Guess Who Is Preparing For A Major Stock Market Crash?

Pessimism is spreading like wildfire on Wall Street, and this is particularly true among one very important group of investors.  And considering how much money they have, it may be wise to listen to what they are telling us.  According to a very alarming survey that was recently conducted by UBS Wealth Management, most wealthy investors now believe that there will be a “significant” stock market decline before the end of next year.  The following comes from Yahoo Finance

Wealthy people around the globe are hunkering down for a potentially turbulent 2020, according to UBS Global Wealth Management.

A majority of rich investors expect a significant drop in markets before the end of next year, and 25% of their average assets are currently in cash, according to a survey of more than 3,400 global respondents. The U.S.-China trade conflict is their top geopolitical concern, while the upcoming American presidential election is seen as another significant threat to portfolios.

Of course this could ultimately become something of a self-fulfilling prophecy if enough wealthy investors pull their money out of stocks and start increasing their cash reserves instead.  Nobody wants to be the last one out of the barn, and it isn’t going to take too much of a spark to set off a full-blown panic.  Perhaps the most troubling number from the entire survey is the fact that almost 80 percent of the wealthy investors that UBS surveyed believe that “volatility is likely to increase”

Nearly four-fifths of respondents say volatility is likely to increase, and 55% think there will be a significant market sell-off before the end of 2020, according to the report which was conducted between August and October and polled those with at least $1 million in investable assets. Sixty percent are considering increasing their cash levels further, while 62% plan to increase diversification across asset classes.

During volatile times for the market, stocks tend to go down.

And during extremely volatile times, stocks tend to go down very rapidly.

Could it be possible that many of these wealthy investors have gotten wind of some things that the general public doesn’t know about yet?

Of course the truth is that anyone with half a brain can see that stock valuations are ridiculously bloated right now and that a crash is inevitable at some point.

And as I noted yesterday, corporate insiders are currently selling off stocks at the fastest pace in about two decades.

But why is there suddenly so much concern about 2020?

A different survey of business executives that was recently conducted found that 62 percent of them believe that “a recession will happen within the next 18 months”

A majority of respondents – 62% – believe a recession will happen within the next 18 months. Private companies are particularly worried that a recession lurks in the near term, with 39% anticipating a recession in the next 12 months. This compares with 33% of public company respondents who felt the same way. About one-quarter – 23% – of respondents do not expect a recession within the next two years.

62 percent is a very solid majority, and without a doubt we are starting to see businesses pull back on investment in a major way.

In fact, according to Axios business investment in the United States has now dropped for six months in a row…

  • Business investment has fallen for six months straight and declined by 3% in the third quarter, the largest drop since 2015.
  • The retrenchment by businesses helped turn Wednesday’s U.S. workforce productivity report — a key economic metric that compares goods-and-services output to the number of labor hours worked — negative for the first time in four years.

I know that I bombard my readers with numbers like this on an almost daily basis, but I cannot stress enough how ominous the economic outlook is at this point.

And it isn’t just the U.S. that we need to be concerned about.  Two other surveys that measure the business outlook for the entire globe just fell to their lowest levels in a decade

The IHS Markit global business outlook—which surveys 12,000 companies three times a year—fell to the worst level since 2009, when data was first collected.

The Ifo world economic outlook, which surveys 1,230 people in 117 countries, fell in the fourth quarter to the worst level since the second quarter of 2009.

Markit’s poll found optimism for activity, employment and profits in the year ahead were all at the lowest level since the financial crisis. Markit also reported a decline in planned investment spending, with inflation expectations at a three-year low.

It is really happening.

The global economy really is heading into a major downturn.

And once this crisis really gets rolling, it is going to be exceedingly painful.

All across America, big companies are already starting to go under at a pace that is absolutely frightening.  For instance, on Tuesday one of the biggest dairy companies in the entire country filed for bankruptcy

Dairy giant Dean Foods filed for Chapter 11 bankruptcy protection as declining milk sales take a toll on the industry.

Dean Foods – whose more than 50 brands include Dean’s, Land O’ Lakes and Country Fresh – said it intends to continue operating.

The company said it “is engaged in advanced discussions” for a sale to Dairy Farmers of America, a national milk cooperative representing farmers, producers and brands such as Borden cheese and Kemps Dairy.

I have quite a few relatives in Minnesota, and I have always had a soft spot for Land O’Lakes butter.  So it definitely saddened me to hear that this was happening.

But a lot more major casualties are coming.

Of course the economic optimists will continue to insist that we are just experiencing a few bumps on a path that leads to a wonderful new era of American prosperity.  They will continue to tell us of a great “financial harvest” that is about to happen even when things are falling apart all around us.

You can believe them if you want, but most wealthy investors and most business owners believe that hard times are dead ahead.

I have never seen so much pessimism about a coming year as I am seeing about 2020 right now.

There is a growing national consensus that it is going to be a very chaotic year, and I would recommend using what little time you have left to get prepared for it.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

If Impeachment Fails, Will The Elite Crash The Economy In Order To Prevent Four More Years Of Trump?


