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The Economic Collapse Of South America Is Well Underway

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Earth - Our World - Public DomainThe 7th largest economy on the entire planet is completely imploding.  I have written previously about the economic depression that is plaguing Brazil, but since my last article it has gotten much, much worse.  During 2015, Brazil’s economy shrank by 3.8 percent, but for the most recent quarter the decline was 5.89 percent on a year over year basis.  Unemployment is rising rapidly, the inflation rate is up over 10 percent, and Brazilian currency has lost 24 percent of its value compared to the U.S. dollar over the past 12 months.

At this point, Brazil is already experiencing its longest economic downturn since the Great Depression of the 1930s, and things are getting worse for ordinary Brazilians every single day.  The following comes from CNN

But with Brazil plunging into its worst recession in over two decades — hopes for a brighter future are fading. The Brazilian economy shrank 3.8% in 2015, according to government data published Thursday. That’s the biggest annual drop since 1990 and the country is in its longest recession since the 1930s.

I have never seen anything like this,” said Alves, 24, as he stood on his balcony overlooking Rocinha, a massive lower middle class neighborhood or favela in Rio de Janeiro where he grew up. “My parents would tell me about hard times, but today it is really tough. Prices are going up every day.”

So how did this happen?

Well, there are a couple of factors that are really hurting South American economies.

Number one, during the “boom years” governments and businesses in South America absolutely gorged on debt.  Unfortunately, many of those loans were denominated in U.S. dollars, and now that the U.S. dollar has appreciated greatly against local South American currencies it is taking far more of those local currencies to service and pay back those debts.

Number two, collapsing prices for oil and other commodities have been absolutely brutal for South American economies.  They rely very heavily on exporting commodities to the rest of the world, and so at the same time their debt problems are exploding they are getting a lot less money for the oil and industrial commodities that they are trying to sell to North America, Asia and Europe.

I want you to pay close attention to the following chart and analysis from Zero Hedge.  As you can see, the economic problems in Brazil appear to be greatly accelerating…

“The Brazilian economic downturn took a real turn for the worse in February,” according to Markit’s Composite PMI, which collapsed to record lows at 39.0. Despite a slightly less bad than expected GDP print this morning (still down a record 5.89% YoY), hope was quickly extinguished as PMIs showed economic activity continuing to contract at a record pace, job losses accelerating, and manufacturing’s collapse accelerating. As Market sums up, “With the global economy also showing signs of slowing, which will impact on external demand, it looks as if the downturn is set to continue to run its course in the coming months.”

GDP was a disaster (but better than expected)

Brazil GDP - Zero Hedge

And of course Brazil is not the only South American economy that is a basket case right now.  In fact, things in Venezuela are far worse.  In 2015, the Venezuelan economy shrunk by 10 percent, and the official rate of inflation was a staggering 181 percent.

Could you imagine living in an economy with a 181 percent inflation rate?

As prices have escalated out of control, citizens have attempted to hoard basic supplies in advance, and this has resulted in food shortages that are absolutely frightening

Cardboard signs on the door warning of “No bread” have become increasingly common at Venezuelan bakeries.

Venezuela gets 96 percent of its foreign currency from oil exports, and as crude prices have plunged, so have the country’s imports — among them wheat.

The leftist government of President Nicolas Maduro has tightly controlled access to hard currency, and this has affected imports ranging from medicine to toilet paper. Now it is seriously affecting imports of wheat, which Venezuela does not grow.

Add to this the soaring inflation rate — 181 percent in 2015, the world’s highest — and you see why customers are mainly interested in buying basic food items such as bread.

Here in the United States, there are still people who doubt that an economic crisis is happening.

But in Venezuela and Brazil there is no debate.

Unfortunately, what is happening in Venezuela and Brazil is also slowly starting to happen to most of the rest of the planet as well.  It is just that they are a little farther down the road.  Economic and financial bubbles are bursting all over the world, and I like how author Vikram Mansharamani described this phenomenon during a recent interview with CNBC

Deflationary tides are lapping the shores of countries across the world and financial bubbles are set to burst everywhere, Vikram Mansharamani, a lecturer at Yale University, told CNBC on Thursday.

I think it all started with the China investment bubble that has burst and that brought with it commodities and that pushed deflation around the world and those ripples are landing on the shore of countries literally everywhere,” the high-profile author and academic said at the Global Financial Markets Forum in Abu Dhabi.

