The Economy

Is it just a coincidence that a large number of talking heads in the corporate media have all suddenly decided to start blaming Donald Trump for causing a “recession”?  During the four years of the Biden administration those same voices insisted that there was no “recession” on the horizon even though homelessness was setting record high after record high, demand at food banks surged to levels never seen before, inflation was out of control, home sales plunged to extremely depressed levels, stores and restaurants were closing all over the nation and debt levels were breaking records.  Let’s be real.  The U.S. economy has been on a downward trajectory for a long time, and that downward trajectory got even steeper in the final stages of the Biden administration.  But now we are being told that the economic problems that we are experiencing are happening because  Donald Trump is “manufacturing” a recession…

CNBC host Jim Cramer went off on President Donald Trump for fueling recession fears and cratering the stock market, noting competitor markets are “crushing us” and accusing Trump of potentially “manufacturing” a recession — or worse.

Really?

Trump has been in office less than 60 days.  He simply has not had much of an opportunity to have much of an impact on the economy yet.

But following more than 1,400 days of Joe Biden, U.S. households were absolutely drowning in debt.  In fact, we just learned that the average credit card debt load during the fourth quarter of last year was the highest that we have seen since the Great Recession…

For one, Americans’ inflation-adjusted debt burdens are starting to grow further beyond prepandemic levels on a per-household basis. As of the fourth quarter of 2024, the average household’s credit-card debt surpassed $10,000, adjusted for inflation, for the first time since 2009, according to data compiled by consumer-finance website WalletHub.

Donald Trump was not president during the fourth quarter of 2024.

Joe Biden was.

We also just learned that missed payments on auto loans were at “the highest level in three decades” in January…

Missed payments on auto loans by American car owners rose to the highest level in three decades earlier this year.

The percentage of borrowers with subprime car loans who are at least 60 days past due on their loans increased to 6.56% in January, which was the highest level since data collection began in 1994, according to Fitch Ratings.

The share of 60 days past due subprime auto loan borrowers has remained above 6% since August 2024 after breaking the 6% threshold for the first time early last year. It previously approached the 6% mark in 1996, 2019 and 2023.

Donald Trump did not become president until January 20th.

So don’t try to put that on Trump.

During the final stages of the Biden administration, even many Americans that earn at least $150,000 per year were falling behind on their debts…

From January 2023 to January 2025, the rate at which people earning $150,000 or more a year are 60-to-89 days behind on their overall debts has more than doubled, according to CreditGauge, which is produced by VantageScore, an independent joint venture of the three major credit bureaus.

Should we be concerned about where the economy is heading?

Yes!

But trying to blame Donald Trump for four years of failed policies just doesn’t make any sense.

It isn’t Trump’s fault that airlines are “cutting their first-quarter profit and sales estimates”…

Airlines are cutting their first-quarter profit and sales estimates, warning that a weaker economic backdrop is weighing on travel demand.

Ahead of a JPMorgan industry conference, American Airlines on Tuesday said it expects to lose between 60 cents a share and 80 cents a share in the first three months of the year, a wider loss than the 20 cents to 40 cents a share it previously forecast.

And it isn’t Trump’s fault that retail sales have been falling all over the nation.  For example, Kohl’s is projecting “a sales decline between 5 percent to 7 percent”…

Kohl’s, the Wisconsin-based store with over 1,100 locations, has lowered its sales expectations for 2025, citing shifting consumer spending patterns.

In its latest forecast, the retailer revised expectations to a sales decline between 5 percent to 7 percent.

The news sent the company’s stock plummeting by over 26 percent on Tuesday.

For months, I have been documenting the enormous economic mess that we are facing.

Now that President Trump is in the White House, he is going to have an opportunity to try to fix things.

But it won’t be easy.

At this point, the NFIB’s uncertainty index has risen to the second highest level ever…

The National Federation of Independent Business reported that its small-business optimism index fell 2.1 points in February to a reading of 100.7.

The NFIB’s uncertainty index rose 4 points to 104, the second-highest reading ever, which in its current monthly form dates back to 1986.

If the U.S. economy is able to avoid a major recession, it will be an all-time economic miracle.

During a recent interview with Maria Bartiromo, President Trump openly acknowledged that we are facing “a period of transition”…

So far, the president appears to be trying to lower expectations. In an interview that aired Sunday on Fox News, Mr. Trump demurred when asked by Maria Bartiromo if he expected a recession this year.

“I hate to predict things like that,” he said. “There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us.”

If anyone thinks that it is all going to be smooth sailing ahead, they are just being delusional.

Of course the decisions that President Trump is making now will have an impact on the economy moving forward, and I have to admit that I am not keen on the trade wars that have erupted.  On Tuesday, President Trump doubled tariffs on steel and aluminum imports from Canada…

U.S. President Donald Trump on Tuesday ramped up a burgeoning trade war with Canada, saying he will double tariffs set to take effect within hours on all imported steel and aluminum products from Canada to 50%, amplifying a focus on tariff increases that has sent financial markets reeling and business leaders ringing alarm bells about weakening consumer demand.

Trump’s latest salvo was in response to the premier of Ontario’s announcement that he would place a 25% surcharge on the electricity Canada’s most populous province supplies to 1.5 million U.S. homes unless Trump drops all of his tariff threats against the northern U.S. neighbor.

If we try to fight trade wars with Canada, Mexico, China and the EU simultaneously, that is going to create an enormous amount of economic pain.

So hopefully our trade disputes will be settled quickly.

If not, those at the low end of the economic spectrum will be hit the hardest…

With views of current finances among the poorest Americans already near the lowest in 14 years, tariffs are set to add more pressure by making many everyday items even pricier.

Low-income households, who spend a larger share of their budgets on goods than the wealthy and tend to favor cheaper imports, will bear the brunt of the hit. Economists from Bank of America and BNP Paribas expect the February consumer price index report due Wednesday to show early signs of the impact from tariffs — in particular the additional levies on items like furnishings, clothes and electronics coming from China.

The economic problems that we are currently witnessing all over the world are just one element of “the perfect storm” that we are now experiencing.