By now, it is exceedingly obvious that the global elite absolutely hate Donald Trump.  No president in U.S. history has faced such a relentless assault by the corporate media, and there have been attempts to sabotage his presidency at every turn.  Miraculously, Trump has survived all of these attacks so far, but now the specter of impeachment looms large over his administration.  The Democrats have a solid majority in the U.S. House of Representatives, they are working quickly toward drafting articles of impeachment, and they actually hope to have Trump impeached by Christmas Day.  But in order to have Trump removed from office, 67 votes will be needed in the Senate, and right now Democrats only control 47 of those seats.  It was always going to be tough for Democrats to get 20 Republicans in the Senate to turn on Trump, but they have bungled this process so badly that they might not end up getting any at all.

That scenario will become even more likely if House Republicans stand solidly united behind Trump, and at this point even the Washington Post is admitting that there is a possibility “that not a single House Republican” will vote for the articles of impeachment…

Congressional Republicans are sticking with their party leader in the face of thousands of pages of evidence showing President Trump leveraged foreign policy for political favors, raising the possibility that not a single House Republican will vote for his impeachment.

Of course it will only take a simple majority to impeach Trump in the House, and Democrats will be able to do that with no problem, but it appears that the effort to remove Trump will be completely dead when it gets to the Senate.

Yes, things could still change and this is a very fluid situation, but as things stand today it seems that Trump is safe.

So what are the elite going to do if impeachment fails?

They are facing the prospect that Trump could actually win again in 2020, and that would mean that he would remain in the White House until January 2025.

For many among the elite, such a scenario must be avoided at all costs.  And the quickest way to get the general public to turn on any president is for the economy to crumble.

This is one of the reasons why some prominent voices on the left have been openly wishing for a recession.  For example, just check out what Bill Maher said not too long ago

“I’ve been saying for about two years that I hope we have a recession and people get mad at me,” said Maher, a multimillionaire who would likely be well insulated from a financial downturn.

“I’m just saying we can survive a recession,” he continued. “We’ve had 47 of them. We’ve had one every time there’s a Republican president! They don’t last forever, You know what lasts forever? Wiping out species!”

Maher is literally wishing for economic pain for more than 300 million Americans just so that another four years of Trump can be avoided.

That is how obsessed some of these radicals are with getting rid of Trump.

And without a doubt, the performance of the economy could be Trump’s Achilles heel.  Whenever any piece of good economic news comes out, he eagerly takes credit for it, and he has publicly warned that there will be an economic crash if a Democrat wins in 2020…

President Donald Trump predicted doom if he isn’t re-elected in 2020, saying that the economy would “CRASH” like it did during the Great Depression.

In a tweet Wednesday morning, the president called the crowded field of Democratic challengers “clowns” and compared the prospects of one of them winning to the stock market collapse of 1929.

Even though many Democrats on Wall Street absolutely hate Trump, it is undeniable that they have made out very well while he has been in the White House.  In fact, only three presidents have seen the stock market perform better during their first three years in office

Stock market performance in first three years since Trump’s election, then, ranks fourth among the 14 elected presidents since Herbert Hoover. That’s pretty good! It’s worth noting, though, that there’s not a whole lot separating him from John F. Kennedy, Bill Clinton and George H.W. Bush. A bad week or two, and he could easily fall to eighth place. On the other hand, falling to ninth would take some work, as would catching up to Dwight Eisenhower for third. Put into letter grades, I’d give the market’s performance since Trump’s election a solid B.

But what happens if the stock market crashes and the U.S. economy plunges into a deep recession in 2020?

Well, just as Trump has been getting credit for the good things that have happened in recent years, he would also get the blame if things got really bad.

Of course that wouldn’t actually be fair, because the truth is that the Federal Reserve actually has far more influence over the performance of the economy and the performance of the stock market than the president does.

But the general public does not understand these things.

When things really start to fall apart, people are going to blame whoever is in the White House, and since Trump was so eager to take credit when things were going good he won’t have any way to avoid the blame when things severely deteriorate.

So would the global elite really resort to “the nuclear option” of crashing the economy in order to prevent Trump from winning the next election?

You never know, but it is entirely possible.  Today, debt is the lifeblood of our economy, and if the big banks started to tighten up the flow of credit that would begin to slow down our economy immediately.  And as I noted yesterday, we are already starting to see banks deny loans to farmers in the middle of the country on a widespread basis.  The tighter that lenders become with their money, the worse that our economy will do, and this is something that we should be watching closely.

The stock market is also a potential flashpoint.  Right now, insiders are selling off their stocks “at the fastest pace in two decades”, and valuations are ridiculously inflated.  Companies that are losing giant mountains of money every single year are supposedly worth billions of dollars, and the market has been going up for so long that most investors have completely forgotten about 2008.  But at some point this entire charade is going to come crashing down, and it wouldn’t take very much of a “push” to make that happen.