And of course the evidence of what Mansharamani was talking about is all around us.

Just this week we found out that Chinese state industries plan to lay off five to six million workers, U.S. factory orders have now fallen for 15 months in a row, and the corporate default rate in the United States has now risen above where it was at when Lehman Brothers collapsed.

There are some people that would like to point to the fact that stocks have bounced back a bit over the past couple of weeks as evidence that the crisis is over.

If they want to believe that, they should go ahead and believe that.

Unfortunately, the truth is that the hard economic numbers that are coming in from all over the world tell us very clearly that global economic activity is slowing down significantly.

A new global recession has already begun, and the pain that is already being felt all over the planet is just the beginning of what is coming.

  • Mondobeyondo

    The Summer Olympics this year will be held in Rio de Janeiro.

    It will be veeeerrry interesting, to see what role the local (Brazilian) economy plays in that. My guess is that a great many locals will be extremely upset at the government “wasting” billions of reales on an international sporting event, while millions of their countrymen starve. They won’t care about international prestige. They want full tummies. There could be rioting in a few months.

    And by the way, what’s happening in South America will soon be coming to North America. Yes, a splendid time is guaranteed for all…

    • MichaelfromTheEconomicCollapse

      Very well said Mondo. 🙂


      A tiny Virus will put an end to the Olympics.

      • SunnyFlaSnotress

        possible .. at least its current location

      • Marie

        Yep, how convenient that Zika, a virus which was patented by the Rockefeller Foundation decades ago, is suddenly a “serious” issue in Brazil? Never mind that the statistics are inflated, and the correlation with supposed birth defects can’t be scientifically established–TPTB want worldwide mass hysteria, because hey, it works for them!


        Zika = glyphosate = GMO

  • James

    Economic crisis coupled with the spread of Zika virus…South America is really in deep water!

  • Dan Jones

    The black horse of economic collapse is riding…

    Always be a light that is .shininginthedark.

  • alexb1

    But for the wide availability of credit in the US for everything and historically absurd low interest rates for high expenditure items like homes and cars, much of America would look like Venezuela and/or Brazil.

  • Bill

    The government denies a deteriorating economy just like it denies a spreading virus.

  • Cyber Revengeance

    I think 30% of the economy would collapse. 70% of the economy will still be functioning. Of course that would mean a recession, defaults and huge job losses.

  • K

    This is why when people were saying leave the Country. I always said, and go where? No, hunker down. Prep up. Trust the Lord for the rest.

    • Horiboyable .

      I am in the UK. The events of Greece will start to play out in most of western Europe as soon as the Banks start to fail and the governments start to default on their bonds.

      • fwalker000

        Shareholders in a single company have lost more in one afternoon in companies like Lucent Technologies is the 1990s – when money still had purchasing power- than the aggregate amount of the potential Greece banks issues…. and the world economy survived…imagine that. Seems one might benefit significantly more by educating themselves on economics and how markets function rather than relying on ludicrous misconceptions.

        • Horiboyable .

          We will have to wait until the fat lady sings to see who needs to be educated. It is impossible to avoid the collapse after such a prolonged period of monetary expansion. The Euro area is about to find out way it is impossible to have a single currency without having a single debt. Once the can kicking is finished we in Europe can welcome Japan style crash of the 1990’s of which they are still suffering today. Your trust in central planners “got your back” will soon change to just watching their own backs.

    • GSOB

      Pray for the refugees.

      • REALIST

        No. Send them back immediately. They do not belong in White Europe, my homeland.

        • GSOB

          …a person who has been forced to leave their country in order to escape war, persecution, or natural disaster.

          • Bill G Wilminton NC

            TRUMP said “carve out a SAFE ZONE in Syria” for all the displaced.

            The Globalist Elites want to turn the whole world into THIRD WORLD HELLHOLE.

            TRUMP is the only one with any BRAINS because he is a businessman NOT A POLITICIAN.

            GO TRUMP GO

          • SunnyFlaSnotress

            How much prior political experience does Trump have?
            NADA!!! ZIP!!!! ZILCH!!! ZERO!!!
            He talks the talk, but never walked the walk.

          • Bill G Wilminton NC

            He has no POLITICAL experience in running up a 19 TRILLION DOLLAR DEBT… he doesnt !

            He has no POLITICAL experience in negotiating trade agreements that sent all our manufacturing to CHINA. (nafta,gatt,cafta)……no he doesnt !.

