Money

The Suffering Is Off The Charts

May 29, 2023 by Michael

Things have taken a turn for the worse. In recent months, economic activity has been dropping all over the nation, and that decline appears to be accelerating. We just learned that gross domestic income has now fallen for two quarters in a row, and the Conference Board’s index of leading economic indicators has now been plummeting for 13 consecutive months. Unfortunately, when economic conditions deteriorate it is the people at the low end of the economic pyramid that get hit the hardest.

Thanks to our rapidly rising cost of living, we are seeing a dramatic explosion in the number of “working homeless” that are living out of their vehicles on a daily basis even though they are currently employed.

In particular, the RV “communities” that are springing up from coast to coast are starting to get quite a bit of attention…

The owner of a party bus company, Rikers Island prison guards and an Amazon worker are just some of the eclectic bunch who have formed a community of ‘working homeless’ people living out of RVs in the Astoria section of Queens, New York.

Similar communities have formed across the US from New England to California where people have chosen a nomadic lifestyle amid a national cost of living crisis.

Most of these people get up and go to work in the morning.

In fact, the Daily Mail spoke to one man that actually “works for a New York City hospital”…

Resident Paul Reevers described himself as ‘working homeless.’ He said that he has a job but the rent went up too high and he could not longer to afford a an apartment.

Reevers, who works for a New York City hospital, said that he took out a loan and bought his RV.

If you work at a hospital, you should be able to afford a place to live.

But this is our country now.

We are absolutely destroying the middle class, and as a result we now have a massive homelessness crisis on our hands…

Insider Monkey, a finance website, revealed a list of the top 30 cities worldwide with the highest homeless population. Notably, a handful of the US cities on the list are governed by progressive leadership, which may not surprise readers. While it is evident that some unfortunate individuals are facing homelessness, a trend exacerbated by recent inflationary pressures and a drug addiction crisis, some liberal policies have enabled others to sustain their nomadic lifestyles with taxpayer funds.

Insider Monkey found New York City is number 5 on the list, with a homeless population of about 69,000. Next is Chicago, at number 7 with 65,611. Washington, DC, is number 8 with 57,416, Los Angeles number 13 with 41,980, and San Fransisco number 14 with 38,000.

No matter what you or I are facing right now, at least we aren’t sleeping in the streets.

So we should count our blessings.

Hunger is also rapidly growing all over America. Right now, record numbers of people are coming for help at one food bank in the Seattle area…

Since March, the food bank has broken its record three times for the highest number of people served in a day since 2019, when the organization started allowing three visits a month. More and more, people like Jones who haven’t been to the food bank in years, are showing up, Christian said.

“That’s hard on them; they felt they had moved above the poverty line, got some stability but, ‘Here it is 2023 and here I am back in the food line asking strangers for help,’” Christian said.

And in Boston, the line for food on one recent weekend morning “stretched the length of two football fields”…

The line outside Boston’s American Red Cross Food Pantry on a recent Saturday morning stretched the length of two football fields.

The number of people filing into the red-brick industrial-zone warehouse on some days now exceeds the worst periods of the pandemic economic crisis and in April it had the second highest monthly traffic since it opened in 1982, according to David Andre, the director.

We are witnessing so much suffering all over the country right now.

And there are so many more people that are living right on the edge of disaster.

According to one recent survey, approximately 38.5 percent of U.S. adults experienced “some form of difficulty in covering expenses between April 26 and May 8”…

A large swath of American consumers are facing financial hardship as they grapple with elevated living costs, record-high credit card use, and two years of negative real wage growth. This perfect storm could decimate financially fragile households in the next downturn.

As many as 89.1 million American adults (or about 38.5%) were found to experience some form of difficulty in covering expenses between April 26 and May 8, according to Bloomberg, citing new data from the Household Pulse Survey. This is up from 34.4% in 2022 and 26.7% during the same period in 2021.

Of course this is just the beginning.

As I keep warning my readers, things will eventually get much worse.

One thing to watch for this week is whether or not the debt ceiling deal is able to get through Congress.

Kevin McCarthy is confident that he has the votes that he needs to get the deal through the House, but some conservative Republicans are pledging to do all they can to stop it…

Elsewhere within his party, Rep. Chip Roy from Texas called the agreement a ‘turd-sandwich’ and said he had spoken to a number of his colleagues who were not intending to vote on the agreement.

Rep. Ralph Norman, a member of the conservative House Freedom Caucus from South Carolina, called the deal ‘insanity’ and said he was ‘not gonna vote to bankrupt our country’.

If the debt ceiling deal is defeated, I will be quite impressed.

But it would also throw our economy into a tremendous amount of short-term chaos.

It will be very interesting to watch and see what happens.

In any event, whatever happens in Washington is not going to fundamentally alter our long-term trajectory, and that means that much more suffering is coming in the days ahead.

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

About the Author: My name is Michael and my brand new book entitled “End Times” is now available on Amazon.com. In addition to my new book I have written six other books that are available on Amazon.com including “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending copies as gifts to family and friends. Time is short, and I need help getting these warnings into the hands of as many people as possible. I have also started a brand new Substack newsletter, and I encourage you to subscribe so that you won’t miss any of my articles. I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others 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, I strongly urge you to invite Jesus Christ to be your Lord and Savior today.