There is an even bigger bubble in the bond market.  Today, there is 188 trillion dollars of debt in the global financial system, and those at the very top of the economic food chain control much of that debt.  Could it be possible that they would be willing to unleash a bit of chaos in order to achieve their political goals?

I don’t think that the global elite really want to go through a major crisis, but at this point for many of them just about anything is preferable to four more years of Trump.

We are less than two months away from 2020, and I truly believe that it will be the most chaotic year that any of us have seen in a very long time.

There are a lot of very powerful people that are absolutely determined to keep Trump from winning this upcoming election, and they would be willing to do just about anything in order to make that happen.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

Global Debt Is Up To $188,000,000,000,000 – This Is Officially The Biggest Debt Bubble The World Has Ever Seen

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year.  It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it.  The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible.  Of course throughout human history there has always been slavery, and the primary motivation for having slaves is to extract an economic benefit from those that are enslaved.  And even though most of us don’t like to think of ourselves as “slaves” today, the truth is that the global elite are extracting more wealth from all of us than ever before.  So much of our labor is going to make them wealthy, and yet most people don’t even realize what is happening.

Let’s start with a very simple example to help illustrate this.

When you go into credit card debt and you only make small payments each month, you can easily end up paying back more than double the amount of money that you originally borrowed.

So where does all that money go?

Well, of course it goes to the financial institution that you got your credit card from, and in turn that financial institution is owned by the global elite.

In essence, you willingly became a debt slave when you chose to go into credit card debt, and the hard work that it took to earn enough money to pay back that debt with interest ended up enriching others.

On a much larger scale, the same thing is happening to entire nations.

Today, the United States government is nearly 23 trillion dollars in debt.  In essence, we have been collectively enslaved, and we have been obligated to pay back all of that money with interest.  Of course at this point it is literally impossible for us to ever pay back all that debt, and every year we add another trillion dollars or so to the balance.  The global elite are now extracting more than 500 billion dollars in interest from this debt on an annual basis, and it is expected that number will greatly escalate in the years ahead.

It is not an accident that the Federal Reserve and the federal income tax were both instituted in 1913.  The Federal Reserve system was designed to create an endless debt spiral that would get the federal government in as much debt as possible, and since that time the size of our national debt has gotten more than 7000 times larger.  And the federal income tax was needed as the mechanism through which our wealth is transferred to the government to service all of this debt.

It is truly a deeply, deeply insidious system, and the American people should refuse to back any politician that does not favor shutting it down, but at this point this isn’t even a major political issue in our nation.

And of course the United States is far from alone.  Even though we can’t get the whole world to agree on much of anything, somehow virtually the entire planet has been convinced that debt-based central banking is the way to go.

In fact, at this point 99.9 percent of the population of the world lives in a country that has a central bank.

According to Wikipedia, there are only 9 very small nations that do not have a central bank at this point…

-Andorra
-Isle of Man
-Monaco
-Nauru
-Kiribati
-Tuvalu
-Palau
-Marshall Islands
-Federated States of Micronesia

If you combine the populations of all of those 9 nations together, it comes to much less than 0.1% of the total global population.

Do you think that this is just a coincidence?

The global elite do not want humanity to be free.  They want us to be in as much debt as possible so that we can make them richer.

When you realize how badly the game has been rigged, then a lot of things start to make a whole lot more sense.

For example, for those that understand how the system works it is certainly not surprising that the total amount of debt in the world has hit a new all-time record high of 188 trillion dollars

The global debt load has surged to a new all-time record equivalent to more than double the world’s economic output, IMF chief Kristalina Georgieva warned Thursday.

While private sector borrowing accounts for the vast majority of the total, the rise puts governments and individuals at risk if the economy slows, she said.

“Global debt — both public and private — has reached an all-time high of $188 trillion. This amounts to about 230 percent of world output,” Georgieva said in a speech to open a two-day conference on debt.

That number has risen by 24 trillion dollars since 2016, and it is the biggest debt bubble that the world has ever seen by a very wide margin.

Of course at some point this debt bubble is going to burst in a global disaster of epic proportions, but meanwhile the global elite are going to continue to milk all of us for as long as they possibly can.

Here in the United States, we have been on the greatest debt binge in the history of our nation since the last financial crisis.  U.S. government debt has more than doubled, state and local government debt has ballooned to ridiculous proportions in much of the nation, corporate debt has doubled, student loan debt has more than doubled, auto loan debt just keeps hitting new record highs, and U.S. consumers are now 14 trillion dollars in debt.

Our mountain of debt has become so colossal that the only way to keep the game going is to borrow even more money, but by borrowing more money we make our enslavement even worse.

