pal….

  • We don’t know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank…
  • With very limited room for government bailouts, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.
  • There are almost no brakes in the system to stop this, and almost no one realises the seriousness of the situation.
  • The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…
  • Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations
  • From an EU crisis, we only have to join one dot for a UK crisis of equal magnitude.
  • And then do you think Japan and China would not be next?
  • And then do you think the US would survive unscathed?
  • That is the end of the fractional reserve banking system and of fiat money.
  • It is the big RESET.

It continues:

  • Bonds will be stuck at 1% in the US, Germany, UK and Japan (for this phase).
  • The whole bond market will be dead.
  • Short selling on bonds – banned
  • Short selling stocks – banned
  • CDS – banned
  • Short futures – banned
  • Put options – banned
  • All that is left is the Dollar and Gold

It only gets better. We use the term loosely:

  • We have around 6 months left of trading in Western markets to protect ourselves or make enough money to offset future losses.
  • Spend your time looking at the risks of custody, safekeeping, counterparty etc. Assume that no one and nothing is safe.
  • After that…we put on our tin helmets and hide until the new system emerges

So how soon does Raoul Pal think all of this is going to happen?….

From a timing perspective, I think 2012 and 2013 will usher in the end.

You can find his entire presentation entitled “The End Game” right here.

What Raoul Pal is saying lines up very well with what Steve Quayle’s anonymous international banking source is telling him….

There is no stopping this…We are still on track as I have been predicting for a while now for a fall/winter collapse of the Eurozone and naked exposure of all derivative markets the world over. Europeans will go through a major reset, after time they will recover as Europeans do not carry the type of personal debt that Americans do. It is for America that I worry. Look for these signs next:

1- JPM will be bailed out again but it will not stop the coming market crash. More details will emerge about their derivative swap failure $150 billion and counting.

2-BOA (BAC Bank of America) will fold and be absorbed into JPM as a way to prop up the bleeding Giant. JPM will get the best picking of this deal just like they got with Bear Stearns.

3- Massive layoffs at Citigroup and Wells Fargo

4- Goldman Sachs finally pays the piper, look for massive cuts there as well as BIG Losses

5- Bond market bust which leads to freeze of all bond sales

6- Derivative bust the next one will be BOA followed by Citigroup

7- All CDS shorts and swaps will freeze.

8- Total Meltdown

You can read the rest of what that source is saying right here.

As I have been saying all along, there are two keys that you need to be watching right now….

#1 Europe

#2 Derivatives

Sadly, the articles that I write about Europe tend to get far less of a response than my other articles get.  Most Americans simply do not understand that what is happening in Europe right now is going to significantly affect their daily lives.

And most Americans have very little understanding of derivatives.  But as you just read, there are some in the financial community that are warning that we could see the derivatives bubble burst very soon.

Time is running out.  This period of relative stability that we are currently experiencing will not last forever.

You better get ready.

  • Gay Veteran

    I hope people are reading Karl Denninger in addition to your excellent site:

    “…If we keep deficit spending we are simply debasing the purchasing power of the common man in a puerile attempt to pacify the people and avoid holding the financiers who were responsible for this debacle, including Bernanke, Greenspan, Paulson and Geithner along with both Obama and George W Bush to account. This attempt is mathematically doomed to fail as median family income has not moved which means that we’re shifting an ever-greater part of the population to social programs like food stamps and other handouts while the taxpaying productive population continues to shrink.

    This is exactly how Greece and Spain went down the bowl and we’re right behind them…”

    • Michael

      Good link.


    • Bonus Gift

      I do read him, and as you point out he is correct.

  • Rodster

    Michael, so the common theme is meltdown/reset but at the same time I read a recovery in Europe.

    I have several questions:

    Will the reset wipe all debt clean followed by a recovery?

    Will the financial system be completely be replaced and if so what will it look like?

    • Rodster

      I don’t understand what Pal meant when he said we will go back 40 years, 1500 years, 3,000 years in time?

      • Sam

        Yeah he makes it sound like we will be in the Stone Age, but 1500 or 3,000 years?

      • OldPhart

        We will begin to regress as a society on a logorithmic scale. In less than a decade we’d be back in the dark ages.

        You have to understand that a total systemic collapse means no government, no police, no fire…at firt there will be volunteer associations…back to volunteer fire departments, volunteer ambulance, etc.

        As things get worse there will be nothing accepted for purchases except precious metals like gold and silver. Items such as food and fuel would be in extremely short supply. Costs of transport would force the use of local crops…and in many places the nearest farm is hundreds of miles away.

        Hoards of pissed off, hungry, nothing left to lose, me-first people means that any sort of trade attempts would be violently intercepted. Rather soon, the survivors of these thug-wars will start to band up and form raiding parties. Over-running places that have basic assets like food, water, young women, arms and ammo, fuel. From there it gets worse quickly.

    • Michael

      Unfortunately, I don’t expect all debts to be wiped clean.

      And it is very hard to anticipate exactly what “solutions” will be imposed on all of us. But I do think that most of them will probably involve more global integration.


  • Washington

    Connecticut Drowning In Debt, Still Manages To Find $300K To Renovate Communist Party Headquarters…

    • Michael

      That story is almost too crazy to believe. 🙂


    • WM

      I am in Connecticut. Malloy is on a drunken spending spree for sure. They are currently building a special bus lane on Rt84 into Hartford.
      Estimated cost is around 400 million, yes you read right. At least that is what the Courant reported. This is to ease commuter traffic. The lane is only several miles in length. And the kicker is that the contractors are from oit of state!!! I drive through the construction each night coming from work, and a few nights ago I counted 8 state police cars just sitting around, working graveyard shift. And this was within a distance of 3 miles.
      It does not surprise me that the communists are now getting a share of OUR money

  • Bob

    I agree totally!

  • thiscreepingmalaise

    So if last months jobs got revised down to 77,000 from 115,000, what will the new 69,000 jobs this month be revised down to next month? Grim Smurf would say, “we doomed! Doomed I tell you!”

  • Michael, I own a small business in Yuma,AZ. Believe me, an unemployment rate of 26% does present a “challenging economic environment” to say the least.We have a seasonal economy which depends on a large influx of winter visitors to keep us afloat. The high price of gas has hurt tourism and every business person I know is just barely hanging in there. It seems the only places that are busy around here are the ones involved in health care. I’d hate to be looking for a job right now!

  • Rodster

    “This Summer an ‘Eerie Echo’ of Pre-Lehman”

    “Head of World Bank warns Europe is heading for ‘danger zone’ as world markets suffer bleakest day of the year so far”

  • Zombalypse

    Ya know, after reading these warnings over and over, it almost becomes surreal, cartoonlike, as if it’s a dream and not really happening. MAKE NO MISTAKE, when the man says buy food, ammo, PM’s, he’s NOT kidding, and in fact is serious as a heart attack!

  • r.bitting

    On Christ the solid rock I stand, all other ground is sinking sand… Nothing wrong with preparing for the inevitable collapse and subsequent hard times, but if thats where your ultimate hope is found, you are about to be very disappointed.

    • Michael

      You are right r.bitting


    • Andy

      True , True, True, God be the Glory!!!!

  • john.s

    ^ spooky stuff.. AND it’s ALL REAL!

  • mondobeyondo

    The U.S economy used to run like a finely tuned Porsche. The best, strongest, most powerful economy in the world. Now it’s clunking along on 3 cylinders, the transmission is going out, and the wheels are starting to come off.

    Unfortunately, the “mechanics” who are our government spokesmen (especially the chief mechanic Obama), are content to just give the economy an oil change, and tell all us passengers that everything is “recovering” just fine. After all, it’s still a Porsche!!

    It’s going to stall soon enough though, and then it won’t run at all.

    • Snow White

      USA traded in the Porsche for a Yugo.

      Not to worry-It’s impossible for USA to have a double dip recession. The last dip is still dipping.

      • mondobeyondo

        One double-dip recession, coming right up!!
        [just wait till this year’s holiday season…]

  • John Blythe

    Michael, I’m probably one of your few readers that do read (and enjoy) your articles on the Euro Zone crisis. I study the crisis for several hours a week. The only person over in Europe that has voiced his sincere concern and warned about all of the impending problems within the EU has been UKIP leader Nigel Farage and perhaps now, more than ever, people are starting to listen to him.

    Greece is crumbling, Spain is on fire, Italy, Portugal, Ireland, Romania are all next, the EU now wants to commit emergency funds to help Hungary’s collapsing economy… the madness yet again, never seems to end. Even when the evidence is right in front of them, the general perception from individuals such as Herman Van Rompuy and Jose Barroso is to stay in a absolute state of denial.

    It does not take rocket science to figure out that when you have a country like Greece with nearly half its population unemployed, youth unemployment at over 50%, parents having to abandon their children, people committing suicide because of uncertainty and people preparing for continuous civil unrest, that the entire government is on the verge of collapse. After all of these bailouts, it is obvious that Greece cannot stay in the Euro and I cannot believe IMF chief Christine Lagarde had to the nerve to tell the people of Greece to pay their taxes and obey austerity.