Theft Is Now Costing Retailers In The United States About 100 BILLION Dollars A Year

May 18, 2023 by Michael

If we don’t fix this, will the retail industry be able to survive? There has always been shoplifting, but in the old days it was at a level that made it only a minor nuisance to the big box retailers. Unfortunately, now everything has changed. Highly organized gangs have developed extremely sophisticated plans for how to rapidly loot our major retailers, and the best ones can be in and out in just minutes. Those goods are then resold online or in the streets, and the amounts that we are talking about are absolutely staggering. In fact, as you will see below, theft is now costing retailers in this country about 100 billion dollars a year.

This week, Target made headlines all over the nation when it publicly admitted that theft will cost it 500 million more dollars than it did last year…

Target said Wednesday that organized retail crime will fuel $500 million more in stolen and lost merchandise this year compared with a year ago.

Target’s inventory loss, called shrink, totaled about $763 million last fiscal year, based on calculations from the company’s financial filings. With the anticipated increase, shrink this year would surpass $1 billion.

Let’s do some math.

763 million from last year plus 500 million more this year equals 1.263 billion dollars.

Please keep in mind that this is just one chain.

As Target CEO Brian Cornell openly admitted earlier this week, organized retail crime has become a massive problem “across the entire retail industry”…

‘The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put they are no longer available for guests who depend on them.

‘Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern.

‘Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results,’ CEO Brian Cornell said on a call with reporters.

In the entire history of our nation, we have never seen anything quite like this.

Do you remember all the looting that we witnessed during the riots of a couple years ago?

Well, now the looting literally never stops, and it has become very sophisticated…

According to the NRF report, which conducted its latest assessment in partnership with global risk advisory firm K2 Integrity, these organized retail crime groups “primarily favor large national retailers and big-box retailers, and cargo shipments for booster operations.” They are also more likely to target everyday consumer goods rather than luxury products. Based on an analysis of 116 groups, 81% exclusively stole general consumer goods.

These groups have also been planning out their booster operations in advance by studying store layouts, camera and exit locations, understanding the types of anti-theft precautions and knowing the different store policies for stopping suspected thieves, the report said. Boosters are known as the individuals who are paid to commit theft on behalf of these groups.

In 2020, theft cost U.S. retailers 90.8 billion dollars, and that number increased to 94.5 billion dollars in 2021…

Last year, a survey from the National Retail Federation, an industry group, found that so-called “shrink” — or losses attributed to theft, fraud or employee error — amounted to $94.5 billion in losses in 2021. That was up from $90.8 billion in 2020. And the survey found that retailers reported a 26.5% increase in organized retail crime, on average.

The final number for 2022 is expected to be somewhere around 100 billion dollars, and the final number for 2023 is expected to be way above 100 billion dollars.

For a while, major retailers tried to weather the storm because they had invested so much money in these stores.

But now retailer after retailer is shutting down locations in the cities where organized retail crime is the worst. In fact, even Walmart is now shutting down stores in the most troubled areas…

Walmart decided to shut 17 of its stores across nine states after CEO Doug McMillon warned in December that theft was the highest it’s ever been around the country and if it did not slow down, stores would have to close.

And the company announced on Tuesday it would be shutting half its Chicago stores, mostly located on the crime-ridden city’s south and west sides, because they are losing tens of millions each year.

So where do we go from here?

That is a very good question, because conditions in many of our major cities just continue to get worse and worse.

For example, an 83-year-old Vietnam veteran says that he actually felt safer walking the streets of Saigon than he does walking the streets of Portland…

‘I felt safer when I was walking around in downtown Saigon when I was in Vietnam than I do here in Portland,’ 83-year-old Vietnam veteran Armand Martens told Fox 12 Oregon about a homeless camp where people were using drugs and setting fire to properties.

Martens told how his neighbors have been terrorized by squatters who set up camp next door to their home and even set their property on fire.

So far, more than 2,600 businesses have left downtown Portland.

We aren’t just talking about a handful of businesses that have decided that it is time to look for greener pastures.

What we are witnessing is literally a “mass exodus”, and that is because Portland now resembles a Mad Max movie…

Real estate developer Dustin Michael Miller told ‘Fox & Friends First’ that he’s moving his company out of Portland after his office was targeted in a rain of bullets in an incident he described as ‘absolute madness’.

‘It’s not uncommon to see homeless people running around the city with axes and machetes, and it’s just a common thing that nobody does anything,’ Miller said. ‘You call the police, and it’s very rare that they show up.’

Of course the exact same thing could be said about many other large cities.

Happy Days star Scott Baio has admitted that he has decided to sell his home and leave Los Angeles for good because the city has literally become “unlivable”…

The actor said he has been ‘forced out’ of his $3.85million home in Woodland Hills, LA, because the city has become ‘unlivable’, citing the homeless doing drugs on the sidewalk in the middle of the day, crime being ‘out of control’, and ‘graffiti on everything’.

‘Between the homeless defecating on the sidewalk, doing drugs on the sidewalk in the middle of the day, illegal aliens all over the place, law means nothing, crime is out of control, graffiti on everything… all of my tax dollars, I don’t know what they go for,’ Baoi said.

This is our country now.

We have been eagerly embracing evil for decades, and as a result we now have evil all around us.

I wish that I could tell you that things will be much better a couple years from now.

