The Economy

To those at the bottom of America’s economic pyramid, it feels like the economy has already collapsed.  When you can’t afford to put a roof over your head and you barely have enough food to eat, nothing else really matters.  During the Great Depression of the 1930s, millions of homeless Americans created large shantytowns known as “Hoovervilles” all over America.  Unfortunately, we are witnessing the same thing today.  Our homeless population is rapidly exploding, and those that have nowhere to live are creating shelters for themselves out of wood, cardboard boxes, tents, tarps, construction materials and whatever else they can find.  In some cases, very large shantytown communities are being established, and they are primarily populated by our young adults…

During the Great Depression (1929 to 1933), 48 percent of the nation was homeless, living with relatives or in “shantytowns,” “Hoovervilles.”  Today, between 47 and 52 percent of young adults are homeless, living with parents or shelters, a direct result of Biden’s radical overspending, energy and immigration policies, inflation, and high interest, turning America into a giant “Bidenville.”

One “Bidenville” that has been getting a lot of attention recently is located in Oakland, California.

A video of that “Bidenville” that was posted on social media on May 31st shows “massive temporary houses built along service roads”…

Shocking footage has emerged showing a gigantic ‘shantytown’ that has sprung up in Oakland, as the California city’s slide into crime-ravaged squalor continues.

Michael Oxford, the host of CaliBased, posted a video on May 31 of massive temporary houses built along service roads that open up into main roads in Hooverville, Oakland.

The footage showed trash strewn around scores of houses that were built of wood, tarp and other discarded materials.

I write about this stuff all the time, but it is still hard to believe that so many people are living in third world conditions in the United States of America in 2024.

Parts of Oakland are worse than a third world country.

They just allow people to live in absolute squalor, wherever they choose.

This looks like Hooverville during the great depression.

Welcome to Oakland’s very own Gavinville. pic.twitter.com/L58uK2E6Sh

— Michael Oxford – AKA The Santa Cruz Mountain Goat (@SCMountainGoat) June 1, 2024

The man that shot the video, Michael Oxford, used the term “absolute squalor” to describe the conditions that he witnessed…

Particularly shocking was just how large the ‘shantytown’ is, with a lengthy stretch of road in the Bay Area city covered with the makeshift dwellings.

Oxford could be heard calling the area a ‘shantytown’ that is ‘absolutely mindboggling,’ as he remarked how ‘insane it is that [city officials] allow this.’

He captioned the video, ‘Parts of Oakland are worse than a third world country. They just allow people to live in absolute squalor, wherever they choose.

If you live in “wealthy America”, you may never even drive into areas where people are living like this.

Your reality may be filled with tree-lined streets and rich people sipping coffee.

But in the worst areas of Oakland, the lawlessness never ends.

In fact, authorities in Oakland recently removed traffic lights at one major intersection and replaced them with stop signs because thieves were constantly stealing copper wire from the electrical boxes…

The city of Oakland recently removed traffic lights from one busy intersection and replaced them with stop signs after the electrical boxes that controlled the traffic lights were repeatedly tampered with and copper from them was stolen.

Local residents and those who own businesses in the area say the issue with the traffic lights stems from the nearby homeless encampment, which has grown over the years.

The owner of a vehicle repair shop on the corner of the intersection, Tam Le, said the city is signaling that it is ‘giving up on us,’ by installing the stop signs.

If you want someone to blame for this mess, you can blame the politicians in Washington.

Thanks to the horrific inflation that they have created, approximately a quarter of the population in California is either living in poverty or is very close to living in poverty…

Biden needn’t worry about losing California to Trump, but it has one of the nation’s highest rates of inflation, according to Moody’s Analytics, worsening its already outlandishly high costs of housing and other living expenses. It’s the biggest factor in California having the highest level of functional poverty of any state, 13.2% according to the U.S. Census Bureau, about 50% higher than the national rate.

The Public Policy Institute of California, using similar statistical methodology, has found that a quarter of Californians are either living in poverty or financially close. More recently, the PPIC has explored the impact of inflation, especially on California families which struggle to pay for housing, food and other necessities.

Sadly, this is just the beginning, because our economy is going downhill really fast.

In May, pending home sales plunged to a depressingly low level…

Well, the analysts had the direction right but magnitude was way off as pending home sales plunged 7.7% MoM – the biggest drop since Feb 2021 (and below the lowest estimate), leaving sales down 0.7% YoY…

This is the 29th straight month of YoY declines for non-seasonally-adjusted pending home sales.

This MoM decline pushed the Pending Home Sales Index back to record lows…

Meanwhile, Zero Hedge reported that the Chicago PMI index fell so low in May that it suggested that “the economy is in a depression”…

After unexpectedly slumping last month to 37.9, the Chicago PMI index cratered even more unexpectedly in May, when it defied hopes of a rebound to 41.5, and instead tumbled even more, sliding to a cycle low of 35.4 which was not only below the lowest estimate, but was staggeringly low. To get a sense of just how low, the last two times it printed here was during the peak of the covid and global financial crises…

… which seems to suggest that at least according to Chicago-based purchasing managers, the economy is in a depression.

I would agree with that assessment.

Things are getting really bad out there.

To top everything off, in May the Dallas Fed Services Sector survey was in contraction territory for the 24th month in a row…

Despite Bernstein and Biden demanding the great unwashed realize just how great they have it in America, this morning’s Dallas Fed Services Sector survey offers some insights from actual real people in the actual real world trying to do actual real business… and it’s not pretty.

