Money

We Won’t Be Fooled Again – Inflation Is Most Definitely Not “Under Control”

January 12, 2023January 12, 2023 by Michael

Inflation is going down! Let’s all celebrate! We all knew that when the Federal Reserve began aggressively hiking interest rates it would have an impact on inflation. Higher rates have caused a new housing crash, they have crushed the tech industry, and they have sparked the biggest wave of layoffs that we have seen since the Great Recession. We have entered a significant economic downturn, so it was inevitable that the annual rate of inflation would start to moderate. But as I will explain below, that doesn’t mean that inflation is now “under control”. The real rate of inflation is much higher than we are being told, and people all over the country are being absolutely crushed by the rising cost of living.

Let’s start with the good news first. According to the Labor Department, the annual rate of inflation is rising at the slowest pace since October 2021…

Consumer prices increased 6.5% from a year earlier, down from 7.1% in November and a 40-year high of 9.1% in June, according to the Labor Department’s consumer price index, a measurement of what people pay for goods and services, which labor released on Thursday.

The rise last month marks the slowest annual gain since October 2021 and matches economists’ estimates.

Okay, but Fox Business has just reminded us that the annual rate of inflation “remains about three times higher than the pre-pandemic average”…

Still, inflation remains about three times higher than the pre-pandemic average, underscoring the persistent financial burden placed on millions of U.S. households by high prices.

So we are still definitely in a high inflation environment.

But let’s dig deeper.

Most Americans don’t realize that the way that the inflation rate is calculated has literally been changed more than two dozen times since 1980.

And every time it has been changed, the goal has been to make inflation appear to be lower than it actually is.

If the rate of inflation was still calculated the way that it was back in 1980, the real rate of inflation would be close to 15 percent right now.

That would be comparable to the peak inflation that we witnessed during the Jimmy Carter era.

So don’t let anyone try to convince you that inflation is “low” or “under control” or anything like that.

The main reason why the rate of inflation moderated somewhat during the month of December is because energy prices have been falling…

Americans saw some real reprieve last month in the form of lower energy costs, which fell 6.1% in December. Gas prices dropped 12.5% over the month, the biggest contributor to the overall headline decline in inflation in December.

That is great news, but it is already being projected that gas prices will rise significantly later this year.

And once war in the Middle East erupts, gas prices will go to heights that most people never even dreamed was possible.

Meanwhile, services inflation has just spiked to a level that we haven’t seen in decades.

The cost of living has become extremely oppressive, and the American people are becoming increasingly frustrated by this.

I would like to share a video with you that illustrates what I am talking about.

The woman in this video doesn’t understand all of the numbers that I have just shared in this article. All she knows is that when she goes to the grocery store, prices are way higher than they once were. This video contains some graphic language, and I apologize for that in advance. But I want you to see her anger, because this is how millions upon millions of Americans are feeling about inflation right now.

$120,000 combined household income and can barely afford groceries… pic.twitter.com/qjune1aKyk

— Finance L’s (@TerribleFinance) January 10, 2023

Would you like to be the one that tries to convince her that inflation is “under control” now?

Sadly, the truth is that over the past few years the cost of living has been rising faster than our paychecks have, and so U.S. families have steadily been getting poorer…

The average American family has lost the equivalent of more than a month’s salary in annual income since President Biden took office as high inflation and rising interest rates eat away at their finances, according to research by the Heritage Foundation.

Experts at the conservative think tank analyzed consumer prices and interest rates and found in their latest report released Thursday that the average American household has lost the equivalent of $7,400 in annual income since Biden’s inauguration Jan. 20, 2021. The income loss represents an increase of $200 from September, when the think tank’s research found a $7,200 decline in annual income for the average American household dating back to the start of Biden’s term.

Prior to the pandemic, we were in a low inflation and low interest rate environment.

Now that the Federal Reserve has dramatically hiked interest rates, we now find ourselves in a high inflation and high interest rate environment.

And higher interest rates are also hammering our standard of living…

While their elected representatives in D.C. struggle to pay the nation’s bills, Americans are facing a similar challenge as their household budgets are stretched thin due to inflation and higher borrowing costs. Those financial challenges led more than one-third of households to rely on credit cards or loans to buy necessities in December. Average credit card interest rates reached a new record high of 19.14% APR compared to a Bankrate.com database.

“Americans are increasingly relying on credit cards to make it from paycheck to paycheck, resulting in higher levels of indebtedness. Rising credit card balances in an era of rising interest rates is a path to insolvency,” Antoni told FOX Business. “The average interest rate on credit cards is now around 20 percent while half of Americans cannot pay off their credit cards each month, and balances are growing at a 16 percent annual rate.”

We are getting hit from both ends.

We have to pay more to buy the things that we need, and we have to pay higher interest rates when we borrow money to pay for those things.

The Federal Reserve has lost control, and we are careening toward the sort of historic economic crisis that I have been warning about for years.

But those that are under the spell of the corporate media will continue to assume that everything is fine and that our leaders have a plan to get us out of this mess.

I truly wish that was true.

Unfortunately, the short-term economic outlook is extremely dismal, and prominent voices all over Wall Street are warning that 2023 will be a really rough year.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

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 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.

Grocery Stores In New York City Are Considering Locking Up Food Because Theft Has Become So Rampant

January 11, 2023 by Michael

Food has become a prime target for thieves, and that should deeply alarm all of us. Once upon a time, shoplifting was a minor nuisance for most retailers in the United States. But today the game has completely changed. Highly organized gangs of thieves are systematically looting stores all over the country, and this is costing retailers billions upon billions of dollars. Authorities call it “organized retail crime”, but I call it complete and utter lawlessness. When you have large groups of people storming retail stores all over the nation on a regular basis, that is a major crisis.