But I can’t do that, because it isn’t true.

In fact, as economic conditions deteriorate it is likely that the looting will go to an entirely new level.

Decades of very bad decisions have brought us to this point, and now we are paying a very great price for our foolishness.

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

The Middle Class Is Being Systematically Destroyed

May 16, 2023May 16, 2023 by Michael

If you wanted to destroy the middle class, one way that you could accomplish that goal would be to flood the system with money. Of course that is precisely what we have witnessed over the past few years. Our leaders have pumped trillions of new dollars into the system, and the wealthy have gotten much, much wealthier. But meanwhile, the rest of us have seen the cost of living rise much faster than our paychecks have. As a result, we are getting poorer and the middle class is shrinking.

Over time, our capitalist economy has steadily evolved into a system where almost all of the wealth and almost all of the power are concentrated in the hands of giant institutions.

Collectively, big government and big corporations run virtually everything, and this system of “corporate socialism” funnels tremendous amount of wealth into the pockets of a very small minority of the population.

If you are in that club, life is good.

But if you are not in that club, life can be a struggle.

The gap between the rich and the poor has steadily grown, and now it is larger than it has ever been before. Even U.S. Senator Bernie Sanders acknowledges that we have a massive problem on our hands…

Today, half of our people are living paycheck to paycheck, 500,000 of the very poorest among us are homeless, millions are worried about evictions, 92 million are uninsured or underinsured, and families all across the country are worried about how they are going to feed their kids. Today, an entire generation of young people carry an outrageous level of student debt and face the reality that their standard of living will be lower than their parents’. And, most obscenely, low-income Americans now have a life expectancy that is about 15 years lower than the wealthy. Poverty in America has become a death sentence.

Meanwhile, the people on top have never had it so good. The top 1% now own more wealth than the bottom 92%, and the 50 wealthiest Americans own more wealth than the bottom half of American society – 165 million people.

Of course Sanders believes that even more socialism is the answer, but more socialism is never the answer.

Centralizing wealth and power leads to widespread poverty. We have seen this same pattern over and over again all over the globe.

Decentralizing wealth and power leads to boundless prosperity like we saw in early America.

Unfortunately, our current system is what it is, and the middle class is being absolutely crushed.

Earlier today, I came across a tweet from Mike Cernovich that really resonated with me…

I made $10 an hour as a part timer worker in Home Depot style store. $12.50 on weekends. This was 1990’s in small town. Would be $19 an hour today and $24 on weekends.

I checked and same job TODAY is $12.50 an hour.

This is what inflation has done to the working class.

This is what so many of the “working poor” are facing today.

Wages for many jobs have not moved much at all over the years, but the cost of living has been absolutely soaring.

Cernovich also pointed out that a couple of decades ago hardly anything that we bought on a regular basis “felt expensive”…

Gas was often 99 cents / gallon. Gallon milk was 99 cents to $1.29.

This was in 1997-2000 era.

Nothing felt expensive other than “nice stuff,” luxuries.

Daily living, groceries, sure you had to budget but it didn’t feel like it does now.

Isn’t that so true?

I remember that time well. I could fill up an entire grocery cart for just 25 dollars, and that even included an entire cake.

Yes, I really liked to eat cake in those days.

But now if you fill up an entire cart with food, you will feel like you are making a house payment when you get to the register.

Needless to say, house payments are also much higher than they used to be. In fact, it is being reported that the average existing home actually costs approximately 93,000 dollars more than it did in 2020…

You read that right—existing homes cost around $93,000 more than they did in 2020. No wonder so many people feel like they can’t afford a house!

And newly built homes are even more expensive. In fact, the National Association of Home Builders (NAHB) estimates new homes will cost around $425,786 in 2023. Out of 132.5 million American households, 96.5 million of them won’t be able to afford that median price.6 So even if we see a ton of new houses being built, 7 out of 10 households will have a tough time paying for one.

93,000 dollars!

In the old days, you could get a really nice home for 93,000 dollars.

But now the American Dream is out of reach for millions upon millions of families.

At this stage, many hard working families don’t even make enough money “to cover their most basic needs”…

More than a third of US families that work full-time do not earn enough money to cover their most basic needs, including housing, food and child care, a new study shows.

Researchers at Brandeis University found 35% of American families do not meet the “basic family needs budget” — the amount needed to afford rent, food, transportation, medical care and minimal household expenses — despite working full-time year-round.

And thanks to inflation, it is getting worse with each passing month.

According to one recent survey, approximately 70 percent of all Americans openly admit “to being stressed about their personal finances”…

Some 70% of Americans admit to being stressed about their personal finances these days and a majority — 52% — of U.S. adults said their financial stress has increased since before the Covid-19 pandemic began in March 2020, according to a new CNBC Your Money Financial Confidence Survey conducted in partnership with Momentive.

A lot of you out there are in the same boat.

You are working as hard as you can, but it seems like there is never enough money at the end of the month.

That is because the game is rigged.

Our system has been so corrupted that now almost all of the economic rewards are being funneled to those at the very top of the food chain.

Meanwhile, the middle class is being absolutely eviscerated, and poverty is spreading like wildfire all over the nation.

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

The Probability Of A Recession Happening In The Next 12 Months Is The Highest In More Than 40 Years!

