Search Results for “ Michael Snyder” – The Economic Collapse

More Than 80% Of Young Adults Believe That The Economy Is “Bad” Or “Terrible” And We Are Seeing The Consequences All Over America

Michael — Tue, 05 May 2026 20:03:08 +0000

Decades of economic decline have brought this country to a breaking point. The vast majority of the population is barely scraping by from month to month as prices continue to rise, thousands of stores and restaurants close, foreclosures spike to alarming levels and the middle class continues to shrink. Now the crisis in the Strait of Hormuz threatens to make things a whole lot worse, and a lot of people are justifiably concerned about what this will mean for their futures.

Our young adults are being hit particularly hard. If you purchased a home 20 or 30 years ago, you are insulated from what is really going on out there. Housing costs are more unaffordable than ever, and many young people have completely given up on the dream of homeownership. Meanwhile, the employment market has gotten very tight, and this is especially true for entry-level jobs.

Do you know anyone under the age of 40 that is doing really well in this economy?

Yes, there are some exceptions, but in general our young adults are really struggling.

As a result, homelessness is at record levels and hordes of drug addicts are roaming the streets of our major cities.

If you doubt this, just check out this video that shows what has happened to the once great city of Los Angeles.

It was once a playground for the rich and famous, but now it has been transformed into a rotting, decaying hellhole.

It is undeniable that most of our young adults hate this economy.

In fact, a new survey that was just released found that a whopping 84 percent of Americans between the ages of 18 and 24 believe that economic conditions in the U.S. are either “bad” or “terrible”…

A recent survey by Generation Lab found that more than 8 in 10 young adults rate economic conditions in the U.S. as either bad or terrible.

The survey, conducted April 26-29, found that 55 percent of 546 respondents ages 18-24 said they view the economy as bad, while 29 percent said it was terrible.

The same survey discovered that 81 percent of Americans between the ages of 25 and 29 believe that economic conditions in the U.S. are either “bad” or “terrible”…

As for those in the 25-29 age range, 52 percent of 266 such respondents said the economy was bad. About 3 in 10 respondents said it was terrible, for a combined percentage of 81 percent that view the economy negatively.

This is what a long-term economic collapse looks like.

Many people have had their heads in the sand for years, but meanwhile economic conditions have continued to deteriorate all around us.

A different survey that polled American adults of all ages found that 78 percent of us do not feel financially secure at this stage…

A new Intuit Credit Karma/Harris Poll study found that 78% of Americans don’t feel financially secure, even if they’ve been saving and playing by the rules.

Moreover, nearly 3 in 4 Americans (72%) shared that their current financial standing makes them feel like they will never have enough money to achieve the American dream.

Let’s get real.

These numbers didn’t suddenly appear in a vacuum.

The truth is that our standard of living has been declining for a very long time.

I am about to share something with you that is absolutely shocking.

One man recently shared his paystub that shows what he brings home every two weeks.

After taxes, healthcare and child support, his net pay after working 85 hours is just $163.02…

How is he supposed to live on that?

I am so frustrated with those that think that everything is going to be just fine.

The number of foreclosure filings in the U.S. skyrocketed in 2025, and in the first quarter of this year they were 26 percent above last year’s blistering pace…

The Wall Street Journal reported that data from Attom shows the number of U.S. properties with a foreclosure filing has trended up to nearly 119,000 in the first quarter, an increase of 26% from the same period last year.

That figure is the highest since the first quarter of 2020, when mortgage relief measures implemented to mitigate the economic impact of COVID shutdowns led to a steep decline in foreclosures.

Unfortunately, the crisis in the Strait of Hormuz is making things even worse.

The average price of a gallon of gasoline in California is now up to $6.114…

California gas prices have climbed to eye-watering levels, with one rural county emerging as one of the most expensive fuel markets in the United States.

Mono County, a remote area in eastern California just east of Yosemite National Park, is seeing average prices close to seven dollars per gallon, according to AAA data. That compares with a statewide average of $6.114 per gallon and a national average of $4.457.

As I discussed yesterday, some residents of Los Angeles are now paying more than 8 dollars a gallon.

Higher gasoline prices will mean that Americans have even less discretionary income to play around with.

Some restaurant chains are already feeling this…

Wingstop, a chicken-wing chain that touts its affordability, said that higher fuel prices contributed to an 8.7% decline in quarterly same-store sales.

The chain’s CEO, Michael Skipworth, said Wednesday on a call with investors that it was “extremely difficult for anyone to predict this macro environment,” adding that he expects shrinking sales over this year in part because of expectations that gas prices will remain high.

This is not something that may or may not happen someday.

This is happening right now, and we are witnessing the consequences all over America.

In Los Angeles, rampant social decay has become a way of life…

Reality star-turned-Los Angeles mayoral candidate Spencer Pratt shared a devastating must-see campaign advertisement on X, showing how dire the situation is in LA under Democrat leadership.

The somber video, titled “City of Angels, Fallen – Part 1,” uses a rapid montage of raw street footage, news clips, and on-screen text to show just how far Los Angeles has declined under Karen Bass and Democrats, noting, “business as usual is a death sentence.”

Included in the video are stark images of homeless camps, a person lying unconscious or asleep on a dirty sidewalk next to trash bags, a sandwich on a plate, scattered belongings, and individuals who appear to be in the throes of drug abuse.

How could we have allowed this to happen?

According to Pratt, there are 70,000 drug addicts that are roaming the streets…

Speaking on fire recovery, Pratt notes, “The city failed everyone. The insurance companies failed everyone.”

He continues, “Mothers who want to go to the park but don’t want to inhale fentanyl from the 70,000 drug addicts that the Mayor currently let’s live on our streets.”

Of course this isn’t just happening in Los Angeles.

In Seattle, street violence has become so common outside of one McDonald’s restaurant that it has become known as “McStabby’s”…

Two thugs were caught on video viciously beating an elderly man outside of ‘America’s scariest McDonald’s.’

The Seattle restaurant is so dangerous it is nicknamed ‘McStabby’s’, and bans customers from going inside due to constant mayhem.

In the latest chaotic scene, two men were seen standing on the street outside the eatery around 10pm on April 19 when a frail 77-year-old man walked towards them.

The two men then approached the victim before one struck him in the head.

Needless to say, it isn’t just old men that are being viciously attacked for no reason.

One very unfortunate 33-year-old man is on the verge of death after being hit in the head with a hammer more than a dozen times…

A 33-year-old Seattle man is fighting for his life after his mother says a stranger repeatedly hit him in the head with a hammer in an unprovoked assault.

Lisa Driscoll is calling for justice after her son, 33-year-old George Miller, was beaten repeatedly with a hammer just after midnight Monday outside the Renaissance Hotel. She says a stranger hit him in the head more than a dozen times.

“It was an evil, brutal, unprovoked, horrific attack,” Driscoll said. “Someone who was reported to appear to be hunting to attack someone crossed over, took a hammer out of their backpack and started beating him over the head repeatedly.”

Whether we like it or not, this is our country now.

We have raised an entire generation of young people that is simply not equipped to deal with very harsh economic conditions.

Sadly, economic conditions are only going to get harsher.

It is time to wake up, because a nightmare scenario really is upon us.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

The post More Than 80% Of Young Adults Believe That The Economy Is “Bad” Or “Terrible” And We Are Seeing The Consequences All Over America appeared first on The Economic Collapse.

California Is Facing A “Fuelmaggedon” As Fighting Erupts In The Middle East And The Strait Of Hormuz Remains Closed

Michael — Mon, 04 May 2026 20:21:37 +0000

Would you pay 8 dollars for a gallon of gasoline? I know that may sound crazy to many of you, but that is what some residents of Los Angeles are paying right now. Sadly, the west coast is more dependent on oil from the Persian Gulf than anywhere else in the continental United States, and now the last tanker that departed before the war with Iran began has arrived. What this means is that gas prices are going to go even higher on the west coast. In fact, some gas stations may soon need to add another digit on their pumps in order to accommodate prices that are higher than $9.99 a gallon.

After President Trump announced the start of “Project Freedom”, a few commercial vessels decided that they would try to make it through the Strait of Hormuz.

Shortly thereafter, the Iranians began firing.

A South Korean cargo vessel was among those that were targeted…

A South Korean ship sailing near the Strait of Hormuz was attacked on Monday, according to the Korean media outlet Chosun Daily, citing a government official.

U.S. warships were targeted too, and in response the Navy destroyed 6 Iranian fast attack boats…

The U.S. attacked Iranian boats in the Strait of Hormuz on Monday after Tehran targeted Navy ships, threatening to upend a fragile ceasefire and President Donald Trump’s new vow to open the critical pathway.