Hopefully President Trump and his team will make wise decisions during the days ahead.

And it would greatly help if the Federal Reserve would lower interest rates.

Unfortunately, a very serious economic downturn has already begun, and there are many voices that are absolutely determined to blame whatever happens next on Donald Trump.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

The U.S. economy was steamrolling in the wrong direction for four years under Joe Biden, and now we have an extraordinary mess on our hands.  Nobody can deny that our economic numbers are absolutely horrible right now.  GDP growth is expected to be negative during the first quarter, inflation is rising again, home sales are at extremely depressed levels, retail sales are down, stores and restaurants are closing at a staggering pace, debt levels are out of control, and mass layoffs are happening all over the nation…

President Donald Trump’s efforts to pare down the federal government workforce left a mark on the labor market in February, with announced job cuts at their highest level in nearly five years, outplacement firm Challenger, Gray & Christmas reported Thursday.

The firm reported that U.S. employers announced 172,017 layoffs for the month, up 245% from January and the highest monthly count since July 2020 during the heightened uncertainty from the Covid pandemic. In addition, it marked the highest total for the month of February since 2009 during the global financial crisis.

Please read those two paragraphs again.

Layoffs announcements haven’t been this high during the month of February since 2009.

Wow.

And the total for the first two months of this year is also the highest that we have seen since 2009…

January’s planned reductions brought the total through the first two months of the year to 221,812, also the highest for the period since 2009 and up 33% from the same time in 2024.

In case you haven’t figured it out yet, we have a major crisis on our hands, and the economic numbers that we are getting clearly reflect this.  The following are 12 shocking new all-time economic records that are being reported in 2025…

#1 Our trade deficit with the rest of the world has surged to an all-time record high…

The US trade deficit widened to a record in January as companies scrambled to secure goods from overseas before President Donald Trump imposed tariffs on America’s largest trading partners.

The gap in goods and services trade widened 34% from the prior month to $131.4 billion, Commerce Department data showed Thursday. The deficit was larger than all but one estimate in a Bloomberg survey of economists.

#2 The percentage of Americans that are “raiding their retirement savings” has never been higher…

More Americans are raiding their retirement savings to cover emergency expenses, taking early withdrawals from their 401(k)s.

A record 4.8 percent of account holders took hardship withdrawals last year, up from 3.6 percent in 2023, according to Vanguard Group, which examined data from nearly 5 million people with 401(k)-type accounts.

#3 This year, the price of a dozen eggs in the United States has soared to the highest level ever…

In January, the average price of a dozen eggs hit a record high of $4.95, up from $2.52 a year prior.

#4 The delinquency rate for subprime auto loans that are at least 60 days delinquent just hit a level we have never seen before…

60+ day auto loan delinquencies in the subprime cohort (less credit-worthy borrowers) hit 6.56% in December 2024—the highest ever recorded. That’s up from 6.01% in November 2024 and 6.27% in 2023.

#5 In January, pending home sales dropped to an all-time record low…

Contracts to buy previously owned homes fell to a record low in January as prospective buyers were constrained by higher mortgage rates and house prices.

The National Association of Realtors (NAR) said on Thursday that its Pending Home Sales Index, which is based on signed contracts, declined by 4.6% last month to 70.6, an all-time low.

Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling by 1.3% in January. Pending home sales were down 5.2% from a year ago.

#6 It is being projected that the U.S. will run a record high agricultural trade deficit of 49 billion dollars in 2025…

The U.S., known for being a global agriculture powerhouse, has never imported so much food.

Inbound shipments of everything from avocados to coffee and sugar are expected to drive the country’s agriculture trade deficit to a record $49 billion this year, the U.S. Department of Agriculture said in its trade outlook report. At the same time, America’s most widely grown crops have been losing overseas markets over the past decades.

It’s a stark turnaround for a nation that once used its abundant food supplies as a tool of statecraft, with the U.S. now facing a future of persistent agricultural trade deficits.

#7 Coresight Research is telling us that approximately 15,000 stores will be permanently closed in the United States in 2025.  That would be a new all-time record by a wide margin.

#8 The price of gold has moved above $2900 an ounce for the first time ever.

#9 Credit card debt in the United States has crossed the 1.2 trillion dollar mark for the very first time…

Americans’ total credit card balances now stand at a record-high $1.21 trillion, the report said.

#10 Total household debt in the United States has crossed the 18 trillion dollar mark for the very first time…

Americans’ household debt — including credit cards, mortgages, auto loans and student loans — is at a new all-time high of $18.04 trillion, according to a report released Thursday by the Federal Reserve Bank of New York.

#11 The U.S. national debt has surpassed the 36 trillion dollar mark for the first time ever.

#12 When you add up all forms of debt in our society, it comes to a grand total of more than 100 trillion dollars.  This has never happened before in the entire history of our nation.

Earlier today, I was amused by a Newsweek article that stated that top economists are concerned that our economy “may be on a path toward recession or a downturn that could rival those of 2020 and 2008″…

Economists have expressed fears that the American economy may be on a path toward recession or a downturn that could rival those of 2020 and 2008.

These concerns have been heightened by falling retail sales and associated layoffs, the anticipated impacts of President Donald Trump’s tariffs on prices and domestic consumption, American stock indexes trailing their European counterparts in recent months, the Federal Reserve’s statements indicating that inflationary struggles are far from over, and data pointing to sharp declines in consumer confidence.

Come on man.

Our economy is not “on a path toward recession”.

The truth is that our economy is in a recession right now.

Let’s be real.

Everywhere around us, people are in extreme economic pain.

Unfortunately, what we have experienced so far is just the beginning.

So I would encourage you to brace yourself for what is coming next, because it isn’t going to be pleasant.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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 can hardly believe how rapidly economic events are moving now.  The global trade war that has just erupted is going to be immensely painful.  If you doubt this, just read all the way to the end of this article. There is a reason why the Dow Jones Industrial Average has fallen by more than 1,300 points over the past two days.  The top minds on Wall Street clearly understand what is coming.  China, Canada, Mexico and the EU could avert disaster by negotiating with President Trump, but they are all choosing not to do so.  Everyone is digging in for a long fight, and the result is going to be absolutely disastrous.  Of course all of this is happening at a time when it appears that a recession has already begun.  We are in far more trouble than most people realize, and the months ahead are likely to be quite excruciating.