For two straight years (24 straight months), the Texas Services sector has been in contraction (below zero) with May’s -12.1 print worse than expected. For context, the Great Recession of 2008/2009 also saw 24 straight months of negative prints…

But if you live in “wealthy America”, you may not care about these numbers because you still live in a nice home and you still have plenty of nice things.

Unfortunately, the number of people that can afford to live in “wealthy America” is shrinking with each passing day.

And the gap between the wealthy and the rest of us just continues to get larger and larger.

Ultimately, the stage is being set for a societal meltdown of absolutely epic proportions.

The bottom 50 percent of the population only owns just 2.6 percent of all the wealth, and they are becoming very restless.

When people have nothing left to lose, they become very desperate, and very desperate people do very desperate things.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

I suppose that congratulations are in order.  It is no small feat to pile up a debt of $315,000,000,000,000, and we will never see a mountain of debt of this magnitude ever again after it comes crashing down.  Even though delinquency rates are rising all over the world, as long as conditions remain at least somewhat relatively stable the game will be able to continue.  Unfortunately, conditions won’t be relatively stable for long.  Global events have started to accelerate significantly, and that is really going to shake things up in the months ahead.

According to a report that was just released by the Institute of International Finance, the total amount of debt in the world has reached a grand total of 315 trillion dollars…

The world is mired in $315 trillion of debt, according to a report from the Institute of International Finance.

This global debt wave has been the biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic.

“This increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, where debt surged to an unprecedented high of over $105 trillion—$55 trillion more than a decade ago,” the IIF said in its quarterly Global Debt Monitor report released in May.

We are in the midst of the greatest global debt binge in the history of the world.

Household debt is at a level we have never seen before, business debt is at a level we have never seen before, and government debt is at a level we have never seen before…

Of the $315 trillion debt stock, household debt, which includes mortgages, credit cards and student debt, among others, amounted to $59.1 trillion.

Business debt, which corporations use to finance their operations and growth, stood at $164.5 trillion, with the financial sector alone making up $70.4 trillion of that amount. Public debt made up the rest at $91.4 trillion.

For the moment, conditions are at least somewhat relatively stable, and so everything seems fine.

But it won’t take much to push us over the edge.

For example, during a recent interview with Greg Hunter, Chris Martenson suggested that a Chinese invasion of Taiwan could trigger a sudden meltdown of the bond market…

In a new market meltdown, Dr. Martenson sees chaos and gives a hypothetical example: “China attacks Taiwan, and there is a 10 sigma move in the bond market. Oh no, all these derivatives have blown up. These people are supposed to be winners, and these people are supposed to be all losers. No, no, they don’t have any money for that stuff. It’s too complicated. I don’t think anybody understands how this works anymore. I could not find anybody who could tell me the whole thing. I could find people who knew bits and pieces, but they knew their slice. . . . I am trying to stitch this thing all together. I get uncomfortable when I can’t answer the most basic questions, and that is how much risk is there in the system and where is it?”

In short, Dr. Martenson is worried about the whole financial system going down. Dr. Martenson says, “Yes, I am worried about the whole system going down, and that leads to all sorts of speculation. . . . Imagine this, we wake up one day, and the markets are not open on Monday. Oh no, glitch. Problem. Then, it’s two days and not open, three days not open. People are getting worried. Friday, and the markets are still not open. Monday comes, and they say it’s a super big problem, and we don’t know how to resolve it. . . . They offer you 100% value today in a Central Bank Digital Currency (CBDC) account or you can wait it out and hope it gets resolved, and it might take a decade.”

The moment that the Chinese invade Taiwan, the U.S. and China will be at war.

This is one of the three major wars that I have been warning about for a long time.

Unfortunately, the Chinese continue to become more aggressive toward Taiwan.  In fact, late last week they conducted the biggest practice run that we have seen so far…

China wrapped up a two-day, large-scale military exercise Friday after its forces deployed 111 aircraft and 46 naval vessels to areas around Taiwan.

Taiwan’s National Defense Ministry said 82 Chinese military aircraft crossed the median line of the Taiwan Strait and some got very close to the 24-nautical-mile line that Taiwan uses to define its contiguous zone.

The military drills, branded as a “punishment” for Taiwan’s new president, Lai Ching-te, who China views as separatist, focused on conducting joint sea-air combat-readiness patrol, joint seizure of comprehensive battlefield control and joint precision strikes on key targets involving China’s army, navy, air force and rocket force.

Meanwhile, both sides just continue to escalate matters in Ukraine.

It is being reported that French forces will soon be heading to Ukraine to help “train” Ukrainian troops, and that is a very ominous development…

Ukraine’s military says it is ‘welcoming’ French trainers in Ukraine, in new remarks which strongly suggest that for the first time France is deploying its troops to Ukraine soil. This marks the beginning of major ‘boots on the ground’ escalation in a formal, public capacity by a NATO state.

“Ukraine’s top commander said on Monday he had signed paperwork allowing French military instructors to visit Ukrainian training centers soon,” Reuters reported Monday, referencing head of the armed forces Col. Gen. Oleksandr Syrskyi.