The U.S. military “blew up” six small Iranian boats after its forces launched “multiple cruise missiles, drones and small boats” at the ships but did not hit them, according to U.S. Central Command head Adm. Bradley Cooper, who leads America’s operations in the region. He did not say what impact this would have on the ceasefire.

The Iranians have also launched at least 15 missiles and 4 drones at the United Arab Emirates…

United Arab Emirates air defences engaged 15 Iranian missiles and four drones, its defence ministry says.

That includes 12 ballistic missiles and three cruise missiles, injuring three people.

Most of the missiles and drones were intercepted, but it appears that a significant amount of damage was done at the Fujairah Oil Industry Zone…

Flames also broke out at Fujairah Oil Industry Zone after a drone attack, which has left three Indian nationals with “moderate” injuries.

Plumes of dark smoke have been pummelling into the sky after the shock strike, some 80 miles from Dubai.

Needless to say, those running the UAE are extremely upset, and they are warning that they have a “full and legitimate right” to hit back…

The UAE’s foreign ministry said the attacks posed a direct threat to the nation’s security, adding that the UAE reserved its “full and legitimate right” to respond.

The ceasefire is dead, and that is really bad news for those that were hoping that gasoline prices would come down soon.

On Monday, it was being reported that the average price of a gallon of gasoline in the United States has now reached $4.45…

Gas prices are entering the summer driving season at record levels, with the national average hitting $4.45 on May 2—the highest ever for that date.

That’s up about $1.28 from a year ago, according to AAA, with prices rising across nearly every region.

Paying four and a half dollars a gallon is not the end of the world.

But in some parts of California, it is an entirely different story right now.

As I mentioned earlier, some residents of Los Angeles are now paying more than 8 dollars a gallon…

Long known for its sprawling freeways and car-centric lifestyle, Los Angeles is reaching a breaking point as fuel costs turn the simple act of driving into a “miserable, miserable, miserable” experience.

As regional gas prices soar past $8 a gallon, residents in the once-thriving Golden State are checking their eyes and their bank accounts, with some admitting they “thought it was a meme” or “thought it was AI.” But the financial pain is all too real for those living in the nation’s most expensive car culture, where filling a tank now requires a triple-digit investment.

“It’s very painful to drive in L.A. right now, and especially if you’re barely making minimum wage, it’s not even worth driving,” Amador, from Santa Clarita, told Fox News Digital during a man-on-the-street segment. “Thought it was a meme, thought it was AI, but looking at it up close, it’s kind of crazy to think you’re paying almost $9.”

That is crazy.

Sadly, gas prices in California could soon go a lot higher because “the final ship carrying oil from the Middle East” has reached the Port of Long Beach…

California is about to face the most brutal test of the gas crisis yet as the final ship carrying oil from the Middle East arrived in the Golden State.

The last oil tanker to pass through the Strait of Hormuz since the Iran war kicked off docked at the Port of Long Beach with two million barrels for gasoline, diesel and jet fuel.

Despite the West Coast being heavily reliant on fossil fuels out of the Persian Gulf due to crippling eco-policies from Gavin Newsom, there are no more vessels currently en route.

No more tankers from the Middle East will be arriving.

That is really bad news, because normally approximately 30 percent of California’s oil imports come from the Persian Gulf…

Last year, California refineries sourced around 30% of their foreign crude oil from the Persian Gulf, based on state data.

The Golden State is particularly vulnerable to war in the region as its status as an isolated energy island without gas pipelines has led it to increasingly rely on these imports.

The politicians in California didn’t want to build any pipelines.

Now they are going to pay a very great price for that decision.

Everyone was counting on a quick end to the war.

Now fighting has resumed, and I expect that this conflict will soon escalate dramatically.

But even if a miracle happens and some sort of a deal is reached, the Iranians are never going to allow traffic to flow through the Strait of Hormuz like it did before the war.

The Iranians have been very clear about the fact that they intend to manage traffic through the Strait of Hormuz from now on…

Statements have intensified following a message for National Persian Gulf Day attributed to Supreme Leader Mojtaba Khamenei.

In the message, he described the strait as a “strategic asset” and outlined a vision for the region’s future as “a future without America,” emphasizing the importance of “Iranian management of the strait.”

Parliament speaker Mohammad Bagher Ghalibaf signaled the shift most clearly, linking current policy to both strategic doctrine and historical precedent.

“Today as well, by exercising management over the Strait of Hormuz, Iran will ensure that it and its neighbors enjoy the valuable prospect of a future free from the presence and interference of America,” he wrote on X.

If the Iranians are allowed to charge tolls and restrict who is allowed to use the Strait of Hormuz on a permanent basis, it will strangle the global economy for years to come.

But the only way to break Iranian control over the Strait of Hormuz is by force.

Either option will have enormous consequences.

The bottom line is that we are still only in the very early stages of this crisis, and so the elevated gas prices that we are witnessing now could seem like a great bargain a few months down the road.

The post California Is Facing A “Fuelmaggedon” As Fighting Erupts In The Middle East And The Strait Of Hormuz Remains Closed appeared first on The Economic Collapse.

The Global Fertilizer Shortage Is Going To Mean The Spring Planting Season In The Northern Hemisphere Will Be A Total Disaster

Michael — Sun, 03 May 2026 20:37:05 +0000

Nobody is going to be able to save the spring planting season in the northern hemisphere now, and that is really bad news because according to the UN the number of people in the world experiencing acute hunger was already at an all-time high even before the war began. A historic global food crisis has been escalating for years, and now farmers all over the northern hemisphere either can’t get the nitrogen fertilizer that they desperately need or they are paying much more for it. As a result, global food prices will start rising dramatically once harvest season rolls around, and in many impoverished nations there simply won’t be enough food for everyone.

During normal times, approximately one-third of all globally-traded nitrogen fertilizer travels through the Strait of Hormuz, but right now it can’t get out of the Persian Gulf thanks to the Iranians. Unfortunately, if that nitrogen fertilizer doesn’t get into the hands of farmers in the northern hemisphere within a certain period of time they will completely miss the application window…

The Hormuz Strait carries roughly one-third of global fertilizer trade. If farmers miss the application window, no amount of catch-up planting can recover the loss. The International Grains Council estimates cumulative global wheat and coarse grain output could fall 53 million tons below last season, a shortfall larger than Ukraine’s entire annual grain export volume in a typical year.

According to a former co-chair of the White House’s Supply Chain Disruptions Task Force, the spring fertilizer application window in the northern hemisphere ends next month…

Spring fertilizer application in the Northern Hemisphere runs through June. Parts of Africa are entering the primary planting season now — a critical window for the continent’s most food-insecure populations. A missed window doesn’t delay a harvest — it eliminates it. The shortfall will be invisible until it materializes in spiking prices and empty shelves next fall.

This is the story the Hormuz blockade coverage is missing. The crisis isn’t just raising energy prices — it is breaking food supply chains. The world is facing a slow-motion catastrophe that will not announce itself until it is too late.

That last sentence is so true.

We really are facing a slow-motion catastrophe.

For example, we are being told that fertilizer shortages and high fuel costs have created a “critical threat” to global rice supplies…

Global rice supplies are facing a critical threat this year as farmers across Asia have been forced to reduce planting due to fertilizer shortages and soaring fuel costs, issues exacerbated by the ongoing Iran war. This situation is compounded by the emerging El Nino effect, which is anticipated to further tighten global rice output.

Rice is central to global food security, and even slight disruptions in supply can have wide-ranging effects. Experts warn that rising prices could pressure household budgets, especially in price-sensitive regions like Asia and Africa.

A lot less rice is going to be grown this year.

Meanwhile, the global population continues to grow.

So who is going to have enough rice to eat?

It won’t be the poor.

The wealthy will buy up whatever is available, and it will be at significantly higher prices.

There are close to 1.6 billion people living in Africa, and we are being warned that they will soon be facing soaring prices and food shortages…

The Iran war could have “dramatic consequences”, causing food shortages and price rises in some of Africa’s poorest and most vulnerable communities, the head of the world’s largest fertiliser company has said.

Svein Tore Holsether, the chief executive of Yara International, said world leaders needed to guard against soaring prices and shortages of fertiliser causing a de facto global auction that would leave the poorest countries, particularly in Africa, scrambling for supplies they could ill afford.

Here in the United States, food will still be available.

But it will cost a lot more than it once did, because farmers will be forced to pass along much higher costs for fertilizer and fuel…

Farmers have already begun to feel the effects, with rising fertilizer costs and shortages in supply.

The effects of the global conflict are being felt all over Ohio, Bales said. They have taken a large toll on areas such as north central Ohio and western Ohio, where a large amount of row cropping occurs.