Shortly after Trump officially imposed high tariffs on goods coming from China, Canada and Mexico, the Chinese and the Canadians announced new tariffs of their own…

Canada and China swiftly announced retaliatory tariffs against the U.S. on Tuesday, shortly after long-threatened levies by the Trump administration on those countries and Mexico took effect.

President Donald Trump’s new 25% tariffs on imports from Mexico and Canada were imposed at 12:01 a.m. ET, along with a doubling of duties on some Chinese goods to 20%.

The Canadian economy is going to be thrown into a major downturn by these tariffs, but Canadian Prime Minister Justin Trudeau has foolishly decided that this is a battle that his nation needs to fight…

Canadian Prime Minister Justin Trudeau announced Tuesday retaliatory tariffs on U.S. imports to Canada after the U.S. imposed levies of its own. He said a 25% duty on CA$30 billion worth of U.S. goods would take effect immediately, adding that another CA$125 billion in products would be hit with the same tariff in three weeks.

During remarks to the press, Trudeau publicly stated that what Trump has chosen to do is “dumb”…

“We should be working together to ensure even greater prosperity for North Americans in a very uncertain and challenging world,” he said. “Now, it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.”

“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying murderous dictator. Make that make sense,” said Trudeau. “We two friends fighting is exactly what our opponents around the world want to see.”

Of course Trump was going to see what Trudeau said, and he responded by threatening to raise tariffs on Canadian products even higher…

Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!

Canada is our largest trade partner, and there will be severe consequences on both sides of the border.

One Canadian official is warning that this trade war will result in “recessions, job losses and economic disaster”…

“Today’s reckless decision by the U.S. administration is forcing Canada and the U.S. toward recessions, job losses and economic disaster,” Canadian Chamber of Commerce CEO Candace Laing said in a statement.

I wish that I could tell you that she is wrong.

But I can’t.

Mexico is our second largest trade partner, and Mexican President Claudia Sheinbaum has announced that Mexico will impose retaliatory tariffs by the start of next week…

Sheinbaum said she will announce retaliatory tariffs this weekend.

“We have decided to respond with tariff and non-tariff measures that I will announce on Sunday,” Sheinbaum said.

I can’t even begin to describe how much pain this trade war is going to cause for the Mexican economy.

Trade with the United States is one of the central pillars of their entire economic system.

China is our third largest trade partner, and they are imposing retaliatory tariffs on us too…

China announced Tuesday it would impose additional tariffs of up to 15% on some U.S. goods from March 10 and restrict exports to 15 U.S. companies.

The retaliatory measures from China’s Ministry of Finance and Ministry of Commerce came just as additional U.S. tariffs took effect on Chinese goods.

The additional Chinese tariffs largely cover U.S. agricultural goods, including corn and soybeans, which will be subject to new duties of 15% and 10%, respectively, according to the finance ministry’s website.

Throughout human history, trade wars have often preceded shooting wars.

Ominously, the Chinese are pledging to fight “to the bitter end”…

In Beijing, Foreign Ministry spokesman Lin Jian said that if the U.S. “persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end.”

Those are unusually strong words for the Chinese.

Usually they are much more restrained.

I think that they understand what is at stake.

We really could be heading into a global economic nightmare.

In fact, a senior official at the International Chamber of Commerce is claiming that we could soon be looking at “a downward spiral that puts us in 1930s trade-war territory”…

The world economy could face a crash similar to the Great Depression of the 1930s unless the U.S. rows back on its plans to impose steep tariffs on imports, a senior official at the International Chamber of Commerce warned.

“Our deep concern is that this could be the start of a downward spiral that puts us in 1930s trade-war territory,” said Andrew Wilson, deputy secretary-general of the ICC, which promotes global business and trade.

I don’t think that most Americans understand what we could potentially be facing.

According to CNBC, “a third of vehicle production in North America could be cut by next week”…

Roughly a third of vehicle production in North America could be cut by next week as a result of President Donald Trump’s 25% tariffs on Mexico and Canada, as automakers attempt to mitigate increased costs and buyers hold off on purchasing new cars and trucks.

That lost production would equate to roughly 20,000 units per day, according to a new analysis from prominent data and forecasting firm S&P Global Mobility.

That would be absolutely devastating to the auto industry.

And we are being told that the tariffs that are being imposed could add “as much as $12,200” to the cost of a new vehicle…

The 25% tariffs on goods from Canada and Mexico, as well as an additional 10% tariff on imports from China, could drive up car costs by as much as $12,200 for some models, according to a report from Anderson Economic Group (AEG), a Michigan-based economic consultancy.

The broad-based tariffs are likely to fuel higher costs on multiple types of vehicles, including SUVs, small cars and electric vehicles, according to AEG’s analysis. Higher sticker prices would hit the auto market even as the typical car now costs close to a near-record high of $50,000, and would likely add more financial strain on inflation-weary consumers.

If you need to purchase a vehicle, I would recommend doing it sooner rather than later.

Food prices are about to go up dramatically as well…

If looking at your grocery total makes you feel like your eyes are bulging out not unlike a cartoon, I have some bad news for you: Those same groceries are about to get a lot more expensive and fast. No, I’m not just talking about eggs, either, but rather pretty much every aisle of the grocery store. Why is that? Well, starting on March 4, 2025, imported products coming from Mexico and Canada will incur a 25% tariff, according to President Trump’s newest directives.

If that sounds alarming, that’s because it is. After all, Canada and Mexico are the largest suppliers of agricultural goods to the U.S. Scan your own pantry (and fridge) shelves, and you’ll likely notice no less than a few dozen different items our neighbors produce. In fact, 77% of our fresh produce comes from Mexico and 34% of our fresh meat comes from Canada, all of which (and more) will mostly likely soon come along with what will feel like a 25% surcharge. So while the immediate impact of the tariffs is still unknown (the brunt of the effects will fall on Mexico and Canada), experts say consumers should anticipate that grocery prices to rise in response.