May 15, 2023May 15, 2023 by Michael

If they are actually telling us that a recession is coming this time around, how bad is it going to be? In 2008, officials kept assuring us over and over again that there wouldn’t be a recession, and then we plunged into the greatest economic downturn since the Great Depression of the 1930s. But here in 2023, what is coming is so obvious that nobody can deny what is happening. The economy is already starting to come apart at the seams all around us, and the “experts” at the Federal Reserve openly acknowledge that they are making things even worse by hiking interest rates. Pretty much everyone agrees that rougher times are ahead of us, and “a probability model from the New York Federal Reserve” is now projecting that there is a 68.2 percent chance that there will be a recession within the next 12 months…

The odds that the United States will fall into a recession at some point over the next 12 months have risen to a 40-year high, according to a probability model from the New York Federal Reserve.

The probability that the country will enter a recession within the next year has risen to 68.2 percent, according to the New York Fed, which is the highest level since 1982.

The Fed’s recession risk indicator is now greater than it was in November 2007, not long before the subprime crisis, when it stood at 40 percent.

This is the highest that figure has been in more than 40 years.

Just think about that for a moment.

The recession of the early 1980s was a real whopper, and if you were alive at that time you probably still have very painful memories of it.

Are we about to experience something similar?

Larry Summers says that he also believes that we probably have about a 70 percent chance of a recession within the next 12 months…

Former Treasury Secretary Larry Summers has also expressed his view that the odds of a downturn are “probably about 70 percent.”

“The chance that a recession will have begun this year in the U.S. over the next 12 months is probably about 70 percent,” Summers said in a recent interview with Foreign Policy. “As I put together the lags associated with monetary policy, the credit crunch risks, the need for continuing action around inflation, the risk of geopolitical or other shocks affecting commodities, 70 percent would be the range that I would be in.”

So many pundits are very negative about the next 12 months, but we certainly don’t have to wait for bad economic news, because it is happening all around us right now.

In fact, the New York Fed’s Empire State business conditions index just fell more than 42 points in a single month…

After an unexpected surge into growth territory in April, the New York Fed’s Empire State business conditions index plunged 42.6 points in May to minus 31.8.

Economists had forecast a milder slump to negative two.

Readings below zero indicate worsening conditions. The May decline is the sharpest on record apart from the initial lockdown months of the pandemic.

Read that last sentence again.

Not even when nearly the entire country was locked down did we see a drop of this magnitude.

And this comes at a time when consumers, small businesses, and large businesses are all struggling.

On Monday, we learned that total consumer debt in the U.S. has just reached a brand new all-time record high…

Total consumer debt hit a fresh new high in the first quarter of 2023, pushing past $17 trillion even amid a sharp pullback in home borrowing.

The total for borrowing across all categories hit $17.05 trillion, an increase of nearly $150 billion, or 0.9% during the January-to-March period, the New York Federal Reserve reported Monday. That took total indebtedness up about $2.9 trillion from the pre-Covid period ended in 2019.

Of course interest rates are moving higher at the same time.

If you can believe it, the average rate of interest on credit card balances is now over 20 percent…

The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right now. The average credit card annual percentage rate, or APR, hit a new record of 20.33% last week, according to a Bankrate database that goes back to 1985.

Carrying credit card balances in this environment is financial suicide, but many Americans find themselves forced to charge food and other basic supplies these days because they don’t have any other options.

Millions upon millions of people are barely scraping by from month to month, and delinquency rates just continue to move higher…

Delinquency rates for all debt increased, up 0.6 percentage point for credit cards to 6.5% and 0.2 percentage point for auto loans to 6.9%. Total delinquency rates moved up 0.2 percentage point to 3%, the highest since the third quarter of 2020.

Meanwhile, here in the early stages of 2023 small businesses are “filing for bankruptcy at a record pace”…

Small businesses throughout the United States are currently filing for bankruptcy at a record pace, exceeding the levels observed in 2020 at the height of the coronavirus pandemic.

According to a UBS Evidence Lab note reviewed by The Epoch Times, the four-week moving average for private filings was 73 percent higher than it was in June 2020. They also warned the situation may worsen as the repercussions of the recent banking crises start to manifest.

“[We] believe one of the more underappreciated signs of distress in U.S. corporate credit is already emanating from the small- and mid-size enterprises sector,” Matthew Mish, head of credit strategy at UBS, wrote in the recently published research memo. “[The] smallest of firms [are] facing the most severe pressure from rising rates, persistent inflation and slowing growth.”

Things weren’t even this bad during the extended lockdowns during the early stages of the COVID pandemic.

And many more small businesses will inevitably fail in the weeks and months to come.

Large businesses are faring relatively better, but right now we are witnessing “the most prolonged corporate profits downturn in seven years”…

As the US economy teeters on the brink of recession, Wall Street is already enduring what could turn out to be the most prolonged corporate profits downturn in seven years.

With the first-quarter earnings season drawing to a close, the profits of S&P 500 companies are estimated to have dropped 3.7% on average, compared to a year ago.

And as I have detailed extensively in previous articles, large companies all over the U.S. have already started conducting mass layoffs.

Needless to say, they aren’t letting people go because they think the economy is about to turn around.

They can see what is coming, and they are trying to get ready in advance.

Before I end this article, let me give you one more very troubling sign.