“(Between the) double whammy of fertilizer and fuel, that is definitely going to make some tough decisions going forward,” said Bales.

This crisis is going to hit us a lot harder than most people realize.

One recent survey discovered that a whopping 70 percent of all U.S. farmers are unable to afford all the fertilizer that they need this year…

The result is wreaking havoc on farmers. An agricultural lobbying group, the American Farm Bureau Federation, ran a survey and found that 70% of farmers couldn’t afford all the fertilizer they needed.

“Fertilizer pre-booking rates varied significantly by region, with just 19% of Southern producers reporting fertilizer purchases secured ahead of the season, compared to 30% in the Northeast, 31% in the West and 67% in the Midwest, reflecting differences in planting decision timelines and exposure to recent price increases,” the AFBF wrote. Farm diesel prices, which fuel the heavy machinery used in the industry (other than small-scale farms that don’t produce the majority of food crops in the country) are up 46% since the end of February, according to the organizations.

We have never been through anything like this.

Some farmers have decided to switch to crops that require less fertilizer, and some farmers have decided not to plant at all this season.

In fact, the number of acres of wheat that U.S. farmers are planting this spring will be the fewest that we have seen “since record keeping began in 1919”.

If the Strait of Hormuz reopened tomorrow, and there is no way that is going to happen, it would take weeks for cargo vessels to reach their destinations.

And once the Strait does finally reopen, we are being told that “it could be months before supply chains normalize”…

“Even if the strait reopens, it will take weeks to bring the plants back online and get them running efficiently … it could be months before supply chains normalize,” the United States House Agriculture Committee wrote in a letter to the U.S. Department of Agriculture.

At this point, there is no saving the spring planting season in the northern hemisphere.

It is going to be a disaster.

Meanwhile, 60 different nations have implemented emergency energy policies within the past two months…

We desperately need the Strait of Hormuz to be reopened.

But the Iranians are telling us that this is going to be how it is from now on.

They are in full control of the Strait, and it appears that they just attacked yet another cargo ship…

A cargo ship was struck by multiple small craft while sailing near the Strait of Hormuz on Sunday, UK military officials said.

The ship, which was not immediately identified, was hit right off the coast of Sirik, Iran, just east of the strait, according to the British military’s United Kingdom Maritime Trade Operations Centre.

We are still in the very early stages of this nightmare.

If Iran holds the global economy hostage for an extended period of time, we will see economic chaos that is unlike anything we have ever seen before.

But for now most people in the western world are not taking this crisis seriously enough, because they are convinced that it is just a temporary bump in the road.

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A Flashing Red Warning Signal: In California, Gasoline Is 6 Now Dollars A Gallon And Diesel Is Now 7 Dollars A Gallon

Michael — Thu, 30 Apr 2026 19:43:50 +0000

You have probably noticed that gasoline is starting to become extremely expensive. That is really bad news for all of us, because our entire way of life depends on cheap energy. We can’t make stuff without energy. We can’t move stuff without energy. That is why the cost of energy directly affects the cost of everything else. In fact, energy is literally the foundation of our entire economy. If we have cheap energy we will have a high standard of living. If we do not have cheap energy we will not have a high standard of living. It really is that simple.

Prior to the war with Iran, energy prices were quite low, but now everything has changed.

Oil production in the Persian Gulf has dropped by 57 percent from pre-war levels, and hardly any oil and natural gas have been getting through the Strait of Hormuz over the past couple of months.

As a result, energy prices are soaring all over the world.

Here in the United States, the average price of a gallon of gasoline just hit $4.30…

Gasoline prices nationwide surged 27 cents over the past week as oil prices spiked. Drivers paid $4.30 per gallon on average across the U.S. Thursday, compared to $4.03 a week ago.

In late February, the average price of a gallon of gasoline in the United States was less than 3 dollars a gallon.

At this point, U.S. consumers are paying $1.32 more per gallon than they did just prior to the war.

If the conflict with Iran is not resolved quickly, things will get a lot worse.

In order to get an idea of where things could be headed, just look at what is going on in California.

The average price of a gallon of gasoline in California just reached $6.01…

California gasoline prices hit $6 per gallon on Thursday, a 30% increase since the U.S. and Israel launched the war against Iran in late February.

Drivers in California are paying the most in the nation at $6.01 per gallon on average, according to data from AAA.

A 30 percent increase in two months is crazy.

But this is the reality that we are living in now.

Before the war began, the average price of a gallon of gasoline in California was just $4.64.

This just shows how rapidly conditions can change.

Needless to say, the price of diesel has been going up even faster.

In California, it is up a whopping 47 percent since the beginning of the war…

Diesel, meanwhile, cost about $7.50 per gallon on average in California on Thursday, a 47% increasse since the war broke out on Feb. 28. Diesel is essential for the economy because the fuel is used by trucks and trains to deliver all the goods that consumers buy.

If prices for gasoline and diesel remain at these elevated levels, it will be very painful, but we can survive this.

But what will happen if oil prices continue to skyrocket?

On Thursday, the price of Brent crude actually hit $126 a barrel before falling back…

Oil prices surged to a wartime high Thursday, with Brent crude, the international benchmark, topping $126 a barrel as concerns grew that the Iran war will drag on, tightening global energy supplies.

We are being warned that the price of oil could easily reach 150 dollars a barrel if the Strait of Hormuz is not reopened quickly.

Unfortunately, it does not appear that is going to happen any time soon.

So I am encouraging everyone to prepare for an extended crisis.

Literally just about everything is going to become more expensive.

And that is really bad news, because a survey that was conducted before the war ever began discovered that more than half of all Americans were struggling to pay their bills on time each month…

A separate survey of 5,000 Americans, conducted by Talker Research for Current in December 2025, adds context to how raw the financial picture looks. In that study, 87% of respondents said the country is in a crisis because of how unaffordable life has become. More than half (52%) said they struggle to pay their bills on time each month, and 50% said they’ve had difficulty affording groceries.

Please read that paragraph again.

That was where we were at prior to the war with Iran.

Needless to say, substantially elevated energy prices will make our affordability crisis a great deal worse.

Of course it isn’t just U.S. consumers that are being affected by this.

U.N. Secretary-General Antonio Guterres is warning that “the whole of humanity is paying the price” and that we are now facing the “specter of global recession”…

The head of the United Nations warned Thursday of the “specter of global recession” if the U.S.-Iran war doesn’t end soon, imploring both sides to reopen the Strait of Hormuz and “let the global economy breathe again.”

Speaking to journalists in New York, U.N. Secretary-General Antonio Guterres said that despite the “fragile ceasefire” between the U.S. and Iran, the consequences of their ongoing standoff in the Strait of Hormuz “grow dramatically worse with each passing hour.”

“As with every conflict, the whole of humanity is paying the price,” he said. “The pain will be felt for a long time to come.”

I normally do not agree with U.N. Secretary-General Antonio Guterres about anything.

But in this case, he is right on target.

If the Strait of Hormuz does not reopen soon, there is no way that we are going to avoid a major global economic downturn.

Guterres is also claiming that 45 million people living on this planet could soon fall into “extreme hunger”…

If the constraint on shipping through the strait “drags on through midyear,” he said 32 million people would fall into poverty and 45 million “into extreme hunger,” he said.

According to the UN, the number of people experiencing acute hunger was already at an all-time record high even before the war with Iran started.

Now we are facing the worst fertilizer crisis in history. If you have not read the breakdown that I published about this earlier in the week, please go back and read it now.

There are so few prominent voices that are telling the truth about this.

The spring planting season in the northern hemisphere is going to be a disaster, and six to nine months from now global food shortages are going to hit us like a freight train.

Food prices will rise to shocking levels in wealthy nations, and there will be widespread famines in impoverished nations.

We desperately need the Strait of Hormuz to be reopened immediately, because we really are heading into an unprecedented nightmare.

The post A Flashing Red Warning Signal: In California, Gasoline Is 6 Now Dollars A Gallon And Diesel Is Now 7 Dollars A Gallon appeared first on The Economic Collapse.

The Global Oil Crisis Just Escalated To A New Level And U.S. Farmers Are Planting The Fewest Acres Of Wheat Since Records Began In 1919

Michael — Wed, 29 Apr 2026 19:32:04 +0000

Every single day that the Strait of Hormuz is closed, the damage that is being done to the global economy is getting even worse. But the full consequences of the global oil crisis that we are facing will not be felt for a while because nations all over the globe are still running through their strategic oil reserves. And the full consequences of the global fertilizer crisis that we are facing will not be felt until harvest season. So don’t judge the severity of this emergency by what we are experiencing at this moment, because the truth is that what we are experiencing at this moment is just the very small tip of a very large iceberg.