    How can people pay taxes with money they don’t even have?

    And considering how fast bond yields are rising throughout Europe, I estimate that within two-three months, we’ll begin to see a breakup of the European Union and I’m not even an economist. I can just read the financials and tell you its unsustainable. Greece, Italy, Ireland, Portugal, Spain and Romania all have debt to GDP well over 100%.

    If Americans think that the Euro Zone crisis is not going to affect them or that they are not concerned as to the events unfolding over there, they are sincerely mistaken. Every single bank in the United States has some form of exposure, especially bonds and derivatives exposure to banks in Europe that are artificially propping up the crumbling Euro Zone. Do people seem to forget that one of the reasons why MF Global collapsed a few months ago was because of bad bets it made on the Euro crisis? MF Global’s bankruptcy was one of the largest bankruptcies of a major financial services company in the history of the United States… and JPMorgan Chase is getting there next.

    Meanwhile here in the United States we have individuals in Washington D.C. that seem to be in an even worse state of denial than the ‘so-called’ leaders of the EU. The United States’ financial problems are far worse, yet the only reason we have not seen problems like those in Europe is because of our unique ability to continue to use fractional reserve banking and borrow money that banks don’t even have and a Federal Reserve that dictates monetary and fiscal policy to print currency that devalues the money. That is the real problem in the United States and this is not going to last forever. Until this long standing policy changes, I cannot see how we will ever have a “worldwide economic recovery”.

    I fear that when the BRICS nations set about to replace the US dollar as a reserve currency or when they begin to use gold or a basket of currencies, especially with oil exports, the US dollar will fail, we will not be able to print money any longer and everything tied and priced in dollars (including oil from the Middle East, food from South America and technologies and clothes from Europe and Asia) will skyrocket. Most Americans will be totally clueless when their banks close, or their credit cards stop working or when they see the price of a loaf of bread cost some astronomical amount.

    The United States may very well go through a period of inflation that could end up being more catastrophic than what Zimbabwe and the Former Yugoslavia had to go through. It will be very scary indeed.

    • Michael


      Thanks for making such an effort to post such a thoughtful comment. I will definitely be writing more about Europe and hopefully the American people will start waking up and seeing what you, I and a whole bunch of others are seeing is coming.


    • Another Richard

      An excellent article John. The only thing I take issue with is the next to last paragraph stating that “the US dollar will fail, we will not be able to print dollars any longer”. As long as the Fed controls the “printing press” they Can monetize the debt. They can in theory “print money to infinity”. Of course, it would not be worth anything and nobody would want it or use it and yes, it would create the condition known as Hyperinflation as you alluded. By the End of 2012 the Dollar will be Dead – that is a reference to its purchasing power and inflation will rage. Gotten out of paper and digital Dollars? Echange them for Real Money Now, while you still can. Get Gold and SILVER US minted coins Today or you Will be sorry in just 7 short months from Now.

      • The Wiseman

        So, let’s say that you need to buy a loaf of home-baked bread from your neighbor, the supermarket being “temporarily” out of business.
        Say that you’ve got a solid gold coin, one ounce Krugerand.
        Are you going to hand over that entire Krugerand for one loaf of home-baked bread?
        How is the baker going to give you change, if all the dollars are worthless?
        Will you shave off a little chunk of the Krugerand? How big a chunk? How will you weigh it? Will you barter with the baker for the size of the chunk?
        Once the value of paper money is seriously in question, the whole house of cards collapses.
        Only beans & bullets will rule the day!

    • Alex

      If I could make only one note here…I think Romania’s Public Debt is way below 100% of GDP. I am pretty sure in 2010 it was somth. like 33%. They have a lot of other troubles, but I think they are still ok and when SHTF, they have relatively little people and a lot of land for everyone…countries from the 2nd world like Romania and Bulgaria will do fine I believe.

    • Lawrence

      Wow… finally a comment form someone who truly gets it!! The article was really good but I fear will be of no real benefit to most who read it. For me reading a comment from you, a solid idea of things that are inter connected, that this whole financial casino is like a house of cards is truly refreshing and thank you for your insightful comment that this reader truly enjoyed!

    • jox

      Let me correct you: the debt to GDP of Spain is 69%. Not too bad compared with Germany (82%), UK (85%), France (86%) or United States (103%).

  • Klean

    I am so afraid and have absolutely nobody or money. Please send me some as soon as possible so I can start trying to get insulin and food.

    • Mike Wilson

      Wow, I didn’t know zombies had computers

  • bojangles

    On april 29, 2010.That is when I started following this blog. I know that because of the article 20 things you will need to survive during the economic collapse. 2 years later and we are still kicking. I know things can’t keep going like this forever,but also,I know they can keep things going alot longer if they want to. (they meaning banking systems) In 2010 we ( me included) thought the collapse was near,actually we won’t know when,until its too late. I still enjoy the articles. If anyone has a timeline of when this is giong to happen, I would be very interested. by the way,maybe you could revisit that article on April 29,2010 with the updates. thanks very much.

    • Rodster

      To answer your question. The primary reason it hasn’t happened yet is because the Politicians know the END GAME. So they are willing to continue kicking the can down the road.

      They know that when there is a meltdown they don’t want to be in the precarious position of getting the blame. That’s another reason why both parities like to blame each other.

      The problem is you can only kick the can for so long before the road turns into a dead end.

      The future meltdown is similar to an earthquake. Pressure builds and builds on plates. The pressure becomes so great that the plates begin to move and the ground gives. What’s going to happen is much like an earthquake, it takes time but it will happen. Remember mathematics is never wrong !

      You can’t live the good life buy racking up debt in your personal life. When the debt exceeds your income that’s when you have problems. Our politicians know the math game but they are more interested in keeping their power. The endgame is everything collapses.

    • David G.

      In the article Mike mentions, the timline is fall 2012 through 2013. That’s pretty much what most economists who have a good track record have been saying for three years now. And they were taking into account all the tricks the FED and ECB had up their sleeves. Looks like they could be onto something.

  • tappedops

    Black friday… without plunge pro it could have been 1500 down— its not a recession or a depression— its a global corporate takeover with NO chance of recovery or correction…

    “And on its ashes, they will build…A New World Order”…

    • Dave in TN

      you hit the nail on the head, my friend

  • tappedops

    Mr. M
    How dare you use my line “The good ol days” and then not give Carly a plug…

    • Michael

      You are right!

      They truly do not make singer songwriters like Carly Simon anymore.


    • Alasha


    • Alasha

      You’re so vain, you probably think this comment is about you, don’t , don’t you…. ha! smile. I luv it!

      • vancouver mark

        Well, that is the way I always heard it should be…

  • El Pollo de Oro

    Michael T. Snyder writes: “Sadly, the articles that I write about Europe tend to get far less of a response than my other articles get. Most Americans simply do not understand that what is happening in Europe right now is going to significantly affect their daily lives.” Yes, what’s happening in Europe will have a major impact on the economy of The Banana Republic of America (formerly Les Etas Unis). It’s bad enough that Greece is going through so much hell, but the fact that Italy (Europe’s third largest economy) and Spain (another major economy) are in such bad shape is even more troubling. And what is happening overseas will only accelerate the collapse of the BRA—which, truth be told, has been in a DEPRESSION, not a recession, since September 2008. This depression is going to get much worse, and Gerald Celente is absolutely right when he says that the Great Depression of the 1930s will look like a picnic compared to what awaits the BRA.

    Get ready for food riots and civil unrest. Get ready for violent crime to skyrocket. Get ready for bank failures galore. Get ready for Americans to slaughter one another like animals. Get ready for the unrest of Greece, the crime of Venezuela and Honduras and the tribalist violence of the former Yugoslavia all rolled into one. Rivers of blood will flow through the streets of BRA cities as a terrible economy becomes even worse.

    “Without bread, Americans will be consoled by circuses for only so long. One more bailout, another high-ranking government official caught with his hand in the till, one more indication that the Marie Antoinettes who inhabit the District of Columbia believe themselves above the law—and then watch out. It could get ugly.”—Justin Raimondo

    “My next door neighbor’s two dogs have created more shovel-ready jobs than this current administration.”—Gary Johnson

    “Unemployment for a year or more, the kind that just sucks the heart and soul out of people, is about double what it was in late 2009—and yet in the 1960s, it was essentially nonexistent. ”—Michael Fumento

    “Los Estados Unidos has become a banana republic.”—Gerald Celente

    “If you’ve studied Rome, you know that wealthy nations do collapse into Third World squalor when they allow their currency to be debased.”—Alex Jones

    “There’s a depression in Spain, a depression in Greece, a depression in Italy, a depression in Ireland, a depression in Romania, a depression in Hungary. There’s a depression in the world. American’s in a depression. There are no jobs being created that can give you a living wage. What comes next? Currency wars.”—Gerald Celente

    “As the economy unravels, as hundreds of millions of Americans confront the fact that things will not get better, life for those targeted by this culture of hate will become increasingly difficult. Rational debate will prove useless.”—Chris Hedges

    “This is a collapse of empire. One thing that is an ingredient of all collapses of empire is an absence of justice. There is no justice. There is no (accountability) for the 1%, and therefore, there is no justice at all.”—Stacy Herbert

    Alex Jones is absolutely right: Third World squalor is what the BRA can look forward to. There will be no happy ending for The Banana Republic of America, only rivers of blood, widespread violence, extreme misery and horrible suffering. The empire is collapsing, and the collapse will be absolutely brutal. Please say a prayer for The Banana Republic of America because this Third World snakepit needs all the help it can get.

