Good Paying Jobs

Recession 2016: In Some States, A Very Deep Economic Downturn Has Already Arrived

Recession 2016 - Public DomainDid you know that there are some U.S. states that have already officially fallen into recession?  Economic activity all over the planet is in the process of slowing down, and there are some areas of the country that are really starting to feel the pain.  In particular, any state that is heavily dependent on the energy industry is hurting right now.  During the years immediately following the last recession, the energy industry was the primary engine for the growth of good paying jobs in America, but now that process is completely reversing.  All over the U.S. energy companies are going under, and thousands upon thousands of good jobs are being lost.

On Sunday evening, Bloomberg published an article entitled “The U.S. States Where Recession Is Already a Reality“. The following is an excerpt from that article…

As economists size up the chances of the first nationwide slump since 2009, pockets of the country are already contracting. Four states — Alaska, North Dakota, West Virginia and Wyoming — are in a recession, and three others are at risk of prolonged declines, according to indexes of state economic performance tracked by Moody’s Analytics.

The three additional states that are “at risk of prolonged declines” are Louisiana, New Mexico and Oklahoma.  What all of those seven states have in common is a strong dependence on the energy industry.  Last year, 67 oil and gas companies in the United States filed for bankruptcy, and approximately 130,000 good paying energy jobs were lost.

If the price of oil does not go back up, this could be just the beginning.  It is being reported that a whopping 35 percent of all oil and gas companies around the planet are at risk of falling into bankruptcy, and the financial institutions that have been backing these energy companies are getting very nervous.

Of course things could shift dramatically for oil and gas companies if World War 3 suddenly erupts in the Middle East, and that could literally happen at any time.  But for the moment the outlook for the energy industry continues to be quite dreary.

Let us also keep in mind that the problems for the U.S. economy are not limited to the energy industry.  According to CNBC, corporate profits in the United States have now declined for three straight quarters, and this is the very first time this has happened since the last recession…

With 87 percent of the S&P 500 reporting, total blended fourth-quarter earnings have shown a decline of 3.6 percent, according to FactSet. Assuming the trend holds up, it will mark the first time profits have fallen for three straight quarters since 2009.

But the road ahead doesn’t get any easier.

FactSet is now projecting that earnings will decline 6.9 percent in the first quarter, a stunning move lower over time considering that in September the expectation was for 4.8 percent growth.

As corporate profits fall, layoffs are starting to increase.  Just the other day we learned that the number of job cuts in this country shot up 218 percent during the month of January according to Challenger, Gray & Christmas.

It is starting to look very much like 2008 all over again, and I am convinced that it will soon be much, much harder to find work in America.

Here are some more numbers that indicate that the U.S. is heading into a major economic slowdown…

–U.S. exports were down 7 percent on a year over year basis in December.

–U.S. manufacturing activity has been in contraction for four months in a row.

–U.S. factory orders have fallen for 14 months in a row.

–The Restaurant Performance Index in the United States has dropped to the lowest level that we have seen since 2008.

–Orders for Class 8 trucks in the United States dropped by 48 percent on a year over year basis in January.

But the mainstream media continues to try to convince all of us that everything is going to be just fine.  Earlier today, CNN ran an article entitled “U.S. recession fears fade after market rally“, and the Wall Street Journal published an article entitled “The U.S. Economy Is in Good Shape” that got a tremendous amount of attention.

Well, if the U.S. economy is in such great shape, then why are some of the biggest retailers in the entire nation shutting down stores at a frightening pace.  The following list of store closures comes from one of my previous articles…

-Wal-Mart is closing 269 stores, including 154 inside the United States.

-K-Mart is closing down more than two dozen stores over the next several months.

-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.

-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.

-The Gap is in the process of closing 175 stores in North America.

-Aeropostale is in the process of closing 84 stores all across America.

-Finish Line has announced that 150 stores will be shutting down over the next few years.

-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.

Perhaps things look fine for the moment in New York City or Washington D.C. or San Francisco or wherever it is that these “reporters” write their articles.

But for ordinary Americans that operate in the real world, the pain of this new economic downturn is already exceedingly apparent.  Here is more from Bloomberg…

Dale Oxley doesn’t need to hear about rising odds of a U.S. recession to dread the future. For the West Virginia homebuilder, the downturn has already arrived.

“Everyone is going to have to tighten their belts,” said Oxley, the 48-year-old owner of a Charleston-area construction company. “The next couple of years are going to be difficult.”

Unfortunately for hard working Americans like Oxley, what we have seen so far is just the tip of the iceberg.

We have entered a long downturn that is ultimately going to be even more painful than the last recession was.

And everything changes if Saudi Arabia and Turkey get trigger happy and decide to invade Syria.  If that happens, it could very well be the spark that sets off World War 3 and a full-blown meltdown of the global financial system.