Originally, a lot of these gangs were primarily targeting goods that could be resold on the Internet very easily. But now a lot of grocery stores are being targeted, and food is being stolen on a scale that we have never seen before.

In New York City, things have gotten so bad that some stores are thinking of implementing dramatic measures. The following comes from a Fox News article entitled “NYC grocery stores consider locking up food due to rampant theft; workers are ‘traumatized'”…

Shampoo, toothpaste, and razor blades are all items that grocery stores have increasingly started locking behind counters. Soon, that list might include food.

“People have no fear of coming to your store and stealing,” said Nelson Eusebio of the National Supermarket Association.

“Our employees are terrified,” Eusebio continued. “We have young people that come to work, young cashiers who work part-time, these kids are 16-17 years old. They’re traumatized.”

When I first started warning that we are becoming a “Mad Max society”, a lot of people thought that I was exaggerating.

Sadly, the breakdown of law and order just continues to accelerate in many of our largest cities. In fact, it is being reported that grand larcenies “were up 80% in New York City last year”…

New York City Mayor Eric Adams has made a point of combating the repeat offenses. “Criminals believe our criminal justice system is a joke,” Adams said in comments referring to a serial intruder who was arrested and released 26 times. “Those arrested for grand larceny go to court, get released and on their way home from court, they’re doing another grand larceny.”

According to the New York Police Department, grand larcenies, thefts of over $1,000, were up 80% in New York City last year.

Only an 80 percent increase?

Yes, that sounds perfectly “normal” to me.

In other areas of the country, shortages are the big news right now.

I never imagined that Costco would totally run out of eggs in early 2023, but this has actually happened at many of their stores.

This Costco is now completely sold out of eggs.🚨

2020 was toilet paper.
2023 is going to be a run on eggs. Get yours now.

Part of this is avian flu and reduced numbers production.

🔊sound …🔥🔥🔥 pic.twitter.com/GfyyEu2dpz

— Wall Street Silver (@WallStreetSilv) January 10, 2023

As I discussed yesterday, bird flu is one of the factors that is causing supplies of eggs to get tighter.

But as the farmer in this video explains, it is certainly not the only factor.

The real reason for the egg shortage is NOT avian flu.

According to this farmer … the producers can’t cover their costs, so there are now millions of fewer hens, and many millions of fewer eggs produced PER DAY. 🧐

🔈 sound …🚨 🚨 🚨

pic.twitter.com/GcYd1pHPZ0

— Wall Street Silver (@WallStreetSilv) January 10, 2023

No matter how high interest rates go, people still need to eat.

So the Federal Reserve can hike rates to the moon, but food prices are still going to remain ridiculously high.

However, higher rates will crush many other areas of the economy, and some of the biggest names in the corporate world are now conducting mass layoffs…

Goldman Sachs is just the latest firm to reduce its size in recent months. Morgan Stanley announced that it would cut two percent of its staff in December, Amazon plans to cut over 18,000 jobs, and Salesforce announced it would cut ten percent of its workforce and close some offices last week.

While white collar workers were less affected by the COVID-19 pandemic lock-downs than their blue collar counterparts, many jobs were simply done remote instead of being cut, professionals are now bearing the brunt of the economic headwinds America faces.

When are people going to finally understand that we have a major league crisis on our hands?

When Goldman Sachs lays off large numbers of workers, that is a red flag.

When Morgan Stanley lays off large numbers of workers, that is a red flag.

When Amazon lays off large numbers of workers, that is a red flag.

Facebook, Twitter, McDonald’s and Walmart are also laying off workers.

As they used to say in the 1980s, it is time to wake up and smell the coffee.

At this point things are so grim that the World Bank is warning that the entire global economy could plunge into a recession this year…

The global economy is just one more knock away from a second recession in the same decade, something that hasn’t happened in more than 80 years.

That’s the latest warning from the World Bank, which on Tuesday sharply lowered its forecast for global economic growth.

As economic conditions deteriorate, people are going to become increasingly desperate.

And desperate people do desperate things.

So if you think that organized retail theft is bad now, just wait until you see what is ahead.

The social deterioration that we have been witnessing over the past several years will soon accelerate significantly, and that is really bad news for all of us.

Many retail stores on both coasts have already closed due to the epidemic of theft that we are experiencing, and a whole lot more will soon be permanently shut down.

We really are in the process of becoming a “Mad Max society”, and we only have ourselves to blame.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

Let’s Talk About The Catastrophic Rise Of Egg Prices…

January 10, 2023January 10, 2023 by Michael

Do you remember when you could buy a dozen eggs for 99 cents? It seems like it was only yesterday, but unfortunately those days are now gone for good. Thanks to a variety of factors, egg prices have risen to levels that we have never seen before, and in some areas of the country significant shortages are being reported. In fact, things are so bad that Whole Foods is apparently “now limiting egg carton purchases to two per person”. This is extremely alarming, because millions of U.S. households have traditionally relied on eggs as a cheap source of protein. Unfortunately, it appears that eggs will not be “cheap” for the foreseeable future. According to an article that originally appeared in the Los Angeles Times, the average price of a dozen eggs in California actually reached $7.37 this week…

Egg cases were bare across Los Angeles County this week, from Trader Joe’s in Long Beach to Amazon Fresh in Inglewood, Target in MidCity to Ralphs in Glendale. Those such as Hodges who found cartons were shocked by the sudden spike in price.