  • Paranoid

    Get ready? How? I don’t have enough money to buy a yacht, or a Missile Silo. Bring it on, I’m tired of waiting. As far as I can tell MR Pal’s article is already 6 months old

  • mark

    The central bankers can continue to print money and prop up the banks. We that read this blog understand what is coming, but the regular Joe could care less as long as the rent is paid and he has food on the table. He will continue to think that the dollar can’t fall and this coming mess will not affect him. As long as people continue to use the fiat money system and inflation does not go hyper things will go on. I wish more would use this time to prepare, but most will not even pay attention to Europe, China of Japan. They are all beat. The only one in better shape is Russia and talk about corruption. There was even a bank run in a city in China today.

  • matt

    With U.S. banks holding over 248 TRILLION in leveraged derivatives, We all are well and truly screwed. Everything is based on a lie. Our “economy” is being funded by imaginary cyber-digits. The gov’t creates them, passes to banks who leverage them to truly astronomical levels, and we call this growth? The dollars spent on S.S. payments, bogus. The dollars spent on medicare/caid, bogus. the dollars spent on unemployment, bogus. All the trillions being pumped into this illusion, are just that an illusion. The reason Greece is such a huge deal is that it will expose the sham that is/are derivatives. ALL must continue to stand, even the lowliest. For once even a single facet crumbles, the entire monster will collapse. The great crunch is well nigh at the door, the can has slammed against the wall. We have nowhere to run. Get right with God, get right with your friends and family.For we will only have God and each other to succor us.

  • Loop Garoo

    90% of woman simply do not want to hear about this stuff. So, why do they get to vote? Yes, I am serious. They are not hunter-gatherers and prefer that their life be puppy dogs and lollypops. Men are held responsible for the family finances, so women can take a pass and society will let them. Men need to grow a pair.

  • ScoutMotto

    We are truly running out of tomorrows. There will come a day when people will not be able to get what they need. Many believe they will still be able to whip out a credit card and buy themselves a can of instant survival when it all grinds to a halt. Make the most of the time while we have it. Get the storable food. Store up water. Batten down the hatches.

    Keep on a-preppin’.

  • David Hammond

    Mike, where can I read your bio at? You’ve put together an informative site that I check daily. I would like to know more about its creator though 🙂

  • Alasha

    duh – am i 2 dumbed down cuz i jst don’t get the nightmare pic. lol. good thing u had the word nightmare hyperlinked. lol. i know i have heard numbers like 20 percent for unemployment. When will the games stop – EVERYONE knows the numbers are higher than released 2day… mmmm … sigh.. sniff, sniff. owww. praying NOW!!

  • People are talking about the first nail on our economic coffin, take your pick? Corrupt politicians, citizens rights, 1.5 Quadrillion due on derivatives World Wide, money printing, 16 trillion dollars we owe, 200 trillion dollars we are committed to pay, run on Greek, Spanish, Italian banks, Collapse of the European Union, Recession/Depression in Europe & USA, QE3, 16 trillion our FED gave to world banks, businesses and countries from 2007 to 2010, Do you believe the real unemployment rate is 8.2% OR 19%, (According to the Government IF your NOT on unemployment YOU must be working), Do you believe the real inflation rate is 2% OR 14% (Have you been watching the price of food and gasoline?) (Which are NOT figured in the Governments inflation rates), Have you seen photos of Detroit, Cleveland, Toledo, Chicago etc. There are vast areas of these cities that now look like war zones. Take a good look because that is YOUR future, IF you live in any city of good size. Drugs, Guns, Gangs, Wholesale Killings, it’s so bad decent people are afraid to go out in the daytime and forget the night, A new bailout coming for banks involved in the derivatives fiasco, JPMorgan now admits it is out 7 billion due to derivatives and could go as high as 20 billion, And today the 9 largest banks in America are exposed to 200 Trillion dollars in potential losses in derivatives. The whole worlds GDP is only 65 Trillion Dollars, does anyone see a problem here? It’s going to take a whole lot of money printing to make this problem go away. Are you ready for a Trillion Dollar loaf of bread? How about a Two Trillion Dollar gallon of gasoline?
    Yes the world is going to hell in a hand basket.
    PS those 69,000 jobs that were created, they need to learn a phrase
    “Would you like fries with that Sir”…

  • Debt free or Debt Slave?

    On a bright note, if the whole system goes capute, most countries including the USA will go bankrupt, most if not all debt will be either erased or lifted.
    They cant do for one without doing for all.
    But that might be GREAT news for us who have debt, and struggling to get by.
    But on the other hand if you own two homes, a yacht, three cars, and you think its the poor slob who deserves what he got in life,
    You might lose it all as with the erasure of debt, so is the redistribution, lets see who gets the last laugh.
    It will most likely be the person whos been kicked, while he was down
    God is mighty, fair and just, most of all God hates arrogance!
    Praise God!

    • Alasha

      I hope it goes that way. Me thinks they will HOUND everyone down for the fiat debt. No jubilees here.

    • Orange Jean

      I cannot think of many things more grossly UNFAIR than blanket debt “erasure”… if someone made a bad choice and has too much debt, there should be some possible bankruptcy solution but it should not be without consequences.

      Otherwise, for the guy or gal who bought the McMansion he/she couldn’t afford; racked up debts for all kinds of frivolous purchases, etc. you’re just saying the rest of us should pay for their bad choices, and I do not agree with that.

  • I hear Sept. OR Oct. 2012 Something BIG is suppose to come down?
    Any body else hear that?
    Just wondered

    • a lot more trouble…

      Yes!!! the Stock Market usually crashes in October. It’s about to go way down.

    • Alasha

      I have heard that ….

  • davidmpark

    Okay, so bonds and t bills are garbage in 6 months; not unexpected. What about annuities? Probably junk also.

    So, with the death of fiat capital soon after paper and derivatives, then naturally gold is the next best thing right. NOPE!

    The problem is that one needs to have some form of market to use a currency. What will be produced? Can many people produce? Do people have stores of raw materials and the know-how to work it into needed products? What about food; can people grow and harvest enough to sustain themselves with surplus to sell? Can a large number of people do production work in blacksmithing, woodwrighting, chemistry, mining, printing, utilities, transportation, communications, and so on to rebuild civilization with minimal resources and hand tools? To keep law and order and a standing state militia, does everyone have possession of least a sub-machine gun, 1000 rounds, a bowie knife, and close combat training?

    No – very few do.

    What is it that most folks have? Debt. Socialism. Fear.

    Who’s fault is that? The individual is at fault. They chose this life – believing what came before as cool and trendy. Now, they will hold to it until the last demise. They chose their leaders. They chose to enforce their fears on others. This sorry situation is the result of this trendy morality on the majority. It can change for the better. But not until that change for the better becomes trendy and cool for the majority.

    That’s why very few people prepared. That’s why they won’t now.

  • BFH

    I just wish there was some way to MAKE the masses wake up and pay attention. Maybe an EMP to turn all the damn TV’s off but, then they would not hear the news at all. Oh well!

  • uncurable wound

    Wow Michael Its coming Faster,and faster.
    Great article and info. I know you are busy so I was wondering if you had seen this article.

    “Ultimately, though, the ease of our well-to-do welfare kingdom has set us up for a cultural failure of epic proportions. Anytime a society allows itself to be conditioned with dependency, its fate is sealed.”

    This author says it like it is,reminded me of you.Check it out

    Keeping you and family in prayer.
    peace to you.

    • Michael

      Thank you for your prayers. I believe that prayer changes things, and so I am always happy to hear that there are people out there praying for us.


      • Gary2

        Still waiting for “Prayer” to make me wealthy. Still waiting…but you said prayer works…still waiting….

        • Michael

          If you have not given your life to Jesus and if you are not obeying His Commandments, then I would not expect many of your prayers to be answered.


          • Gary2

            I only need that one answered.

        • vancouver mark

          And even then, the wise man prays mostly regarding the next life, not this short little one. Our Lord spoke at length about the foolishness of focussing your time on gathering wealth in this life.

          You really should read the Book, Gary2.

  • Maximus

    I have been a reader of this blog for over 6 months now. This blog is one of my sources of information on where our world is heading to. Michael thanks a lot to you for your analysis and efforts to keep this blog constantly updated. I find comments of fellow readers often very interesting, too.

    The more I’ve been reading this blog, the more I have become deeply interested in why things are happening the way they are. The big questions for me are WHY and WHAT NEXT. Nothing happens without a reason in this world. It would be naive to think that the world is allowed to develop without an agenda and that things are just deteriorating because nobody cares, or because people are spoilt, greedy and stupid. Successful is the one who predicts future most accurately.