Most U.S. households are already struggling to make ends meet thanks to how high food prices have risen.

The Wall Street Journal is telling us that even low price store brands are feeling the pain of reduced sales as consumers pull back on spending…

First, shoppers squeezed by inflation began ditching name-brand snacks and drinks in favor of lower-price store brands. But now, with costs for coffee, eggs and other basic grocery items surging, consumers are cutting out many cheaper items as well. That has TreeHouse Foods, one of the country’s largest manufacturers of private brands, feeling the pinch.

The maker of cookies, crackers, coffee and other goods for retailers such as Walmart, Whole Foods, Trader Joe’s and Target, gained ground in recent quarters as inflation pushed shoppers into cheaper food options. With sales growth now slowing significantly, TreeHouse is working to protect its margins by slashing costs and fine-tuning its list of products, anticipating that shoppers will remain stretched, at least for now.

Now food prices are likely to go significantly higher, and that is bad news for all of us.

Unfortunately, this could be the trigger that sends stock prices tumbling.

The stock price gains that we witnessed after Trump was elected are being wiped out, and the Dow fell another 670 points on Tuesday…

The Dow Jones Industrial Average tumbled for a second day as President Donald Trump’s tariffs left investors fearful of potential shockwaves for the economy.

The blue-chip average dropped 670.25 points, or 1.55%, building on Monday’s plunge of nearly 650 points. The Dow ended the session at 42,520.99. The S&P 500 dropped 1.22% and closed at 5,778.15 after notching its worst day of the year in the prior session. The Nasdaq Composite lost 0.35% and finished at 18,285.16.

So what is the bottom line to all of this?

The bottom line is that the severe economic problems that we have been experiencing are about to greatly accelerate.

We were clearly warned that global chaos would soon erupt, and that is precisely what has happened.

Ultimately, what we are witnessing shouldn’t be a surprise to anybody.

But at this point the vast majority of the population is still asleep, and that is extremely unfortunate.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

Have you noticed that now there is a lot of chatter about how “Trump’s policies” threaten to plunge the U.S. economy into a recession?  The messaging that we are getting from so many prominent voices is so similar that one would be tempted to think that they are all getting their talking points from the same source.  Is some sort of a coordinated effort taking place behind the scenes?  Without a doubt, our economy is in really big trouble right now.  Our economic momentum was taking us in the wrong direction during the final stages of the Biden administration, and in recent weeks our problems have clearly accelerated.  About a month ago, I suggested that those that control the levers of financial power were up to something.  Could it be possible that what they have been planning is now playing out right in front of our eyes?

Within the past week, the Atlanta Fed’s GDPNow model has gone into a nosedive.

Honestly, I have never seen anything like this.

If you can believe it, the Atlanta Fed’s GDPNow model is now projecting that U.S. GDP will shrink by 2.8 percent on an annualized basis during the first quarter of 2025…

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2025 is -2.8 percent on March 3, down from -1.5 percent on February 28. After this morning’s releases from the US Census Bureau and the Institute for Supply Management, the nowcast of first-quarter real personal consumption expenditures growth and real private fixed investment growth fell from 1.3 percent and 3.5 percent, respectively, to 0.0 percent and 0.1 percent.

I have been arguing that the U.S. economy has been heading into recession territory for quite some time.

But the shift that we are witnessing in the Atlanta Fed’s GDPNow model is like something out of a science fiction novel.  Just look at this chart…

It is almost as if someone flipped a switch and decided that it was time for the numbers to show that a recession has started.

Of course the truth is that we have been living through an economic horror show for years, and now the economic figures are becoming extremely dismal.

At this point, even CNN is admitting that our economy “is looking less and less stable by the day”…

The health of the US economy is looking less and less stable by the day.

Layoffs are rising. Consumer spending — the backbone of the economy — unexpectedly dropped in January. Consumer confidence has plunged. A key GDP forecast suddenly turned negative. And extreme fear is back on Wall Street, with stocks sliding last month.

All of that is true.

Yes, consumer spending really is going down.  In fact, we just witnessed the largest month over month drop in retail sales since January 2024…

New data out Friday showed retail sales declined more than expected in the first month of 2025.

Headline retail sales fell 0.9% in January, more than the 0.2% decline economists had expected, according to Bloomberg data. This marked the largest month-over-month decline in retail sales since January 2024.

We are also seeing subprime delinquencies spike.  In fact, the delinquency rate for subprime auto loans that are at least 60 days delinquent just hit the highest level of all time…

60+ day auto loan delinquencies in the subprime cohort (less credit-worthy borrowers) hit 6.56% in December 2024—the highest ever recorded. That’s up from 6.01% in November 2024 and 6.27% in 2023.

And as I have repeatedly tried to explain to my readers, the housing market has already fallen into a depression.

In January, pending home sales dropped to an all time record low…

Contracts to buy previously owned homes fell to a record low in January as prospective buyers were constrained by higher mortgage rates and house prices.

The National Association of Realtors (NAR) said on Thursday that its Pending Home Sales Index, which is based on signed contracts, declined by 4.6% last month to 70.6, an all-time low.

Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling by 1.3% in January. Pending home sales were down 5.2% from a year ago.

Things weren’t even this bad during the Great Recession.

Alarmingly, approximately one out of every seven pending home sales were cancelled in January.  That represents “the highest cancellation rate for this time of year since at least 2017”…

More home purchases are being canceled, especially in the southeastern part of the country. Just over 41,000 U.S. home-purchase agreements fell through in January, equal to 14.3% of homes that went under contract that month. That’s up from 13.4% a year earlier, and the highest cancellation rate for this time of year since at least 2017.

Are you starting to get the picture?

We are in so much trouble.

And now here come the tariffs.

After President Trump confirmed that enormous tariffs on goods coming from Mexico and Canada would go into effect at midnight, stock prices started to crash…

The stock market plummeted after President Donald Trump confirmed tariffs on Canada and Mexico would go into effect at midnight.

The Dow Jones Industrial Index lost 2.1 percent, the S&P 500 fell 2.3 percent and the tech-heavy Nasdaq was down 3.2 percent in afternoon trading.