            He has no POLITICAL experience in fighting wars where we lose every war….vietnam,iraq, afganistan, libiya etc… he doesnt !.

            He has no POLITICAL experience in running BUDGET DEFICITS……no he doesnt !.

            He has no POLITICAL experience in negotiating agreements where 5 prisoners get left behind and we lay out 150 billion……no he doesnt !.

            He has no experience in letting ILLEGAL IMMIGRANTS swamp his country….no he doesnt !.

            You are right he does not have experience…..THANK GOD

          • SunnyFlaSnotress

            neither does an infant.. want to elect one?

          • Bill G Wilminton NC

            We already have one right now you idiot…. do you wear bozo shoes with your pathetic logo.

          • SunnyFlaSnotress

            That’s right have a little tantrum so you won’t look more like the foolish one you are.

          • Bill G Wilminton NC

            Do you practice to be this ignorant….we dont WANT AN EXPERIENCED POLITICIAN……GOT IT NOW !!!!!

          • SunnyFlaSnotress

            Take your ad hominem and cram it.

          • Bill G Wilminton NC

            TAKE your pathetic LOGO and BOZO the clown shoes and cram it.

          • SunnyFlaSnotress

            You’re Logo is dull and deplete of personality.. like you.

          • Bill G Wilminton NC

            Your logo is pathetic and your brain is replete of intelligence…..and your bozo shoes need a shine.

          • SunnyFlaSnotress

            Your arguments are pathetic

          • Bill G Wilminton NC

            THEY are not arguments they are called DELEGATES and TRUMP has 384…..go shine those shoes.

          • SunnyFlaSnotress

            We both know who is most qualified and who is going to win.

          • Bill G Wilminton NC

            That is not even a statement !1…. go take some meds and bother someone else who has the time to waste

          • SunnyFlaSnotress

            Hillary 2016!!

          • Bill G Wilminton NC

            thats the funniest thing that you have said……the one who left 4 soldiers and an ambassador to die in benghazi…..the one who blended classified email with personal email…..the one who covered up for the PREDATOR BILL (the groper) Clinton… ha ha HILLARY the femininist…maybe she thought that bill had a part time gig selling womans underwear……

          • SunnyFlaSnotress

            Deny it all you want.. Hillary is YOUR DESTINY! 😀

          • Bill G Wilminton NC

            Please call DIAL A PRAYER you could chat all nite even email also…

          • SunnyFlaSnotress

            You know I’m an Atheist and wouldn’t waste my time.

          • Bill G Wilminton NC

            What was obama’s military background…..he once smoked a joint in the mens room at a military Canteen Dance.

            You have a lot of nerve……usually when people are ignorant they dont put their ignorance on a banner and march down main street with a bugler out front…..

          • SunnyFlaSnotress

            Obama was a Senator!!
            Stop running like a baby from the FACTS!

          • Bill G Wilminton NC

            Obama was a baby POLITICIAN and grew into a real POITICIAN and promptly doubled the national DEBT and the DEBT will hit 20 trillion before he leaves…. SO OBAMA IS NOW AN EXPERIENCED POLITICIAN

          • SunnyFlaSnotress

            Obama isn’t running for election now. However, don’t expect a bankrupting showman w/no political experience or strong military background to take on the presidency like a truly qualified candidate.

          • Bill G Wilminton NC

            We DONT WANT political experience DO YOU GET IT !!!!

            Well with Obama’s EXTENSIVE military experience he could coach from the bench.

          • SunnyFlaSnotress

            lol.. “we don’t want political experience” .. all of a sudden, Pill is the speaker for the masses..

          • Bill G Wilminton NC

            no I don’t go to mass

          • SunnyFlaSnotress

            ..and Pill is gonna burn in hell

          • Bill G Wilminton NC

            next you will be on the floor whaa whaa whaa … your hell a town in Ohio

          • SunnyFlaSnotress

            Pill you’re the one who believes in god and all that junk

          • Bill G Wilminton NC

            for you there is no heaven no hell

          • SunnyFlaSnotress


          • Bill G Wilminton NC

            So call DIAL OBLIVION………

          • SunnyFlaSnotress

            no sense in that

          • Bill G Wilminton NC

            N o one will answer……

  • James Dohnalek

    Baby boomers will not have enough money to retire on. The average is $25,000.00. Baby boomers are not spending and are working odd jobs, taking good jobs away from the 25 – 45 year olds. The crash is SLOWLY occurring here. I have just started drawing social security AND I am still working too. BUTTON DOWN THE HATCHES EVERYONE. It will not end —- PRETTY.