    What this blog stops short on is the biggest question of them all: what will happen after the imminent economic collapse? Michael, please do not take this as criticism to you. Your blog is called The Economic Collapse Blog and hence, you need not deal with what will happen after the collapse.

    The upcoming economic collapse is carefully orchestrated by the world’s elite. Some of these people – the so-called Bilderberg Group – is having their annual meeting in Virginia this weekend. It is annoying that an unelected group of world leaders meet in secret and the main stream media is completely forced to keep quiet about it. I may console those of you who are worried: the power of the Bilderberg Group has diminished over the past years. They are not as powerful as they were before. So, who has the actual power? Who is pulling the strings and orchestrating the upcoming economic meltdown? Why? What is on their agenda and what do they want to achieve as their ultimate goal? This blog does not deal with these questions. However, I think it is very important for all of us to understand these matters. Only then we stand a slim chance to be fully prepared to everything that the elite have on their agenda for us. Only then we stand a chance to survive. That is, of course, if the elite succeed in implementing their agenda.

    The elite who control the world are based in the USA. These people plotted to create a base for their world takeover in mid-17th century in England. They choose America as their base. They succeeded in creating their own country in 1776. Their ultimate goal is taking over the entire world, under one government. Their plan is called New World Order. In order to implement their plan, they need to create a perfect storm – chaos – first. They call it ‘order from chaos’. These people own trillions of dollars and use this money to manipulate markets and orchestrate world events. They control directly and indirectly most important nations on earth, except Russia and China. Therefore, our only hope is that they will not be able to take over Russia and China.

    These elite impoverish and destroy wealthy North African and Middle Eastern countries to make them weak. This gives them free hands to completely destroy the economies of the Western World without the risk of wealthy Arabs starting to buy into Europe/America cheaply. Eventually the euro and dollar will both collapse one after another. There will be food riots, mass looting, murders and a complete loss of order. Desperate people will do desperate things. After there has been enough looting, murder, starvation, cold and disease, people will want law and order. People will hail those that promise a solution. This solution will come at the expense of freedom. I am afraid that this time there will be no food coupons. Instead, all who want free food will be forced to accept an injected chip.

    If this sounds awful for you – it is still absolutely nothing compared to what the elite have planned for us after law and order are resurrected. Their ultimate goal is o reduce the world’s population from the current 6.8 billion to 0.5 billion. Yes, this means that they plan to murder 6.3 million people. Yes, they plan to murder 93 per cent of the world’s population. The vast majority of the 7 per cent who will be allowed to stay alive will be slaves with no rights. People’s movements will be restricted, travel will be outlawed, and disobedience will be severely punished. The elite have already created a deadly virus called HIV. That’s correct – HIV is a manmade virus, the creation of which was funded by the US government. They are currently working on several more diseases and ways to spread them. For example, they are creating a genetically modified grasshopper which will be resistant to pesticides. This creature will eat up most of the grains and people will starve to death. They are also working on a deadly disease that will be spread by rodents. The list goes on and on.

    What are our chances of survival? There have been similar lunatics with ambitions of a world takeover in the past. Remember Stalin, Hitler, Alexander the Great, Tchengiz Khan? They did not succeed. So, will the tiny but powerful elite who own America and most of the rest of the world succeed? Our only hope is that they will not be able to take control over China. Russia is much weaker and does not stand a chance alone. Together with China, Russia is a lot stronger and can stand against the pressure of the American elite. As soon as these two countries have been conquered under the slogan of ‘we are bringing you democracy’ – we are doomed. As much as we, arrogant westerners, despise some of the practices in China and Russia, these two countries are our only hope.

    It is psychologically hard to believe what is really going on behind the scenes. Thankfully there are a lot of good books around and we (still) have access to the internet. If you still don’t believe, educate yourself and search the internet via Google and YouTube. Here is a short list of useful topics to discover the truth about:
    – 9/11,
    – HIV,
    – New World Order,
    – Illuminati,
    – Freemasons,
    – Denver Airport,
    – Libya,
    – Syria.

    Meanwhile, those of us who want to survive need to prepare, prepare, prepare. You can only count on you and yourself. Nobody will come to rescue you. Noone. You will be all on your own when the hell breaks loose. And, don’t forget to add gas masks to your arsenal of survival gear.

    of Europe

  • Georgiaboy61

    Re: “During the next major economic downturn, the unemployment rate in the United States is going to soar well up into the double digits.” The real unemployment rate is ~ 18-25%. Official govt. figures are no longer reliable indicators, as the Obama regime has corrupted them for political purposes. Vast numbers of long-term unemployed have been ommitted from the rolls, as well as other underhanded methods, to assure that the numbers do not reflect reality. In other words, we’re already near 20% unemployment/underemployment – it is the new status quo.

  • Ian

    And yet…2 years from now we will all be saying the same things while everything just chugs along. While shopping centers remain full, movie theaters remain packed, ipods fly off the shelf and nothing happens. Mark my words, we have a long long time before the hell you are fearing is here. It may come in the future, but there is way too much wealth and way too much human ingenuity to allow for such a dismal collapse aat this point in our history.

    • josh

      i see a lot of sheelpe in denial are coming to your blog now, that has to be good news? first step in WAKING THE F UP!

  • Pete

    Gold and the jobs report: If you only knew the power of the dark side

  • howdy

    Steve Quayle is, and always has been, an idiot.

  • blueridgeviews

    What happens to GDP if the Federal Gov’t lives within it’s means? My guess is a contraction in GDP of 10%.

    What happens to NY suburbs and DC suburbs when the money is cut off?

    I recently went up to NY and can’t see any signs of the hard times we are experiencing here in rural Virginia. I guess it’s not hard to see where the stimulus/bailout money has gone.

    We are in for a long hard ride till we work ourselves out of this financial mess.

  • Evie

    Yes but americans are the consumers of the world. Without the usa going into debt to buy all will collapse even the bric and the new malaysia.

    • josh

      see what i mean, MORE sheeple, good job!

  • El Pollo de Oro

    Some more “happy” thoughts on the global economy meltdown and the hell that it will bring:

    “If there is war against Iran, it is going to be the beginning of World War III—and we will go into a depression, the likes of which people have never seen. This will reverberate worldwide.”—Gerald Celente

    “There is going to be financial anarchy in Europe, and it is going to cause a slowdown worldwide.”—Jim Cramer

    “It is becoming increasingly impossible in America to get a good job without being connected to the system that serves the elites.”—Paul Craig Roberts

    “The World Health Organization calculates that one in four people in the United States suffers from chronic anxiety, a mood disorder or depression—which seems to me to be a normal reaction to our march toward collective suicide. Welcome to the asylum.”—Chris Hedges

    “There’s quite a large chance that there will be no euro a year from now.”—Paul Krugman

    “Even a dog knows when he’s being kicked, and the middle class in America has been kicked over and over again.”—Alan Grayson

    “Today Americans and citizens of other countries can, on the will of the US executive branch alone, be confined to torture dungeons for the duration of their lives with no due process or evidence presented to any court, or they can be shot down in the streets or exterminated by drone missiles.”—Paul Craig Roberts

    “Far too few have much too much, and way too many have much too little. So when the money stops flowing down to the man on the street, the blood starts flowing in the streets.”—Gerald Celente

    • Michael

      One of these days I hope to make your lists of quotes. 🙂


      • El Pollo de Oro

        Michael T. Snyder: When I quote you, it’s usually at the beginning of one of my “happy, cheerful” rants. But a “Michael T. Snyder within a list of quotes” approach would work as well. For example……

        “It is becoming increasingly impossible in America to get a good job without being connected to the system that serves the elites.”—Paul Craig Roberts

        “We are very, very messed up as a nation.”—Michael T. Snyder

        “American exceptionalism? Exceptional at what? Waging wars against innocent people for fake reasons? Exceptional at what? Being addicted to pharmaceutical drugs that have people’s minds wasted? Exceptional at what? Eating more junk food and becoming the most obese nation on Earth?”—Gerald Celente

        “I don’t think people realize just how evil and what an abomination our country has become.”—Alex Jones

        “For many, the American Dream became a nightmare long ago. It’s little wonder that Americans are afraid and angry.”—Michael Fumento

        “I’ll show you America: terminal, crazy and mean.”
        ―Tony Kushner’s “Angels in America”

        • Michael

          I like it! 🙂


  • Barn cat

    There are approximately 400,000 job losses each week. There are 4 1/3 weeks in a month. That’s 1,732,000 job losses a month. So how can 125,000 new jobs keep unemployment steady???

    We need 3 million new jobs each month in order to recover all the lost jobs. Those of us who are in our 50s or 60s were the first to lose our jobs. We’ll be the last ones hired too.

  • McKinley Morganfield

    I have agreed all along that the collapse will begin in Europe, just like the last depression. For those who are interested in the events that caused the last depression I suggest you begin with a search for ‘Creditanstalt’ and find out what really sparked the financial collapse of the 1930s. However, QE and LTRO will continue to prop up the current financial system for a bit longer and no one can predict when there will be systematic collapse. I do think the greatest of all depressions is coming, but fretting about it will accomplish nothing.