Speaking from the White House alongside Commerce Secretary Howard Lutnick, Trump confirmed 25 percent tariffs on America’s largest trading partners would start on Tuesday.

A lot of pain is on the way.

We are dependent on the rest of the world for so many of the things that we purchase on a regular basis.

Sadly, this even includes food.

For a long time, we exported far more food than we imported, but now the reverse is actually true.

In 2025, it is expected that we will run an agricultural trade deficit of 49 billion dollars…

The U.S., known for being a global agriculture powerhouse, has never imported so much food.

Inbound shipments of everything from avocados to coffee and sugar are expected to drive the country’s agriculture trade deficit to a record $49 billion this year, the U.S. Department of Agriculture said in its trade outlook report. At the same time, America’s most widely grown crops have been losing overseas markets over the past decades.

It’s a stark turnaround for a nation that once used its abundant food supplies as a tool of statecraft, with the U.S. now facing a future of persistent agricultural trade deficits.

We consume far more than we produce, we buy far more stuff than we make, we have piled up the largest mountain of debt in the history of the world, and we depend on the rest of the world to send us what we need.

For more than a decade I have been desperately trying to get people to understand that we are literally committing national suicide.

When will America finally wake up?

Global events are moving in a very troubling direction very rapidly, and the clock is ticking…

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

We haven’t seen an economic shift of this magnitude in a long time.  Four years of “Bidenomics” absolutely devastated the U.S. economy, and that is one of the primary reasons why Kamala Harris lost the election.  The American people truly hate what has happened to the economy, and they are desperate for change. Unfortunately, our long economic slide just continues to get even worse.  In fact, we just got some new numbers that are simply staggering.

Let me start with the housing market.

On Thursday, we learned that pending home sales in the United States have dropped to the lowest level ever measured…

High mortgage rates and elevated home prices combined to crush home sales in January.

Pending sales, which are based on signed contracts for existing homes, dropped 4.6% from December to the lowest level since the National Association of Realtors began tracking this metric in 2001. Sales were down 5.2% from January 2024. These sales are an indicator of future closings.

Just think about this for a moment.

Pending home sales were not this low at any point during the Great Recession.

And pending home sales were not this low when everybody was being locked down during the pandemic.

Nobody can deny that the housing market is in a depressed state, and there is no indication that this is going to change any time soon.

Meanwhile, jobless claims spiked even more than expected last week…

First-time applications for unemployment benefits rose much more than expected last week, a likely indication of some “noisy” data, but also a potential worrisome hint that cracks may be forming in America’s long-solid labor market.

There were an estimated 242,000 jobless claims filed last week, according to seasonally adjusted data released Thursday by the Department of Labor. That’s an increase of 22,000 from the prior week’s tally and a figure that landed well above economists’ expectations for 220,000 claims.

It’s the largest weekly spike in claims in more than four months and the weekly claims — a proxy for layoffs — are at their highest level since early December, Labor Department data shows.

As I discussed the other day, we are witnessing mass layoffs all over the country right now.

So I expect jobless claims to continue to spike in the months ahead.

Of course what is currently going on in Washington D.C. will just add fuel to that fire.  Last week, jobless claims in D.C. jumped another 26 percent…

In Washington, D.C., new claims totaled 2,047, an increase of 421, or 26%, according to numbers not adjusted for seasonal factors.

It appears that a tsunami of federal layoffs is just getting started, and so this is a developing story.

At the same time, we are being told that inflation “is moving in the wrong direction again”…

No matter what metric you’re looking at, US inflation is moving in the wrong direction again.

Whether it’s a house or a carton of eggs, price growth is once again intensifying across a broad range of indicators. Much of that has to do with the same supply and demand factors and labor-market pressures that led to the initial inflation surge in the pandemic, while planned tariffs from President Donald Trump are heightening concerns that prices will rise even more.

What a mess.

Last month, beef prices moved significantly higher once again…

It’s not just eggs getting expensive. Beef prices have also been on the rise, with executives at various companies noting in recent earnings calls that it’s creating significant challenges.

In January, prices for beef and veal rose 5.5%, outpacing the entire food-at-home category, which rose 1.9%, according to the Labor Department’s Consumer Price Index.

Courtney Schmidt, Sector Manager at Wells Fargo Agri-Food Institute, told FOX Business the uptick in beef prices is driven by tighter U.S. beef production with consistent consumer demand.

And egg prices have risen to absolutely absurd levels…

Shoppers are reeling from sticker shock as egg prices hit an all-time high at stores like Walmart, with some joking that they might need a loan just to afford breakfast, while other angry Americans have been caught stealing the product.

One frustrated customer took to X to vent about the soaring costs, revealing that in Bakersfield, California, a 60-pack of eggs now costs $43. “$9 – $15 a dozen. It’s ridiculous,” she wrote. “I have to take out a loan just to buy eggs.”

Overall, the USDA is projecting that egg prices will increase by 41 percent by the end of this calendar year…

Egg prices are already at an all-time high, and, according to a USDA estimate, they’re only likely to get more expensive as the year continues.

According to a US Department of Agriculture projection, egg prices are expected to increase by 41 percent this year.

Skyrocketing egg prices are largely the result of a widespread bird flu outbreak that forced a mass culling of egg-laying birds. With fewer birds, there are fewer eggs, and with scarcity comes increased cost.

I wish that I could tell you that things will soon get better.

But I can’t.

Every single day, more businesses that were once thriving are shutting their doors for good.

For example, the only factory in the town of Liberty, New York is permanently closing, and 287 workers will have to find something else to do with their lives…

PepsiCo will soon lay off 287 employees of a Frito Lay manufacturing plant in Liberty, New York, likely devastating the small upstate town of about 10,000 residents.

The employees, who were not represented by a union, will officially lose begin losing their jobs on May 21 with the layoffs expected to conclude on June 6, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the New York Department of Labor.

The Frito Lay factory, which produces PopCorners brand snacks, has employed hundreds of locals over its almost 30 years of operation.

Similar scenarios are playing out over and over again all over the nation.