“I am pleased to welcome France’s initiative to send instructors to Ukraine to train Ukrainian servicemen,” Syrskyi said following video link talks with French defense minister Sebastien Lecornu.

We are getting closer and closer to the day when western forces will be in direct conflict with Russian forces, and this is something that I have been warning about for many years.

The third major war that will greatly shake the entire planet is the war that has erupted in the Middle East.

Israeli forces keep going even deeper into Rafah, and the IDF and Hezbollah continue to exchange fire along the northern front.

Eventually this war is going to escalate to an extremely dangerous level, and we could potentially see that happen by the end of this calendar year.

In addition to military conflict, major pestilences are also a factor that could turn the global financial system upside down.

Earlier today, we learned that over 4 million chickens at just one farm in Iowa will have to be destroyed because of a bird flu outbreak there…

More than 4 million chickens in Iowa will have to be killed after a case of the highly pathogenic bird flu was detected at a large egg farm, the state announced Tuesday.

Crews are in the process of killing 4.2 million chickens after the disease was found at a farm in Sioux County, Iowa, making it the latest in a yearslong outbreak that now is affecting dairy cattle as well. Last week, the virus was confirmed at an egg farm west of Minneapolis, Minnesota, leading to the slaughter of nearly 1.4 million chickens.

Overall, 92.34 million birds have been killed since the outbreak began in 2022, according to the U.S. Department of Agriculture.

Please keep in mind that the figure that the U.S. Department of Agriculture is quoting is just for the United States.

Overall, hundreds of millions of birds have been killed around the globe since the beginning of this pandemic.

Let’s just hope that H5N1 does not mutate into a form that can spread easily from human to human, because if that happens our planet will be paralyzed by fear on a much higher level than we experienced during the last pandemic.

It is also being reported that a hemorrhagic fever that can cause “Ebola-like bleeding” is rapidly spreading among rodents in northern Europe…

A potentially deadly virus that can jump from animals to humans is already sweeping through northern Europe, putting the UK highly at risk.

The horrifying virus can be transmitted from rodents to humans and cause Ebola-like bleeding, according to new research.

Bank voles in Sweden carrying the pathogen have already infected two people, causing them to come down with a Viral Hemorrhagic Fever (VHF) – the same type of illness as Ebola.

I will be closely watching for any human cases of that disease, because any type of hemorrhagic fever that starts spreading widely among humans would cause a tremendous amount of panic.

On top of everything else, I believe that we should brace ourselves for unexpected natural disasters in the months ahead.

For example, our sun has been exceedingly active lately, and we are being warned that more coronal mass ejections may soon be heading our way…

Earth could be hit by another powerful solar storm this week that is predicted to trigger radio blackouts and incredible northern light displays.

Earlier this month, the sun unleashed the most powerful streams of plasma, known as coronal mass ejections (CMEs), in 20 years, causing communication disruptions worldwide.

The sunspot that caused the chaos has swung back around and released a powerful flare toward Earth’s region on Monday.

The National Oceanic and Atmospheric Administration (NOAA) a 60 percent chance of radio blackouts on Tuesday and throughout the rest of the week.

Before this current solar cycle is over, I believe that solar activity will make a lot more headlines.

So much is happening right now, but what we have experienced so far is just the tip of the iceberg compared to what is coming.

It won’t be too long before we are being hit by one catastrophic event after another, and that is going to cause tremendous chaos for the global financial system.

So take advantage of this period of relative stability while you still can, because we are moving into a time when everything that can be shaken will be shaken.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

Little by little, our standard of living has been eroding.  A couple decades ago, we had the largest and most prosperous middle class in the history of the world, but now most of the country is struggling.  At this point, fast food is considered to be a “luxury”, 11 million children are living in poverty, and thousands of stores are permanently shutting down all over the United States because consumers have so little discretionary income these days.  We are in the midst of a historic cost of living crisis, and those at the bottom of the economic food chain are being hit the hardest.

The ultra-wealthy don’t really care that food costs have been soaring, but for those that are barely scraping by from month to month it makes an enormous difference.

Once upon a time, fast food restaurants were where those that were struggling went to eat.

But now fast food is considered to be a “luxury” in 2024, and that is because fast food prices have gone absolutely haywire…

A Big Mac sandwich at McDonald’s, for example, cost $3.99 in 2019. Now, that price has more than doubled to $8.29, according to Fast Food Menu Prices, an online tracker.

Gone, too, are the days of the $5 Footlong at Subway. A BLT Footlong that cost $5.50 in 2019 now costs customers $8.49 in 2024, though prices can vary by location. Additionally, Chipotle’s beloved chicken burrito that cost $6.50 in 2019 now runs customers $10.70.

Fast-food executives have pointed to rising wages and increased costs for ingredients as factors driving up the prices on their menus.

I am sitting here looking at those numbers and I still can’t wrap my head around them.

I never imagined that I would see the day when it took more than 8 dollars to buy a Big Mac.

That is insane!

A different survey that was recently conducted by Lending Tree discovered that almost 80 percent of all Americans believe that fast food is a “luxury item” now…

Nearly 80 percent of Americans now consider fast food to be a “luxury item” as families feel the squeeze from the Biden regime’s failing economy.

According to a survey from Lending Tree of around 2,000 adults, what was once considered an affordable option for low-income workers is fast becoming the opposite.

Meanwhile, the number of American children living in poverty continues to increase with each passing day.

