The Economic Collapse

They know exactly what they are doing.  The “experts” that run the Federal Reserve know that if they dramatically hike interest rates it will cause countless American workers to lose their jobs and it will absolutely crush the housing market.  And even though those two things are already starting to happen, they just announced another massive rate hike.  If there was a school for central bankers, one of the very first things that they would teach you is that you should never, ever raise rates as an economy is plunging into a recession.  Every Fed official knows what has happened in the past when rates have been hiked at the beginning of an economic slowdown, but they are doing it anyway.  To call this “economic malpractice” would be a major understatement, and the American people should be deeply alarmed about what they are doing to us. (Read More...)

Things are starting to get really crazy in Germany.  The Germans are dealing with the worst inflation crisis that they have seen since the days of the Weimar Republic, and meanwhile economic activity is starting to shut down all over the nation.  Of course other European countries are facing similar problems, but Germany was supposed to be the economic rock that the rest of Europe could always depend upon.  Unfortunately, the decision by the Russians to cut off the flow of gas through the Nord Stream 1 pipeline is hitting Germany extremely hard.  If we could just get both sides to agree to end the war in Ukraine, that would greatly help matters, but that simply isn’t going to happen.  In fact, it appears that Vladimir Putin has decided to greatly escalate matters, and the western powers will inevitably greatly escalate matters in response.  What this means is that the economic turmoil that we are witnessing in Europe isn’t going anywhere any time soon. (Read More...)

Just over the past few days, our planet has been hit over and over again by major natural disasters.  So why is this happening?  At this moment, we are reaching the end of a summer that many of us will remember for a long time to come.  The western United States, Europe and China are all in the midst of the worst droughts that they have experienced in centuries, and meanwhile relentless flooding has absolutely devastated other areas.  For example, unprecedented flooding resulted in a third of the entire nation of Pakistan being under water for an extended period of time.  We could definitely use a break, but instead the past few days have brought us an extremely alarming series of historic disasters.  For example, the western coast of Mexico was just hit by an extremely powerful magnitude 7.6 earthquake… (Read More...)

Do they know something that they aren’t telling us?  As you will see below, Walmart, Target and other major U.S. retailers are literally canceling billions of dollars in orders ahead of the coming holiday season.  I have never heard of such a thing happening before, and under normal conditions it wouldn’t make any sense at all.  The holiday season is typically the busiest time of the year for retailers, and at this time in 2021 there was actually a great deal of concern that there wouldn’t be enough inventory due to global supply chain problems.  But now everything has changed.  All of a sudden major retailers are feverishly canceling orders, and this would only make sense if a severe economic downturn was imminent. (Read More...)

This didn’t have to happen.  The reckless behavior of the Federal Reserve and our politicians in Washington created a horrifying inflation spiral, and now the Fed is feverishly raising interest rates in a desperate attempt to get inflation back under control.  But everyone knows that rapidly raising rates is going to absolutely crush the housing market.  When the Federal Reserve hikes interest rates, that puts upward pressure on mortgage rates.  And as mortgage rates go higher, more and more potential homebuyers will be forced on to the sidelines.  With fewer potential homebuyers in the market, that will put downward pressure on home prices.  This is basic stuff that you would learn in an ECON 101 class, but Fed officials can’t seem to understand that what they are doing is going to be extremely destructive to the U.S. economy as a whole. (Read More...)

I can’t understand why anyone would still want to live in California.  Yes, there are lots of high paying jobs and the weather is very nice, but crime is completely and utterly out of control.  As you will see below, a new report that has just been issued is warning that violence in the state has now reached “epidemic” levels.  The police are doing what they can to try to contain the violence, but at this point they are vastly outnumbered by the predators.  Sadly, this is the end result of literally decades of cultural rot, and what is happening in California is going to happen to the rest of the nation if we do not take urgent action to turn things around. (Read More...)

Do you remember the panic that swept through Wall Street in September 2008?  Well, a lot of people believe that it is starting to happen again.  And once selling starts to spiral out of control, it is going to be incredibly difficult to stop.  On Monday, the Dow Jones Industrial Average fell 1,276 points.  That was the seventh biggest single day decline in history, and on a point basis it was actually larger than anything that we witnessed back in 2008.  Investors were bitterly disappointed by the monthly inflation report, because it showed that everything that the Fed has done so far has not worked.  It appears to be inevitable that the Fed will continue to raise interest rates in a desperate attempt to get inflation under control, and that has put Wall Street in a very sour mood. (Read More...)

I am so horrified by what is going on in Ukraine right now.  The world desperately needs peace in Ukraine, but instead both sides are going for the throat.  The Russians and the western powers are both absolutely determined to win in Ukraine, and so now we are witnessing a very dangerous game of “chicken” that could ultimately lead to nuclear conflict.  Western leaders seem quite sure that the Russians are bluffing and that there is no possibility that they would actually use nukes if backed into a corner.  Meanwhile, Russian leaders seem to believe that there is a limit as to how far NATO powers will go to support Ukraine.  But what if both sides are wrong? (Read More...)