And now enormous tariffs on Mexico and Canada threaten to cause yet another shockwave for the economy…

President Donald Trump on Thursday said his proposed tariffs on Mexico and Canada will go into effect March 4 and that China will be charged an additional 10% tariff on the same date.

The sweeping 25% tariffs on imports from Mexico and Canada had been paused on Feb. 3 for one month. But the Trump administration has recently sown confusion about whether they would go back into effect when the delays expired.

In a Truth Social post Thursday morning, Trump clarified that they would.

Sometimes people write to me and attempt to convince me that everything is just fine.

But does everything seem just fine to you?

Just look around.  Everywhere around us stores are being boarded up, restaurants and shutting down, factories are closing, businesses are laying off workers, delinquencies are spiking, families are going broke, prices are skyrocketing and debt levels are soaring.

This is what we have been warning about all these years.

The U.S. economy is coming apart at the seams, and those that refuse to acknowledge what we can all see are in a deep state of denial.

Our long-term economic slide really is threatening to become an avalanche, and I fully expect our economic numbers to get even worse in the months ahead.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

Are you better off than you were four years ago?  If you are, you should consider yourself to be extremely fortunate, because the vast majority of the population is not.  The U.S. economy has been sliding the wrong direction for a very long time, and now our economic momentum in the wrong direction is accelerating.  Retail sales are slowing down, the housing market is in a depressed state, mass layoffs are happening all over the nation, stores are closing at a staggering pace, the cost of living has become extremely painful, and debt levels have soared to unprecedented heights.  Four years of deteriorating economic conditions have brought us to a breaking point, and now we are witnessing quite a bit of shaking in the financial markets.  Even though many in the mainstream media are still trying to deny it, the truth is that we are in an enormous amount of trouble.  The following are 17 signs that America’s long economic slide threatens to become an economic avalanche…

#1 The Conference Board’s index of consumer confidence just experienced the largest drop that we have seen since August 2021…

Consumers grew more pessimistic about the economic outlook in February as worries brewed about a slowing economy and rising inflation, the Conference Board reported Tuesday.

The board’s Consumer Confidence Index slipped to 98.3 for the month, down 7 points and below the Dow Jones forecast for 102.3. This was the lowest reading since June 2024 and the largest monthly drop since August 2021.

#2 The University of Michigan’s consumer sentiment index just fell to the lowest level that we have seen since November 2023…

The University of Michigan Surveys of Consumers on Friday released its consumer sentiment index which dropped from 71.7 in January to 64.7 in February. That’s the lowest reading since November 2023 and was weaker than the preliminary reading of 67.8, which was the consensus expectation among economists polled by Reuters.

#3 Retail sales in the United States just fell “by the most in nearly two years”…

U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.

#4 Walmart is warning us that it will experience a year-over-year drop in quarterly profit for the first time in 3 years…

Shares of Walmart Inc. were hit hard Thursday after the retail behemoth provided a disappointing earnings outlook, including a warning for the first year-over-year decline in quarterly profit in three years.

#5 Last month, sales of previously-owned homes dropped 4.9 percent…

The U.S. housing market continues to weaken, as potential buyers face stubbornly high mortgage rates, elevated prices and limited supply of listings.

Sales of previously owned homes fell 4.9% in January from the prior month to 4.08 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Analysts were expecting a 2.6% decline.

#6 The cost of living is absolutely crushing most Americans.  At this stage, almost 70 percent of all single adults “struggle to afford their regular rent or mortgage payments”…

Nearly 70% of single, divorced or separated people struggle to afford their regular rent or mortgage payments, compared to just over half (52%) of married people, according to a recent Redfin-commissioned survey. More than three-quarters (76%) of respondents who live with their partner but aren’t married struggle with housing payments, making them the group most likely to struggle.

#7 Starbucks is telling us that they will be laying off more than 1,000 corporate employees…

Starbucks has announced plans to lay off 1,100 corporate employees as it looks to restructure its operations.

CEO Brian Niccol sent out a letter on Monday revealing employees who have been laid off will be notified on Tuesday.

Niccol stated, “Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration.”

#8 Southwest Airlines is giving the axe to more than 1,700 corporate employees…

Southwest Airlines said Monday that it is cutting about 15% of corporate jobs, or about 1,750 people, a move its CEO called “unprecedented” as the company scrambles to cut costs.

The company said it expects savings from the cuts of $210 million this year and about $300 million in 2026. The layoffs will be mostly done by the end of the second quarter and include some senior leadership roles, CEO Bob Jordan said in a staff note, which was seen by CNBC.

#9 Blue Origin has decided to fire nearly 14,000 workers…

Blue Origin announced layoffs late last week. Almost 14,000 people work at the space company founded by Jeff Bezos, according to Reuters.

#10 Chevron has announced that it will be reducing the size of their workforce by about 15 to 20 percent…

Chevron Corp. Vice Chair Mark Nelson said it will lay off 15-20% of its workers in a bid to “simplify our organizational structure, [execute] faster and more efficiently, and position the company for stronger long-term competitiveness.”

#11 Estée Lauder is telling thousands of employees that it is time to hit the bricks…

Estee Lauder’s job cuts will impact a net of 5,800 to 7,000 roles.

They came as part of an updated “profit recovery and growth plan” and restructuring program that the cosmetics company detailed Feb. 4 along with other measures meant to “further transform the Company’s operating model to fund a return to sales growth and restore a solid double-digit adjusted operating margin over the next few years.”

#12 So many federal workers are being fired that initial claims for unemployment benefits in Washington D.C. went up by 36 percent in just one week…

Since Trump has taken office, nearly 4,000 workers in the city have filed for unemployment insurance as part of a surge that began at the start of the new year, according to Labor Department figures not adjusted for seasonal factors.

In all, just shy of 7,000 claims have been filed in the six weeks of the new year, or about 55% more than in the prior six-week period. Filings rose to 1,780 for the week ending Feb. 8, a 36% increase from the prior week and more than four times around the same period in 2024.

#13 Forever 21 has announced that it will be closing another 200 stores…

A clothing chain that was once a fixture in every mall across America is to close 200 more stores as it prepares for second bankruptcy in five years.