In April, the federal government brought in 26.1 percent less tax revenue than it did in April 2022…

The Treasury took in $638.52 billion in April. That was more than double the receipts in March. This is to be expected as the government collects a large amount of tax revenue in April. But compared to April 2022, tax receipts were down 26.1%.

This is one number that the federal government cannot doctor, and it is absolutely horrible.

We really are heading into an economic nightmare, and of course the economy is just one element of the “perfect storm” that we are now facing.

So what should you do?

I would encourage you to do whatever you need to do in order to get prepared for very rough times.

Our system is in the process of melting down, and the government is not going to come riding to your rescue when everything finally hits the fan.

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

If No Debt Ceiling Deal By Early June, Stocks Crash, The Economy Implodes, And Social Security Payments Don’t Go Out

May 14, 2023May 14, 2023 by Michael

We are being warned that there could be some real serious economic doom at the beginning of next month if the Democrats and the Republicans cannot agree on a deal to raise the debt ceiling. Experts are telling us that the stock market will crash, the economy will immediately plunge into a recession, and tens of millions of Americans will not get their Social Security payments. Treasury Secretary Janet Yellen says that a U.S. debt default would begin somewhere around June 1st. She can’t nail down the date precisely, because there is some uncertainty regarding how much tax money will come in over the next few weeks. But what is exceedingly clear is that time is very short, and there are only four days when the House and the Senate are both scheduled to be in session before June 1st. So the clock is ticking, and right now both sides are still far apart on any sort of a deal.

Of course the Republicans in the House have already passed a bill to raise the debt ceiling, but it is not acceptable to the Biden administration.

The Biden administration has chosen to play hardball, and so we really are facing the possibility of a nightmare scenario. The following description of what could be ahead comes from the Washington Post…

Federal workers furloughed. Social Security checks for seniors on hold. Soaring mortgage rates. A global financial system sent reeling.

Leaders from Congress and the White House are trying to forge an agreement to lift the federal debt ceiling, with only a few weeks before the Treasury Department may no longer be able to avert an unprecedented U.S. default. If they fail, and the government can’t meet its payment obligations, economists and financial experts predict chaos.

According to the Post, there are 7 major things to watch for if a U.S. debt default actually happens…

-Stocks crash

-A sudden recession

-Federal workers in limbo

-Social Security and Medicare miss payments

-U.S. borrowing costs soar

-Economic problems spread worldwide

-The dollar drops, along with U.S. prestige

The severity of the crisis will depend upon the duration of the default.

If the federal government can’t meet its obligations for a few days, it won’t be a very big deal.

But if there is no deal for several months, things could get really crazy. In fact, the White House is projecting that stock prices could fall by 45 percent…

Moody’s Analytics has estimated that stock prices could fall by roughly one-fifth, wiping out $10 trillion in household wealth and devastating the retirement accounts of millions of Americans. The White House has estimated that the decline could be closer to 45 percent.

That would be quite a crash.

And imagine what our country would look like if over 60 million Social Security recipients did not receive any payments for several months.

People would be going out of their minds.

The longer a debt ceiling crisis lasts, the more pressure the American people will put on their politicians.

And I think that it what the Biden administration is counting on.

Of course there are many Democrats that actually want Joe Biden to invoke the 14th Amendment in order to avoid a debt ceiling crisis altogether…

The 14th Amendment, passed by the Senate in 1866 shortly after the end of the Civil War, states “the validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”

Biden says that he has been “considering” such a move, but Janet Yellen is publicly telling reporters that it would be “legally questionable”…

“I have been considering the 14th Amendment,” Biden told reporters Tuesday after meeting with congressional leaders at the White House and making little progress on the debt-limit stalemate.

Treasure Secretary Janet Yellen last week, however, acknowledged serious problems with the 14th Amendment as an answer to the debt crisis.

“There would clearly be litigation around that; it’s not a short-run solution,” she said at a news conference in Japan, adding it would be “legally questionable.”

We shall see what happens.

In the end, I don’t think that Biden will try to use a tortured interpretation of the 14th Amendment to end this crisis.

Instead, I believe that he will simply wait for the Republicans to fold like they always do.

For decades, Democrats have watched Republicans fold like a 20 dollar suit whenever some major deadline approaches.

And there are some Republicans that are already talking like they intend to fold this time around too…

House Foreign Affairs Committee Chairman Rep. Michael McCaul, R-Texas, said Sunday he does not think the United States will default on its debt.

Appearing on ABC’s “This Week,” McCaul said he was optimistic the nation would raise the debt ceiling by June 1, noting that defaulting would embolden the country’s adversaries.

“Our adversaries look at this very closely. They look at when we’re divided. … I think they would love nothing more, particularly China, to see us default in our full faith and credit under the Constitution,” McCaul said. “I think defaulting is not the right path to go down.”

But there is one key difference now.

Kevin McCarthy is the one holding the cards for the Republicans, and he does not intend to be steamrolled like other Republican leaders have been in the past.

There are certain things that he wants, and at this moment he is saying that there will be no deal if he does not get them.

Having said that, I still expect the Republicans to fold.

I just can’t help it.

I have seen it happen time after time, and it is clear that many of them simply do not have a stomach for this sort of a fight.

So I believe that doom will be averted because the Republicans will eventually cave in and give the Democrats almost everything that they want.