    Just do your best to be prepared to survive water, food, and energy shortages. Prepare as best as you can for chaos and crime if you live in a metro area or within 100 miles of one. There will be marshall law eventually but a nation of 330,000,000 can not be kept under the thumb of security forces 24/7 from sea to shining sea. Prepare, help your neighbor, and keep your chin up.

  • nowwthen

    I have also noticed that the readers of The Economic Collapse typically leave far fewer replies to articles addressing the eurozone mess. Most of us realize that someway, somehow we in the U.S. will be affected by what’s going on “over there” but don’t quite assemble the puzzle pieces. Articles like this one help. Things will soon become clearer due to the economic statistics we are beginning to see. For instance, the yield on the ten year U.S. treasury dropped to 1.46% on Friday — an all time low! This is certainly not due entirely to Americans buying treasuries. Much of the wealth in Europe is fleeing to the (at least temporary) safety of the dollar thereby driving demand up and yields down. For perspective think about how much economic dread it would take to motivate the average American to convert his life savings into bonds issued by a foreign country. That’s the sentiment all over much of Europe.

    • jox

      I’m not so sure about that. I am from Spain. Nobody that I know is buying American bonds, not even talking about it. I don’t read anything on the press or on TV. So perhaps there are funds, banks or companies doing it, but not the average people.

      • josh

        DA FED

  • Rancher

    Once again prepping is more important than talking about yesterdays news. If you truly believe said news then this site IMHO should spent more time in advising specific steps to be taken by Americans now to try to weather said storms.

    Like gold/silver plus cash? Gold /silver only? How much stored wealth per person? Stored food for how long? Grid no grid? If banks fail how do bills get paid? No payments no services. If the grid does not get paid it goes out of business. If servers do not get paid then said servers shut down and no on line payments. If fuel goes way up the no mail delivery plus the danger of being out delivering said mail as it could have some form or wealth in it to be robbed. Shoot several dozen mail carriers to death and the whole system will stop….

    In short will communication be crippled to the point everything just plugs up and stops…sort of like constipation? Services can not keep running without pay checks and somewhere to spend them. Preppers can stay at home with their rifles stuck out the windows but the rest of society 99.9% can not function without daily resupply and cell phones. I am not kidding on the cell phones either…we have become dangerously dependent on electronic communications and banking. I do not own a cell phone, ipad, ear plug in things, gaming devices or other such toys. But I do run a retreat 😉

  • Jerry

    He is right about this is just the beginning.

    Hopefully you have prepared yourself for what
    is about to come our way.

    I am so glad that I stumbled across a site
    put together by a millionaire that has
    changed the way I look at the economy
    and what I can do to prepare myself.

    A lot more people are going to lose their jobs and we are going
    to see more and more inflation until it hits

    costs will double and triple overnight.

    The good news is that those who know the secrets
    of what the millionaires are doing can be prepared
    and can actually take advantage of this crisis.

    There are a lot of ways to prepare yourself other
    than the stock market.

    Find out what the wealthy are doing and follow
    their example.

    This could be life changing for you and your family.

  • Emilio

    Michael perdona por escribir en español pero el paro en USA solo ha subido una decima del 8,1 al 8,2 que pensarias si tubierais la tasa de desempleo tan alta como en España.

    • mondobeyondo

      Si, solo ha subido una decima, pero con nuestra economia despues de tantos años sin mejorar (casi 4 años) de desempleo alto, no es bien. Es verdad, nuestro paro no esta al nivel de España, pero… para nosotros, es mal.

      [Translation: The U.S. is still screwed…]

    • El Pollo de Oro

      Emilio: Aquí en La República Banana de América (eramos Los Estados Unidos en el pasado), hay un economista llamado John Williams (Shadow Statistics):

      Según John Williams, la tasa de desempleo verdadera en este país fue 22.4 por ciento en diciembre del 2011. Eso es porque hay milliones y milliones de americanos que han pasado dos o trés años sin trabajos, y el gobierno estadounidense finge que ellos ya no existen. Cuando el goberierno estadounidense dice que hay una tasa de desempleo de 8.2%, eso es una mentira. Es un engaño. Hay una depression economica aquí, y nuestra condicíon sigue empeorando. La verdad es que La República Banana de América se está convirtiendo en un país del tercer mundo.

      In other words, The Banana Republic of America (formerly the USA) is in bad, bad shape.

  • Jodi

    Frightening stuff is coming. God help us!

  • DEFCONStudios


    This is the current Economic Situation facing the Entire World:

    1. American Derivatives Bubble Held by Four US Banks ($250-600 Trillion)
    2. Worldwide Derivatives Bubble ($1.5 Quadrillion)
    3. Chinese Subprime Bubble ($2.7 Trillion)
    4. American Student Loan Bubble ($1 Trillion)
    5. European Financial Crisis ($10-15 Trillion)
    6. Bond Market Bubble ($450-600 Billion)
    7. American Debt Bubble ($211 Trillion)

    • Michael

      That list certainly makes things look bleak. 🙂


  • Chris

    There is no way that this financial system collapse will have happened by chance. This has to be the end result of a very carefully planned long term strategy. The central banks deliberately created a series of bubbles in tech and housing etc to cover up for Globalisation and to weaken the West. This was helped by deliberate running down of financial regulation and fraudulent lending practises to enable people who should never have got loans to have them. Then the derivatives ‘weapons of mass destruction’ ontop of this. Whoever created the system knew it was inherently unsustainable and would have to be replaced at some point and no doubt have the replacement waiting in the wings. It appears they even sabotaged their own system in order to bring its demise forward and through other outlets started educating the masses about the fraudulent fractional reserve system thus preparing people for its removal. People should not rejoice at the end of this present system because they’ll no doubt eventually see they’ve been scammed again when the new one is imposed, globally presumeably.

  • William Owens Jr.

    1.The value of what we (all) call “money” is simply an illusion.
    2. Nothing has really changed in our global society per se except we have unemployment.
    3. One or some great mind(s) must mathematically (as would a dictator with such a mind)
    allocate a value to each country in the form of an international debit card considering current debt as a modifier
    of its value.
    4. Erase all personal debt
    5. Issue pre-funded debit cards to the population that can be enhanced with credit for work.(points)
    6. Tariffs (negative points) will be levied on trade based on a formula developed by using inverted average wages as basis. ( the lower the wages the higher the the tariff.
    7. The new currency will,be know as “international points”
    8. All current dollars or national currencies will be converted to points
    9. All national debt will be distributed across the nations in proportion to their GDP.
    10.Banks will be put back under stricter control
    12. Derivatives will be eliminated.

  • jsmith

    Michael, all this is very frightening. When I tell my friends and family they think I’m nuts! It is like they are frozen in time, waiting for things to happen.
    From what I understand, currency devaluation is coming, which is the only option this country has. What in your opinion does this do to the price of silver?

    • Michael

      I think that precious metals will fluctuate wildly in the years ahead.

      There is not a single financial strategy that will work well at all times. The key will be to be as flexible as possible.


      • Rancher

        Let us be real here. No one can store up enough water…period. You can store food for months and ears but water days and weeks at best. It is to heavy to relocate so you are stuck where you are come a fire or worse.

        Nope you need to live at or team up with a location which has pure deep water and good shelter, off the grid capable and has some numbers to watch while the other sleeps.

        might help…

      • Rancher

        “The key will be to be as flexible as possible.” ???

        Now Michael that is one statement which has zero meaning. Flexible means so many things to so many folks. Only plans with specifics and redundant options can give one any hope in the natural.

        The bear is chasing you down the road…be flexible? Hardly.

        Your neighbor begins to suffer from massive robbery and crime…be flexible?

        Your wealth now has been cut by 2/3…be flexible?

        Your precious metals just tanked buy 40%…be flexible??

        To me being flexible is a poor man’s, normalcy bias persons response to not having several good plans in place, funded and well stocked. I do not hang out with such people.

  • John Doh

    All you have to do is understand God’s Word and read it and you will see prophecy being made into light. In other words God has warned us already from the beginning of time that this world will be like this when it would be close for Christ’s return to cleanse this dirty, sinfull planet!

    • GaryToo

      exactly john

  • Old Man

    “The Bad Jobs Report Is Just A Very Small Taste Of The Nightmare That Is Coming”

    YUP! This headline is not sensational. It is a sound prediction.

    In the U.S. much of capitalism in the private sector has failed. The failure is the result of many actors and I don’t need to elaborate. Only say that these actors have proven incapable of fixing their own mistakes. So the system continue to crash.

    In the E.U., the Euro currency project has failed. The failure is the result of many actors and I don’t need to elaborate. Only say that these actors have proven incapable of fixing their own mistakes. So the system continue to crash.

    In the U.S., the Fed is debasing the dollar surreptitiously and with all sorts of arcane tricks. It hope the resulting inflation will cancel the massive debt owed to the banking system. So the the banking system can continue to run the country as before. In short, austerity to repay the banks, who caused the crash in the first place. The American people is accepting austerity with a huge grudge. They have never thought they must live within their means!