“I’ve never seen anything like this,” said Anna Sanchez, 32, who scoured the half-empty shelves at a Smart & Final in University Park looking for a dozen eggs for less than $10. “The cheaper ones just aren’t there.”

The average retail price for a dozen large eggs jumped to $7.37 in California this week, up from $4.83 at the beginning of December and just $2.35 at this time last year, data from the U.S. Department of Agriculture show.

Can you imagine paying 7 dollars for a carton of eggs?

I certainly cannot.

Thankfully, prices are not quite as high elsewhere in the nation. One of the reasons why egg prices in California are so absurd is because of a new law that went into effect last January…

Since the law went into effect last January, all eggs sold in California have to be produced in cage-free settings. But cage-free production takes much more space than conventional egg production, and California producers aren’t able to keep up with demand.

“They’re selling everything they can possibly grow,” Mattos said.

Of course egg prices have also been skyrocketing in states that do not have such laws.

All over the nation, people are now paying 4 or 5 dollars for a dozen eggs, and many believe that our ongoing bird flu pandemic is the primary factor that is causing prices to go completely nuts…

But egg prices are up significantly more than other foods — even more than chicken or turkey — because egg farmers were hit harder by the bird flu. More than 43 million of the 58 million birds slaughtered over the past year to control the virus have been egg-laying chickens, including some farms with more than a million birds apiece in major egg-producing states like Iowa.

More than 50 million chickens and turkeys have also been wiped out in Europe.

So when you combine the two totals, so far well over 100 million chickens and turkeys have been killed in just the United States and Europe.

And there is no end to the bird flu pandemic in sight.

This is a major crisis, but up to this point the mainstream media has not been focusing on it very much.

On top of everything else, egg farmers have had to deal with rapidly rising costs in recent months.

In fact, there are some in the industry that insist that the huge cost increases that egg farmers have been hit with over the past year are even a bigger factor than the bird flu…

But the president and CEO of the American Egg Board trade group, Emily Metz, said she believes all the cost increases farmers have faced in the past year were a bigger factor in the price increases than bird flu.

“When you’re looking at fuel costs go up, and you’re looking at feed costs go up as much as 60%, labor costs, packaging costs — all of that … those are much much bigger factors than bird flu for sure,” Metz said.

Many anticipate that these costs will only go higher in 2023.

And that will mean even higher prices for the rest of us.

I really feel badly for small bakeries. They use lots and lots of eggs, and if egg prices continue to go up many small bakeries could soon be forced to close…

“Small businesses especially, you live and die by what your food costs are,” said Tracy Ann Devore, owner of KnowRealityPie in Eagle Rock, who recently let go a dishwasher to stem rising costs. “If this keeps up for another three to six months, it could be a tipping point for some bakeries to close.”

For Devore and many others, the new egg crisis, combined with uncertainty about when it could ebb, has been more unsettling than the gradual price creep of dairy products, flour and produce.

“At some point, you can’t raise the price anymore,” Devore said. “There’s been points where I’ve cried recently, because I thought, ‘How are we going to keep going with this?'”

Our food industry was stable for so many years, but now we are witnessing a dramatic shift.

Costs are going through the roof, and supply problems just keep popping up.

Just like we have witnessed at other times, empty shelves are starting to be reported at certain supermarkets around the nation…

Social media is brimming with reports of missing food items at Kroger supermarket locations across the country.

A repeat of early 2020 when toilet paper and other essentials ran bare, the start of 2023 is seeing “a lot of empty shelves” at Kroger, according to numerous reports, some containing video evidence of lingering supply chain problems.

We are getting dangerously close to the days that I have been warning about.

As we are hit by one crisis after another throughout 2023, I expect our supply chain problems to continue to intensify.

So I would encourage you to stock up while you still can.

Yes, prices may seem ridiculously high now, but the truth is that they aren’t going to be getting any lower than they are at this moment.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

Will The Implosion Of The Tech Industry Bring Down The Entire U.S. Economy?

January 9, 2023 by Michael

The tech industry has become one of the central pillars of our economy, and tech stocks led the way up during the stock market boom. But now tech stocks have been crashing and many of our biggest tech industry companies have been laying off large numbers of workers. If the strongest sector of our economy continues to rapidly deteriorate in 2023, what will that mean for our weaker sectors? I think that the answer to that question is obvious. The truth is that we are in far bigger trouble than “the experts” realize, but most people still assume that everything will work out just fine somehow.

If economic conditions were really about to “return to normal”, the tech industry would not be laying off thousands upon thousands of workers. The following comes from a CNN article entitled “Silicon Valley layoffs go from bad to worse”…

At Amazon and other tech companies, the second half of last year was marked by hiring freezes, layoffs and other cost-cutting measures at a number of household names in Silicon Valley. But if 2022 was the year the good times ended for these tech companies, 2023 is already shaping up to be a year when people at those companies brace for how much worse things can get.

Did you catch that last part?

Even CNN is admitting that 2023 will be even worse for the tech industry than 2022 was.

Of course last year was really, really bad for the tech industry. According to Challenger, Gray & Christmas, tech layoffs “were up 649% in 2022”.

I was floored when I first saw that figure.

649 percent is a pretty big shift.