However, I have to admit that there is a chance that I could be wrong about this.

Maybe Kevin McCarthy and his team are made of sterner stuff than I suspected.

If that turns out to be the case, you will want to keep a very close eye on early June, because that is when things would start to get really “interesting”.

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

Even The Federal Reserve Is Admitting That More Than A Million Americans Could Soon Lose Their Jobs

May 11, 2023May 11, 2023 by Michael

How would you feel if a million Americans lost their jobs? Would you consider that to be a pretty catastrophic event for the economy? Well, as you will see below, even the Federal Reserve is projecting that more than a million Americans could lose their jobs in the months ahead. Needless to say, Fed projections are usually wildly optimistic. So what will the real number be? Ultimately, I think that things are going to be far worse than most of the experts would dare to imagine right now. According to Challenger, Gray & Christmas, the number of layoffs during the first three months of this year was 396 percent higher than the number of layoffs during the same period in 2022. A tremendous amount of negative momentum has been building up, and there is a whole lot of fear out there.

Fear of what could happen to PacWest drove their stock price 22 percent lower on Thursday. Overall, PacWest is now down close to 80 percent so far in 2023…

Shares of PacWest were under pressure once again Thursday after the struggling regional bank said that deposit outflows resumed in the first week of May.

The stock dropped 22.7%, further extending its recent declines. PacWest’s shares have now fallen more than 50% this month and nearly 80% for the year.

The only reason why PacWest’s stock price is falling so rapidly is because it is getting a lot of media attention.

If you look closely at the numbers, PacWest really isn’t that much different from hundreds of other regional banks that are essentially insolvent at this point.

As I keep telling my readers, when banks get into trouble they start getting really tight with their money, and this is already happening all over the country…

It was already difficult for businesses and households to borrow money earlier this year — but after the collapse of three US regional banks and a cascade of rate hikes by the Federal Reserve, getting money has become a little harder.

More lenders have stiffened their standards in the wake of increasing turmoil within the banking sector, according to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS) released Monday.

Survey respondents attributed the changes in lending standards to economic uncertainty, a reduced appetite for risk, deterioration in collateral values and broader concerns about banks’ funding costs and liquidity positions, according to the Fed report. Additionally, lenders reported that they expect to tighten standards across all loan categories for the remainder of this year, citing the above concerns as well as customer withdrawals.

If businesses and consumers have access to less credit, economic activity will slow down.

And as economic activity slows down, more businesses will get into trouble or fail completely.

And that is going to mean more layoffs.

In fact, initial claims for unemployment benefits just jumped to the highest level in nearly two years…

The number of Americans filing for unemployment benefits last week jumped to the highest level since 2021, the latest sign the historically tight labor market is cooling off in the face of rising interest rates.

Figures released Thursday by the Labor Department show initial claims for the week ended May 6 surged by 22,000 to 264,000, well above the 2019 pre-pandemic average of 218,000 claims. It marks the steepest level for jobless claims since October 2021.

This was a very sharp rise.

According to Zero Hedge, it was actually “a 4-sigma miss to expectations”…

The print was a 4-sigma miss to expectations, and was above the highest forecast made by the 45 economists participating in the survey.

Ouch.

But this is just the beginning.

According to Fox Business, if current Fed projections are accurate more than a million Americans will soon lose their jobs…

The most recent projections from the Fed show that officials expect unemployment to rise to 4.6% by the end of next year, up from the current rate of 3.5%.

That could mean more than 1 million Americans lose their jobs between now and the end of the year.

Of course many of us do not believe that the Fed’s projections will be accurate.

Personally, I expect to see absolutely massive job losses over the next couple of years.

And as the economy steadily deteriorates, the condition of our society will get even worse than it is right now.

For many of you, that may be hard to believe, because things have already deteriorated quite dramatically.

In San Francisco and other cities around the nation, organized retail looting now happens on an industrial scale. For example, just check out what is going on at a Target near San Francisco’s Union Square…

“I’d say 10 thefts a day,” said one worker at the Target inside the Metreon, a mall near San Francisco’s Union Square. The worker spoke on the condition of anonymity because they did not have permission from a supervisor to talk to the press.

“Every 10 minutes you see it,” another worker said who also did not wish to be named. “Look in some corner of the store, and you’ll see people shoveling stuff into a bag—food, cosmetics.”

We have never seen anything like this before, and this is why countless businesses have already left the city.

Another worker that was interviewed noted that lipstick and nail polish had just been stocked that morning “and now they’re empty”…

A third worker who also spoke on the condition they not be named said lipstick and nail polish, which are not locked behind plastic, are regularly stolen in handfuls.

“They were stocked this morning, and now they’re empty,” the worker said, pointing to an empty shelf reserved for lipstick.

Another worker said food and diapers are commonly stolen.

If this is how Americans are behaving now, while economic conditions are still at least somewhat stable, how will they behave when we are in the midst of a full-blown economic nightmare?

Our relatively strong economy has been the only thing that has kept our nation from descending into complete and utter chaos.

Once our economic strength is crippled, things are going to get really frightening.

So let us hope for the best, but let us also get prepared for the worst.