    • tom

      Every day for the next 10-11 years,approximately 10,000 people in America will turn 65. They are eligible to receive Medicare and many will draw on Social Security.

      • HadIt

        That is money they ALL PAID for all of their working lives! What is you point? Are you saying that we should all just let that money go because a few young, dumb dolts don’t understand that we were FORCED to contribute to SS and Medicare, we didn’t have a choice! The government is who you blame, not us for Christ’s sake!!!

        • Thar She Blows

          You are right! Baby Boomers paid that money into the system. What they did NOT do was demand fiscal responsibility by the people they elected to ensure it was there when they retired. Paying in was only half the requirement. Voting out politicians that squandered it was the other half, and they dropped the ball. We will ALL pay for that.

          • sistersoldier

            Can’t argue with that.

          • RedSky

            As you know, politicians promise you a good life but when they get into office, they seem to develop Alzheimer’s and can’t remember what they promised.

          • Bill G Wilminton NC

            The senators and congressman are busy going to the Governor’s Ball with the wife in her new $2500 gown and $500 shoes. These are the new Dukes and Duchesses we the serfs are in the kitchen if were lucky.

        • tom

          I was not saying that at all. Just pointing out that the future is going to get much tougher. In fact last year the SS system paid out $3 billion more than it took in. I imagine higher payroll taxes or benefit cuts are coming in order to keep the system running

          • Jacynthia Read

            They just initiated cuts to future benefits. We got a letter saying when we retire our benefits will be cut by $1200.

          • Bill G Wilminton NC

            a little over 20 per week I take it…..when the bubble bursts say goodbye.

          • Harry Merkin

            Many people die before reaching Social Security age, technically they should have more money to pay out then is going in. The problem is they keep borrowing from it when they should never have done that.

        • Bill G Wilminton NC

          there is no fund it is strickly a Ponzi

      • alan

        I’ll be in that mix, but age 62. I will take whatever I can get, before they raise the age to 82.

        • tom

          I can’t say I blame you for doing so

        • Harry Merkin

          Me too. If there’s anything left of the $$$ I paid in.

        • GSOB

          And thank the Lord Jesus everyday we rise and thank Him for His mercy and grace, to be filled with His Spirit.

          To walk with Him.

          Habakkuk 2:4

      • GSOB

        Consider it this way,
        Still time to select a verse to recite while moving into your final breath.
        Got Christ?

    • Sad but becoming very true…

    • Steeve Girard

      It is not only the Baby Boomer retiring that is causing trouble… it is also running out of cheap energy. We have about 14 years left of easy oli energy before we start to switch back to coal.

      • df NJ

        Energy will soon not be a problem. The Germans have a working fusion reactor. Google “Wendelstein 7-X”. The Wendelstein 7-X is like the Wright flyer of 1903. Ten or twenty years from now we will see dramatic improvements in fusion just like the way airplanes quickly evolved.

        • I don’t think TPTB are interested in helping anyone with free energy and that notion will go the way as all other inventions of its kind, on the shelf collecting dust. Europe already has dozens of automobiles that get 60 to 100 mpg but won’t allow them here in the U.S. because they “don’t meet highway safety standards.” What a joke. Those same vehicles travel at higher speeds on the autobahn. It’s about money and control, neither of which will be shared with the masses in any venue.

          • df NJ

            The thing is not everyone wants to continue being a slave to the Rothschilds. We really need to return to interest free currencies regardless. Otherwise, I agree, nothing will change.

          • Bill G Wilminton NC

            Too late to shut down the Fed Reserve as the trap has sprung shut

          • Holger Jahndel

            @df NJ:


            Read about SILVIO GESELL and BIOREGIONALISM!
            Read about Prof. Margrit Kennedy and her books! Visit her website!
            You can have a regional and local economy functioning even after a general common Economic Collapse national and worldwide! Just do it!
            Realize your own local and regional economy. Communities habe more chanches of survival than single individuals and little groups or lonesome familys and neighborhoods. You could save your whole heighborhood and village
            or town or city with that! And make future life better for you and your friends and neighbours and local community and even the whole region or state you life in!

          • Bill G Wilminton NC

            The diesel cooper gets up to 80mpg no power windows and no AC…who cares

          • I’d like to get my hands on one. Especially diesel. I’ve been looking for a decent Rabbit for years but no luck. Heck, I’d settle just to have a Festiva or Metro sitting in the drive as a backup for when gas goes back up.