And one prominent private equity CEO just warned Fox Business that we could see a “bloodbath” for tech stocks during the months ahead…

In an interview with FOX Business on Friday, Eric Schiffer, CEO of the private equity firm, The Patriarch Organization, said: “Because tech is so oversold, there might be potential exits for a limited short-term bear rally, but there is a danger facing shareholders.”

“Shareholders should brace themselves for a deeper brutal tech bloodbath driven by the Fed and its ‘Terminator’ like mission to raise rates and wipe out inflation,” he warned. “Many tech companies will enact job carnage in the first quarter, with Salesforce and Amazon just the start.”

The tech-heavy Nasdaq is already down by about a third from the peak of the market, and trillions of tech stock wealth has already been wiped out.

So what will things look like if we actually see another “bloodbath” for tech stocks this year?

At this point, I don’t think that most Americans realize what is coming.

Mass layoffs are already starting to happen all over America, and one economist that was just interviewed by CNN believes that conditions will be even worse “by the end of the first quarter”…

“I think we’re seeing an inflection point; the rate of jobs growth is slowing and a lot of these tech layoffs that we’re hearing about, I think are going to start materializing across the broader economy by the end of the first quarter,” John Leer, chief economist at Morning Consult told CNN’s Chief Business Correspondent Christine Romans in an interview Friday.

Sadly, the truth is that the U.S. economy has been bleeding good jobs for quite some time now.

According to Fox Business, the official numbers that the government has been giving us show that the U.S. economy has been losing an average of 2,100 full-time jobs since May…

But there are more disturbing trends present in the data. The economy has been losing full-time jobs at an alarming rate: 2,100 every day since May. Employers are shifting from full-time to part-time jobs, which often occurs before those businesses stop hiring altogether. Then, layoffs arrive.

This is often what we see as our economy heads into a major downturn.

First, many employers start shifting from full-time employees to part-time employees, and then when things get bad enough they just start dumping workers.

And at this point we are already starting to see some of the wealthiest companies in America let people go. In fact, Goldman Sachs is going to be giving thousands of highly paid employees the axe starting on Wednesday…

The global investment bank is letting go of as many as 3,200 employees starting Wednesday, according to a person with knowledge of the firm’s plans.

That amounts to 6.5% of the 49,100 employees Goldman had in October, which is below the 8% reported last month as the upper end of possible cuts.

Meanwhile, the cost of living continues to go even higher.

Earlier today, I was stunned to learn that natural gas bills for many residents of southern California could soon double…

Southern California Gas Co. and San Diego Gas & Electric have issued stark warnings to customers that their January natural gas bills could double, citing factors for historically high wholesale costs that include sinking inventories, supply constraints and a cold start to winter that has soaked the West Coast.

And even though the Federal Reserve has been taking extreme measures to fight inflation, food prices just continue to soar to absurd heights.

Survey after survey has shown that a solid majority of Americans are living paycheck to paycheck right now.

As the cost of living becomes increasingly oppressive, more Americans are turning to their credit cards for help…

New data released by the Census Bureau this week found that more than 35% of households used credit cards or loans in December to assist with spending needs in the past week. That marks an increase from 32% in November and just 21% in April 2021, according to the Household Pulse Survey.

The rise in credit card usage is somewhat concerning because interest rates are astronomically high right now. The average credit card APR, or annual percentage rate, set a new record high of 19.14% last week, according to a Bankrate.com database that goes back to 1985. The previous record was 19% in July 1991.

The greed of the credit card companies seemingly knows no bounds.

As I have repeatedly warned my readers, you do not want to be carrying a lot of debt during the hard economic times that are coming.

19.14 percent is the average rate on credit card balances now, and that means that half of the country has rates that are even higher than that.

Ouch!

If you are currently carrying credit card debt, I would encourage you to get that paid off as soon as you can.

Because economic conditions are only going to get harsher from here, and you definitely don’t want to be financially crippled by high interest debt during the severe crisis that is rapidly approaching.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

10 Major Layoff Announcements That Have Already Happened So Far In 2023

January 8, 2023January 8, 2023 by Michael

This is my rebuttal to those in the federal government and elsewhere that are attempting to claim that the job market is in good shape. No matter how many workers get laid off, the Bureau of Labor Statistics always seems to find a way to post a positive jobs number each month. We were told that the U.S. economy somehow added 256,000 jobs in November even though Challenger, Gray & Christmas determined that the number of layoffs in November 2022 was actually 417 percent higher than it was during the same month a year earlier. And even though the tsunami of layoffs continued in December, the Bureau of Labor Statistics is telling us that the U.S. economy somehow added 223,000 jobs last month. It is almost as if there is a certain number that the BLS refuses to go below. For each of the last five months, the number of jobs that the U.S. has “added” has miraculously come in between 200,000 and 300,000 each time. But meanwhile large companies all over America have been laying off workers at a staggering rate.

Unfortunately, the pace of layoffs seems to be picking up speed during the early days of 2023. The following are 10 major layoff announcements that have already happened so far this year…

#1 Salesforce has announced that approximately 10 percent of their workers will be canned…

Salesforce Inc. plans to cut about 10% of its staff as part of a restructuring plan, the software company said Wednesday.

The company will also exit some real estate and cut back on office space, it disclosed in a filing with the Securities and Exchange Commission. The plan is aimed to reduce operating costs, boost operating margins, and drive “profitable growth.”

#2 Vimeo says that “11% of the company’s workforce” will be permanently canceled…

Vimeo has launched another round of layoffs, a company spokesperson confirmed to Insider on Wednesday.

In an email to staff, Vimeo CEO Anjali Sud said the layoffs would impact 11% of the company’s workforce.