Meanwhile, those that are holding our debt just continue to live the high life as they laugh all the way to the bank.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

6 Of The Last 8 U.S. Recessions Were Preceded By Oil Price Spikes – Damage To Saudi Oil Industry Could Take “Months” To Repair

When the price of oil rises dramatically, that tends to be really bad for the U.S. economy.  Because we are so spread out and goods are transported over such vast distances, our economy is particularly vulnerable to oil price shocks, and that is one reason why the events that we just witnessed in the Middle East are so alarming.  According to an article that was published by the Federal Reserve Bank of San Francisco in 2007, five of the last seven U.S. recessions that had occurred up to that time “were preceded by considerable increases in oil prices”.  Since that article was published in 2007, the recession that began in 2008 hadn’t happened yet, and of course that recession was immediately preceded by the largest oil price spike in history.  So that means that six of the last eight U.S. recessions were preceded by oil price spikes, and now we may be facing another one.  It is being reported that it may take “months” for Saudi Arabia to fully repair the damage that was done to their oil industry, and that could fundamentally alter the balance of supply and demand in the global marketplace.

Yesterday, I discussed why high oil prices are so bad for our economy.  When the price of oil is too high, it can cause inflation and hurt economic growth simultaneously.  The article from the Federal Reserve Bank of San Francisco that I mentioned in the last paragraph tried to explain why this happens in very basic economic terms

Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating. The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.

Oil price increases can also stifle the growth of the economy through their effect on the supply and demand for goods other than oil. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them. In economics terminology, high oil prices can shift up the supply curve for the goods and services for which oil is an input.

Needless to say, the unprecedented attack on Saudi oil production facilities was going to cause the price of oil to rise substantially.  In fact, when global markets opened up on Sunday evening we witnessed quite a dramatic spike

In an extraordinary trading day, London’s Brent crude leaped almost $12 in the seconds after the open, the most in dollar terms since their launch in 1988. Prices subsequently pulled back some of that initial gain of almost 20%, but rallied again as traders waited in vain for an Aramco statement clarifying the scale of damage.

So where is the price of oil going from here?

One analyst quoted by Oilprice.com believes that we could soon see it hit $80 a barrel, and others believe that it could move up toward $100 a barrel not too long from now.

In the days ahead, global markets will be watching Saudi Arabia very carefully.  The longer it takes them to resume normal production levels, the higher the price of oil will go.

According to Bloomberg, one analyst is already publicly admitting that “full resumption could be weeks or even months away”…

All eyes are on how fast the kingdom can recover from the devastating strike, which knocked out roughly 5% of global supply and triggered a record surge in oil prices. Initially, it was said that significant volumes of crude could begin to flow again within days. While Aramco is still assessing the state of the plant and the scope of repairs, it currently believes less than half of the plant’s capacity can be restored quickly, said people familiar with the matter, asking not to be identified because the information isn’t public.

”Damage to the Abqaiq facility is more severe than previously thought,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. “While we still believe up to 50% of the 5.7 million barrels a day of output that has been disrupted could return fairly swiftly, full resumption could be weeks or even months away.”

That is really bad news, and that is assuming that there won’t be any more attacks like we just witnessed.

If there are more attacks, Saudi oil production could be far lower than normal for an extended period of time, and that would be catastrophic for the global economy.

Most Americans don’t realize this, but a lot of Saudi oil actually gets shipped to the west coast.  The following comes from Fox Business

Drivers in California, however, could be hit the hardest. Nearly half of what Saudi Arabia exports to the U.S. is sent to the West Coast, as reported by Reuters. In the year that ended in June, the West Coast imported an average of about 11.4 million barrels of Saudi crude every month – much of which went to California refineries.

The Golden State already has among the highest average gasoline prices in the country – at $3.63 per gallon as of Monday.

We are going to see higher gasoline prices right away, but in the short-term we should be able to handle them okay.

But if there are more attacks like the one we just saw, or if a major war breaks out in the Middle East, the price of gasoline could easily spike to levels that we have never seen in this country before.

The U.S. economy was already deeply struggling even before the attack in Saudi Arabia, and so this could definitely push us over the edge.  We should all be getting prepared for an extended economic downturn, because it looks like that is precisely what we could be facing.

Hopefully we won’t see any more attacks on oil production facilities, but the attack on Saturday clearly demonstrated how extremely vulnerable such facilities are to terror attacks.  And with Middle East tensions currently at an all-time high, USA Today is warning that our future “may well get much rockier soon”…

The new threat is tension among nations in the region, as well as the ability to attack based on new and relatively simple technology. Drones can be flown long distances carrying weapons just powerful enough to attack oil facilities. Middle East tensions are severe enough that attempts at similar attacks are not over.

Oil futures do not trade based on the present. They trade on forecasts about oil supply and demand in the future. The future looks rocky and may well get much rockier soon.

We are truly in uncharted territory, and we desperately need peace and calm to prevail in the Middle East.

Sadly, that is not likely to happen, and every new wave of violence is going to mean more economic pain for all of us.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

As China Settles In For A Long Trade War, Economic Pressure On Trump Continues To Grow

The trade war between the United States and China is increasingly weighing on the global economy, but unfortunately it does not appear that it will end any time soon.  Many pundits in the U.S. originally believed that the trade war would be short because the economic pain would be too much for the Chinese to handle.  But the truth is that the Chinese are not nearly as motivated by short-term concerns as we are.  They have always been long-term planners, and they are not afraid to set goals that may take multiple generations to achieve.  So they are not going to allow an angry American president that may be voted out of office by the end of next year to greatly alter their long-term economic strategies.