If you can believe it, we are being told that over 11 million U.S. children are now living in poverty…

More than 11 million children were estimated to be living in poverty in 2021, according to U.S. Census Bureau data published by the Children’s Defense Fund.

That equates to around one in seven children in the U.S., or 15.3 percent. It’s a high toll, and one even higher than the adult population, which was 10.5 percent for 19-64 year olds that year and 10.3 percent for adults aged 65+.

According to an analysis by the Peter G. Peterson Foundation, this difference is due to factors such as the “cost of caregiving and its responsibilities, transitions to a single parenthood household, unemployment of parents, and disabilities of family members.”

Today, approximately 40 percent of the entire country is considered to be either living in poverty or among the ranks of “the working poor”, and 42 million Americans are on food stamps.

We now have an absolutely gigantic “underclass” that is largely made up of people that were once solidly middle class.

The rapidly rising cost of living is just shredding families from coast to coast.

In Montana, one senior is incredibly frustrated because his property taxes have increased by 790 percent over the past several years…

A senior from Montana has delivered a viral speech about the sorry state of property taxes in the Treasure State.

“I’m on Social Security, I’m 68-years-old and working just to pay my taxes,” says Kurt, in a clip shared on TikTok by Ryan Busse, who is running to be the next governor of Montana.

Kurt claims that over the last couple of years, his annual property taxes have soared from $895 to almost $8,000 — an increase of around 790% — which he says is like paying almost “$700 a month rent to the state to live in our own house.” The state has an Elderly Homeowner/Renter Tax Credit, and the maximum credit is $1,150.

His property taxes have skyrocketed because property values have skyrocketed.

And property values have skyrocketed because our leaders flooded the system with way too much money.

Small businesses are being monkey-hammered by inflation as well.

In fact, one recent survey found that 86 percent of all U.S. small businesses say that they are being hurt by inflation…

An overwhelming majority of small business owners say they are being hurt by rising prices.

The new survey released Wednesday by small business network Alignable shows 86% reporting being hurt by high costs with only 6% saying they are thriving and not struggling.

Alignable surveyed more than 3,000 business owners from mid-April to mid-May and found that they overwhelmingly lament the burden of inflation.

Dollar stores in particular are being hit really hard by rising costs.

For example, 99 Cents Only has decided to close all of their stores because conditions have changed so dramatically…

For years, dollar stores were a fixture in nearly every strip mall in California, offering cheap household goods, bread and produce, and even toys and gifts.

But if it seems like your favorite dollar store is heading for the exit, you’re not wrong.

2024 may be their swan song.

In April, California-based 99 Cents Only announced it was closing all 371 locations after decades in business. The retailer blamed economic factors, including rising levels of “shrink,” inflation, and shifting consumer demand that has presented “significant and lasting challenges.”

Not to be outdone, Dollar Tree has announced that it will be closing about 1,000 stores…

Dollar Tree, which owns Family Dollar, recently said it will close nearly 1,000 stores. That’s after Dollar Tree raised prices in the past couple of years for the first time in decades.

Overall, so far in 2024 retailers have already announced that they will be closing nearly 3,200 stores, and we haven’t even reached the mid-point of the year yet…

The retail industry is going through a tough time as it copes with inflation-weary consumers and a rash of bankruptcies, prompting chains to announce the closures of almost 3,200 brick-and-mortar stores so far in 2024, according to a new analysis.

That’s a 24% increase from a year ago, according to a report from retail data provider CoreSight, which tracks store closures and openings across the U.S.

The final countdown for the U.S. economy has begun, but most Americans do not even realize what is happening.

Most Americans just assume that our leaders can fix things by printing even more money and that conditions will “return to normal” eventually.

But the truth is that there isn’t going to be a “return to normal”, because this is about as “normal” as things are going to get.

It has taken decades of horrendous decisions to get us to this point, and now we are steamrolling toward economic oblivion.

If you think that our leaders in Washington will be able to turn this ship around, you are just being delusional.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

This is a very bad time for those that work in the real estate industry.  Thanks to the Federal Reserve, mortgage rates are much higher than they were a couple of years ago, and this has deeply frozen America’s housing market.  Millions upon millions of U.S. homeowners are currently paying off fixed rate mortgages that were financed when mortgage rates were at historic lows.  If you are one of those homeowners, selling your current home and buying another home that will come with a mortgage at a much higher rate would be very painful financially.  So vast numbers of current homeowners feel “locked in” to their current homes.  At this point, the number of Americans that are selling homes has fallen to a depressingly low level, and the number of Americans that are buying homes has fallen to a depressingly low level.  This isn’t going to change until interest rates go down significantly, but the Federal Reserve is very hesitant to reduce interest rates because of the nightmarish cost of living crisis that we are facing.  So our housing market will probably continue to be in a deep freeze for the foreseeable future.

On Wednesday, we learned that sales of existing homes fell once again during the month of April…

Sales of previously owned homes fell by 1.9% to an annual rate of 4.14 million in April, the National Association of Realtors said Wednesday.

That’s the number of homes that would be sold over an entire year if sales took place at the same rate every month as in April. The numbers are seasonally adjusted.

The pace of sales fell short of expectations on Wall Street, which was forecasting a 4.21 million pace for April.

As Zero Hedge has pointed out, sales of existing homes have almost plunged to levels that we last witnessed during the Great Recession of 2008 and 2009.