This week, it appears that more people out there are starting to understand that the Strait of Hormuz is not going to be reopened any time soon.

On Wednesday, President Trump explained that he is not going to lift the U.S. naval blockade of Iranian ports until Iran agrees to give up their nuclear program…

US President Donald Trump told Axios that he would keep Iran under a naval blockade until Tehran agreed to a deal addressing US concerns over its nuclear program.

“The blockade is somewhat more effective than the bombing,” Trump was quoted as saying. “They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon.”

Trump said Iran wanted a deal to lift the blockade, but added he did not want to do so unless Tehran was prevented from obtaining a nuclear weapon.

“They want to settle. They don’t want me to keep the blockade. I don’t want to [lift the blockade], because I don’t want them to have a nuclear weapon,” he said.

But Iran is not going to give up their nuclear program.

In fact, a member of Iran’s Supreme Council of Experts has stated that it is “forbidden to hold any negotiation on the right to enrich uranium”…

Ahmad Kaveibi, member of Iran’s Supreme Council of Experts:

“It is forbidden to hold any negotiation on the right to enrich uranium. This issue falls outside the negotiation’s framework. This contradicts the position of the Supreme Leader and is forbidden from a jurisprudential standpoint.”

Over and over again, Iran has steadfastly refused to even negotiate about their “right” to enrich uranium.

But Trump seems to be convinced that if he just puts enough pressure on the Iranians they will eventually change their minds.

We shall see.

The Iranians know that midterm elections are looming in the United States, and so the clock is ticking for Trump.

If the Democrats take control of both houses of Congress, they would likely force Trump to end the blockade and leave Iran alone.

So from an Iranian point of view, all they have to do is hold out until the end of the year and they win.

Meanwhile, the global economy just continues to suffer.

Even if the Strait of Hormuz reopened tomorrow, it would still take up to 6 months to fully clear all of the mines that have been laid…

It could take six months to fully clear the Strait of Hormuz of mines deployed by the Iranian military, and any such operation is unlikely to be carried out until the U.S. war with Iran ends, the Pentagon has informed Congress — an assessment that means the conflict’s economic impact could extend late into this year or beyond.

A senior Defense Department official shared the estimate, which has not been previously reported, during a classified briefing Tuesday for members of the House Armed Services Committee, said three officials familiar with the discussion. The timeline — met with frustration by Democrats and Republicans alike, two of these people said — is perhaps the clearest sign that gasoline and oil prices could remain elevated long after any peace deal is reached.

And it isn’t just a matter of restoring the flow of traffic through the Strait.

Oil production in the Persian Gulf region is down 57 percent from pre-war levels.

Thanks to damage that has already been done during this war, it will literally take years for production to return to 100 percent.

The head of the International Energy Agency is warning that we are facing “the greatest energy security crisis in history”…

Fatih Birol, chief executive of the International Energy Agency, has called the ongoing closure of the Strait of Hormuz “the greatest energy security crisis in history”, insisting it is “more serious” than the previous energy shocks in 1973 (when some Arab states imposed an oil embargo on the West), 1979 (caused by the Iranian revolution) and 2022 (Ukraine) “put together”.

In a book that I authored during the early part of 2025, I discussed the fact that a great conflict in the Middle East would cause oil prices to rise dramatically.

And that is precisely what has occurred.

On Wednesday, oil prices rose to the highest levels that we have seen during this war so far…

Oil prices jumped more than 6% on Wednesday, after President Donald Trump said he will maintain the U.S. naval blockade against Iran until they agreed to a nuclear deal.

International benchmark Brent crude futures rose more than 6% to $118.33 per barrel by 12:10 p.m. ET, U.S. West Texas Intermediate futures also advanced more than 6% to $106.37 per barrel.

If the Strait of Hormuz remains closed, this will only be just the beginning.

A lot of people are freaking out because the average price of a gallon of gasoline in the United States is now well above 4 dollars a gallon…

U.S. gas prices have hit a fresh record since the start of the war with Iran, rising to an average nationwide of $4.23 per gallon Wednesday, according to the motor club AAA.

The grim milestone comes as oil prices have surged higher over the past week amid a dual blockade by the U.S. and Iran of the Strait of Hormuz, the key chokepoint in the region for transiting crude and petroleum-based products out of the Persian Gulf.

If people are freaking out now, what will they do when the price of gasoline goes much higher?

Meanwhile, we are also facing the worst global fertilizer crisis in history by a very wide margin…

More than half of the Middle East’s urea output may have been lost since the start of the Iran conflict, which is continuing to disrupt fertilizer flows from the region and threatening global food inflation.

The effective closure of the Strait of Hormuz has choked shipments of urea, a key component in nitrogen fertilizers, leaving large volumes stranded in the Gulf and tightening supplies for farmers around the world. At the same time, Iranian drone attacks on nations including Qatar and Bahrain have damaged energy and industrial infrastructure, hindering production of the chemical itself.

That has forced urea manufacturers in the region to curb operations, with 55% to 60% of output potentially halted, according to consultancy CRU Group.

Without sufficient supplies of nitrogen fertilizer, we can’t even come close to growing enough food to feed everyone on this planet.

In other words, we really are facing a scenario in which large numbers of people in impoverished nations could end up starving.

At the same time, U.S. wheat farmers are facing the worst drought in the heartland of America since the Dust Bowl days of the 1930s…

U.S. wheat futures rallied to the highest in nearly two years Tuesday, as drought in U.S. Plains wheat fields pressures yields while soaring fertilizer costs have caused farmers to trim planting of nutrient-intensive crops such as grains.

CBOT wheat futures surged after the latest Crop Progress report from the U.S. Department of Agriculture said only 30% of the winter wheat crop is in good or excellent condition as of April 26.

The amount of winter wheat that gets harvested this year is going to be very disappointing.

Looking ahead, it is being projected that the number of acres of wheat that U.S. farmers are planting in the spring will be the fewest “since record keeping began in 1919”…

U.S. growers were poised to plant the fewest acres of wheat since record keeping began in 1919, as high costs for fertilizer, seeds, and equipment have made it difficult to turn a profit.

Yes, this is really happening.

If you think that the price of cookies is high now, you should brace yourself, because you haven’t seen anything yet.

In some areas of the country, conditions are so exceedingly dry that it just doesn’t make sense for farmers to try to grow anything.

Dane Wigington is warning that we are heading into a “summer from hell”…

What is going to happen when summer starts? Wigington says, “This is the summer from Hell that we are approaching right now. This will be like no other. The snow pack in the Colorado River watershed is almost nonexistent. The snowpack in the Sierra Nevada averages about 20%. In the Northern Sierra, it is about 5%. That’s 5% of normal. Why isn’t that headline everywhere? People have no idea what is coming. . .. What will happen in the Southwest? We are going to find out soon. Right now, they are frantically discussing desalination facilities in the Gulf of California. . .. That is idiocy and not going to save anything. It can’t be done in any time frame that matters.”

This isn’t a coincidence.

Most of my regular readers already understand this.

If you look at the latest U.S. Drought Monitor map, it looks like a horror show.

There is no easy way out of this.

It will take some time for the full consequences of this nightmare to arrive, but when they do our society will experience immense pain.

The post The Global Oil Crisis Just Escalated To A New Level And U.S. Farmers Are Planting The Fewest Acres Of Wheat Since Records Began In 1919 appeared first on The Economic Collapse.

55 Percent Of Americans Say That Their Financial Situations Are Getting Worse – That Is An All-Time Record High

Michael — Tue, 28 Apr 2026 18:51:49 +0000

Americans were not even this stressed about their financial situations during the Great Recession. As you will see below, a brand new Gallup survey has discovered that 55 percent of Americans believe that their finances are getting worse. That is higher than any reading that Gallup recorded during the recession of 2008 and 2009, and it is higher than any reading that Gallup recorded during the pandemic. But of course this shouldn’t exactly be a surprise to any of us. We have been in a historic cost of living crisis since 2020, and our standard of living has been steadily deteriorating as the purchasing power of our money has gone down.

If you are making the same amount of money as you did at the beginning of this decade, you are in far worse shape financially today.

That is just the reality of the time that we are living in.

The cost of just about everything has been going up and up and up.

As a result, people are more concerned about the economy than anything else.

According to Gallup, the percentage of Americans that believe that their finances are getting worse has been rising for five years in a row and is now at the highest level ever recorded…

Americans’ financial outlook in 2026 is also historically poor, with a record 55% now saying their financial situation is getting worse. While similar to last year’s 53%, this is up from 47% in 2024 and marks the fifth consecutive year more Americans say their finances are worsening rather than improving.