The Bitter, Crushing Poverty Of Appalachia Is A Preview Of What Is Coming To The Rest Of The Country

Appalachia - Photo from the Appalachian Regional CommissionWhat do you say to people that have completely lost all hope that things will ever get any better?  The mountains of Appalachia stretch all the way from southern New York to northern Mississippi, and nestled within those mountains are dozens upon dozens of little towns that are so impoverished that they look like they have been through a war.  Thanks to Barack Obama’s relentless assault on the coal industry and the ongoing collapse of our industrial infrastructure, Appalachia has lost millions of good paying jobs over the past several decades.  Today, more than 40 percent of the population is living in poverty in some areas of eastern Kentucky, and addiction to “hillbilly heroin” (Oxycontin) is absolutely out of control throughout the region.  Yes, poverty is on the rise all over America, but it has especially been cruel to those that make the mountains of Appalachia their home.

An article that was published in the Guardian on Thursday profiled the deeply impoverished town of Beattyville in eastern Kentucky.  Life is very hard in Beattyville today, and it seems to be getting harder all the time…

The town’s poverty rate is 44% above the national average. Half of its families live below the poverty line. That includes three-quarters of those with children, with the attendant consequences. More than one-third of teenagers drop out of high school or leave without graduating. Just 5% of residents have college degrees.

Surrounding communities are little better. Beattyville is the capital of Lee County, named after the commander of the Confederate army of Northern Virginia in the civil war, General Robert E Lee.

Five of the 10 poorest counties in the US run in a line through eastern Kentucky and they include Lee County. Life expectancy in the county is among the worst in the US, which is not unconnected to the fact that more than half the population is obese. Men lived an average of just 68.3 years in 2013, a little more than eight years short of the national average. Women lived 76.4 years on average, about five years short of national life expectancy.

Because life can be so bitter in little towns like Beattyville, many have chosen to turn to alcohol and drugs in an attempt to escape reality.  The following description of what life is like in the region today comes from Kevin D. Williamson…

Thinking about the future here and its bleak prospects is not much fun at all, so instead of too much black-minded introspection you have the pills and the dope, the morning beers, the endless scratch-off lotto cards, healing meetings up on the hill, the federally funded ritual of trading cases of food-stamp Pepsi for packs of Kentucky’s Best cigarettes and good old hard currency, tall piles of gas-station nachos, the occasional blast of meth, Narcotics Anonymous meetings, petty crime, the draw, the recreational making and surgical unmaking of teenaged mothers, and death: Life expectancies are short — the typical man here dies well over a decade earlier than does a man in Fairfax County, Va. — and they are getting shorter, women’s life expectancy having declined by nearly 1.1 percent from 1987 to 2007.

Many of you that are reading this article know exactly what Williamson is talking about, because you are living in one of those communities.  It can be absolutely soul crushing to look into the hollow eyes of those that have long since given up on life day after day.  There are some communities in America where you can feel the bitterness the moment that you drive into them.  It is almost as if all of the life has been sucked out of the entire town.  If you have ever experienced this, you know what I mean.

If there is hope, most people can endure just about anything.  But when there is no hope, that is when deep depression sets in.  And for many of those living in Appalachia, hope has long since departed.  Just consider the words of long-time Beattyville resident Ed Courier…

“It’s bad. I don’t think rural America has a future,” said Courier. “The advantage rural areas had in the past of cheap labour is gone. We used to have a lot of little factories in this area but they’ve gone to Mexico or China. In rural areas housing is cheap but everything else costs more. Utility rates are higher. Food and transport are higher. Management doesn’t want to live in rural areas. Education is horrible here. This is a third-world county. My kids grew up here until they were eight or nine, then they went to school in Louisville [a 145-mile drive away]. I wouldn’t send them to school here.”

Sadly, what has already happened in Appalachia is slowly happening to the rest of the country as well.  There is a chronic lack of good jobs, poverty is exploding, and more Americans than ever are giving into depression.

As economic conditions continue to deteriorate, people are starting to become more desperate.  In many large cities, crime rates are already up by double digit percentages in 2015, and the thin veneer of civilization that we all take for granted is beginning to disappear.  For example, down in Tampa it is being reported that there is an epidemic of house squatting going on right now…

Crooks find empty houses all over Tampa Bay and make themselves at home. And now, 8 On Your Side uncovered training manuals on the internet. They teach how to get away with squatting.

The handbooks are brazen. A pamphlet for sale on Amazon for $61.20. An entry on Wiki-How entices tells squatters how to “take a whole house from someone if you’re willing to take the risk.”

It points out the best areas to squat and even advises to spruce up the home to throw off suspicious neighbors.

And a tragic incident that just happened in Indianapolis really touched my heart.  The following comes from ABC News…

A family in Indianapolis was torn apart when Amanda Blackburn, 28, died after being shot in the head by a mystery gunman.

Her husband, Pastor Davey Blackburn, returned to their home from the gym Tuesday and found his home broken into and his wife on the ground, officials said.

She died Wednesday, 12 weeks pregnant.

The couple, who have a child, appeared to be madly in love, posting YouTube videos on the way to a “romantic getaway” in Chicago and Amanda even offering marriage advice: “You can lead your wife best, by just being a really, really good Godly example to her.”

Please pray for Pastor Davey.

I can’t even imagine the pain that he must be going through right now.

Meanwhile, there are more signs that this new economic downturn that we are experiencing is about to get even worse…

-Four large U.S. energy companies with combined debt of 4.8 billion dollars have been warned that they are all on the verge of totally collapsing and falling into bankruptcy.