    In the E.U. everybody except Germany rejects austerity. But they still don’t know what austerity means. To the Germans, it means live within your means. This idea is utterly repulsive to the problem-countries and they will rise up. They will demand the American solution. Permit the ECB to print money and inflate all their sins away. That is, all Eurozone countries must pay for the problems of the problem-countries. So that once things have settled down, the Greek-like countries can continue to live as they have before. And the banks can continue to run things.

    Absolutely nothing will change. The victims will be forgotten. The elite will declare success. Such is the folly of man.

  • Bryan

    and when the war starts in the middle east as the Bible states imagine what will happen to gas prices as well! I just hope and pray that it doesn’t all hit at once….May Godbless and protect ALL!! families everywhere! Maranatha Lord Jesus!

    • GaryToo

      Bryan, this is what i believe, macro-ecomomics will become irrelevant when there is state of emergency and nationalization of resources. then all out war between nations to try and control resources. possession will be 99% of the law for fuel and food resources then.

      How much scarce fuel will be diverted from war to run tractors and delivery trucks back at home? Not much is my guess, careful allocation only for the state apperatus and masses starving is my guess.

      From the bible we get a guess that there will be war with good old fashioned long overland march. That tells me that most oil tankers, refineries and pipelines will have gone up in smoke, the level of smoke also talked about in bible darkening the skies. No transport left for military or civilian use. No tractors or trucks running, no police cars, no dhs vans, surviving will be like weathering a super twister.

  • Gary2

    Not only do the wealthy pay a proportional low income tax they have the rest of us taxpayers subsidizing their low wage workers.

    Most minimum wage workers receive food stamps, housing assistance and medicaid to allow them to survive.


  • Gary2

    Michael–why are you quoting a hedge fund scum bag?? they have zero creditability.

    • Douglas Diehl

      Gary2 I thought the same thing about quoting the Hedge Fund parasite. However since this individual slaughtered so many people financially he knows the facts. Like hiring a convicted computer hacker to work with law enforcement. Only difference is this guy cashed out and lives the high life in Spain. Yes a parasite!

      • Gary2

        good analogy!!

    • GaryToo

      Visit the site, Im surprised you dont know of it. It is no hedge fund.

  • Sam

    Hey Michael thanks for posting these articles. I know you posted some ways for people to prepare for the next economic crisis, but I have a few questions:

    -How will a small business be a good option in an economic collapse?
    -If people take out their savings except for basic operating expenses then where should people keep their money?
    -The stock market has become too volatile so what are better alternatives (Are precious metals a good option)?

    I would really appreciate your advice.

    • Michael


      #1 You can’t be fired from your own business. It may go under, but at least you will have more control than working a job.

      #2 I am encouraging people to store up at least six months of expenses for what is ahead. The smart thing would be the save up much more than that.

      #3 Now is not a good time to be in the stock market.


      • josh

        i think the key here is having your own small business that PRODUCES SOMETHING. because once currency collapses you will be able to barter with whatever you produce! just make sure you stock up on needed supplies or what i believe many people with rely on is PRODUCING FOOOOOOOOOD! so you would need seeeeeeeeds!

  • CinnamonGirl

    Why is it people like Dave Ramsey keep saying we are whining doom and gloomers? It irritates me.

    • mondobeyondo

      Because he is trying to sucker people into buying his books and attending his seminars?!? Just a guess…

  • Sergio Diaz

    I believe that the future financial system we will have in the future, is going to be a cash-less society, a world without cash.

    • josh


  • GaryToo

    i dont like the picture of the blackhawk or apache gunship helicopters swooping above the city below, UN World Food Program choppers dropping food over the cities as a future piture would be nicer.

    • Rancher

      Who is paying for the food and choppers? What food?

  • Mark

    With the current deficit larger than growth of GDP and the deficit is finance 60% by the fed. Any bank bailout due to European or derivative exposure will be inflationary.

    Reading lame steam media about a month ago I cam across a report the USA is heading into a recession again. I think that report is too optimistic, for us to head into recession we have to be doing well now. This is equivalent telling a guy neck high in water that he is going to get wet. The US economy is not in a recession nor will it go into a recession; ladies and gentleman were are in a depression and it will get worse.

    I suggest every body to get there “G” s:

    Garden = To grow vegetables
    Goat= For milk
    Gold= For facilitation of trade
    Guns= Protection
    German Shepard= Makes for a guard dog
    And last but not least and should be first is…
    God= nuff said


  • Alasha

    More bad news from Detroit – sigh

    Hospital Drug Shortages

    • mondobeyondo

      Will Detroit ever catch a break? Naaah. I wouldn’t hold my breath.

  • mondobeyondo

    I feel a double-dip recession coming on…. or WORSE.

  • Does anybody think the 10 toes that Daniel saw on the statute could be the 10 nations that form a new Euro Union from the one that is about to collapse?

    • Gary2

      No probably that people have 10 toes and who ever made the statue was doing so in a human likeness. I have heard of conspiracy theorists…

      • GaryToo

        thats right people have been counting countries going in and out of ec/eu for at least 30 years. nows theres 10, now theres 9, now theres 12 pfft. In any case militarily the euros are just the junior partner of u sa in nato.

    • Racing4home

      Compare the “ten toes” in Daniel with Revelation’s “ten horns, ten crowns and ten kings.” If you read Matthew 25:1-13, you will see Christ’s parable is referring to “ten virgins.” The ten virgins represent the Lord’s church (not man’s “Christian” construct), through out the world.

      We know at some point the world will be divided into “ten” regions of some sort. Here’s an official European Union site that has the world divided into “ten” regions. Just a thought…

  • Timo45

    The sad part about it u can’t warn people. They just don’t listen. They don’t want to hear they are just caught up in their own life. And thats whats so sad they only way to fix these problems is knowledge understanding what the truth is about our economies.

    • GaryToo

      thats for sure, I do try, it seems impolite. why so negative etc. I was at a big party the other night and couldnt help thinking of the bible verses saying people would be partying on til the end. Party like theres no tomorrow.

    • Alan Kendall

      In California, Real Estate has been on 8 year waves, 82 to 90, doubled, 90 to 98 fell in half, 98 to 2006 tripled. I sold my home at the peak and warned 200 people who all ignored me. People only listen to the majority because there is a big comfort when you go with the majority. I bought back on the dip and I pay $972 in interest for a bigger house (Was paying $4050 in interest for a smaller house across the street).

  • Douglas Diehl

    I am no economist by any means but I read these articles and comments with earnest. Instead of taking the doom and gloom approach isn’t it possible the world community will go through a difficult transition after the collapse. Perhaps 6 months or a year and as one writer states paper money will be eliminated and pre-funded debit cards will be issued. If you work you earn points. Of course through human nature greed will take over and there will be fraud and counterfet cards ect. However what irkes me is I’ve lived debt free my whole life living within my means and all these folks who have acted like they won the lottery will start over debt free. Like I said I’m no economist so go easy.

    • GaryToo

      much debt will never be repaid, but before that happens people will be squeezed like blood from a stone, those financed cars will be repoed or sit uselessly without fuel. The owners themselves likely out of fuel. It will be no picnic.

      Microchip more likely than debit cards, already used in india. Look into “mark of the beast”. Chapter and verse anyone?

  • Douglas Diehl

    A follow up question for you knowlegable folks on economics. If there is a collapse and debt is erased and we start over, the currency is worthless? There is no way to recover our savings? So it would be prudent to use my savings to buy land, food, and other provisions before my savings vanish?

    • GaryToo

      yes definitely.

    • josh


      • Zedge Hero

        Commodities is what your looking for. Silver, Gold, land, etc. Assests over liabilites are huge right now. Seeds,foods, guns and other provisions are needed just in case, oh and that case is getting bigger.

  • Evie

    I do not think the plan was for the euro to go first. I bet we make or send parts of things over to count as exports,they add a part maybe lettering on a container,send it elsewhere and someone fills the container,someone else puts a top on after which all is imported from here and there. Phony import export data.

  • chiller

    Another great article and attempt to prepare people for the coming freight train. One of my favorite quotes:
    “There’s nothing to lose by doing a lot, but a lot to lose by doing nothing.”

  • erheault

    history has a way of evening the odds, Germany after WW1 was required to pay off all of the bills from France and the USA and all of the other countrys that was involved and not allowed to construct a army or military equiptment Their awnser was the printing press soon million mark notes was in circulation we have a picture taken in th 1920 era showing a push cart full of marks had they of been robbed the marks would of been dumped and the cart stolen.
    the end of that was the Adolph era who brought industry back and started the military to utilise the unemployed, while building the Autobans and industrys to put the people back to earning a living, Which was a winning plan and as a result the people held him as a gaurdian angel and saviour of the nation we all know how that turned out. The scary thing is we are doing the same monetary answser that Germany used to pay off its huge war debts Fire up the printing presses and send out bales of dollars which in the end will bite the USA after all it is only paper promises revokeable at any time without notice, How this will wind up is anybodys guess but it will not be nice.

    • GaryToo

      erheault, it isnt quite like that. Germany has only just now finished reparation for ww1. useless deutshmarks were never accepted at a high rate of exchange. The usa is different in that it is the world reserve currency.