The only similar multiyear period when the larger share felt their financial situation was worsening was during the Great Recession.

At this stage, there is no denying the trend that we are witnessing.

Gallup found that Americans are particularly concerned about monthly bills, healthcare and retirement…

Majorities worry about not having enough money for retirement (62%) and being unable to cover medical costs in the event of a serious accident or illness (60%). Slightly smaller majorities (54% each) worry about their investment returns and maintaining their standard of living.

Nearly half are concerned about routine healthcare costs (48%), while 41% worry about paying their normal monthly bills and 40% about affording college. Fewer worry about housing costs (35%) or making minimum credit card payments (28%).

Living paycheck to paycheck is not fun at all.

Many of you know exactly what I am talking about.

Today, much of the country is just one major setback away from financial ruin…

According to a recent national survey, a little over $6,000 in additional debt is all it takes to push a family over the edge. Six thousand dollars. The cost of a half-decent secondhand car. A modest kitchen renovation. In the country that put a man on the moon, mapped the human genome, won two world wars, and produces more billionaires per capita than anywhere on earth, that’s the cliff edge.

The old vocabulary no longer fits. The conservative catechism of thrift, discipline, and delayed gratification has aged poorly in light of the evidence. Tariffs, as the survey notes, rippled through supply chains and left a sizeable dent in consumers’ pockets. Health care waits in the background, capable of dismantling a decade of careful saving with a single bad diagnosis. American households have always lived under financial pressure. The difference now is the direction — or rather, the directions. It is coming from everywhere at once, which is what makes it almost impossible to outrun.

The middle class is being systematically eviscerated all around us.

It is a national crisis that just keeps intensifying year after year.

As finances have gotten tighter and tighter, millions upon millions of Americans have fundamentally changed their behavior…

The response has been behavioral rather than political, which is another way of saying people have given up waiting for someone to fix it. Nights out get canceled. Rent falls behind. Medical appointments get postponed and rarely rescheduled. None of this is irrational. When survival takes priority, everything else enters a waiting room with no clear appointment time. What makes it particularly disturbing is that financial distress doesn’t stay financial. It moves through relationships and communities, rearranging what people believe is possible for themselves.

Some will call it hyperbolic to suggest the American Dream is dead. Perhaps. But a dream balanced on a six-thousand-dollar ledge, in a stiff wind, is not exactly thriving. With energy prices soaring and the probability of a recession climbing with every new data release, the wind is picking up.

What about you?

Have you found yourself changing your spending behavior in recent years in an attempt to save money?

If so, there are countless others that are in the exact same shoes.

Unfortunately, the outlook for the months ahead is not promising at all.

On Tuesday, the average price of a gallon of gasoline in the United States rose to the highest level that we have seen since the war with Iran began…

Gas prices climbed Tuesday to their highest level since the Iran conflict began.

The national average for a gallon of regular hit $4.18, up 15 cents from a week earlier and about $1 higher than a year ago, according to AAA.

As energy prices rise, it is going to affect the cost of everything else too.

Meanwhile, the government just continues to tax us into oblivion.

As I have detailed in other articles, each year Americans are hit with literally dozens of different taxes and fees.

When you add all of them together, some Americans end up paying more than 50 percent of their incomes in taxes and fees.

In fact, Bill Maher is claiming that he pays about 60 percent of his income in taxes and fees…

Even for liberal HBO host Bill Maher, the math behind Tax Day no longer adds up.

Maher took to his platform on “Real Time” to sound the alarm on a staggering personal tax burden that he says claims the majority of his earnings, sparking a wider debate on whether the American government is simply “incompetent and corrupt” despite a $5 trillion revenue stream.

“Last week was Tax Day… I paid to the government, if you add in state tax, local, sales, property, fees, Obamacare, probably almost 60% of what I earn. That’s a lot,” Maher said on a recent episode.

If you have to hand over more than half of what you earn to the government, you are no longer living in a capitalist system.

Some people out there don’t seem to have figured that out yet.

In this environment, you should be thankful if you still have an income coming in, because we continue to see mass layoffs all over the nation.

For example, Nike just announced yet another round of layoffs…

Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the organization, mostly concentrated in its technology department.

In a note from COO Venkatesh Alagirisamy, the company said the layoffs were part of Nike’s broader “Win Now” turnaround strategy aiming to reshape its technology team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.

Our economy is coming apart at the seams all around us.

And now the crisis in the Middle East threatens to plunge the entire global system into an extended downturn.

We really are facing a nightmare scenario, and it won’t be too long before that is completely and utterly obvious to everyone.

The post 55 Percent Of Americans Say That Their Financial Situations Are Getting Worse – That Is An All-Time Record High appeared first on The Economic Collapse.

Oil Production In The Persian Gulf Has Fallen 57 Percent From Pre-War Levels – Rationing And Shortages Are Coming

Michael — Mon, 27 Apr 2026 19:24:41 +0000

They aren’t telling you the truth about what is coming. Even if the Strait of Hormuz reopens tomorrow, and there is no way that is going to happen, oil production will not return to pre-war levels for years. In other words, we are facing an extended global energy crisis no matter what happens now. Of course if the fighting resumes and more oil and gas infrastructure is destroyed, the consequences that we will experience will be even worse. We are already witnessing rationing and shortages in some parts of Asia because they are more dependent on energy from the Middle East than anyone else. But as nations all over the world run through their strategic reserves, rationing and shortages will become a lot more widespread during the months that are ahead of us.

Most people living in the western world have no idea how much damage has already been done to oil and gas infrastructure in the Middle East.

According to Goldman Sachs, oil production in the Persian Gulf has declined by a whopping 57 percent from pre-war levels…

The war with Iran is having an enormous impact on the global oil market. According to an estimate by Goldman Sachs, oil production from the Persian Gulf region is down 57% from its pre-war level, or about 14.5 million barrels per day. The world is currently covering the shortfall by drawing oil from storage, including a record 400 million barrel release by members of the International Energy Agency (IEA).

If the war ends soon, some of that production will be quickly restored.

But there are many oil and gas facilities that have been completely destroyed, and it is being projected that it could take up to 50 billion dollars to rebuild that infrastructure…

Repair and restoration costs for energy-linked infrastructure as a result of war in the Middle East could hit $58 billion, Rystad Energy analysis shows, with the total for oil and gas facilities potentially up to $50 billion. Three weeks after we published an initial estimate of $25 billion in repair costs across Gulf energy infrastructure, the scope of damage has expanded materially. The continuation of military strikes drove up the number of impacted assets across the region before largely subsiding following an 8 April ceasefire between the US and Iran. This pushed the estimate for the average in potential total repair and restoration spending to $46 billion – representing the midway point in the range of $34 billion to $58 billion – across oil and gas infrastructure, inclusive of an average of $5 billion across industrial, power and desalination assets. The ceasefire, combined with stalled negotiations and renewed escalation risk, continues to shape the operating environment, alongside risks of disruption and potential blockades affecting shipping through the Strait of Hormuz.

Even if reconstruction begins immediately, it would likely take until 2029 or 2030 before all of the oil and gas facilities in the region are fully restored.

So what is the rest of the world supposed to do while we wait for that to happen?

At this moment, everyone is running through their strategic reserves.

For some countries those reserves will last for months, but for other countries those reserves will only last for weeks.

Once the reserves are gone, shortages will start making a lot more headlines and prices will escalate significantly.

Of course the price of oil has already risen to very painful levels…

Oil prices climbed almost 3% Monday as hopes for a peace deal between the U.S. and Iran dimmed and energy shipments through the Strait of Hormuz remained extremely constrained.

The price of international benchmark Brent Crude was up about $3, or almost 3%, to $108.36 per barrel early Monday morning, its highest price point in three weeks. U.S. West Texas Intermediate was up 2.6% before U.S. markets opened, at $96.85.

This is going to affect virtually every man, woman and child on the entire planet, because our entire way of life is fueled by energy.

When energy prices go up, our standard of living goes down.

Unfortunately, energy prices have been going way up since the start of the war…

In the United States, the cost of a gallon of gas has increased by over a dollar since the strait closed, and the cost of diesel is up nearly 50 percent. Gas prices in Europe have increased by around 10 percent, and the region is facing a jet fuel shortage and concerns about the flow of liquid natural gas (LNG). Asia is being hit even harder. Roughly 20 percent of the world’s oil and LNG passes through the strait. Over 80 percent of this fuel goes to Asia. Several Asian countries, such as the Philippines, Japan, and South Korea, are now facing a real energy crisis.