If an acceptable agreement could have been reached with Trump, the Chinese would have jumped at that opportunity.  But right now the two sides are so far apart that they are basically not even on the same playing field, and any additional “negotiations” are not going to change that.  However, the Chinese are likely to try to keep talks with the Trump administration alive in an attempt to prevent the trade war from escalating even more.  In essence, the Chinese are trying to minimize the damage while running out the clock on the Trump presidency.

So for China, this trade war has become an exercise in endurance, and this is something that a Fox Business article recently discussed…

Researchers from Deutsche Bank wrote a note over the weekend, explaining how they believe China appears to have shifted its strategy from a focus on “resolution to one of endurance.”

“We think China is neither aiming to quickly reach a trade deal, nor trying to hit back at the U.S. as hard as it can,” Deutsche Bank China Economist Yi Xiong wrote in a report. “Rather, China seems to have internalized the trade war as a given fact, and is trying to preserve China’s economic resilience under rising tariffs.”

Here in the U.S., we have become quite accustomed to sacrificing our long-term prosperity in order to avoid short-term pain, but the Chinese are simply not going to do that in this case.

Instead, they are going to work extremely hard to do what they can to bolster the Chinese economy internally while they wait for a more “reasonable” U.S. president to get elected.  The following comes from the South China Morning Post

China will “enhance countercyclical measures in macroeconomic policies … to ensure sufficient liquidity and reasonable growth in credit,” according to a statement by the government’s Financial Stability and Development Commission on Sunday. The wording marked a subtle change from previous policy statements that called only for “appropriate” fine-tuning of monetary policy.

The statement did not mention the trade war with the US, but included specific guidelines on what China should do to manage its economy in the coming months. It urged financial institutions to help sell local government special bonds, with proceeds to be used for government-backed investment projects, while it also told local authorities to “fully tap investment potential”.

Unlike Chinese officials, President Trump has an upcoming election that he must deal with, and the longer this trade war persists the worse his re-election chances are going to become.

As I detailed yesterday, signs of economic trouble are erupting all around us, and the pain from this trade war is only going to become more intense as each new month passes.

So Trump is going to become increasingly desperate to get China to come to an agreement, and that may lead to some very rash decisions.  For example, it is being reported that he “wanted to double tariff rates on Chinese goods” after the Chinese responded to recent U.S. tariffs by imposing some of their own…

President Donald Trump wanted to double tariff rates on Chinese goods last month after Beijing’s latest retaliation in a boiling trade war before settling on a smaller increase, three sources told CNBC.

The president was outraged after he learned Aug. 23 that China had formalized plans to slap duties on $75 billion in U.S. products in response to new tariffs from Washington on Sept. 1. His initial reaction, communicated to aides on a White House trade call held that day, was to suggest doubling existing tariffs, according to three people briefed on the matter.

Unfortunately for Trump, no amount of pressure is going to get the Chinese to budge.

Yes, the Chinese will “talk” to U.S. officials as a delaying tactic, but they have already decided that they will never accept the sort of deal that Trump wants.

Meanwhile, our economic numbers just continue to deteriorate.  On Tuesday, we learned that a key measure of U.S. manufacturing just fell to the lowest level in three years

A key U.S. factory gauge unexpectedly contracted for the first time since 2016, sending stocks and bond yields lower and boosting expectations for interest-rate cuts as global manufacturing woes deepen.

The Institute for Supply Management’s purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released Tuesday showed. Figures below 50 indicate the manufacturing economy is generally shrinking. The group’s gauge of new orders dropped to a more than seven-year low, while the production index hit the lowest since late 2015.

In response to that number and more troubling news about the trade war, U.S. stocks were sharply down

Stocks fell on Tuesday, the first trading day of a historically tough month, after the world’s two largest economies began imposing new tariffs on each other’s goods. Weak manufacturing data also dented investor sentiment.

The Dow Jones Industrial Average closed 285.26 points lower, or 1.1%, at 26,118.02. The S&P 500 lost 0.7% to end the day at 2,906.27 while the Nasdaq Composite pulled back 1.1% to 7,874.16.

We have reached an absolutely critical moment in modern American history.  The largest financial bubble in our entire history is on the verge of bursting, and many believe that we could be on the precipice of an economic downturn even worse than what we experienced in 2008 and 2009.

A trade deal with China would greatly help the short-term outlook, but the Chinese are not willing to give Trump what he desires.  So the only way one will happen is if President Trump completely caves in, but I don’t see that happening.

That means that a tremendous amount of pain is ahead, and the American people are completely unprepared for that.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

America Is Committing Suicide: Over The Past 12 Months, The U.S. National Debt Has Increased By 1.271 Trillion Dollars

If we do not change course, our once great nation will be destroyed by a debt that has grown wildly out of control.  We are facing an unprecedented debt crisis that literally threatens to bring our country to an end, and yet our politicians are almost entirely silent on this issue in 2018.  In fact, Republicans and Democrats just worked together to pass another big, fat spending bill through Congress that is actually going to increase the pace at which we are going into debt.  What the Republicrats are doing is not just wrong.  To be honest, the truth is that they are committing crimes against humanity, and they are completely wiping out the very bright future that our children and our grandchildren were supposed to have.  How in the world is America supposed to be “great again” when we are buried in so much debt that future generations can never have any possible hope of getting free from it?

