The Pain Of This New Economic Downturn Is Starting To Show Up All Over The Country

It is going to take a miracle for the U.S. economy to pull out of this tailspin, because the economic numbers are really starting to deteriorate very rapidly now.  On Tuesday we got some more new numbers, and they were just as bad as we thought they might be.  But even before today’s numbers all of the data were telling us the exact same thing.  The New York Fed’s Empire State manufacturing index just suffered the worst one month decline in U.S. history, Morgan Stanley’s Business Conditions Index just suffered the largest one month decline that we have ever seen, global trade numbers are the worst they have been since the last recession, and just last week I detailed the complete and utter “bloodbath” that we are witnessing in the U.S. trucking industry right now.  So considering what we already knew, it shouldn’t have been a surprise that new home sales in the U.S. were down a whopping 7.8 percent during the month of May… (Read More...)

Conditions On The Streets Of San Francisco Are Comparable To “The Slums Of Mumbai, Delhi, Mexico City, Jarkarta, And Manila”

Once upon a time, some of the most beautiful cities in the entire world were on the west coast, but now those same cities are degenerating into drug-infested cesspools of filth and garbage right in front of our eyes.  San Francisco is known as the epicenter for our tech industry, and Los Angeles produces more entertainment than anyone else in the world, and yet both cities are making headlines all over the world for other reasons these days.  Right now, nearly a quarter of the nation’s homeless population lives in the state of California, and more are arriving with each passing day.  When you walk the streets of San Francisco or Los Angeles, you can’t help but notice the open air drug markets, the giant mountains of trash, and the discarded needles and piles of human feces that are seemingly everywhere.  If this is what things look like when the U.S. economy is still relatively stable, how bad are things going to get when the economy tanks? (Read More...)

Shocking Before And After Photos Reveal The Truth About The Widespread Crop Failures The U.S. Is Facing In 2019

Torrential rains have been hammering the heartland of America for months, and at this point vast stretches of farmland in the middle of the country are nothing but mud.  As a result of the endless rain and unprecedented flooding that we have witnessed, millions of acres of farmland will have nothing planted on them at all in 2019, and that is a major national crisis.  But most farmers were able to get seeds planted in the deplorable conditions, and now they are desperately hoping that something will actually grow.  Unfortunately, on farm after farm what is coming out of the ground looks absolutely terrible.  Even if we get ideal weather conditions for the rest of the summer, there is no way that many of these fields will be ready before the first hard frost arrives.  As you will see below, the truth is that we are potentially facing the most widespread crop failures in all of U.S. history. (Read More...)

President Trump: Please Find A Way To Stop World War 3 From Erupting In The Middle East

The moment that I heard that a U.S. Navy high altitude drone had been blown out of the sky by Iran, I realized that a very important threshold had just been crossed.  We now find ourselves on the brink of World War 3, and one wrong move could unleash death and destruction on a scale that most of us don’t even want to think about.  We have reached one of the most critical junctures in modern American history, and the key decisions will be made by just one man.  When Donald Trump initially ran for president, he promised to stop the endless wars in the Middle East, but now we are potentially facing the biggest one of them all.  More than 80 million people live in Iran, they have a highly sophisticated military, and they have been preparing for a military confrontation with the west for a very long time. (Read More...)

U.S. Steel Plants Are Going Idle, But The Fed Continues To Perpetuate The Myth That Everything Is Just Fine

Even though there is a tremendous amount of evidence to the contrary, the Federal Reserve continues to insist that the U.S. economy is in good shape.  On Wednesday, Federal Reserve Chair Jerome Powell told the nation that “the economy has performed relatively well” in 2019 and he insisted that “the baseline outlook is a good one.”  Of course he didn’t say anything about our collapsing manufacturing numbers, the worst global trade numbers since the last recession or the “bloodbath” in the U.S. trucking industry.  Powell did concede that “the risk of less favorable outcomes has risen”, but other than vague statements like that he really didn’t acknowledge our growing economic problems at all.  Considering the fact that Powell has more power over the U.S. economy than anyone else in the entire country, this should deeply concern all of us.  To me, Powell’s performance on Wednesday was quite reminiscent of the moment in 2008 when Fed Chair Ben Bernanke told us that the Federal Reserve was not “currently forecasting a recession” after a recession had already begun. (Read More...)

They Are Calling This A “Bloodbath” For The $800 Billion Trucking Industry As U.S. Economic Activity Dramatically Declines

The U.S. trucking industry has not experienced a downturn of this magnitude since the last financial crisis, and this is one of the clearest signs yet that the U.S. economy is steamrolling into a severe economic downturn.  When economic activity is increasing, the trucking industry sees rising demand for their services and freight rates tend to go up.  That is precisely what we witnessed in 2018, and truckers were hoping for more of the same in 2019.  But when economic activity is on the decline, the trucking industry sees decreasing demand for their services and freight rates tend to go down.  Unfortunately, the numbers that the U.S. trucking industry is reporting right now are absolutely abysmal.  Freight rates have now fallen for six months in a row on a year-over-year basis, and according to Business Insider during the month of May loads on the spot market fell “by a chilling 62.6%” compared to last year… (Read More...)

Evidence That The U.S. Economy Could Be Plunging Into A Very Deep Recession Is Rapidly Mounting

Not since 2008 have we seen so much bad economic data come rolling in all at the same time.  Even without a war with Iran, which by the way is looking increasingly likely with each passing day, it definitely appears that the U.S. economy is steamrolling toward recession territory.  The employment numbers for last month were abysmal, global trade has collapsed to the lowest level that we have seen since the last recession, and manufacturing numbers just keep getting worse and worse.  In fact, the New York Fed’s Empire State manufacturing index just suffered the worst one month decline in history… (Read More...)

“It’s A Disaster Like I’ve Never Seen Before”: 2019 Could Be The Worst Year EVER For U.S. Corn Farmers

The amount of corn produced in the United States this year is going to be way below expectations.  The Department of Agriculture just slashed its harvest estimates quite dramatically in its June report, but some farmers in the Midwest believe that those reduced projections are still way too optimistic.  As I have previously detailed, millions upon millions of acres will go unplanted this year, but that is only part of the story.  Much of the corn that has actually been planted is coming up very slowly due to the exceedingly poor conditions, and corn farmers all over the Midwest are reporting that their plants look absolutely terrible.  If we get picture perfect weather between now and harvest time, this will simply be a terrible year.  But if severe heat and/or an early frost hits the Midwest, this could very easily be the worst year that we have ever seen for corn farmers in the United States. (Read More...)

+ More