Normally, when home sales are going down home prices are heading in the same direction, but during the month of April the median price of an existing home actually jumped substantially…

The median price for an existing home in April rose 5.7% to $407,600, as compared with the year before. That’s the highest price recorded for the month of April.

The jump in home prices was the biggest since October 2022.

The reason why this is happening is because it simply does not make financial sense for the vast majority of homeowners to sell their homes right now.

If you got a mortgage when rates were low, that is something that you do not want to give up easily.

According to Zillow, as a result of higher rates the average mortgage payment in the U.S. has almost doubled since January 2020…

A monthly mortgage payment on a typical U.S. home has nearly doubled since January 2020, up 96.4% to $2,188 (assuming a 10% down payment).

I feel so bad for young couples that are looking to buy their very first home in this environment.

My advice would be to keep renting for now and pray that mortgage rates will go down eventually.

Until rates go down, it just doesn’t make sense to buy or sell.

As Lawrence Yun has noted, we are in “new territory as to how the lock-in effect will restrain home sales”…

“When we see these mortgage rates, which is a 300 basis point increase from pre-Covid pace, we are in a new territory as to how the lock-in effect will restrain home sales,” said Lawrence Yun, chief economist for the Realtors.

If the Federal Reserve wants to unfreeze the housing market, the solution is easy.

Slashing interest rates would force mortgage rates down and the housing market would heat up again…

Economists do not expect a significant decline in mortgage rates until the Federal Reserve starts cutting interest rates. The U.S. central bank has raised its benchmark overnight interest rate by 525 basis points since March 2022 to dampen demand in the economy and control inflation.

But the Federal Reserve is not eager to do that, because lower interest rates would just add more fuel to the inflationary pressures that are driving up prices throughout the economy.

So for now, many Americans will just do whatever they have to do to survive in this very harsh environment.

Recently, one 34-year-old woman was discovered living inside a rooftop grocery store sign in Michigan…

Police bodycam footage has been released showing the moment a homeless woman was found squatting inside a Michigan rooftop grocery store sign.

The 34 year old, whose identity remains anonymous, had been living behind the triangle-shaped sign – approximately 5ft wide and 8ft high that has a door accessible from the roof – of the Family Fare supermarket, located in Midland, a city approximately 130 miles north of Detroit.

The woman had turned the crawl space into an apartment, which included flooring the woman had laid down, bedding, a houseplant, clothing, a Keuring coffee maker, a desk, a printer, and a computer. She was resourceful, utilizing a power cord plugged into an outlet on the roof to use the grocery store’s electricity.

I applaud her ingenuity.

And from now on, whenever I see a rooftop store sign I will wonder if someone is living inside.

In the days ahead, all of us are going to have to make the most out of whatever circumstances we find ourselves in.

For the moment, conditions are still at least somewhat relatively stable, but we are rapidly moving into a time of unprecedented global chaos.

In the short-term, I fully expect economic conditions to quickly deteriorate during the second half of this year, and it appears that the American people as a whole are also becoming more pessimistic about our economic future.

This month, consumer confidence is substantially lower than it was last month…

The latest reading of the University of Michigan’s survey showed sentiment plunged to a six-month low of 67.4 in May from a final reading of 77.2 in April as Americans cited stubbornly high inflation and interest rates, as well as fears that unemployment could rise.

The cost of living just continues to soar, businesses are failing all over the country, and more layoff announcements come pouring in with each passing day.

Despite everything that our leaders have done to prop up the economy, we have now reached a breaking point.

So I would very much encourage you to brace yourself for hard times, because economic conditions are going to become very painful during the months ahead.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

I have a great idea.  Let’s wildly print money, let’s systematically destroy the reserve currency of the globe, let’s add a trillion dollars to the national debt every 100 days, let’s strangle the economy with all sorts of ridiculous regulations, let’s dramatically hike interest rates, let’s make things exceedingly difficult for our domestic energy industry, and let’s allow theft, violence, homelessness and migration to run wild.  Then we’ll sit back and see what happens.  What I have just described is essentially what we have witnessed over the last three years.  Joe Biden and others in positions of power in Washington are running our economy into the ground.  The system really is coming apart at the seams, and Bidenomics really is the beginning of the end for the U.S. economy.

Former Chrysler and Home Depot CEO Bob Nardelli is also sounding the alarm about the severe damage that Bidenomics is doing.

In fact, he just told Maria Bartiromo that the fault lines of our economy are “about ready to crack”…

Former Chrysler and Home Depot CEO Bob Nardelli warned that the fault lines of the economy are “about ready to crack” on Monday, adding that the Biden administration’s alleged policy missteps could leave a cumbersome mess for the next person who sits in the Oval Office to clean up.

“What I’ve seen over the past three-and-a-half years is that a series of debacles and missteps have created a tremendous pressure on the fault lines of our economy, and they’re about ready to crack,” he told FOX Business’ Maria Bartiromo.

He is right.

Our economy is steamrolling in the wrong direction, and the short-term outlook is extremely troubling.

One recent survey of small businesses found that nearly half of them believe that they will “definitely” or “probably” not survive another four years under Joe Biden…

In a new report from RedBalloon and PublicSquare, nearly half of the 80,000 small businesses surveyed said they “definitely” or “probably” will not survive another four years with Biden.