          • Bill G Wilminton NC

            I got an old 85 diesel and I keep it restored….not for show but I use it everyday…..and it is cool with that diesel engine just purring

        • Marie

          Right, like we see everybody driving a Plymouth Duster with its indestructible slant-6 engine today? If they still made those cars, we would almost never need to buy new ones, and what would the GM and Ford shareholders say?

          Our Dear Rulers don’t want things to last, and they certainly don’t want us enjoying anything for free! They want us to have to keep buying and keep paying, because that’s how they make their millions/billions/trillions AND keep us under control.

          • RedSky

            The poorer they make us, the poorer they will become. They will learn that too late.

        • Prophet

          20 or 30 years from now???? good luck with that time frame

      • Prophet

        seems i was told that same thing 20 years ago

        • sistersoldier

          Yep – Peak Oil!

          • TheLulzWarrior

            So if peak oil is real, how is global laming going to be a problem?

          • sistersoldier

            Global laming?

        • TheLulzWarrior

          That was already said in the 1880s!

      • Rick

        Haven’t you heard, coal is basically outlawed here? We are a grade A clean energy clean obama nation!

        • sistersoldier

          Obama nation — abomination (same meaning) how about that.

      • GSOB

        ‘Believers have been brought into a state of safety; but their comfort consists rather in hope than in enjoyment.’
        Romans 8:20

        Location, location, location

    • df NJ

      The good thing is since boomers were so much into sex and drugs most are not living past 69. The boomer death rate has to be very high.

      • REALIST

        You’ve got a problem with sex and drugs?….?

      • none

        Ever hear the old saying, if they smoke cigarettes. They smoke pot, guess what is killing them?

    • James, how are you sir? I guess I was lucky to parlay my military experience into a couple of very generous pensions. I always thank God and feel blessed knowing so many others struggle at the same time. I do my part to share what I have. But, I know when the economy collapses, the ones and zeros won’t matter anymore, but I have established a self-sufficient homestead to offset that contingency. I hope you have planned the same or aligned yourself with the right people. Recent events like N.K. ordering the arming of its nuclear forces, and Putin declaring a gold-backed currency to dispose fiat central banks does not bode well for events to develop slowly but instead suddenly. Be well sir.

      • sistersoldier

        Hello Brother Steve! Its nice to know that you are the same “great guy” where ever you go, 🙂

        • 🙂 Runs in the family. Ours.

          • sistersoldier

            God bless you 🙂 And thank you.

    • Priszilla

      Baby boomers have the same right to work odd good jobs. Soon they are all dead and all youngsters can have all the jobs of the world.

  • Please everyone prepare yourselves

    • fwalker000

      Most on this blog obviously haven’t learned much in the way of how to live and thrive “on the grid” with every imaginable convenience it provides. The probability of them accomplishing much at all if those luxuries are eliminated seems even less likely.

      • Creepy Pedro

        LOL….how is CNBC any different? TheProfessor for example, should have a lobotomy.

      • So true! but there’s always opportunity for change if the willingness is there… either way stay blessed my friend

      • jaxon64

        How do you know that the followers of this blog are not successful? How do we know that you are not simply a paid troll making a few hundred a week on the computer in your mommy’s spare room?

    • When you have a German Jew president in Brazil, what chances you have. Laughing Out Loud again.

      Dilma Rousseff is a Pure Jew from Europe. Germans controls 90% of economy in Brazil. What you know. White Brazilians from Europe make upto 50% of Brazils population.

      Jorge Paulo Lemann the richest “Brazilian” is actually a German. hahaha.

      Google List of Brazilians by net worth and the entire list is made up of Europeans.

      Its a JOKE. I bet you can’t find a single NATIVE Brazillian today in Brazil who has a say in anything like in America.

      • SunnyFlaSnotress

        Dilma is NOT Jewish..she is questionably part Jewish.. show your source.

        • TheLulzWarrior

          If you know for sure then you could show yours, just sayin´.

          • SunnyFlaSnotress

            Actually, I did.. Michael removed it
            Let me try again separately.

          • SunnyFlaSnotress

            jewornotjew DOTcom/profile.jsp?ID=2162

          • TheLulzWarrior


        • BHill

          Part j ew = j ew

      • TheLulzWarrior

        Do you have links to back that up?