Some Americans are now spending more than $100 to fill up their vehicles, and the average price of a gallon of gasoline in the United States has now surpassed the four dollar mark…

The average price of gasoline in the U.S. rose 7 cents over the last week and currently stands at $4.04 per gallon, according to new data released by GasBuddy, an app that tracks gas prices across parts of North America and Australia. Within the U.S., that data comes from more than 12 million price reports at roughly 150,000 gas stations nationwide, according to the company.

What has shocked me is the apathy that I am seeing out there.

Most people just assume that everything is going to work out just fine somehow.

Our attention spans have become so short that most of us can no longer see what is coming just a few months down the road.

Thanks to the crisis in the Middle East, we are facing the worst fertilizer crisis in history.

If nitrogen fertilizer is not applied to annual crops such as wheat and barley each season, yields will be way down…

Nitrogen-based fertilisers such as urea must be applied each season for many crops and directly influence annual yields as well as quality parameters, including protein content in wheat.

Farmers can cut back on other core nutrients, such as phosphate and potash, without immediate yield losses.

Many farmers all over the world will not be applying nitrogen fertilizer this year.

As a result, those particular farmers will be growing a lot less food in 2026.

I don’t know why this is so hard for some people to understand.

Right now, harvest forecasts are being slashed all over the planet…

Agricultural bodies, including the International Grains Council, are already cutting their forecasts for the next harvests, however. And the United Nations, which is trying to negotiate shipping access for fertiliser through the Gulf, has sounded ⁠the alarm over food security in developing nations.

This is not a drill.

This is really happening.

What we desperately need is for the Strait of Hormuz to be reopened as soon as possible.

Sadly, we are farther away from an agreement between the U.S. and Iran than ever.

The Iranians feel like they have won the war and have all the leverage, and so at this stage they are not even willing to talk about their nuclear program with the United States at all…

Iran is no longer willing to negotiate over its nuclear program at all, per Tasnim. Discussions will only cover ending the war, sanctions relief, compensation, and lifting the blockade. Nuclear issues “could be addressed later in a separate agreement,” only after the war has ended.

Nuclear was the central issue in the first round of Islamabad talks, with Trump saying it was “the only point that really mattered.” Iran has now removed it from the table entirely.

Trump says the war won’t end without a nuclear deal. Iran says nuclear won’t be discussed until the war ends.

The Iranians expect the Trump administration to give in, and the Trump administration expects the Iranians to give in.

But neither side is going to give in, and it appears that it is just a matter of time before more fighting breaks out.

Meanwhile, the Strait of Hormuz continues to be closed, and it is likely to remain that way for an extended period of time.

The post Oil Production In The Persian Gulf Has Fallen 57 Percent From Pre-War Levels – Rationing And Shortages Are Coming appeared first on The Economic Collapse.

The Worst Fertilizer Crisis In The History Of The World Will Result In Widespread Famine In The Poorest Nations

Michael — Sun, 26 Apr 2026 20:30:52 +0000

Thanks to the crisis in the Strait of Hormuz, there isn’t going to be enough fertilizer for everyone in 2026. What is available is going to be gobbled up by the wealthy countries because they have the most money. Of course higher fertilizer costs will ultimately be passed along to consumers, and so we will all be paying much higher prices for food in the months ahead. But in the poorest nations on the entire planet, a lack of fertilizer could mean the difference between life and death. A dramatic reduction in the amount of fertilizer that farmers use will result in a dramatic reduction in the amount of food that is grown in those countries. Of course many of those countries were already dealing with very high levels of food insecurity, and the UN has admitted that acute hunger was already at the highest level ever recorded even before the war with Iran began. What the world is facing is unlike anything that any of us have ever seen before, and large numbers of people could literally end up starving to death.

I wish that I was exaggerating.

Without sufficient quantities of fertilizer, there is no way that we could possibly feed the 8 billion people that are living on this planet today.

Unfortunately for all of us, spring planting season is here and much of the world’s supply of fertilizer is trapped because the Strait of Hormuz is closed…

But the share of world supply of urea – the most popular commonly used fertiliser – that typically passed through the strait before the conflict was more than twice that, at 43%.

For sulphur – used to produce phosphate fertilisers – the figure is 44%.

For anhydrous ammonia – another nitrogen fertiliser – 27% of global supply on average passed through the strait between 2019 and 2023.

In addition, many nations normally use natural gas that is exported through the Strait of Hormuz to make their own fertilizer.

So this is why it is so important for the Strait of Hormuz to be opened as soon as possible.

If that does not happen, one UN official is warning that the consequences will be “very significant and severe, particularly for the poorest countries and for the poorest citizens”…

In response, United Nations Secretary-General António Guterres established a task force to facilitate the safe passage of fertilizers and related raw materials for humanitarian purposes.

It is headed by Jorge Moreira da Silva, Executive Director of the UN Office for Project Services (UNOPS), which provides infrastructure, procurement and project management services across the world.

“We can’t wait until everything has been fixed,” he said in an exclusive interview with UN News.

“The planting season has already started…So if we don’t get some solution immediately the crisis will be very significant and severe, particularly for the poorest countries and for the poorest citizens.”

This is really happening.

I have many regular readers in Africa, and it is being reported that African farmers are facing a major fertilizer shortage this year…

Food security in Africa could face major disruptions due to continuing uncertainty in the Strait of Hormuz.

The conflict between the United States, Israel and Iran is disrupting global fertiliser trade flows – and this stands to leave millions of African farmers without the ammonia, urea, phosphate, sulphur and other fertiliser inputs vital to growing more food in sub-Saharan Africa.

Even a small drop in fertilizer availability could be catastrophic.

The UN’s Food and Agriculture Organization is telling us that just a 10 percent reduction in the fertilizer supply in Africa could mean that 25 percent less maize, rice and what is grown this year…

According to the Food and Agriculture Organization, even a 10 percent reduction in fertiliser availability could result in up to 25 percent less maize, rice and wheat grown in sub-Saharan Africa.

Nitrogen fertilizer causes explosive crop development.

Without it, many farmers will grow far less food in 2026.

Even here in the U.S., there are farmers that have decided not to use any nitrogen fertilizer this year because it now costs way too much…

The drought compounds economic strains, including elevated fertilizer costs tied to global events. US Representative Frank Lucas, a Republican from Oklahoma, noted he skipped nitrogen applications on his western Oklahoma wheat fields.

“I didn’t have enough moisture — it wouldn’t have done any good,’’ Lucas said. “Number two, I’m not even sure what the cost would be.”

U.S. farmers are currently facing a double crisis.

In addition to skyrocketing fertilizer prices, conditions throughout much of the middle of the nation are bone dry.

On Friday, I explained to my core supporters that March 2026 was the third driest month ever recorded in the United States.

Only July 1934 and August 1934 were drier, and that was during the Dust Bowl days.

Because things are so dry, massive wildfires are erupting with alarming frequency. For instance, two extremely large wildfires have already burned more than 40,000 acres in Georgia…

Two massive wildfires in south Georgia have scorched more than 40,000 acres and destroyed over 120 homes.

Extreme drought has turned the region into a tinderbox and allowed flames to spread. Overnight, new fires sparked in rural south Georgia. High winds have made efforts to contain the fires difficult, officials said in a news conference Saturday afternoon.

Brantley County Manager Joey Cason called the wildfires a “dynamic situation” in a Saturday morning video posted to social media and begged residents to “please evacuate” if they are ordered to do so. New evacuation orders were issued as the fire spread.

This is going to be such a challenging year.

Far less food will be produced in the U.S. than normal this year, and the same thing could be said about many other major food exporters.

In Australia, they are projecting that wheat production could be down by up to 25 percent.

If farmers do not grow our food, we do not eat.

What we really need is for the Strait of Hormuz to be reopened as quickly as possible, but that isn’t going to happen.

In fact, talks between the U.S. and Iran have totally broken down…

Hopes of a diplomatic breakthrough in the U.S.-Israeli war with Iran faded on Sunday, as efforts to revive talks stalled and ⁠both Tehran and Washington showed little sign of softening their positions.

Iranian Foreign Minister Abbas Araghchi flew back to the Middle East from mediation talks in Pakistan over the weekend, while U.S. President Donald Trump scrapped a planned visit to Islamabad by his envoys Steve Witkoff and Jared Kushner.

The Trump administration is not going to compromise on their key demands, because they are afraid that Israel could be destroyed “within minutes” if Iran is able to produce nuclear weapons…

US President Donald Trump said Sunday that Israel would be destroyed “within minutes” if Iran obtained a nuclear weapon, warning the world would be in danger.

He added that previous US administrations should have acted earlier to stop Iran’s nuclear ambitions.