The fiscal year of the federal government goes from October 1st to September 30th.  During the fiscal year that just ended, the U.S. national debt increased by 1.271 trillion dollars

The federal debt increased by $1,271,158,167,126.72 in fiscal 2018, according to data released today by the Treasury.

The total federal debt started the fiscal year at $20,244,900,016,053.51 according to the Treasury, and finished the fiscal year at $21,516,058,183,180.23.

This is one of the reasons why I wanted to go to Washington.  Our current “representatives” are completely and utterly failing us.

Once upon a time, at least members of the Tea Party would stand up and say something, but these days nobody seems to care that America’s future is being systematically destroyed.  Republicans have been in control of both houses of Congress, but our debt problems just continue to get worse and worse.  And the truth is that the budgets that have been passed since Donald Trump became president are simply slightly revised Obama budgets.  The Republicans have allowed the Democrats to have their way time after time, and it has been absolutely disgusting to watch.

In 8 of the past 11 fiscal years, the U.S. national debt has risen by more than a trillion dollars, and the U.S. national debt is now sitting at an all-time record high of 21.52 trillion dollars.

What we are doing is literally insane, and if we want our nation to survive we must change course immediately.

These days, there is a lot of discussion about the political gains that “Democratic socialists” have been making all over America, and Republicans are trying to assure us that the American people don’t actually want socialism.

But you know what?

We have already gone most of the way down the road toward socialism.  I think that Ron Paul made this point very well  in his most recent article

We know socialism does not work. It is an economic system based on the use of force rather than economic freedom of choice. But while many Americans seem to be in a panic over the failures of socialism in Venezuela, they don’t seem all that concerned that right here at home President Trump just signed a massive $1.3 trillion dollar spending bill that delivers socialism on a scale that Venezuelans couldn’t even imagine. In fact this one spending bill is three times Venezuela’s entire gross domestic product!

Did I miss all the Americans protesting this warfare-welfare state socialism?

If you are really against socialism, you should be fighting for the federal government to be greatly reduced in size and scope.

But so few Americans seem to believe in true limited government these days.

It would be a great first step if we would actually try to start living within our means.  But if 1.271 trillion dollars of government spending was pulled out of the economy over the past 12 months, the result would be a horrible economic depression.  And politicians do not like economic downturns, because when things get bad voters tend not to vote for incumbents.  So they just keep going into more debt and they keep kicking the can down the road.

But if we stay on the path that we are currently on, the CBO says that the United States will be 99 trillion dollars in debt by 2048.

Of course we will never actually ever get to 99 trillion dollars in debt.  America will cease to exist long before we ever reach that mark.

If we want to save America, we must take action now, but very few people seem to even care about our exploding debt at this point.

And it isn’t just our national debt that is the problem.  State and local government debt is at record levels all over the nation, corporate debt has doubled since the last financial crisis, and U.S. consumers are more than 13 trillion dollars in debt

If you added up the personal debt of every American — what they owe on their mortgages, credit cards, student loans, and more — the total is staggering. Collectively, we’re $13.2 trillion in the red. That’s the highest ever, according to the New York Fed.

Yet no one seems to be panicking. Maybe that’s because we can’t comprehend $13 trillion. Imagine buying every NFL team. And every NBA team. And every NHL team. And every Major League Baseball team. But that only adds up to $191 billion.

America is committing suicide in slow-motion, and it is an absolutely heartbreaking thing to witness.

It is almost as if we lack the will to survive as a nation.  All we seem to care about is our comfort level at this moment, and we don’t want anyone to tell us that we have to cut back on anything.  I think that Chris Martenson summed things up very well in his most recent piece

Nothing grows forever.  Cancer tries, but always defeats itself in the process.  Yeast parties until all the sugar in the vat is gone or it pollutes itself out of an active existence.

Can humans do better? The jury is still out on that.

But so far, the signs say that, as a group, we lack the ability to organize effectively against big, complex challenges. Especially if doing so requires us to willingly choose to live a life of less. We’re simply too addicted to more.

We cannot continue to go down this road.

Because at the end of this road is not just economic collapse.  What we are talking about is literally the end of the United States of America.