      • jaxon64

        Technically, the Portuguese are also white Europeans. So unless there are some natives who have prospered and adapted well, then I’m sure the % of the economy controlled by former Europeans is VERY high.

      • BHill

        Foxes in hen houses
        If we can’t trust j ews with our money and economies, who can we trust?

      • sharonsj

        92% of Brazil is Catholic, therefore 92% of the problems there were created by Christians. And most German-Brazilians are Roman Catholics or Lutherans.

        • Brian Burner

          At least the Brazil people and gouvernment are not as stupid as US Gouvernment and protestants to do neoliberal free trade! Free trade always worked for the liberal propagandists and rich and bankers. USA gets deindustrialized now!

    • DaniFilth

      HAH! The Dow hit 17000 and is rising! Why don’t you just rot away “off the grid”! LOL!!!!!!!!!!11111

      • Brendan D.

        Cradle of Filth rocks!

  • jox

    Back on track for good economic analysis articles. Congratulations.

    • GSOB

      Don’t flatter yourself

  • Chuck

    And now former President Luiz Inacio Lula da Silva was detained on accusations of corruption and money-laundering which has pumped up the Brazilian Real, it makes me wonder if they are trying to make things look better before the Olympics or some other motive.

  • At least many South Americans are not generationally too far removed from returning to life without paychecks and technology and could be marginally self-sufficient within a year or so. Many have probably already started to return to old rural farmsteads their relatives luckily never abandoned. As for most Americans, they’re screwed. Not only are they far removed from basic living skills, but when parents and grandparents passed on property, it was sold for life in the burbs, new cars and boob jobs. Now, the only hope they have is like the walking dead. And I doubt they’ll fare that well.

  • inRIhell

    Obama administration rivals Goebbels propaganda machine. Everything is fine, great economy. Like a chapter out of Atlas Shrugged!

  • David_R59

    Socialism strikes again!

    • df NJ

      You mean corporate socialism.

      • Bill G Wilminton NC

        that is called FASCISM.

        • GSOB

          or 1 Corinthians 3:12, 13 … look at it from that way

  • df NJ

    “The labor market is coming off its best two years for job growth since 1998-1999.”

    The doomsayers always cherry pick the data points. I’m sure the optimists are just as guilty. The truth is probably somewhere in between.

    • Bill G Wilminton NC

      There is still less people working ( body count) than in 2008. And that is amazing.

  • gary hillerich

    I don’t have to tell you things in Brazil are bad. Everybody knows things are bad. It’s a depression. Everybody’s out of work or scared of losing their job. The dollar buys a nickel’s worth, banks are going bust, shopkeepers keep a gun under the counter. Punks are running wild in the street and there’s nobody anywhere who seems to know what to do, and there’s no end to it. We know the air is unfit to breathe and our food is unfit to eat, and we sit watching our TV’s while some local newscaster tells us that today we had fifteen homicides and sixty-three violent crimes, as if that’s the way it’s supposed to be. We know things are bad – worse than bad. They’re crazy bad.It’s like everything everywhere is going crazy, so we don’t go out anymore. We sit in the house, and slowly the world we are living in is getting smaller, and all we say is, ‘Please, at least leave us alone in our living rooms. Let me have my toaster and my TV and my steel-belted radials and I won’t say anything. Just leave us alone.’ Well, I’m not gonna leave you alone. I want you to get mad! I don’t want you to protest. I don’t want you to riot – I don’t want you to write to your congressman because I wouldn’t know what to tell you to write. I don’t know what to do about the depression and the inflation and the Russians and the crime in the street. All I know is that first you’ve got to get mad. You’ve got to say, ‘I’m a HUMAN BEING, God damn it! My life has VALUE!’ So I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window. Open it, and stick your head out, and yell, ‘I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE THIS ANYMORE!’ I want you to get up right now, sit up, go to your windows, open them and stick your head out and yell – ‘I’m as mad as hell and I’m not going to take this anymore!’ Things have got to change. But first, you’ve gotta get mad!… You’ve got to say, ‘I’m as mad as hell, and I’m not going to take this anymore!’ Then we’ll figure out what to do about the depression and the inflation and the oil crisis. But first get up out of your chairs, open the window, stick your head out, and yell, and say it: “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE THIS ANYMORE!” – Howard Beale character in “Network” 1976

    • jsmith

      Gary, by coincidence a few days ago I recorded “Network” and look forward to seeing it again. The funny thing is that I saw it with a past girlfriend on the big screen back in the middle 70’s, but I think it is going to make more sense now. Something wicked this way comes, and most people are completely clueless.