#3 StickFix is eliminating “about 20% of its salaried workforce” as the company starts to come apart at the seams…

StitchFix will cut about 20% of its salaried workforce, according to a statement published by the company on Thursday.

Along with the cuts, the company’s CEO is stepping down, the company announced in a statement.

The company will also close a Salt Lake City, Utah facility, they said.

#4 Their first round of layoffs was not deep enough, and so now Genesis is saying goodbye to “30% of its workforce in a second round of layoffs”…

Cryptocurrency firm Genesis has cut 30% of its workforce in a second round of layoffs in less than six months, according to a person familiar with the matter, as pressure builds on crypto industry executives to cut costs in the wake of a downturn.

#5 Not to be outdone, Silvergate Capital is laying the axe to 40 percent of their workers…

Amid a “crisis of confidence” across the cryptocurrency industry, crypto banking group Silvergate Capital will cut 40% of its workforce and abandon some projects—including a blockchain-based payment solution based on Meta’s abortive Diem project.

#6 SuperRare Labs has just announced that 30 percent of their workforce will need to look for new jobs…

SuperRare Labs, the company behind NFT marketplace SuperRare, became the latest crypto player to make job cuts on Friday, announcing it will reduce its staff by 30%.

The news came from SuperRare CEO John Crain, who tweeted out a message he sent to employees in Slack.

#7 More than a third of Biocept’s workers will be shown the door as the company struggles to survive…

Liquid biopsy firm Biocept said Friday that it is exploring strategic alternatives to enhance shareholder value, and has engaged EF Hutton, a division of Benchmark Investments, as its financial adviser.

As this process moves forward, the firm is implementing a restructuring plan that includes reducing staff by approximately 35 percent.

#8 The first two rounds of layoffs didn’t do the trick, and so now Compass has decided to conduct a third round of layoffs…

Compass is still coming back to earth — but this time possibly without its headquarters. On Thursday, The Real Deal reported that the real-estate company was looking to sublease its 89,000-square-foot office space at 90 Fifth Avenue near Union Square. The same day, Compass also announced it was conducting its third round of layoffs this year; in an SEC filing, the company wrote that layoffs would “allow for a path to achieve positive free cash flow in 2023.”

#9 It turns out that the layoffs at Amazon will be much larger than originally anticipated…

Amazon said it is slashing a total of 18,000 jobs, a larger number of positions than it previously announced and the largest set of layoffs in the e-commerce giant’s history.

“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” CEO Andy Jassy said in a note to employees that the company made public on Wednesday. “However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me.”

#10 The Daily Mail is reporting that McDonald’s “will slash many of its 200,000 corporate staff in coming months” as it attempts to turn the business back in a positive direction…

McDonald’s CEO Chris Kempczinski has revealed plans to slash corporate jobs later this year to help the business grow.

In a letter to staff on Friday, the fast-food giant boss said there would be ‘difficult discussions and decisions ahead’ and warned that the company had become unfocused.

But don’t worry.

The Bureau of Labor Statistics is telling us that everything is just fine.

You believe them, don’t you?

Sadly, it appears that a lot more layoffs could be coming very soon. For example, Bed Bath & Beyond is in such bad shape that it may soon not have many employees left at all…

Now Bed Bath & Beyond “has concluded that there is substantial doubt about the company’s ability to continue as a going concern,” the retailer said on Thursday. This means Bed Bath & Beyond has to consider all financial options, including restructuring, selling assets or going through bankruptcy.

“These measures may not be successful,” the company added. Its stock price dropped more than 20% as soon as markets opened.

For years, our leaders have been desperately trying to prop up our “bubble economy”, and for a while their efforts were successful.

But now they can no longer hold back the economic catastrophe that has been building for more than a decade.

This generation was handed the keys to the greatest economic machine in world history, but those in power have wrecked it.

Now we stand at the brink of an unprecedented economic crisis, and the months ahead are likely to be quite brutal.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

11 Signs That The Economic “Tipping Point” That Everyone Has Been Waiting For Has Now Arrived

January 5, 2023January 5, 2023 by Michael

How bad do things have to get before people start realizing that we are in the midst of a full-blown economic crisis? The “experts” on television are endlessly debating about whether or not we are going to have a “recession” this year, and meanwhile economic activity is imploding all around us. The number of homes being sold in this country each month has already fallen by a third. The number of job cuts in November was 417 percent higher than it was during the same month a year earlier, and at this point even Amazon is laying off thousands of workers. The Federal Reserve has declared war on inflation, but prices continue to spiral out of control. In fact, vegetables are 80 percent more expensive now than they were 12 months ago. Meanwhile, the financial markets continue to plunge. A third of the value of the Nasdaq has already been wiped out, and more than two-thirds of the value of all cryptocurrencies is already gone.

After everything that has already transpired, everyone should be able to clearly understand what is happening.

So many people have been waiting for an economic nightmare to come, but the truth is that it is already here.

The following are 11 signs that the economic “tipping point” that everyone has been waiting for has now arrived…

#1 U.S. manufacturing is declining at the fastest pace that we have seen since the early days of the COVID pandemic…

The S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) fell at the fastest rate since May 2020 in December, a continuing sign that the manufacturing sector is on the decline, S&P Global reported Tuesday.

The U.S. Manufacturing PMI posted a 46.2 in December, down from 47.7 in November and solidly below 50, which signals that the sector is contracting, according to S&P Global. Production levels contracted in back-to-back months, with new sales plummeting at the end of December at the fastest pace since 2007, as companies cited weakening demand amid “economic uncertainty” and inflation weighing on customers.