      Hitler borrowed, and stole gold and assets, gave bad credit like mad to finance his military buildup. once you have the biggest military and are in occupation of the resources, it does not matter if you cant pay for them. you plunder without iou.

      that is loosely the position the us is in, as the world reserve currency and with troops and ships stationed all around the oil, the petrodollar system will stand and the dollar will not devalue, it is however on really shaky ground, because that is the exact same position rome and other overextended under producing empires were in before collapse.

  • Colin

    I was working on a word search puzzle book when I stumbled upon this quote by the 19th century American social reformer Henry George. He proposed the idea of a single tax. In a quote lifted from the book Progress and Poverty, he wrote:

    “So long as all the increased wealth which modern progress brings goes to build up great fortunes, to increase luxury, and make sharper the contrast between the House of Have and the House of Want, progress is not real and cannot be permanent.”

    Here is an article on Henry George:

  • Kim

    Will the economic collapse happen? Maybe.
    Is it good to waste your life worrying about what may happen? No.

    I have been waiting since 2006 when Alex Jones was like oh things are going to get really bad real soon. Even thought about not finishing getting my college degree because the world as we knew it was gonna be over that summer. Thank God cooler heads prevailed and I finished college.

    Almost 7 years later and nada, zip, zilch. Sure there are people that are hurting financially. But this can be said every year as some people lose jobs, homes, etc.

    Perhaps more people this time around than ever before but this also happened in the eighties when a lot of people had ARM’s and the rates ballooned. People could not afford their homes and lost them.

    So we can say that poor economic decisions affect a persons lifestyle, livelihood, etc.

    This is the way life is. The media hypes up the suffering of a few to make everyone else feel like garbage and to boost ratings.

    It seems that we are always watching for the next train wreck; and waiting for the next big meltdown.

    Truth is some people are broke, most are getting by and some have plenty of money. This is life. It will always be this way.

    As the Bible states: The poor will always be with us.

    Don’t waste your money prepping and living in fear. You will be pretty sad if you are 80 and your life was all about preparing for something that never happened. All this things you could have done but didn’t because of your fear of the future.

    There are people that make money and profit off the fear and rumors.

    Don’t let them. Live your life. Surround yourself with positive people and get out of that self imposed prison you have built because of what may happen.

    • Kim, you make some good points. Still I’m reminded of a verse in the OT something like, “The wise seeth the evil that is coming and hideth himself”. And, I do believe that the Lord will take care of his own people, but that doesn’t mean that they won’t go through hard times like everybody else. I think you would be wise to watch your spending for a while. I don’t think it’s just “business as usual” here in the U.S. now. If that were true, we would have come out of this recession like every other in the past 80 years. This recession seems to have no end which points to a fundamental change in America IMHO.

      • GaryToo

        you are right craig, i heard of all this many years ago and over time wrote it off. I have been a property investor and landlord in aust since 89. I rushed in and invested in property in 09 like many because i saw low prices, 3 yrs later i expected by now to have made a profit on that, no a loss and still losing.

        Most of the jesw that god gassed had plenty of time to get out in the 30’s most took the attitude that it was a little tough to carry on as usual but couldnt get that bad, should pass. Others saw the writing on the wall.

        • Australia in 1989? Hmmm, that was the year of my vist and only visit. Geelong and then to Melbourne. Stayed a week. I really liked Melbourne.

        • paul

          So it was God that gassed the Jews and not the nazis?

        • CinnamonGirl

          Good points gary Too.

          Kim, i’d say Alex Jones was at least part right back in 2006….because of the 2008 crash.
          Personally, that was the end of the good times for my family and they have not come back yet.
          I prep in case things get worse for us…not for an asteroid attack, etc. I prep things to use in a year’s time, not to sit on the shelves waiting for ‘the big one’. That’s called common sense.

    • Gary2

      Kim-you may be on to something. All these Gerald Celente fear mongers are laughing all the way too the bank.

    • ScoutMotto

      Kim, you make several good points, but we are facing unprecedented indicators these days. One is a fifteen trillion dollar public debt in the US. The nation cannot survive with this kind of debt against a fiat money system. Fiat money ALWAYS fails, and the US will not be immune to this fact.

    • Another Richard

      Kim, the Bible also says in Hosea chptr 4 that ” My people are Destroyed for lack of Knowledge…” God Never spared any segment of His people throughout Bible history from feeling the pain that the Nation as a Whole was experiencing. When the Nation of Israel suffered – All suffered, and so it still is today. Your scenario overlooks a lot of Knowledge that has been put forth on this site and many other good internet sites. This Knowledge is not disseminated in the controlled MSM. So, without a doubt your comments by disregarding sound Knowledge does not equal sound judgement that leads to sound actions. It has Nothing to with being negative or positive in ones mindset, as there is a Negative for every Positive in the universe, but rather weighing the evidence for Truth and taking action on the Truth once it is Known.

      • paul

        Lack of knowledge of how to save money? You don’t save money by buying chips in bulk. You save by buying fruits and veggies instead.
        Don’t just switch the utility, insulate your house. If it’s not yours get a down quilt and a pullover.

    • El Pollo de Oro

      Kim: Alex Jones, like Gerald Celente, was absolutely right when, in 2006, he predicted a major financial crash. The neocons (or as I call them, neoKKKons) and Bushbots mocked Alex Jones and insisted that the economy was perfectly healthy, but in fact, the crash of September 2008 turned out to be the worst crash since 1929 just as Signore Jones and Signore Celente said it would be. So as far as I’m concerned, those guys called it big time. When it comes to credibility, Alex Jones and Gerald Celente are right at the top of my list along with Paul Craig Roberts and Katherine Albrecht.

  • William

    Well, this is what Americans voted for. Americans voted for EMPIRE, in the form of the Smirking Chimp and war criminal Bush’s unnecessary war of choice in Iraq, and now the failed Obummer killing women and children with drone missile attacks in Afghanistan, Pakistan, Yemen, Somalia, and around the globe. This is what you want……EMPIRE vs EMPLOYMENT!. Be sure to reelect the IDIOT who represents you in the US House and Senate.

  • Washington

    Published on May 13, 2012 This was filmed in Elgin, Illinois about 40 miles from Chicago. I assume it’s for the NATO summit this week as a security measure. Footage of a drone!

  • Douglas Diehl

    Actually I don’t live in fear waiting for a collapse. I go to work 6 days a week and after work I cycle, run, fish, or cross country ski every day depending on the season. It’s a sublime life living in the largest park in the United States. However I’ve worked hard a long time and have saved money. No stocks, 401 blah blah blah just a savings account. However since I lived debt free and lived within my means my whole life, I don’t want to wake up one day and lose my savings because I left it in the bank when a collapse occurs. Perhaps it’s better buried in the back yard, but than again it may be worthless still.

    • paul

      I bought me a house with my savings and insulated it and put modern heating in and triple-glazed windows. I pay 350 eu for heating and hot water per year., when we have 20 below zero in winter.

  • Gary2

    Sorry to all the 1% defenders-more agree with me TAX THE RICH HARD!

    •72% of participants favored raising taxes on people earning more than $1 million a year.

    •74% believe eliminating tax credits for the oil and gas industries to help reduce the budget deficit is mostly or totally acceptable.

    •63% believe it is totally or mostly acceptable to eliminate the Bush tax cuts for families earning over $250,000 per year.

    •78% support repealing the Bush tax cuts as a major or minor way to reduce the federal budget deficit.
    •72% describe the recent debt ceiling negotiations in negative terms such as: terrible, disappointing, childish, and a joke.

    •64% think it is a good idea for the wealthy and corporations to pay their fair share in taxes and can afford to pay more for programs and government operations.

    •53% believe it is totally or mostly unacceptable to reduce the corporate tax rate from 35% to 25% .

    • The Wiseman

      Hi Gary2:

      Most of the 99% don’t relate to the 1% and that is obvious from the statistics that you quote.
      The problem with “raising taxes on people earning more than one million/year” and “TAX THE RICH HARD!” and “…totally or mostly acceptable to eliminate the Bush tax cuts for people earning more than $250,000/yr.”
      is that “the rich” make that money by creating jobs for those less fortunate. Because they are “rich”, they have the means to “vote with their feet” and leave the area – even the Country – for greener pastures, thus leaving their former employees bereft and broke. (see the young Facebook founder who dropped American citizenship and moved to Singapore, thus saving himself $4.0 Billion in taxes to the US gvt.) Beware, Gary2, that you don’t get what you hope for – the rich will not holdd still for your “punishment”!

    • GaryToo

      G2 repeatedly people here talk of the top 10% paying 50% of taxes not 1%. So you are lying and twisting things when you say 1% defenders.

      americans are 5% of world and consume 25% of world oil, 30% of all resources. So you yourself are part of the 5%. Sorry your pay went down from 20$ hr to 10$ hr. Tax your 300lb v8 driving american 5% hard. spread that wealth to the really needy. thats right tax the greedy 5% to feed the needy 95%.

      you have a way to go before your 20$ hr job gets right down to 2$ hr like many of the jobs that have alreqady gone to 2$ hr indians and chinese.