“There is nothing I can afford to do in addition to what I’m already doing. If things don’t change, I’ll be finished,” one business owner said in the report.

Already, businesses are making moves to preserve their cash flows. Four in 10 now said they are delaying paying bills while a whopping seven in 10 have put all staffing plans on hold, the survey found.

And a different survey discovered that a whopping 43 percent of all small business renters in the U.S. could not pay their rent in full last month…

A significant number of small businesses across the nation are struggling to pay rent due to skyrocketing costs, a recent study by business networking platform Alignable found.

The company’s latest Small Business Rent report, published on Friday, found that 43 percent of small business renters in the U.S. were unable to pay their rent in full and on time in the month of April. Such a high delinquency rate hasn’t been reported in the U.S. since March 2021, at the height of the COVID-19 pandemic, when it reached 49 percent.

More small businesses are going under with each passing day.

We really are in the midst of a “small business apocalypse”, and that is extremely bad news, because small businesses create most of the new jobs in this country.

Rising costs are one of the primary reasons why so many small businesses are now in hot water, and inflation is also crushing ordinary American families that are just trying to make it from month to month.

Earlier today, I was astounded to learn that the price of an order of medium fries at one McDonalds location in Los Angeles was $1.79 at the end of 2019, but now it has risen to $4.19.

Print more money. What could possibly go wrong. pic.twitter.com/TTRqGQLkIl

— Rothmus (@Rothmus) May 20, 2024

When the Federal Reserve was pumping trillions of dollars into the system and our politicians were sending out free checks to everyone, I warned that this would happen.

Not too long ago, $648 was a fairly typical monthly mortgage payment on a nice home.

Today, it is the average monthly payment on a new vehicle in the United States…

More than 115 million people in the U.S. finance their automobile purchases, and if you do, you might want to hold on to your current vehicle for as long as you can. Buying a car is becoming more financially difficult than ever, with the average car payment in the U.S. at an all-time high — $648 for new cars and $503 for used vehicles.

The average sticker price on a new vehicle has risen to almost $50,000.

If you are old enough, you probably bought an entire house for less than that many years ago.

Speaking of home prices, they have risen by more than 47 percent since the beginning of this decade…

Home prices have surged 47.1% since the start of 2020, easily outstripping the gains seen in recent decades.

That’s according to a recent analysis by ResiClub of the Case-Shiller National Home Price Index, which showed that house prices in the 1990s and 2010s grew a respective 30.1% and 44.7%.

Today, most homeowners are stuck in their current homes because they literally cannot afford to move.

Without a doubt, the raging inflation that our leaders have created has done an immense amount of damage.

According to one recent survey, 65 percent of U.S. households are convinced that inflation is making their financial lives “worse”…

Inflation made the financial lives “worse” for 65% of US households, according to the report. Among those, 19% said it was “much worse.”

The findings were drawn from the Fed’s 11th annual Survey of Household Economics and Decisionmaking, which looks at American’s economic health across a variety of areas, including employment, income, banking and credit, housing, retirement planning, student loans, childcare and even Buy Now, Pay Later usage.

The longer Joe Biden is in the White House, the more intense the economic pain is going to become.

Many businesses that were once thriving are now going belly up.  The latest iconic chain to file for bankruptcy is Red Lobster…

Red Lobster has filed for Chapter 11 bankruptcy protection days after shuttering nearly 100 restaurants across America.

The seafood chain, which has closed restaurants in 27 states, has been struggling with rising lease and labor costs in recent years and also promotions like its iconic all-you-can-eat shrimp deal that backfired.

Demand for one such recent promotion overwhelmed restaurants, reportedly contributing to hundreds of millions in losses.

If we really want to fix the economy, we should be like George Costanza and “do the opposite” of everything that Joe Biden and his minions have been doing.

But even if Joe Biden is voted out in November, the “experts” running the Federal Reserve will still be there.

And they have been doing an absolutely nightmarish job.

In addition, our Congress critters just continue to borrow and spend us into oblivion no matter who controls the White House.

Our leaders have been making really bad decisions for decades, and now we really have reached a breaking point.

Bidenomics has been an abject failure of historic proportions, and the pain that it is causing is getting worse with each passing day.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

Did you know that U.S. households are 17,690,000,000,000 dollars in debt?  Of course household debt is only one part of a much larger story.  The federal government is 34 trillion dollars in debt, state and local governments are absolutely drowning in debt and unfunded liabilities, and corporate debt is at an all-time high.  As a society, we are on the greatest debt binge in the history of the world, and it just gets worse every single year.  Previous generations handed us an economy that provided us with an incredibly high standard of living, but we always had to have more.  So we have been borrowing and spending with no end in sight, and now our day of reckoning is fast approaching.

According to the New York Fed, U.S. household debt surged to another record high during the first quarter of this year…

In the first three months of 2024, total household debt surged to a fresh record of $17.69 trillion, an increase of $184 billion, or 1.1% from the previous quarter. The increase mostly stemmed from a jump in mortgage balances, which rose $190 billion from the previous quarter to $12.44 trillion at the end of March.

If we could handle all that debt, there wouldn’t be much cause for alarm.

Unfortunately, delinquency rates are rising.

In fact, the proportion of credit card balances in serious delinquency has risen to the highest level since 2012…

A growing number of Americans are falling behind on their monthly credit card payments as they continue to battle high inflation and interest rates, according to New York Federal Reserve data published Tuesday.