#2 U.S. services PMI has now fallen for sixth months in a row.

#3 We just witnessed the largest one day drop in the Baltic Dry Index since 1984…

The Baltic Exchange’s dry bulk sea freight index crashed on Tuesday in the worst decline on record, sinking on prospects of a global recession.

Baltic Dry Good Index is a measure of global shipping and economic health. The overall index, which tracks rates for capesize, panamax, and supramax shipping vessels carrying dry bulk commodities, plunged 17.5% to $1,250, the most significant daily decline since 1984.

#4 Thanks to rapidly falling imports, we just witnessed the largest monthly decline in the trade deficit since the last financial crisis…

According to the BEA, the November trade deficit narrowed to $61.5b from $77.8b in prior month, coming in below the median estimate of $63.0BN (and just barely missing the top end of the range of $61.3BN to $80.5BN from 42 economists).

Remarkably, the 20% one-month decline in the deficit was the single biggest drop in the US trade deficit on a percentage basis going back to the global financial crisis!

#5 In 2022, U.S. auto sales were the lowest that we have seen for a full year in more than a decade…

Industrywide, U.S. auto sales totaled 13.7 million vehicles in 2022, the lowest figure since 2011 and an 8% decrease from the prior year, according to the research firm Wards Intelligence. Sales had topped 17 million vehicles for five straight years before the Covid-19 pandemic struck in 2020, unleashing supply-chain problems that have bogged down deliveries ever since.

#6 The average rate on a 30 year fixed-rate mortgage is more than twice as high as it was this time last year…

Mortgage rates inched up again last week, after a slight increase the week before interrupted six straight weeks of falling rates.

The 30-year fixed-rate mortgage averaged 6.48% in the week ending January 5, up from 6.42% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.22%.

#7 According to CNN, sales of apartments in Manhattan were 28.5 percent lower in the fourth quarter of 2022 than they were in the fourth quarter of 2021…

Higher rates and still-high housing prices cooled demand at the end of last year, causing sales to tumble. Sales dropped 28.5% in the fourth quarter compared to the fourth quarter of 2021.

#8 Overall, existing home sales in the United States have fallen for 10 months in a row and are now down by more than a third since January 2022.

#9 Bed Bath & Beyond is warning that the company is literally on the verge of declaring bankruptcy…

Bed Bath & Beyond warned Thursday it’s running out of cash and is considering bankruptcy.

The retailer, citing worse-than-expected sales, issued a “going concern” warning that in the upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers. Bed Bath said it is exploring financial options, such as restructuring, seeking additional capital or selling assets, in addition to a potential bankruptcy.

#10 It is being reported that Amazon has decided to lay off approximately 18,000 employees…

Amazon.com Inc. is laying off more than 18,000 employees — the biggest reduction in its history — in the latest sign that a tech-industry slump is deepening.

#11 Overall, the tech industry has already laid off more than 150,000 workers over the last year.

Many more American workers will lose their jobs as economic activity slows down even more throughout 2023.

So if you currently have a good job that you value, try to cling to it as hard as you can.

The times that we are moving into are going to look completely different from the times that we have enjoyed over the past decade.

Our leaders were able to keep the party going for a long time by absolutely flooding the system with money, but now they have lost control.

We are literally careening toward disaster, but most Americans still don’t understand what is taking place.

Most Americans just assume that those in authority know exactly what they are doing and that a “return to normal” is inevitable.

I wish that was true, because the ride into the economic abyss that we are facing is not going to be fun.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

Michael Snyder: The Overall Theme For 2023 Will Be “Here We Go!”

January 4, 2023 by Michael

A lot of people tend to use the phrase “here we go” when they think that something really good is about to happen, and others tend to use it when they think that something really bad is about to happen. Needless to say, in this case I am using the phrase “here we go” as my overall theme for 2023 because I believe that we are going to be facing a really rough year. I expect that so many of the trends that have been percolating throughout 2022 will greatly accelerate over the next 12 months. So if you were not pleased with 2022, it is likely that you are really not going to enjoy what is ahead of us in 2023.

I certainly don’t need to tell any of you that 2022 was a very tough year for the economy. It truly was a year when “everything started to fall apart”, and lots of prominent voices on Wall Street are now warning that things will get even worse in 2023.

But if the Federal Reserve were to suddenly reverse course and begin lowering interest rates, that would help the short-term economic outlook a great deal.

Unfortunately, that isn’t going to happen. In fact, Fed officials are openly telling us that they expect interest rates to remain elevated for “some time” to come…

Federal Reserve officials reaffirmed their commitment to combating inflation at their December meeting and indicated that interest rates could remain elevated for “some time” until there is clear evidence that consumer prices are falling.

Minutes from the U.S. central bank’s Dec. 13-14 meeting released on Wednesday showed that policymakers worried that investors and financial markets could misinterpret their decision to raise interest rates more slowly as a sign they were ending their campaign to bring prices under control. Officials stressed that the smaller rate hike – 50 basis points, compared to the previous fourth 75-basis point-increases – “was not an indication of any weakening” and warned of continued risks on the inflation front.

So there is no hope on the horizon, and higher rates will continue to crush economic activity for the foreseeable future.

And with each passing day, what is happening to the economy is becoming clearer and clearer. For example, we just learned that Salesforce will be laying off approximately 8,000 workers…

Salesforce plans to lay off about 10% of its workforce, or nearly 8,000 employees, and reduce its office space as tech companies cut costs amid concerns about the economy.