On the other side, the Iranians have stated that they will not move from their key list of demands, and they are insisting that they are more than ready for fighting to resume…

Iran produces more than 1,000 types of weapons domestically, including missiles, drones and military systems, defence ministry spokesperson Reza Talaei-Nik said.

“Today, more than 1,000 types of weapons… are produced entirely domestically,” he said, adding the capability is the result of over 25 years of investment in the defence sector.

He said production is spread across the country so it can continue even if some facilities are damaged, and added that around 9,000 companies are involved in supporting the defence industry.

The Iranians can hit us much harder and in a lot more ways than most people realize.

Even the Trump administration is greatly underestimating Iran’s capabilities, and that could have tragic consequences for the entire globe.

Once fighting resumes, I am entirely convinced that we will witness some shocking escalations.

And it appears that the Strait of Hormuz will remain closed for the foreseeable future, and that probably means that widespread famine is inevitable now.

The post The Worst Fertilizer Crisis In The History Of The World Will Result In Widespread Famine In The Poorest Nations appeared first on The Economic Collapse.

What Is Going To Happen When The Oil Reserves Run Out And The Tankers Stop Arriving?

Michael — Thu, 23 Apr 2026 19:43:24 +0000

A lot of people out there seem to think that the crisis in the Strait of Hormuz is not that big of a deal, and that is because we aren’t feeling the consequences yet. By the end of this month, the last oil tankers that left the Persian Gulf before the war with Iran began will have arrived at their destinations. And right now nations all over the globe are running through their strategic energy reserves. Some nations have months of oil left, and some nations only have weeks of oil left. As those reserves start to run dry, we are going to witness a supply crunch that is absolutely unprecedented.

If you don’t believe me, perhaps you will believe the head of the International Energy Agency.

He is warning that we are “facing the biggest energy security threat in history”…

“We are facing the biggest energy security threat in history,” Fatih Birol, the head of the International Energy Agency, or IEA, told CNBC on Thursday.

“As of today, we’ve lost 13 million barrels per day of oil … and there are major disruptions in vital commodities,” he told Steve Sedgwick virtually at CNBC’s CONVERGE LIVE in Singapore.

Birol has previously warned that the Iran war and ongoing closure of the Strait of Hormuz would result in “the largest energy crisis we have ever faced” and urged governments to bolster their resilience with alternative energy sources.

For now, we are only witnessing limited rationing and limited shortages around the world because everyone is running through their strategic reserves.

And so it feels like we are going to come through this okay.

But the truth is that we aren’t.

Global supplies of oil and natural gas will get steadily tighter during the months ahead.

The Iranians are hardly letting any commercial vessels get through the Strait of Hormuz, and even if they suddenly changed their minds tomorrow we are being told that it could take up to six months to clear all of the mines out of the Strait of Hormuz…

It may take up to six months to completely clear the Strait of Hormuz of Iranian mines, according to a new report.

A Defense Department official relayed the estimate to lawmakers during a closed-door congressional briefing on Tuesday, three sources familiar with the matter told The Washington Post.

The assessment points to potentially long-lasting economic consequences, as the strait — now subject to dueling U.S. and Iranian blockades — is a critical trade artery that carried 20 percent of the world’s oil before the war.

It appears that Iran has been using this temporary ceasefire to lay more mines in the Strait.

And clearing them will not even begin until the end of the war…

Any efforts to remove the mines won’t even begin until the war ends, the official warned.

The Iranian navy began placing mines in the Strait of Hormuz in March, as US-Israeli forces continued their joint attacks on the country.

Meanwhile, Donald Trump is promising that the U.S. blockade of Iranian ports will continue until Iran finally agrees to make a deal…

I am convinced that Trump is quite serious about this.

According to CENTCOM, more than 30 vessels have been redirected by the U.S. Navy since the blockade was initiated…

The last update by CENTCOM, on Wednesday night, said 31 ships had been redirected since the start of the blockade.

Iran has called the blockade a violation of the ceasefire agreement, while the U.S. says it will remain in place as a condition of negotiations.

With Iran and the U.S. both blocking traffic, barely anything is getting out of the Persian Gulf.

It is a ticking time bomb for the entire global economy, and we are potentially facing catastrophic supply disruptions…

The scale of these observed and potential supply disruptions is without precedent. The 1973 oil embargo wiped roughly 7 percent of global oil production off the market but was politically reversible. The present crisis has reduced 13 percent of global supply, at least temporarily, and it is a physical disruption. The recovery of damaged infrastructure will take months or even years. Finally, the Middle East accounts for about 30 percent of total global oil supply; in a worst-case scenario, virtually all these volumes could be at risk.

The nations that will be the least affected are those that either do not need to import oil or that have accumulated large reserves.

For example, China possesses the largest strategic oil reserves in the entire world…

New data from the US government released this week shows just how aggressively China added to its oil reserves ahead of the war in Iran.

The US Energy Information Administration estimates China ended 2025 with nearly 1.4 billion barrels of oil stocked away, compared to 1.2 billion barrels among the 32 members of the International Energy Agency (IEA), which includes 413 million barrels in US coffers.

And the US has been drawing down its stockpile, with the latest US reserve levels showing about 405 million barrels following the sale of over 8 million barrels in the first half of April.

Even though the Chinese buy more oil and natural gas from the Middle East than anyone else, they will be able to function normally for many months.

Other countries will not have that luxury.

Before the war, it was being projected that the strategic reserves that the UK is holding can only last for about 90 days…

As of February 26, according to the UK Department of Energy Security and Net Zero, the UK holds about 38 million ⁠barrels of crude oil and 30 million barrels of refined products, as strategic reserves. The reserves are thought to be able to last around 90 days.

Other European countries are in even tougher positions.

Shortages of jet fuel will probably start to show up first.

At this point, we are being told that Europe only has about six weeks of jet fuel left…

Jet fuel prices have risen even faster, doubling in price to almost $200 a barrel. And as the war drags on, jet fuel is getting harder to come by for countries that don’t produce it or have limited supplies.

“In Europe, we have maybe six weeks or so (of) jet fuel left,” the International Energy Agency’s executive director, Fatih Birol, told the Associated Press on April 16.

It appears to be inevitable that flights will be canceled and planes will be grounded on a widespread basis.

In fact, Lufthansa has already announced that it will be eliminating about 20,000 short-haul flights…

Lufthansa is cutting roughly 20,000 short-haul flights this summer, citing a spike in jet fuel prices that has rendered many routes “unprofitable” as the global aviation industry grapples with rising costs.

The German carrier said Tuesday the cuts, which will run through October, are expected to save about 40,000 metric tons of jet fuel. The airline noted that fuel prices have roughly doubled since the outbreak of the Iran war.

“In total, 20,000 short-haul flights will be removed from the schedule through October, equivalent to approximately 40,000 metric tons of jet fuel, the price of which has doubled since the outbreak of the Iran conflict,” the company said in a statement. “The schedule adjustments reduce the number of unprofitable short-haul flights across the Lufthansa Group network.”

If the Strait of Hormuz is not opened soon, this will only be just the very beginning.

David Roche can see what is happening, and he is suggesting that a worst case scenario is ahead of us…

Irishman David Roche see’s what’s coming:

“We are going to run out of fuel in the global economy”

“The markets are in cloud cuckoo land”

“We are moving beyond initial inflationary affects to the second stage where there is no gas to price”

“Within a few months we will be in an economy which has to adjust downwards to eliminate demand for fuel that’s not there”

Sadly, if we can’t get the Strait of Hormuz opened we really will experience a global nightmare.

It is so frustrating to me that so many people out there do not seem to understand this.

Just because we aren’t experiencing the full consequences of this crisis today does not mean that those consequences are not coming.

It is going to take time for the strategic oil reserves to run dry.

But once they do, things are going to get really crazy.

The post What Is Going To Happen When The Oil Reserves Run Out And The Tankers Stop Arriving? appeared first on The Economic Collapse.

18 Shocking Facts That Prove That The U.S. Economy Is In Far Worse Shape Than Most People Realize

Michael — Wed, 22 Apr 2026 22:18:49 +0000

The economy has been the number one issue for U.S. voters for several years in a row, and it isn’t because things are good. Consumer confidence is at an all-time low, inflation is starting to accelerate once again, mass layoffs are being conducted all over the nation, and delinquencies and foreclosures are soaring. Nobody can dispute any of the facts that I am about to share with you. We have an enormous economic mess on our hands, and now the crisis in the Middle East threatens to plunge the entire global economic system into chaos in the months ahead. In other words, conditions are not good now and the outlook for the future is not promising at all. The following are 18 shocking facts that prove that the U.S. economy is in far worse shape than most people realize…

#1 Consumer confidence in the United States has fallen to an all-time record low…

Consumer confidence plunged to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey Friday.