    10% inflation is normal for 3rd World countries. That is not a big deal. A 24% decline in your currency is also not a big deal.

    Back when Brazil was growing (at an un-natural rate) and investing beyond a normal rate, was the time to point out the problem. Brazil is NOT a 1st world country (look at the demographics) and it’s artificial attempt to duplicate one is the problem.

    They are just returning to the norm for such a culture. They’ll get used to it.

    • Rhialto the Marvellous

      Unfortunately the chart above proves you’re wrong.

    • You have completely different idea it seems. Brazil is mere extension of white Europe. All presidents in Brazil since it became “Independent” were from Europe.

      The entire rich list of “Brazil” is actually Germans. The Europeans control the entire economy in Brazil like America.

      The natives have no say like in America or Australia.

      We have been fooled with Samba and Bikinis videos online of Brazil. The truth is German Jews rule Brazil not natives

  • Professor

    I’ve heard a number of know-it-all preppers claim that S America is a great place to relocate to, especially Ecuador, because the economy is booming there… BUT I then got the real story from an Ecuadorian student of mine.

    He said that Ecuador looks like it’s doing well at the moment, only because CHINA is pouring tons of money into the country on loan. In a few years, Ecuador will have to start paying it back–and if/when they can’t, China will essentially own them. Hmmm, given the way the world economy is doing in general, any bets on how that story’s going to end?

  • Rick

    I don’t disagree with your take on the economy, but can you please remind us again why the stock market is rebounding at this time when supposedly there is no QE going on? Thanks.

    • chris

      the plunge protection team has a HUGE impact on the markets.

    • Rhialto the Marvellous

      It’s because the Dollar is so strong relative to other currencies.

    • GSOB

      Because God is in control.

    • Creepy Pedro

      Pay attention to crude oil.

  • Rhino Horns

    I was starting to have “Lehman” withdrawal. There, you fixed it, Michael.

  • A Mind blowing speech by Robert Welch in 1958 predicting Insiders plans to destroy America

    Robert Welch, Founder of The John Birch Society, predicted today’s problems with uncanny accuracy back in 1958 and prescribed solutions in 1974 that are very similar to Ron Paul’s positions today.

  • Robert

    How are people who are debt ridden going to “prepare”? Put back a few extra rations and some water? Working families are paying huge amounts just for daycare. It is no surprise that millions have just given up. On the other hand, many cling to the niceties of life eg. Smart phones, high speed internet, new cars, cruises, drugs et al. Cutting back seems to occur when there is no choice.

    • billtheguy

      That is a shame they are debt ridden. With my friend it’s his own fault. He recently bought a TV. I think it was around $900. He bought it on 1 year same as cash. Why? He had the money. His answer was I can use this money for something else. ?? Go figure. This is the same guy that I tried to convince to prepare for an emergency. Food, supplies, etc. He and his wife both work. House note, two car notes, utilities, etc. It is a shame.


        billtheguy, you said concerning debt, “With my friend it’s his own fault.”

        I do not know anyone who has debt that isn’t their fault.

      • James Dohnalek

        It is called HITTING THE WALL. People are STOPPED COLD!

    • James Dohnalek

      They will realize WHAT THEY SHOULD HAVE DONE, when bills come in and …… Gas, water, electric turned off, and children go hungry. SAD, HARD LESSON.

  • df NJ

    Meg Whitman, the CEO of HP Enterprises (HPE, Tech30), calls Trump a “dishonest demagogue” who would “sink this country into a recession.”

    “I won’t be voting for Donald Trump,” Whitman said Friday on CNBC. “Look at the comments he’s made about women, about Muslims, about reporters, it’s just repugnant.”

    How can anyone make this statement? How does Trumps comments about women, Muslims, and reporters translate into “sink this country into a recession?” Crazy hyperbole!

    • Bill G Wilminton NC

      I wonder what Meg makes this year lol.


        You could Google it or wait to be spoon fed from Michael.

        Her net worth is $ 15 million; she draws a reportedly impressive base
        salary of $270,000, taking her annual package to $6 million.

  • spirit walker

    It will hit them all hard like a thief in the night only because they were not ready. This is what happens when you dont stay awake to events that are happening all around you.