      So by all means tax the rermaining 10% harder, they will absorb that loss sending ypour 20$ hr skilled job os for 2$ hr. and your 10$ hr unskilled job os for 2$ day.

      • GaryToo

        and as for the true 1%, the truly evil bloodsucking satanist leaches. Only 2 articles ago it was all laid out how they avoid tax, so trying to tax them more with the current system is pointless.

        The only thing that would work is a financial transaction tax. You only pay tax when you buy, not when you sell. That way all the wall street traders who pay nothing, and vulture corporatists like catchers mitt when he was chief of bain capital, can truly pay their fair share. If catchers mitt wants to acquisition and then liquidate a company eliminating everyones jobs, he can pay for it instead of claiming a loss.

    • Cat

      “The Campaign for America’s Future is the strategy center for the progressive movement. Our goal is to forge the enduring progressive majority needed to realize the America of shared prosperity and equal opportunity that our country was meant to be.”

      So this is the stated goals of the website you pull your facts from Gary2? I’m sure they never slant the facts to the left. I might have a little more respect for your opinions if you would quit spewing out “facts” from such one sided sources. You need to take the blinders off. The left doesn’t have all the answers and neither does the right, and one thing is for sure, you will have a difficult time convincing anyone that you have the answers because you come across as a lemming of the progressive movement. I have far more respect for someone leaning to either side of the political isle who at least educates themselves with an open mind about the other side of their beliefs and occasionally even finds fault in their parties agenda. I have never seen any sign of this out of you.

    • John W.

      You lib clowns never learn,less taxes will be collected. The truly rich have their wealth in assets not wages. Do you think Buffet is paid with taxable wages? Hell no it is all tax free allowances and other income. Screw with the hard working and see the little prosperity that is left vanish. If taxes become punitive the wealth producers will just cut back and pay less. What you and all the rest of the left wing advocate is legalized theft. Why should anyones taxes go for illegal aliens and other leeches.

  • mondobeyondo

    When the shi…. ship goes down, you’d better be ready.

  • Gary2

    Michael–That looks like Magog in the picture at the bottom of your article. On the other hand I see some Gog in it…

  • mondobeyondo

    Keep fear mongering, eh? Tell Dave Grohl to stop fighting the Foo.

    There are valid reasons to be afraid of our collective financial future as a nation. Michael has explained many of those in his posts. It’s not as good as you think it is out here. Wanna go on a tightrope walk with that Wallenda guy who wants to cross Niagara Falls without a net? He’s pretty famous, you know. Ever heard of the Flying Wallendas? Here, just take his hand. Relax. Remember, he’s a professional tightrope walker. You’ll be okay, as long as you DON’T look down. What’s the matter, you’re looking scared? Too much austerity? Too much quantitative easing? Are you scared? Don’t look down. Hey, you’re looking down! DON’T DO THAT!! I TOLD YOU!!!

    And if you think what’s happening in Europe has no effect on U.S. banking interest or finances, you are delusional. Everything in this world – especially the banking world – is interconnected. It’s more reality than fear.

  • Newton

    Tax them all you want to Gary, how exactly do you think they got all that wealth? By being stupid with their money? They know all the right people in all the right places & the only thing a few down more moronic laws will do is create another thousand worthless government flunkies trying to show us how they re earning their 100k salaries for eating bonbons all day in front of yet mother big brother computer.

    Go ahead, take every tax credit from every oil and gas PRODUCER
    Key word here gAry pRODUCER that means Gary, they are PRODUCING
    Something of VALUE. And, while your at it, take every penny of ALL
    Profits from same. Know what that will NET you Gary? In my state you’ll
    Lose about 1.4 Million high paying jobs and give the gvmnt somewhere
    Around 750/800 Milion. Oh boy! Now the boys in black are happy
    for a day and 1.4 million are on the dole what you should do Gary is take the whole of the companies & sell them, preferably to the Chinese, that would get you a whole wad of instant cash.

    Not to many people I know have a problem with negating the bush tax cuts ob the uber rich, but you must realize that 250k in manhattan is not all that much money when rent is 6grand a month.

    Repealing the bush tax cuts across the board, when the average Joe is depending on that 1500 dollars is a good idea? I can,t see 160 million going to far can you? Ok maybe one shovel ready project to bulldoze half of Detroit.

    Debt ceiling negotiations? More like political circus that’s the problem, not anywhere close to being a solution, in other words Gary, they are money junkies& cannot stop. When was the last time agovt program was canned?

    Gary, the problem with taxing the living crap out of corporations is that 63
    Percent of al INC. In the USA are under 20 million gross. If your running a 20 person Corp. And making 15 percent after taxes in 2012 , brother, your doing GOOD ! So, that Corp is having to re-tool, upkeep, keep up with inflation, hand out cost of living adjustments, incentive programs to keep the best, keep money in the bank for bad months or mfg. Problems
    Etc. Etc. Etc. On 3 million bucks that every other blood sucking leech in the universe is trying to steal? I don’t think so. No Gary, go after Jeff at GE – but alas Gary, you cannot touch mr. Immelt because he,s part of the white shoe boy club you see? That is too say Gary, he and 15 other users just like him are obummers czars – you know Gary, like the honorable Jon Corzine of mf global fame? Untouchable

    In other words Gary, what I am telling you is that the game is rigged ! There is no JUSTICE. —— it’s JUST US & that don’t include you and me

    These ubers have stolen Trillions from the small fry corps and never spent one day in jail.

    Not one

    Nor will they ever

    Those are the ones you want to tax Gary

    • lilo

      Who is John Galt? Where will he go and hide? Toying with different perspectives and understanding that it is too late for any way to really alter the outcome. Leave it to Washington to fix….Ha….Leave it to the bankers and the corporations….Ha…Leave it to me. I am my sole protector.

  • The Bible says they will throw there silver and gold into the streets. Why only two reasons 1. there is no food to be had, nothing at all 2.the goverment controls everything and you and I don’t count, only the elite will eat..the rest will starve to death. Watch Jack Van Impe..he will you whats coming..peace out

  • Evie

    It does not matter,the smug arrogant who think everyones financial situation is choice. Much like a friend of mine who gets,$2000 a month and free rent will criticize someone on welfare. Could care less. The bottom line is money must come from somewhere unless you have a printing press. If accounting cannot be.falsified,if enough victims are not willing to go into debt,if emough money cannot be stolen from the middle class and poor. Even the elite will suffer much to their dismay. Visot ireland and iceland all collapsed. Very educated people.

  • I gave her time to repent,but she refuses to repent of her sexual immorality.I will cast her into a sickbed.

  • lee

    oh boy, here we go again; the world’s going back to the dark ages.

    the world has had financial defaults for hundreds and hundreds of years and its still here and every time the financial pain wasnt as bad as predicted and lasted less time than thought.

    will some people literally starve to dead in poor countries and countries like china, yes; but the world ending as we know it isnt about to happen.

    expect around another 5 to 10 years of rough times and then things will go rolling along. expect the worst of the carter days for a few years in the US.

    • Rhynn

      Famous dialogue bubble above the heads of pompous residents in Malibu, CA about sandbags, clearing brush around their houses, and finally, evacuation orders. “Oh boy, here we go again”.

      Famous dialogue bubble above the heads of contrite residents in Malibu, CA weeks later as they sift through the smoking ruins that are all that remain of their homes once fire and then flooding gets done with them : “I’ve lost everything! Where am I supposed to sleep? The insurance company won’t pay!

      Why won’t anyone help meeeeeeeeeeeeee?”

      There are always those Far-seeing jokers sitting on the porch with arms crossed when the fire engines come through and tell everyone to get out. Will not budge. When push comes to shove though, they’re on the horn quick as can be begging some engine company to send a truck crew to the middle of an inferno risking its own life to get them out.

      No. You feel fireproof? Fine – party on. You find out otherwise? Click heels together.

      The arrogance of a few has doomed far too many, and that has to stop.

  • Washington

    The Shared Agendas of George Soros and Barack Obama By Discover The Networks February 2011

  • Ian

    Do you think ETNs will be banned too? Thank you.

  • MAC

    It’s not just a financial reset. Most of our ‘values’ are expiring because they’re based on oppressing the less privileged. We’re ignoring the sick, the poor, the widows, the orphans, the underemployed…. We will eventually throw our “gold” in the streets when we will start to value each other as human beings, when all of us will start owning the problems instead of pointing fingers. Tomorrow will be very tough, but the day after tomorrow will bring healing for everyone who loves his neighbor.

  • John Carwithen

    We are so obsessed with profit, but to my simple brain, someone’s gain is someone else’s loss and it’s now stacked up to come back to us. But we don’t want to think about that equation and the global economy just delayed the karma; we stupidly pretended there are no consequences to our selfish actions. Tough shit, here it comes!
    Of course most of us were just minding our own business rather than being greedy. The economic system is flawed, that’s why nobody in power has a solution, but then they don’t usually pay much of a price any way, so it”s no biggy to them is it?

  • Washington
  • Washington

    Suicides Outpacing War Deaths for Troops By TIMOTHY WILLIAMS Published: June 8, 2012

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