Amid mounting debt, Forever 21’s US operator could file for Chapter 11 protection as soon as next month, Bloomberg News reported on Wednesday.

#14 Joann Inc. has decided to close all of their stores in the United States…

Joann Inc., which has supplied crafty Americans with art supplies and fabrics for decades, recently announced that it plans to close all of its U.S. stores, just a month after filing Chapter 11 bankruptcy protection.

In a statement obtained by Reuters on Sunday, the 82-year-old company announced its plans to sell all assets to a buyer group. Joann executives originally hoped that a buyer would continue its business, but the highest bidder is slated to start going-out-of-business sales at all locations.

#15 Overall, Coresight Research is projecting that an all-time record 15,000 stores will be permanently closed in the United States in 2025.

#16 Household debt in the United States has now crossed the 18 trillion dollar mark…

Americans’ household debt — including credit cards, mortgages, auto loans and student loans — is at a new all-time high of $18.04 trillion, according to a report released Thursday by the Federal Reserve Bank of New York.

#17 More than 26 trillion dollars has been added to the U.S. national debt since the start of 2009, and now we are shelling out more than a trillion dollars a year just in interest payments…

And the punchline is that no matter what Musk does, the USS Titanic is now more or less on autopilot because while a few billions in discretionary spending can be cut, interest on the debt can not be – without a default (it can however be inflated away… and it will be) – and in January, gross interest on the Federal debt hit a record $1.167 trillion in the past twelve months thanks to another $83.6 billion in interest spending.

The meltdown that so many of us warned about is happening right in front of our eyes.

We piled up trillions of dollars in new debt in recent years, and that bought us some time.

But now a day of reckoning has arrived.

For those that haven’t figured it out yet, an extreme amount of pain is ahead of us.

You can cheat the laws of economics for a while, but economic reality always catches up with you eventually.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

Do not read this article if you do not want to get angry.  The “healthcare industry” in the United States has become one gigantic money making scam, and tens of millions of American families now live in great fear of illness and disease.  Why are they so afraid?  It is because a single trip to the hospital can ruin you financially.  Even if you are covered by health insurance, medical debt can still wreck your finances.  In fact, most of the people that go bankrupt due to medical bills actually have health insurance.  Meanwhile, on the other side there are lots of people that are becoming fabulously wealthy from this system.  Our “healthcare industry” has turned large numbers of doctors, lawyers, health insurance company executives and pharmaceutical company executives into multi-millionaires.  Of course the largest shareholders in our gigantic healthcare corporations are raking in the most cash of all.  The healthcare industry in the United States has become a cesspool of corruption and greed, and this has been the case for so long that we don’t even remember what a legitimate system even looks like anymore.

Many Americans truly believed that health insurance would protect them if something went terribly wrong with their health.

But then they discovered that health insurance companies will use their “delay, deny and defend” tactics to weasel out of paying what they owe any what that they possibly can.

Even if you do have a health insurance company that is relatively honest, and that is fairly rare these days, you are still just one really bad accident or one really bad illness away from bankruptcy unless you are independently wealthy.

Our healthcare system is designed to rapidly drain money out of us when we are at our most vulnerable.  If you have to call for an ambulance to take you to the hospital, are you thinking about how much your care will cost at that point?

Of course not.  You are just hoping that you will survive.

Today, it is so easy to rack up $10,000, $20,000 or even $30,000 in medical debt in the blink of an eye and many hospitals are becoming extremely aggressive about collecting on those medical debts.

I guarantee that many of you that are reading this article know exactly what I am talking about.

One trip to the hospital can wipe out years of financial savings.  But why should it cost so much?  In many cases, a doctor only spends a few minutes with you.

Sadly, you discover the truth when you follow the money.  There are a lot of people that are becoming exceedingly wealthy from this system, and unfortunately that does not include middle class Americans.

The following are 18 horrifying statistics about medical bills, medical debt and the healthcare industry that will make you so mad you will want to tear your hair out…

#1 According to the CFPB, approximately 100 million Americans are in medical debt right now.

#2 Even though the vast majority of the population is covered by health insurance, 62 percent of the two million personal bankruptcies that are filed each year in the United States are caused by medical debt.

#3 One survey found that U.S. households have piled up more than 220 billion dollars in medical debt.

#4 A three day stay in the hospital will typically cost you somewhere around $30,000.

#5 Americans spend more than 200 billion dollars treating cancer each year.

#6 According to the CDC, heart disease costs this country more than 250 billion dollars each year.

#7 According to the NIH, diabetes costs this country more than 400 billion dollars each year.

#8 A 25-year-old mother in Nevada was handed a bill for $700,000 after her baby daughter spent about two months in the neonatal intensive care unit.

#9 One study found that hospitals overcharge Americans “by as much as 18 times over their costs”.

#10 78 percent of U.S. adults have avoided hospital visits because they cost so much.

#11 Hospital profits have risen by more than 400 percent since 1999.

#12 A study that was conducted a few years ago determined that more than 90 percent of all hospital bills contain errors that can result in “overcharges, unnecessary costs, and insurance claim denials”…

According to a 2020 study published in the Journal of the American Medical Association, billing errors affected over 90% of hospital bills. These errors can result in overcharges, unnecessary costs, and insurance claim denials, leading to financial hardship for patients.

#13 The average family premium for employer-sponsored health insurance in the United States has skyrocketed to $25,572 annually.

#14 One survey found that 18 percent of all insured adults in the U.S. have had a health insurance claim denied within the past year.

#15 Since Obamacare became law, the annual profits of the five largest health insurance companies in the United States have gone up by 230 percent.

#16 In 2023, the six largest health insurance companies in the United States had combined revenues of almost 1.1 trillion dollars.

#17 In 2023, the CEOs of the five largest health insurance companies in the U.S. brought home approximately 75 million dollars in total compensation.

#18 There are five giant pharmaceutical companies that each make more than 10 billion dollars in profits each year.

Our healthcare system should not be based on greed.

It should be based on helping people and doing what is right for patients.

Other industrialized nations spend a much smaller portion of their GDP on healthcare, and many of their systems are actually more efficient.