Credit card delinquencies, which have already surpassed their pre-pandemic levels, continued to rise in the three-month period from January to March.

The flow of credit card debt moving into delinquency hit 8.9% in the first quarter at an annualized rate, compared with an 8.5% rate the previous quarter and 5.87% at the end of 2023. In fact, the percentage of credit card balances in serious delinquency climbed to its highest level since 2012.

In 2012, we were just coming out of the Great Recession.

Now a new economic crisis has begun, and millions of U.S. households are teetering on the brink of financial disaster.

If you use credit cards, it is so important to pay them off in full every month.

Unfortunately, approximately 44 percent of all cardholders do not do that…

Overall credit card balances totaled $1.115 trillion in the first quarter of the year, $129 billion more than last year. For card users who pay their balance in full every month, that’s not a problem. But according to Bankrate, roughly 44% of borrowers carry credit card debt over from month to month.

It has always been financial suicide to carry credit card balances from month to month, and that is especially true today because interest rates are so ridiculously high…

The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high. The average credit card annual percentage rate, or APR, hit a new record of 20.72% last week, according to a Bankrate database that dates to 1985. The previous record was 19% in July 1991.

If people are carrying debt to compensate for steeper prices, they could end up paying more for items in the long run. For instance, if you owe $5,000 in debt, which Americans do on average, current APR levels would mean it would take about 279 months and $8,124 in interest to pay off the debt making the minimum payments.

I always encourage my readers to pay off high interest debt as soon as possible.

If you have credit card debt, eliminating it should be your number one financial goal.

Sadly, the New York Fed’s new report tells us that an increasing number of Americans are getting behind on their credit cards and their auto loans…

The Fed’s report showed 6.9% of credit card debt transitioned to serious delinquency last quarter, up from 4.6% a year ago. And for credit card holders aged 18–29, 9.9% of balances were in serious delinquency.

Auto loan delinquencies are also higher as the average monthly car payment jumped to $738 in 2023. Close to 2.8% of auto loans are now 90 or more days delinquent — that equates to more than 3 million cars. Auto loans are the second-largest debt category following mortgage debt, with $1.62 trillion outstanding.

Tens of millions of U.S. households have severely overextended themselves financially.

When you get to a point where you are so far in debt that you can barely make the minimum payments, it can feel like you are “trapped” with no way out…

High interest rates are pushing low- and moderate-income Americans who have fallen behind on credit card payments and auto loans to the brink, according to a new report.

“It’s crazy,” 43-year-old Army veteran Ora Dorsey told The New York Times. “It does make it hard to get out of debt. It seems like you’re only paying the interest.”

“We don’t have the credit to be able to buy a house, and we have a bunch of debt, either student loans or credit card debt,” 31-year-old Chris Nunn, who drives for the DoorDash delivery app, told the Times. “So we’re trapped.”

Dorsey told the outlet she has been trying to cut down debts accrued following various health issues for years. She is working three jobs to cut down her substantial debt.

Today, Americans are more pessimistic about the economy than they have been in a very long time.

It can be absolutely soul crushing to work as hard as you possibly can and still not have enough money for all the bills.

If you are feeling a tremendous amount of stress about your finances, you are certainly not alone.

According to one recent survey, approximately half of the entire population is struggling with mental health issues due to financial stress…

About half of U.S. adults are struggling with their mental health because of their financial situation.

Forty-seven percent of adults say concerns about money have, at least occasionally, caused anxiety, stress, worrisome thoughts, loss of sleep, depression or other effects, according to Bankrate’s latest Money and Mental Health Survey.

About 65% of them say their biggest concern is inflation and rising prices, and nearly 60% say their stress derives from paying for everyday expenses such as groceries and utilities. About 56% say they are worried about having enough emergency savings, and 47% are most concerned about being in debt, according to the survey.

After seeing numbers like that, how in the world can anyone possibly claim that the U.S. economy is in good shape?

The level of economic pain that we are already witnessing is absolutely staggering, and conditions are only going to get worse during the chaotic months and years that are ahead of us.

But even though our leaders continue to make incredibly reckless decision after incredibly reckless decision, many people out there continue to be convinced that everything is going to work out just fine somehow.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

I never imagined that we would ever see a time when it takes $177,798 for a family of four to live comfortably in the United States.  Unfortunately, that day has arrived.  Our leaders have been pursuing highly inflationary policies for many years, and now we have reached a point where inflation is wildly out of control.  In fact, the latest wholesale inflation figure that was released on Tuesday came in much higher than expected.  Sadly, this is just the beginning and we are in far more trouble than most people realize.

According to an incredibly shocking new study, most Americans do not make enough money to “live comfortably” in the highly inflationary environment that we find ourselves in today…

A recent study has revealed the incomes needed for families to live comfortably across the United States – and the stark contrast in the cost of living between states is startling.

The study revealed that in the most expensive states, families need nearly $300,000 to simply live ‘comfortably.’

The least expensive state requires about half that salary – still over $100,000.

Meanwhile, the average annual salary in the US is $59,428, or $28.34 per hour, as of May 2024.

The study determined that Massachusetts is the most expensive state.

It takes a whopping $301,184 a year for a family of four to “live comfortably” there.

The least expensive state is Mississippi.