In a note to employees Wednesday, Chief Executive Officer Marc Benioff said the move comes as customers take a more cautious approach to spending as the economic “environment remains challenging.”

This is just the tip of the iceberg.

There will be many more layoffs during the weeks and months to come.

Another trend that I will be watching very closely in 2023 is the deterioration of faith in our politicians and in our governmental institutions.

The drama that is playing out in Washington right now is a perfect example of what I am talking about. Kevin McCarthy is a prototypical “swamp creature”, and that is why the establishment loves him. As Speaker of the House, McCarthy would be in charge of keeping the wheels of corruption in motion. There is so much campaign money that needs to be funneled in the right direction, so many important favors that need to get done, and so many critical deals that need to be orchestrated.

The Washington establishment can’t afford to have someone with principles as Speaker of the House, and so they are going to keep pushing for McCarthy.

Of course McCarthy is deeply unpopular outside of Washington, but so was Nancy Pelosi.

Sadly, that doesn’t really matter, because we we are not supposed to have a say in these battles.

But the American people are getting fed up. They can see the endless corruption that is going on, and the popularity of both parties is sinking.

And the truth is that politicians from both parties have been lying to our faces over and over again.

For many of our politicians, lying is as natural as breathing is.

Unfortunately, we have gotten to a point where most of our politicians have lost all of their credibility, and a population that no longer has faith in the system is going to be exceedingly difficult to govern.

I also expect 2023 to be a year of great natural disasters.

Throughout 2022, there was just one historic disaster after another. It seemed like I was constantly writing about droughts, famines, wildfires, hurricanes, giant storms, earthquakes, volcanoes and tornadoes.

Unfortunately, I believe that the 12 months that are ahead of us will be even worse.

If you doubt this, just consider what has been happening over the past few weeks.

In late December, a colossal “bomb cyclone” brought a “once in a generation storm” to the Midwest. In fact, the blizzard that we witnessed in Buffalo was the worst storm in the entire recorded history of the city.

Just as we were recovering from that, a mammoth “atmospheric river” slammed into the west coast. Some parts of California received more than four feet of snow, and there was catastrophic flooding in other areas.

Now here we are just a few days later, and another “bomb cyclone” is about to hammer California. According to the National Weather Service, this is going to be a “truly brutal” storm…

Another powerful storm, known as a bomb cyclone, is hitting the California coast and the National Weather Service in the Bay Area is warning residents that the “truly brutal” system needs to be taken seriously.

The system could trigger “immediate disruption to commerce, and the worst of all, likely loss of human life,” forecasters say. It comes on the heels of a round of record-breaking rainfall that slammed the same area over the weekend.

I have never seen two immensely powerful storms hit California so close together.

There will be “widespread flooding”, and conditions in some parts of the state will be so dangerous that authorities are actually encouraging people to have “go bags” prepared in advance…

A dangerous storm system is slamming California, with meteorologists at the National Weather Service warning of imminent “widespread flooding, impassible roads, mudslides/landslides [and] rapid rises in rivers/creeks.” The system, which prompted the Weather Service to take the unusual step of urging residents to have “go bags” at the ready and prepare insurance documentation in advance, is set to unleash its harshest conditions Wednesday night into early Thursday.

Virtually the entirety of Northern and Central California is under flood watches and high-wind warnings, with damaging gusts to 60 mph possible. Strong to severe thunderstorms could be in the offing as well, in addition to 2 to 4 inches of rain in the lowlands and more in the mountains. In the highest terrain, the heavy rain will transition to up to 2 to 4 feet of heavy snow. Along the coast, beaches will be battered by large waves and areas of coastal flooding.

I also believe that 2023 will be a year when multiple pestilences run wild all over the planet.

These days, it seems like a different disease is making global headlines each week.

A few weeks ago everyone was talking about RSV, and then it was Strep A, and now this week a new “super variant” of COVID is deeply alarming authorities…

Dr. Eric Feigl-Ding, an epidemiologist and chief of the COVID Risk Task Force at the New England Complex Systems Institute, has called XBB1.5 a “super variant.”

XBB.1.5, which is mutated from the original Omicron strain, appears to be spreading faster than others because it is better at attaching itself to human cells.

“A mutation in the virus is located at the site where it binds to the human cells,” said Wine. “To effectively infect humans, the virus needs to bind to cells, and XBB.1.5 seems to do this very tightly.”

Next week it might be something else.

At this point, there are billions of people that have compromised immune systems, and that means that the global population has been perfectly primed for whatever plagues we see in 2023.

I certainly can’t end this article without talking about war.

I expect that both sides will continue to escalate the conflict in Ukraine in 2023, and it appears that the Russians may be preparing a massive new offensive campaign from the north.

Meanwhile, tensions in the Middle East continue to rise, and I believe that a war between Israel and Iran has become inevitable.

On the other side of the planet, the Chinese could soon pull the trigger on an invasion of Taiwan, and if that happens we could also see North Korea invade South Korea while the U.S. is distracted with China.

I have been warning that these wars were coming for a long time, and once they erupt our world will never be the same again.

In fact, our world is already radically different from what it was like just a few short years ago.

So much changed throughout 2020, 2021 and 2022.

But the pace of change is only going to accelerate even more as we get deeper into 2023.