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

Most People Believe That Life In America Is “Worse” Than It Was 50 Years Ago

May 10, 2023 by Michael

If you could go back and live in 1973, would you do it? To me, that is not an easy question to answer. I think that for many of us it would be a real challenge to adjust to a world without the Internet and so many of the other technologies that we enjoy today. But I also think that if we were suddenly transported back to that time we would be absolutely shocked by how freely people lived. In 2023, there are literally millions of different laws, rules, regulations and ordinances that constrain how we behave down to the smallest detail. A lot of us still think that we are “free”, but that hasn’t actually been true for a very long time. In addition, the values of our society are completely different from what they were in 1973. Over the past 50 years our culture has been completely turned upside down, and we can see the nightmarish consequences of this cultural revolution all around us.

Of course there was no time in U.S. history when life was perfect. But when Pew Research recently asked people if life in America “is better, worse, or about the same as it was 50 years ago”, an overwhelming majority of respondents said that life is worse today…

The survey showed Americans with a negative view on how life is for people now. They were asked, “In general, would you say life in America today is better, worse, or about the same as it was 50 years ago for people like you?”

Over half, 58 percent, said they believe life is “worse” for people like them than it was 50 years ago. That reflects a 15-point increase from the 43 percent who said the same in July 2021.

Only 23 percent said they believe life is “better,” and 19 percent said it is “about the same.”

Needless to say, if many of us had to pick the best years in American history, 1973 would not be among the top few choices.

The economy was really struggling and the fashions were absolutely horrible.

But if you watch this 1973 street footage from New York City, you can see that life was pretty good and people seemed to be pretty happy…

Would I want to trade my current life for a life in 1973?

No.

But if I could trade the people and values of 1973 for the people and values of 2023, I would do that in a heartbeat.

Our society is falling apart all around us, and that is because the character of this nation has been fundamentally transformed.

Crime rates are spiking in our major cities, mass killings are happening at a record pace, our streets are filled with drug addicts, and the biggest crooks of all are walking the halls of power.

In addition, we live at a time when millions of Americans are afraid to leave their homes because our society is literally teeming with predators. For example, the next time a hotel manager tells you that he wants to check in on you, it may not be because he is concerned about your air conditioning unit…

A manager at the Hilton Hotel in downtown Nashville has been charged with aggravated burglary and assault after he reportedly entered a guest’s room and sucked on his toes.

According to Metro police, 52-year-old David Neal was the night manager at downtown Nashville’s Hilton Hotel, located in the 100 block of 4th Avenue South.

Police said Neal allegedly made a key card and used it to enter the guest’s room on March 30 at around 5 a.m. The guest told police he woke up and found Neal sucking on his toes. He immediately confronted Neal and recognized him as the person who had come into his room the day before with another employee to address an issue the guest was having with his TV, according to investigators.

There are millions of others just like him all over the country.

And some of them even get invited to the White House.

Of course it is debatable whether we even have a “country” at this point because we essentially have no southern border.

Thousands upon thousands of migrants illegally enter the U.S. every single day, and this isn’t just causing enormous issues in the border states.

In the state of Indiana, approximately 22 percent of all students in the public schools “receive lessons in both English and Spanish”…

But it’s not just a problem in the border states. Take Indiana, for example, where Indianapolis police have just declared the capital city a sanctuary for the invasion. WISH reported last year: “Across Indiana, there are nearly 78,000 students called ‘English Learners’ who receive lessons in both English and Spanish. The number of English learners in Indiana schools has increased by almost 27,000 from six years ago.” FAIR estimates that 22% of Indianapolis students are LEPs!

And now that Title 42 is expiring, the surge of migration that we have been witnessing is likely to become an avalanche…

Tens of thousands of migrants are reportedly surging at the U.S.-Mexico border ahead of Title 42’s expiration.

In the Texas border city of El Paso, about 2,200 migrants are currently camped or living on the streets a few blocks from major ports of entry that connect El Paso with the Mexican city of Juárez. The city is prepared to open up shelters next week if needed at two vacant school buildings and a civic center.

So the pace of societal change is only going to accelerate even more in the years ahead.

I just wish that things would go back to the way they once were.

We live at a time where almost everything is corrupt. For example, if I order a chicken sandwich at a restaurant, I want them to give me a piece of meat that comes from a dead chicken.

But instead, our “chicken-based products” often contain fillers such as “seaweed” and “wood pulp”…

Fried chicken is a favorite for millions of Americans – but many of the options offered by America’s biggest fast food chains contain other unexpected ingredients.

These restaurants will often fill their food with additives, preservative and even other proteins in order to keep costs to a minimum and give their offerings a longer shelf life. Others may use buzzwords such as ‘premium’ or ‘all-white meat’ to describe their poultry-based offerings.

But more surprising ingredients – such as beef, seaweed and even wood pulp – can be found in the recipe for some chicken-based products at major restaurants.

Yuck!

And don’t even get me started on the “meat glue” that is used to hold many of our meat products together.

The reason so many people eat “organic” today is because they want to eat like people did 50 or 60 years ago.

In fact, many of the “movements” that we are witnessing right now are simply attempts to recapture what life in America was once like.

We have lost so much, and we are losing even more with each passing day.

But there are still many of us that remember how great America was in the old days, and we simply are not willing to stand by and just accept the new version of “America” that is now being forced upon us.