What is wrong with us?

Why can’t we get our healthcare system fixed?

Can anyone answer that question?

Unfortunately, I don’t think that it is going to be fixed.

They have made trillions of dollars by keeping us sick and managing our illnesses.

When trillions of dollars are at stake, any effort to fundamentally fix the system will be met with overwhelming resistance.

So it appears that we are stuck with our current system for the foreseeable future, and that is very bad news for all of us.

Michael’s blockbuster entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.

Most Americans don’t know that for much of U.S. history there was no federal income tax and there was no central bank.  But now everyone assumes that we must have a federal income tax and a central bank in order to have a functioning society.  Today, there are just a handful of nations that do not have an income tax, and more than 99 percent of the entire population of the globe lives in a country that has a central bank.  Of course the two work hand in hand.  A central bank creates a spiral of borrowing that is meant to be unbreakable, and an income tax is necessary to service payments on that debt spiral.  It is not a coincidence that a federal income tax and the Federal Reserve were both established in 1913.  Since that time, we have piled up the biggest mountain of debt in the history of the world, and that is precisely the outcome that the system was designed to produce.

So what is the solution to this colossal mess?

The answer to 1913 is 2025.

This year, we are seeing things get proposed in Washington D.C. that once would have been unthinkable.

For example, Commerce Secretary Howard Lutnick just told Fox News that President Trump wants to “abolish the Internal Revenue Service”…

More details have emerged from the Trump administration about alleged plans to get rid of the Internal Revenue Service (IRS) and utilize tariffs so the “whole economy explodes.”

“His goal is to abolish the Internal Revenue Service and let all the outsiders pay,” Commerce Secretary Howard Lutnick said Wednesday on “Jesse Watters Primetime.”

“As the president said, reciprocal tariffs, either you bring yours down or we’re going to bring ours up. If we go to their level, it will earn us $700 billion a year to be equal to everybody else,” he expanded Thursday on “America’s Newsroom.”

And it appears that the Trump administration is already taking concrete steps toward that goal.

In fact, it is being reported that “approximately 7,000 probationary workers” at the IRS are about to be hitting the bricks…

The Internal Revenue Service (IRS) is planning to slash approximately 7,000 probationary workers in Washington, D.C., and across the U.S. starting Thursday, according to reports.

The layoffs will affect probationary workers who have been employed for one year or less and have not been able to secure full civil service protection, The Associated Press reported, citing a person familiar with the plans.

Wow.

Meanwhile, the Federal Reserve is also being targeted by the new administration.

In fact, Elon Musk has suggested that the Federal Reserve could soon get visited by the Department of Government Efficiency…

Musk wrote on X in response to a user’s post about the billionaire’s support for an audit of the Fed that the central bank isn’t above scrutiny from DOGE.

“All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve,” Musk wrote.

Musk is a longtime critic of the central bank and has called out its decisions on monetary policy as well as claiming the Fed’s workforce is bloated.

This is wonderful news.

Because what we have been doing for decades is clearly not working.

The Federal Reserve system is designed to create debt, and the income tax is designed to service that debt.

We find ourselves on an endless hamster wheel that becomes more painful with each passing year.

The charts that I am about to share with you tell a very clear story.

The primary reason why we have had an almost unbelievably high standard of living over the past three decades is because we have piled up the biggest mountain of debt in the history of the world.  Once upon a time the United States was the wealthiest country on the entire planet, but all of that prosperity was not good enough for us.  So we started borrowing and borrowing and borrowing and we have now been living beyond our means for so long that we consider it to be completely normal.

When President Woodrow Wilson entered the White House in 1913, the U.S. was less than 3 billion dollars in debt.

Now we are 36 trillion dollars in debt…

This is what a central bank is designed to do.

Most people simply do not understand this.

We have been robbing future generations blind for so long that it doesn’t even seem to bother most people anymore.

It is time for a change.

Sadly, Americans have also accumulated the largest mountain of household debt in the history of the world.  The following chart which comes directly from the Federal Reserve shows the growth of household and non-profit organization debt over the years…

Of that amount, more than 18 trillion dollars of it is household debt…

Americans’ household debt levels, including credit card debt, rose to new all-time highs in the fourth quarter of 2024, according to a report by the Federal Reserve Bank of New York.

The report showed that overall household debt increased by $93 billion to $18.04 trillion at the end of 2024, an all-time high. Credit card balances rose by $45 billion from the prior quarter to reach $1.21 trillion at the end of December, which is also a record high.

We have become accustomed to living in debt.  We go into massive amounts of debt to get an education, we go into massive amounts of debt to buy a home, we go into massive amounts of debt to purchase our vehicles, and we even pile up debt to buy holiday gifts and to purchase groceries.

The American people want to hear that better times are ahead.

But under the current system the only way to give the American people “better times” is to crank up the debt spiral to an even higher level.

That is the approach that our leaders have been taking for a long time, and it is madness.

When you add up all forms of debt in our society, it comes to a grand total of more than 100 trillion dollars…

We are literally committing national suicide.

I wish that I could get more people to understand this.

30 years ago, the total amount of debt in the system was less than 20 trillion dollars.

Now we have surpassed the 100 trillion dollar mark.

We are talking about a financial bubble that is unlike anything that the world has ever seen before.

If we continue down this road, our children and our grandchildren would have no future.

When people hear words like “billion” or “trillion” they tend to tune out.

But that is a mistake.

There is an enormous difference between a billion dollars and a trillion dollars.

Just how big is one trillion dollars?

To answer that question, I would like to use an illustration that I have used in my books.  If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

Yet somehow we have piled up more than 100 trillion dollars of debt, and our financial status just keeps getting worse month after month after month.

If we want to get free from all this debt, we have to abandon the system that created all of this debt in the first place.

We need to abolish the Federal Reserve, the IRS and the income tax.

We have been living far, far beyond our means for decades, and it has been the greatest party in the history of the world.

But it is time to turn out the lights because the party is over.

The good news is that change is in the air.

The answer to 1913 is 2025, and those that are attempting to dismantle the current system should be applauded.

Michael’s new book entitled “Why” 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 new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “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.