All throughout history, great societies have been done in by greed, sloth, corruption and laziness, and we are headed down the exact same path.  If we want to survive, emergency surgery is necessary, but at this point nobody is even tending to the dying patient.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

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Destroying America: It Is Being Projected That The U.S. National Debt Will Hit 99 Trillion Dollars By 2048

Temporary prosperity that is created by exploding levels of debt is not actually prosperity at all.  At this moment, the U.S. government is 21.4 trillion dollars in debt, and we have been adding an average of more than a trillion dollars a year to that debt since 2009.  And if we stay on the path that we are currently on, the trajectory of our debt will soon accelerate dramatically.  In fact, as you will see below, the Congressional Budget Office is now projecting that the U.S. national debt will reach 99 trillion dollars by 2048 if nothing changes.  Congressional Budget Office projections always tend to be overly optimistic, and so the reality will probably be much worse than that.  Of course we will never actually see the day when our national debt reaches 99 trillion dollars.  Our government (and our entire society along with it) will collapse long before we ever get to that point.  In our endless greed, we are literally destroying America, and emergency action must be taken immediately if we are to survive.

Debt always makes things seem better in the short-term, and it is always destructive in the long-term.

When we go into debt as a nation, we are literally stealing from the bright future that our children and our grandchildren were supposed to have.  Through the first 11 months of this fiscal year, the official U.S. budget deficit was $895,000,000,000, which means that we continue to steal more than 100 million dollars from future generations of Americans every single hour of every single day.

And it is important to remember that not all additions to the national debt are included in the official budget deficit.  One year ago, our national debt was sitting at 20.1 trillion dollars, and that means that we have added an astounding 1.3 trillion dollars to the debt over the past 12 months.

This is complete and utter insanity, and it must stop now.

Let me try to put this into perspective.  Not too long ago, Venezuela was once one of the wealthiest countries in South America.  These days, many Americans like to laugh at them, but we are on the exact same path that Venezuela has gone down.  Eventually, the day comes when there is not enough of someone else’s money to spend, and suffocating levels of debt make the option of printing giant mountains of money too tempting to resist.  At that point it is just a matter of time before the currency is destroyed and society devolves into chaos.

If current Congressional Budget Office projections area anywhere close to accurate, America’s date with destiny is rapidly approaching.  The following comes from CBS News

Under the new baseline incorporating recent changes in law, the national debt reaches $99 trillion in 2048 — equivalent to 152 percent of GDP.

And the CBO is also projecting that our yearly budget deficit will go from one trillion dollars today to 6 trillion dollars by 2048…

The federal budget deficit is expected to break through a trillion dollars in 2020 and never look back, reaching $2 trillion in 2032 and $6 trillion in 2048.

But like I said, we will never actually get there, because our society will collapse by then.

So we only have a limited amount of time to save America, and the clock is ticking.

At this point, the total amount of U.S. government debt held by the public has already surpassed all household debt

Debt held by the public will top $127,000 per household by the end of the year, according to JPMorgan. Personal debt per household will average about $126,000.

“This is an astonishing statistic,” said David Kelly, chief global strategist at JPMorgan Funds. “Americans have a lot of debt. I always feel nervous signing a mortgage or a car loan. I think, can I afford all this debt? Then you realize the government is busy borrowing even more money on your behalf.”

I wish that I could get more people to understand just how serious this is.

Do you know what the inflation rate will be in Venezuela this year?

The IMF is projecting that it will be more than a million percent.

Chaos is everywhere, crime is out of control and people are starving, and yet we refuse to learn from what has happened to them.

We just keep spending and spending, and we think that we have found the key to prosperity.

But what we have really found is an accelerated path to economic hell.

And it isn’t just the U.S. that is in deep trouble.  The entire globe has been on a massive debt binge, and it is only a matter of time before this gigantic debt bubble implodes.  The following comes from an excellent piece by Larry Elliott

The BIS says in its latest annual report that there are already material risks to financial stability. “In some respects, the risks mirror the unbalanced post-crisis recovery and its excessive reliance on monetary policy. Where financial vulnerabilities exist, they have been building up, in their usual gradual and persistent way. More generally, financial markets are overstretched … and we have seen a continuous rise in the global stock of debt, private plus public, in relation to GDP. This has extended a trend that goes back to well before the crisis and that has coincided with a long-term decline in interest rates.”

Behind the dry official language, the message is clear. A recovery that is based around high and rising levels of debt is really no recovery at all. The world economy is, in all material respects, the same as it was in the run-up to the 2008 crisis. The necessary reforms to a flawed model have not taken place, which is why the BIS warning should not be ignored.

On a personal level, have you ever gotten into debt trouble?

At first, it was a lot of fun enjoying all of the new things that all of that debt bought, but the pain afterwards greatly outweighed the initial temporary prosperity.

The same principle is going to also apply on a global scale.  The U.S. government is now more than 20 trillion dollars in debt, and the entire globe is now more than 250 trillion dollars in debt, and a day of reckoning is coming.  The following comes from David Stockman

And it’s that $20 trillion, built up over the last two decades, that has basically distorted everything – falsified prices, repressed interest rates, caused an explosion of debt. Twenty years ago there was $40 trillion of debt in the world today there is $250 trillion worth of debt in the world. The leverage of the world has gone from 1.3 times which is stable…to 3.3 times, which basically means the world has created a huge temporary prosperity by burying itself in debt.

It would take an unprecedented effort to turn things around, but right now hardly anyone seems concerned about bringing all of this debt under control.