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

It Could Happen To You

May 9, 2023May 9, 2023 by Michael

Those that are wrecking our economy don’t seem to have much empathy for the millions upon millions of people that they are hurting. As you will see below, one Fed official is actually suggesting that interest rates may need to go even higher even though the interest rate hikes that we have already seen are turning lives upside down all over the country. Everywhere you look people are in severe pain, but this is only just the beginning. And I would encourage you not to ever look down on those that have had a run of bad fortune, because it could happen to you too.

The other day I wrote about a homeless encampment in Marin County, California that stretches along the side of a highway for about two miles. It can be easy to assume that those that live in the encampment deserve to be there, but the truth is that a lot of them are just like you and I.

The Daily Mail sent a reporter down there, and he talked to a 69-year-old man that once “ran a business with 15 workers” and had a home that was completely paid off…

John Sherry saved all his life, owned his home outright, and ran a business with 15 workers. Then his wife got cancer.

Now the couple live in a trailer and take grocery handouts from shelter volunteers. Their prospects of ever getting back into a home in tony Marin County, California, are swiftly dwindling.

‘I’m not the guy that’s down there and has zero. I saved real well. I owned my home outright. But circumstances happen,’ Sherry, 69, told DailyMail.com.

It sounds like he was doing everything right.

But his wife got sick.

Sadly, the goal of the cancer industry is to extract as much money from you as possible.

If they can help you along the way, that is a side benefit.

Whether you live or whether you die, the primary goal is to systematically suck the wealth out of your accounts.

It is such a broken system, but it isn’t going to change any time soon.

There is simply way too much money at stake.

So try not to get sick.

Sherry and his wife now live on the side of the road in an RV that they once thought would only be used “for family vacations”…

He thought he would only ever use his $50,000 Outback Keystone RV for family vacations.

Now, it is one of a reported 135 motorhomes, cars and makeshift shacks that have assembled over the past two years to fill a two-mile stretch of Binford Road – the Misery Miles – alongside the 101 highway north of Novato, a city of 53,000, a 45 mile drive from San Francisco.

These days, most Americans are just a couple of bad breaks away from losing everything.

And often it is children that suffer the most.

The Daily Mail also interviewed 61-year-old mechanic Keith Jackson. In his case, he actually has an 11-year-old son that he needs to care for…

His friend, Keith Jackson, 61, has been out of work since the pandemic began.

‘I’m a single dad with an 11-year-old son. I was a welder and a mechanic, but I got fired. Now I’m doing anything I can for money. In the past year I made $11,000,’ he said.

If your kids have warm beds to sleep in tonight, you should be very grateful.

Because there are way too many kids in this country that do not have homes anymore.

Earlier today, I was talking with a good friend that is absolutely horrified by how rapidly economic conditions are deteriorating in this country. This particular individual has very little faith in those running our system, and a brand new Gallup survey that was just released seems to indicate that most Americans feel that way at this stage…

With the U.S. facing a deadline to increase the nation’s debt limit and the threat of an economic recession looming, Americans lack confidence in a variety of key U.S. leaders on economic matters. Gallup finds between 34% and 38% of U.S. adults expressing a “great deal” or “fair amount” of confidence in President Joe Biden, Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and congressional leaders in both major parties to do or recommend the right thing for the economy.

The incompetence that our leaders have displayed in recent months has been absolutely breathtaking, but they don’t seem to understand how badly they have failed.

In fact, New York Federal Reserve President John Williams just told CNBC that interest rates could go even higher later this year…

“First of all, we haven’t said we’re done raising rates,” Williams told CNBC’s Sara Eisen during a Q&A session after his speech. “We’re going to make sure we’re going to achieve our goals and we’re going to assess what’s happening in our economy and make the decision based on that data.”

“I do not see in my baseline forecast, any reason to cut interest rates this year,” he said, adding that additional rate hikes would be possible if the data doesn’t cooperate.

The first rule of central banking is that you don’t raise rates if the economy is plunging into a major downturn.

But they are doing it anyway.

So now banks are in deep trouble all over the nation, and they are telling the Fed that loan standards will soon tighten even more…

Also on Monday, a new Fed survey on bank lending practices underscored that lenders expect to tighten loan standards even more in the near future, including for commercial real estate loans.

“Banks most frequently cited an expected deterioration in the credit quality of their loan portfolios and in customers’ collateral values, a reduction in risk tolerance, and concerns about bank funding costs, bank liquidity position, and deposit outflows as reasons for expecting to tighten lending standards over the rest of 2023,” the survey said.

In fact, we just learned that mortgage credit availability has already plunged to the lowest level in 10 years…

Mortgage credit availability fell to its lowest level in a decade as lending tightened amid ongoing instability in the banking sector, according to data released Tuesday by the Mortgage Bankers Association (MBA).

If Fed officials had any sense left at all, they would immediately start slashing interest rates.

But they aren’t going to do that.

So the credit crunch will get even worse.

And more businesses will fail.

And more workers will get laid off.

And more people will end up living in their vehicles or in our streets.

This isn’t rocket science.

The Federal Reserve and our politicians in Washington got us into this mess, and now they insist on doing things that will make this new crisis even worse.

If you are going to enjoy a warm dinner in a warm home tonight, you should be very thankful.

Because our system is starting to fall apart all around us, and countless American families have already had their hopes and dreams completely shattered.

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

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