  • reasonsformoving

    Perhaps you could do a post on all of the short selling that’s boosting the markets right now?

    • fwalker000

      As if he can comprehend those dynamics ROFL

      • Bill G Wilminton NC

        Short Selling is Investment Finance Mathematics and not overly complex….though complex to protect assets or lose less successfully.

    • Bill G Wilminton NC

      Good call this would be interesting…….

  • Orac4Prez

    I have never understood why the Australian economy hasn’t collapsed. We have followed the US. We are just as corrupt as elsewhere – we are more subtle than most. I have worked in analytical labs for years and one of my first bosses – an American – told me off because I stopped defective produce from being exported. He over road my decision and when the shipment was offloaded in the US came to me to say ” See if they don’t complain its all good”. He was a self proclaimed Christian and believe me he let everyone know. Since then, I have seen similar things happen over and over again. But I am just waiting until one of the contaminated products really hits your economy. Years ago a shipment of butter was sent and along the way it was found faulty. The butter was heated up and dumped overboard. I remember it well because shortly afterwards the US coast guard was reported to have found a strange waxy blob off the coast. Since then, we have shipped wheat contaminated with broomrape. Its a parasitic plant which grown on wheat seeds when they germinate and some areas are blocked off because it can devastate yields in many crop. I wrote to several government ministers and was brushed off. These aren’t isolated instances. So when you think events overseas wont affect you think again. Im just waiting to see Gods judgement.

  • Infidel51

    May you live in interesting times.

  • Brazil is run by German Jews. The current president Dilma Rousseff is pure German Jew. 90% of all economy, billionaires in Brazil are European jews.

    The entire south America is run by the Germans. They did the same to Argentina and now they doing it in Brazil.

  • J B

    The US Installed and Supported all these Dictators, to get cheaper Oil, now the Oil is running out, panic is setting in followed by martial law.
    The US has turned them into a Basket Case.

  • Alleged Comment

    As you know Mike South America has lived off of North America’s teat for decades!!

    We are getting tire of feeding and taking care of our Southern neighbors who only export drugs and violence for the loans we GIVE them since they never repay and we don’t bother taking them to international court for.

    So that shows how are politicians view our Southern neighbors. Like low life SCUM because it if was a white European Western nation we would dry our treasury in court trying to get our money back!!

  • Shawmotorsports

    There once was a person who always cried wolf. Has anyone seen or heard from this person again? Me neither.

    • James Dohnalek

      Most people hear bad news but fail to analyze it. Goes in one ear and out the other.
      For example, when interest rates were slowly going to zero, I elected to go long term with investments. Now at zero interest rates, I have investments, long term, with good rates. I listen to the wolves.

      • Bill G Wilminton NC

        If you have made investments in land, buildings, houses, etc when/if the interest rates go up you will be in trouble… the rates go up that affects the interest/principle total payment….people buy on that total amount.

  • GSOB

    Summarize for us….

  • riftcliff

    Lehman Brothers was…assassinated, some ones said…the whole drama is scariest if true…sadly banksters hypothesis continue explaining a lot…time to become it theory? Why money have such a power? it is irrational…Are we fully rational?…no…then the “system” works…

  • dlewenz

    Based on the market rebound, we may have bought our self’s three additional months of financial grace? As I speak with customers industrial customers, all are reporting sales down 8-10% down 2016-vs. 2015.


    Trump CAN NOT be bad or the “anti-christ” as you mentioned because Bill G Wilminton NC said so.

  • Spiritof76Revisited

    I don’t doubt at all that the US is heading towards a BIG ECONOMIC DISASTER, and it is too late to stop it. Stock up on food, supplies and a method to fend off those that would try to take your stocks.

  • 181% inflation? peanuts compared what we lived in Chile in the 70’s. You’ll be amazed what people does and survive in condition of hyperinflation and worthless money. We survived!

  • GetReal4U2

    While i voted for Cruz…as did my state…I would vote for trump over hildabeast…

    • Lennie Pike

      Even if I knew Trump was the antichrist, I would still have to think hard before voting for Nurse Ratchet instead of Trump – that is if I was stupid enough to think my vote meant anything – “they” are in total control of the MSM, the election process, and pretty much everything else – control money, control everything.

      How much publicity did the MSM give Presidential Candidates Ron Paul or Gary Johnson? Americans don’t determine who is elected President, and they are too gullible to even know what they hell is being done to them and their “vote”.

Finca Bayano

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