So we continue to roll on toward our date with financial disaster, and most people are completely oblivious to what is about to happen to us.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

We Are About To See A Great, Big Debt-Fueled GDP Number For The 2nd Quarter, But There Is A Catch…

What kind of number for GDP growth in the 2nd quarter will we get on Friday? The market consensus is somewhere around 4 percent, but there are many out there that are expecting a number above 5 percent. The last time we witnessed such a number was during the third quarter of 2014 when the U.S. economy grew by 5.2 percent. If Friday’s GDP figure is better than that, it will be the best report that we have had since 2003. But let’s keep things in perspective. In seven of the last 10 years, GDP growth was much lower than anticipated in the first quarter and much higher than anticipated in the second quarter. It looks like that pattern may play out again in 2018, and analysts are already warning us to expect a much lower number for the third quarter.

And even though we have seen good quarters before, we still have not had a full year of 3 percent growth since the middle of the Bush administration.

Last year the U.S. economy grew by only 2.3 percent, which would be a horrible figure even if the government was using honest numbers. According to John Williams of shadowstats.com, GDP growth for 2017 would have actually been negative if honest numbers were being used.

So let’s not get too excited over one quarter. According to the official government numbers, the U.S. economy has not grown by at least 3 percent on an annual basis in 14 years. That is the longest stretch in all of U.S. history by a wide margin, and it is going to take a really good second half to break that string this year.

But that isn’t stopping people from hyping tomorrow’s number. According to White House economic adviser Larry Kudlow, we should see a number “in the 4 to 5 percent zone”

“You’re going to get a GDP number on Friday that’s going to be a very impressive number. Some people are in the 4 to 5 percent zone,” Larry Kudlow, the White House economic adviser, told CBS This Morning.

And he is probably right.

In fact, we might see a number that is even better than that.

As CBS News has noted, the second quarter came after the new tax cuts were implemented but before the trade war started…

The second-quarter figure will be widely seen as a referendum on the GOP tax cuts of late 2017. This quarter benefits from a timing sweet spot, coming after the deficit-busting cuts trickled through the economy, but before the effects of the White House’s protectionist trade policies are fully felt.

If we get a really good number, it may actually be bad news for investors.

As Marketwatch has deftly observed, a high GDP growth number may affirm the Federal Reserve’s narrative that they need to keep raising rates in order to keep the economy from “overheating”…

Ultimately, a reading that comes in too hot could fuel expectations that the Federal Reserve may need to ramp up its pace of rate increases, with the possibility of a further two rate increases in September and December likely to tamp down too-hot growth. That could knock bond prices lower, conversely pushing rates up and pressuring equity markets lower as investors worry about rising borrowing costs.

Ultimately, most of the analysis that you are going to hear about this GDP number is a load of nonsense.

The only reason why the U.S. economy is showing a little bit of growth is because we are on the greatest debt binge in our history.

When Donald Trump entered the White House the U.S. government was 19.9 trillion dollars in debt, and now that figure has ballooned to 21.2 trillion dollars in debt.

If we had not added 1.3 trillion dollars to the national debt over the past year and a half, there is no way that the economy would be growing right now.

And to be honest, it wouldn’t be too difficult to ramp up GDP growth to 10 percent. All we would have to do would be to borrow and spend enough money.

So why don’t we do that?

Well, it is because we are already on a path to national suicide. It is being projected that our national debt will hit 30 trillion dollars by 2028, and neither the Republicans nor the Democrats seem concerned about doing anything to alter this trajectory.

If we do get to 30 trillion dollars in debt and interest rates return to their long-term averages, we will be paying more than 1.5 trillion dollars a year just in interest on the national debt and our nation will be financially destroyed.

Many of our largest states are absolutely drowning in debt as well. The following comes from Fox Business

In Illinois, for instance, vendors wait months to be paid by a government that’s $30 billion in debt, and one whose bonds are just one notch above junk bond status, according to Daniels. New York’s more than $356 billion in debt; New Jersey more than $104 billion; and California more than $428 billion.

As I have explained so many times, we are living a debt-fueled standard of living that is way above what we deserve.

If we only spent what we had, the economy would immediately plunge into a depression and our standard of living would collapse. The only way to keep the party going is to borrow and spend increasingly larger amounts of money, but everyone knows that this is simply not sustainable.

And it isn’t just government debt that is the problem.

Since the last financial crisis, corporate debt has doubled.

A massive consumer debt binge has pushed credit card debt to an all-time record high, and at this point the average American household is nearly $140,000 in debt.

When you add all forms of debt together, Americans are nearly 70 trillion dollars in the hole right now. For much more on all of this, please see my previous article entitled “Why America Is Heading Straight Toward The Worst Debt Crisis In History”.

So enjoy the debt-fueled GDP numbers for now, because the truth is that they aren’t going to last for long.

Our endless appetite for debt is literally destroying the bright future that our children and our grandchildren were supposed to have, and someday they will look back and curse us for what we have done to their country.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Economic Collapse