So buckle up and hold on tight, because here we go…

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

Let’s Hope That The Irrational Optimists Will Be 100 Percent Correct About 2023

January 3, 2023January 3, 2023 by Michael

I hope that I am wrong about our immediate economic future, and I hope that all of the other respected voices that are warning of economic doom in 2023 are wrong too. It would be wonderful if things turn in a positive direction at some point during the next 12 months and 2023 turns out to be a year of peace and prosperity for the entire world. Of course virtually nobody is expecting the year to start well. As I discussed yesterday, there is a growing consensus among the “experts” that the months ahead will be quite rough. But even though it has become exceedingly obvious that short-term economic conditions will not be good, some optimists are still trying to put a positive spin on things. For example, Moody’s Analytics chief economist Mark Zandi is trying to convince us that we will only have to endure a “slowcession” before things finally turn around…

Many CEOs, investors and consumers are worried about a recession in 2023. But Moody’s Analytics says the more likely scenario is a “slowcession,” where growth grinds to a near halt but a full economic downturn is narrowly avoided.

“Under almost any scenario, the economy is set to have a difficult 2023,” Moody’s Analytics chief economist Mark Zandi wrote in a report on Tuesday. “But inflation is quickly moderating, and the economy’s fundamentals are sound. With a bit of luck and some reasonably deft policymaking by the Fed, the economy should avoid an outright downturn.”

Let’s hope that he is right on target.

And if he does turn out to be correct, let’s hold a big celebration next December celebrating what a wonderful year 2023 was.

I would be up for that.

But I don’t think that is the way that things will play out.

Even now, all of the “mega-bubbles” are starting to burst all around us and the chaos that we have witnessed in the financial markets is unlike anything that we have seen since 2008.

The “bubble economy” that we had been enjoying for such a long time was dependent on a very rapidly growing money supply, but thanks to the Fed the money fountains have now been turned off.

In fact, the growth of M2 has just turned negative “for the first time in 28 years”…

Money supply growth fell again in November, and this time it turned negative for the first time in 28 years. November’s drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years. During the thirteen months between April 2020 and April 2021, money supply growth in the United States often climbed above 35 percent year over year, well above even the “high” levels experienced from 2009 to 2013.

Since then, the money supply growth has slowed quickly, and we’re now seeing the first time the money supply has actually contracted since the 1990s. The last time the year-over-year change in the money supply slipped into negative territory was in November of 1994.

At some point, economic conditions will force the Fed to reverse course.

But for now Fed officials remain deeply afraid of inflation, and so we will remain on the current path.

What this means is that the early portions of 2023 are likely to look a lot like late 2008 and early 2009. We have already started to see a very alarming wave of layoffs, and this has particularly been true in the tech industry…

Tech-driven companies are embarking on a layoff spree the likes of which not seen since the pandemic, a new report has revealed – laying off more than 150,000 workers within the course of a year.

The concerning numbers were laid bare in a recently released analysis from Layoffs.fyi, which tracks firings in real time through information gleaned in media and company releases.

Through these means, the firm found that the technology sector – which had been largely spared in 2020 amid the mass wave of firings when Covid-19 first surfaced – are now among those with the largest numbers of job cuts, with rates increasingly rapidly over the past few months.

Sadly, it is likely that there will be even more tech layoffs in the months ahead.

In fact, one expert is ominously warning that we will see “a continued cutting of heads in Big Tech because they’re getting ready for the Category 5 storm” that is rapidly approaching…

Wedbush Securities managing director Dan Ives shared a similar sentiment about the 2023 economy on “Mornings with Maria” Tuesday, cautioning that Big Tech companies still need to “rip the Band-Aid off” in terms of layoffs as a “Category 5 storm” threatens the macroeconomic landscape.

“Look, a lot of Big Tech, they were spending money like 1980s rockstars. And I think that really shows,” Ives explained. “Sometimes they were increasing 15, 20% per year. I still think it’s a ‘rip the Band-Aid off,’ still some more headcount cuts. We think potentially another 8 to 10% headcount cuts in Big Tech. You look at what happened with Meta, and that’s a good example. Once Zuckerberg finally read the room, cut in terms of what he needed to, stock ultimately lifted. I think, be that as a catalyst, I think you will see a continued cutting of heads in Big Tech because they’re getting ready for the Category 5 storm in terms of what we’re seeing with the macro.”

I don’t like the sound of that.

Could we really see a “Category 5” economic storm in 2023?

Yes, we could.

But once again, let’s hope that the irrational optimists will be correct and that such a storm can be avoided somehow.

Ultimately, many of the irrational optimists are entirely convinced that there is nothing fundamentally wrong with our system and that just a few minor adjustments are all that is needed to get us back on the road to endless prosperity.

On the other hand, there are people like me that are entirely convinced that our system is fundamentally unsound and that it is inevitable that the entire Ponzi scheme will eventually come crashing down all around us.

Normally, most Americans tend to be quite optimistic about the coming year, but this year is different.

According to a Gallup survey that was just released, approximately 80 percent of U.S. adults believe that “2023 will be a year of economic difficulty”…

When offered opposing outcomes on each issue, about eight in 10 U.S. adults think 2023 will be a year of economic difficulty with higher rather than lower taxes and a growing rather than shrinking budget deficit. More than six in 10 think prices will rise at a high rate and the stock market will fall in the year ahead, both of which happened in 2022. In addition, just over half of Americans predict that unemployment will increase in 2023, an economic problem the U.S. was spared in 2022.

But maybe 2023 won’t be so bad after all.

Maybe our leaders will be able to find a way to reinflate all of the old bubbles one more time.

We better hope that they have one final miracle up their sleeves, because the alternative will not be pleasant at all.

***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***

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