The university’s headline index of consumer sentiment tumbled to 47.6, down 10.7% from the March survey to its lowest on record. Current conditions and expectations indexes also saw double-digit monthly declines.

#2 Student loan delinquencies have exploded to a level that we have never seen before…

Student loan delinquency has climbed to roughly 25 percent of borrowers with payments due during the first year of the current Trump administration, according to new analysis.

Researchers from The Century Foundation and Protect Borrowers said the sharp rise in missed payments, nearly triple the pre-coronavirus pandemic rate, has pushed millions into default risk and lowered credit scores, warning of broader financial fallout for households and colleges facing higher nonpayment rates.

#3 The monthly cost of owning a home has risen to absurd heights…

All in, the median monthly housing payment for an owner — including mortgage principal and interest, taxes, homeowners insurance, and estimated maintenance expenses — has ballooned to more than $2,800, a staggering 72% jump from $1,635 six years earlier.

#4 Foreclosure filings were way up in 2025, and so far in 2026 we are 26 percent above last year’s pace…

A fresh wave of foreclosures is sweeping across the United States, with more than 118,000 homes caught up in the crisis in just the first three months of 2026.

It is a grim omen – with echoes of the run up to the 2008 Great Recession – that financial pressure is mounting for thousands of families.

New Attom data shows 118,727 properties were hit with a foreclosure filing in the first quarter – up 26 percent on the same period last year.

#5 The number of Americans that cannot pay their credit card bills in full each month has reached another record high…

More than 111 million people could not pay off their monthly credit-card bills in full at the end of last year, marking a new record, according to new estimates from consumer advocates. That’s roughly 2 million more people unable to pay in full compared to the end of 2024, they noted.

These card holders now owe banks more than $1 trillion — and most are inching closer to maxing out their credit lines, according to researchers at the Century Foundation, a progressive think tank, and Protect Borrowers, a nonprofit group that advocates for borrowers.

#6 As the cost of living soars, people are pulling money out of their 401(k) plans at a record rate in a desperate attempt to make ends meet…

More Americans are digging into their retirement savings because of financial emergencies.

Last year, a record 6% of workers in 401(k) plans administered by Vanguard Group took a hardship withdrawal. That is up from 4.8% in 2024 and a prepandemic average of about 2%, according to Vanguard.

#7 Food prices continue to escalate, and the price of coffee has more than doubled since 2019…

A 16-item basket of groceries made up of staples like eggs, bread, and meat — no truffle cheese in our cart — rang in nearly 43% higher in March compared to the same month in 2019.

A few key categories are behind the rise: Coffee prices have more than doubled since the pandemic, while beef prices have soared more recently.

#8 For the first time ever, the price of a pound of ground beef is now higher than the federal minimum wage in many parts of the country…

The cost of a pound of ground beef has hit a major threshold. Depending on where you shop, the grocery staple likely costs more than the federal minimum wage.

Money analyzed ground beef prices at seven of the most popular grocery chains across the U.S., finding that 1 pound of the typical 20% fat ground beef costs between $6.49 and $8.96. Organic, grass-fed and leaner varieties tend to cost much more.

On the other hand, the federal minimum wage sits at $7.25 per hour.

#9 The Federal Reserve is telling us that 42.5 percent of recent college graduates were underemployed at the end of 2025…

Historically, college graduates have tended to find jobs faster and experience lower unemployment than workers without a degree. But recent data suggests it’s now harder to find a job that fits your skill set once you graduate.

According to the Federal Reserve of New York, 42.5% of recent college graduates (aged 22 to 27 with a bachelor’s degree or higher) are underemployed as of December 2025 — the highest rate since October 2020. Underemployment refers to working in a role that underutilizes your skills, usually at a lower wage or in a part-time position.

#10 We continue to see retailers close locations all over the nation at a staggering rate. For example, Grocery Outlet has announced that they will be permanently closing 36 stores…

Grocery Outlet – the California-based retailer famous for selling products at steep discounts – says it will close 36 stores nationwide as part of a sweeping restructuring plan designed to improve profitability.

The company revealed the move while reporting its latest financial results, saying it had conducted a ‘strategic, financial and operational analysis’ of its entire store network.

#11 Not to be outdone, Papa John’s has announced that they will be closing approximately 300 restaurants…

Pizza chain Papa John’s said it plans to close hundreds of underperforming restaurants in North America by the end of next year.

“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s Chief Financial Officer Ravi Thanawala said last week during the company’s fourth-quarter earnings call.

#12 One of our “too big to fail” banks has decided that now is the time to cut about 2,500 jobs…

Morgan Stanley is slashing about 3% of its global workforce — roughly 2,500 jobs — across its key divisions, as the Wall Street giant realigns priorities amid a banner year for profits, sources familiar with the matter have told The Post.

The cuts hit the Ted Pick-led lender’s investment banking, trading, and wealth management units, the people close to the situation said.

#13 EBay will be conducting yet another round of layoffs. This time around approximately 800 workers will get the axe…

EBay said Thursday it is cutting about 800 roles, or 6% of its workforce, in the latest round of layoffs at the e-commerce company.

“We are taking steps to reinvest across our business and align our structure with our strategic priorities, which will affect certain roles across our workforce,” an eBay spokesperson said in a statement. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”

#14 At one time Wendy’s was doing great, but in 2026 it will be permanently shuttering hundreds of locations…

Fast-food chain Wendy’s will shutter 5% to 6% of its stores nationwide in the first half of 2026 as part of an ongoing downsizing plan.

Interim CEO Ken Cook first told investors in a Nov. 7 quarterly earnings call that the company would be closing a “mid single-digit percentage” of its nearly 6,000 locations nationwide.

#15 Meta, the parent company of Facebook, apparently intends to let nearly 8,000 employees go in the very near future…

Meta is preparing to cut thousands of jobs as early as next month, with deeper layoffs expected later this year, according to a report.

The tech giant intends to slash roughly 10% of its global workforce — or nearly 8,000 employees — in an initial round of cuts on May 20, sources told Reuters.

The company is also planning additional layoffs in the second half of the year, though details including timing and scope remain unclear, the outlet reported.

#16 From coast to coast, thousands of supply chain workers have been told to hit the bricks in recent weeks…

A wave of layoffs across U.S. supply chains — from EV battery plants and auto parts factories to warehouses and rail terminals — has affected nearly 4,000 workers in recent weeks, according to company announcements and WARN filings across multiple states.

Recent WARN filings and company announcements show job cuts across at least a dozen companies in states including California, Georgia, Tennessee, Texas, Ohio, South Carolina, Pennsylvania and Alabama.

The largest layoffs in the recent wave are coming from the automotive and industrial supply chain. SK Battery America said it laid off 958 workers — about 37% of its workforce — at its electric vehicle battery plant in Commerce, Georgia, citing shifting EV demand as automakers reassess production plans.

#17 According to Newsweek, the following list of companies have all announced layoffs during the month of April…

Blue Shield of California
Zenith Logistics
Perdue Foods
ERN Services
Boston Electrometallurgical Corporation
First Brands Group
GEODIS
MicroVision
IPIC Theaters
Goulet Trucking
CJ Logistics
L3Harris
Supernal
Heritage Bank of Commerce
Angel City Brewery
VCA Bay Area Veterinary Specialists
Monroe Operations
Meteor Creative
Viskon-Aire Corporation
C3.ai
Safari West
Main Street Sports Group Cincinnati
Raley’s
Koppers
Wells Fargo
Lucid Group
Hornblower Cruises and Events
Charles River Laboratories
Wescom Financial
Bluum USA
CHS Northwest
Catalent
Liberty Dental Plan
GXO Logistics

#18 The total unfunded obligations of the U.S. government have now reached a staggering total of 130.12 trillion dollars…

On March 17, 2026, the U.S. Department of the Treasury quietly released the federal government’s fiscal year 2025 financial report. Buried in its tables is a number that should dominate our national conversation – but doesn’t: Total federal obligations now stand at $130.12 trillion.

That figure is not a rounding error or a political talking point. It is derived from the government’s own accounting – combining the reported negative net position (driven largely by bonded debt) with the present value of projected shortfalls in major social insurance programs. Yet public debate continues to revolve almost exclusively around the much smaller figure of Treasury securities outstanding.

There is no way that anyone can spin the facts that I have just shared with you to make them look good.

So if conditions are already this bad, what will things be like six months from now if the Strait of Hormuz is still closed?

We really are in unprecedented territory, and the truth is the economic conditions could easily get a lot worse during the months ahead.

The post 18 Shocking Facts That Prove That The U.S. Economy Is In Far Worse Shape Than Most People Realize appeared first on The Economic Collapse.