In the Magnolia State, it only takes $177,798 a year for a family of four “to cover their expenses and maintain a satisfactory quality of life”.

This is our country now.

I feel like I have been banging my head into a wall.  For more than a decade I have warned that this would happen, and now it is here.

And even more inflation is on the way…

Americans already contending with persistent and stubbornly high inflation just got more unwelcome news on Tuesday: There are more price hikes likely coming down the pike.

Wholesale inflation picked up in April to its highest rate in a year, according to Bureau of Labor Statistics data released Tuesday.

In April, inflation at the wholesale level jumped 0.5 percent in just one month…

Inflation at the wholesale level rose much more than expected in April, the latest sign that price pressures within the economy remain elevated and difficult to tame.

The Labor Department said Tuesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, rose 0.5% in April from the previous month.

If you multiply that figure by 12 months, you get 6 percent.

And of course you need to approximately double any number that the Biden administration gives us in order to come up with a figure that is anywhere close to accurate.

By now, just about everyone realizes that the rate of inflation in this country is massively understated.

For example, Joe Biden insists that the rate of inflation has been “low” for quite some time, but home prices have risen by more than 47 percent since the start of this decade…

Home prices have surged 47.1% since the start of 2020, easily outstripping the gains seen in recent decades.

That’s according to a recent analysis by ResiClub of the Case-Shiller National Home Price Index, which showed that house prices in the 1990s and 2010s grew a respective 30.1% and 44.7%.

Let’s all be honest with one another.

The truth is that we are in the midst of a raging cost of living crisis that has no end in sight.

And this should not surprise any of us.  Our politicians continue to borrow and spend trillions upon trillions of dollars, and all of this borrowing and spending is extremely inflationary…

An economic specter haunts America. It’s also one that many American politicians – Republican and Democrat – say a great deal about but are reluctant to address.

The name of that shadow is the United States National Debt: what the US Treasury Department defines as “the amount of money the Federal Government has borrowed to cover the outstanding balance of expenses incurred over time.”

If you go to the Treasury’s website, you can see just how big that debt is. In mid-May, it was 34.5 trillion dollars. The pace of the growth in that debt is equally stunning. Approximately 1 trillion dollars is being added to America’s National Debt every 100 days.

Borrowing and spending another trillion dollars every 100 days is a completely and utterly insane thing to do.

We really are in the endgame.

Today, Fed Chair Jerome Powell warned that interest rates may have to stay high for an extended period of time in order to fight inflation…

Federal Reserve Chair Jerome Powell said Tuesday that “it may take longer than expected” for high interest rates to lower inflation and gave no hint that a recently slowing labor market could mean earlier rate cuts.

“We’ll need to be patient and let restrictive policy do its work,” Powell said during a session at a Foreign Bankers Association meeting in Amsterdam. “It may be that (high interest rates) take longer than expected to do its work and bring inflation down.”

So far, higher rates have not solved our cost of living crisis, and that is because our politicians continue to spend money like drunken sailors.

But higher rates are crushing the overall economy.

Yesterday, I wrote about the “restaurant apocalypse” that is starting to sweep across America.

Today, it got even worse.

We just learned that at least 99 Red Lobster locations have been shut down and will be auctioned off…

At least 99 locations of Red Lobster are being auctioned off amid questions about the stalwart seafood chain’s long-term future.

In a post Monday on LinkedIn, Neal Sherman, founder and CEO of TAGeX Brands, a liquidation firm, announced he was leading the closure of more than 50 Red Lobster locations, with the restaurants’ equipment to be auctioned off.

A web page dedicated to the liquidations showed closure locations across the U.S. including in Denver; Indianapolis; Rochester, New York; Sacramento, California; San Antonio; and San Diego.

On Tuesday, Restaurant Business Magazine reported 99 locations were closing.

For the Red Lobster workers that just lost their jobs, the end came very suddenly…

A third Red Lobster employee took the news in stride, posting: ‘red lobster just laid all of us off without notice and closed for good LMAOO.’

The employee added in replied that Red Lobster didn’t tell managers until 8am yesterday.

Of course it isn’t just restaurant chains that are closing locations.

In fact, even Walmart is closing stores and auctioning off inventory…

After announcing that it would be shutting its doors for good, one Ohio Walmart auctioned off its remaining inventory, including flat-screen televisions, laptops and furniture, for a bargain.

The Walmart at 3579 S. High St. in Columbus opted not to renew its lease in a once-bustling strip plaza. Representatives announced the closure in February, claiming the store had failed to ‘meet financial expectations’.

Last week, the store offloaded its merchandise through a liquidation auction. Bidding closed the morning of May 10, with some items like laptops going for under $20.

If interest rates stay high, we are going to see a lot more of this sort of thing.

But the Federal Reserve is very hesitant to cut rates at this point because of the cost of living crisis.

Officials at the Fed really are caught in a “deer in the headlights” moment right now.

But no matter which way they ultimately choose to go, in the short-term more “stagflation” is ahead.

And in the long-term, the exceedingly foolish policies that our leaders have been pursuing are going to result in a systemic collapse of absolutely epic proportions.

Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.

About the Author: Michael Snyder’s extremely controversial new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com. He has also written seven other books that are available on Amazon.com including “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  You can connect with Michael on YouTube, Facebook and Twitter, and sharing his articles on your own social media accounts is definitely a great help. These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.