-Unfortunately for all energy companies, the price of oil is not likely to go up significantly any time soon.  The amount of oil being stored offshore has approximately doubled from earlier this year, and more supertankers full of unsold oil are joining the party almost every day…

While the crude oil tanker backlog in Houston reaches an almost unprecedented 39 (with combined capacity of 28.4 million barrels), as The FT reports that from China to the Gulf of Mexico, the growing flotilla of stationary supertankers is evidence that the oil price crash may still have further to run, as more than 100m barrels of crude oil and heavy fuels are being held on ships at sea (as the year-long supply glut fills up available storage on land).

-The amount of goods being shipped by rail, freight and air inside the United States continues to decline.  For the month of October, the Cass Shipping Index was down 5.3 percent on a year over year basis.

-And it also looks like a new housing crisis is beginning to emerge.  From September to October, the number of newly initiated foreclosures in the United States rose by 12 percent.

-Of course the elite understand what is happening, and they are working hard to get prepared.  According to Bloomberg, global central banks are buying up gold “at a near-record pace”…

Central banks and other institutions boosted gold purchases to the second-highest level on record in the quarter to September as countries including China and Russia sought to diversify their foreign-exchange reserves.

Net purchases were 175 metric tons, nearing the record 179.5 tons in the same quarter a year earlier, and up from 127.9 tons in the preceding three-month period, the World Gold Council said in a report on Thursday. Still, over the first nine months central banks’ net purchases dropped 6.7 percent to 425.8 tons, according to the council.

When you add these items to the list that I shared with you yesterday, a very disturbing picture begins to develop.

We are clearly heading into an extremely difficult economic period, and that means that the suffering in Appalachia and elsewhere in America is about to get even worse.

19 Signs That American Families Are Being Economically Destroyed

19 - Public DomainThe systematic destruction of the American way of life is happening all around us, and yet most people have no idea what is happening.  Once upon a time in America, if you were responsible and hard working you could get a good paying job that could support a middle class lifestyle for an entire family even if you only had a high school education.  Things weren’t perfect, but generally almost everyone in the entire country was able to take care of themselves without government assistance.  We worked hard, we played hard, and our seemingly boundless prosperity was the envy of the entire planet.  But over the past several decades things have completely changed.  We consumed far more wealth than we produced, we shipped millions of good paying jobs overseas, we piled up the biggest mountain of debt in the history of the world, and we kept electing politicians that had absolutely no concern for the long-term future of this nation whatsoever.  So now good jobs are in very short supply, we are drowning in an ocean of red ink, the middle class is rapidly shrinking and dependence on the government is at an all-time high.  Even as we stand at the precipice of the next great economic crisis, we continue to make the same mistakes.  In the end, all of us are going to pay a very great price for decades of incredibly foolish decisions.  Of course a tremendous amount of damage has already been done.  The numbers that I am about to share with you are staggering.  The following are 19 signs that American families are being economically destroyed…

#1 The poorest 40 percent of all Americans now spend more than 50 percent of their incomes just on food and housing.

#2 For those Americans that don’t own a home, 50 percent of them spend more than a third of their incomes just on rent.

#3 The price of school lunches has risen to the 3 dollar mark at many public schools across the nation.

#4 McDonald’s “Dollar Menu & More” now includes items that cost as much as 5 dollars.

#5 The price of ground beef has doubled since 2009.

#6 In 1986, child care expenses for families with employed mothers used up 6.3 percent of all income.  Today, that figure is up to 7.2 percent.

#7 Incomes fell for the bottom 80 percent of all income earners in the United States during the 12 months leading up to June 2014.

#8 At this point, more than 50 percent of all American workers bring home less than $30,000 a year in wages.

#9 After adjusting for inflation, median household income has fallen by nearly $5,000 since 2007.

#10 According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.

#11 47 percent of all Americans do not put a single penny out of their paychecks into savings.

#12 One survey found that 62 percent of all Americans are currently living paycheck to paycheck.

#13 According to the U.S. Department of Education, 33 percent of all Americans with student loans are currently behind on their student loan debt repayments.

#14 According to one recent report, 43 million Americans currently have unpaid medical debt on their credit reports.

#15 The rate of homeownership in the U.S. has been declining for seven years in a row, and it is now the lowest that it has been in 20 years.

#16 For each of the past six years, more businesses have closed in the United States than have opened.  Prior to 2008, this had never happened before in all of U.S. history.

#17 According to the Census Bureau, 65 percent of all children in the United States are living in a home that receives some form of aid from the federal government.

#18 If you have no debt at all, and you also have 10 dollars in your wallet, that you are wealthier than 25 percent of all Americans.

#19 On top of everything else, the average American must work from January 1st to April 24th just to pay all federal, state and local taxes.

All of us know people that once were doing quite well but that are now just struggling to get by from month to month.

Perhaps this has happened to you.

If you have ever been in that position, you probably remember what it feels like to have people look down on you.  Unfortunately, in our society the value that we place on individuals has a tremendous amount to do with how much money they have.

So if you don’t have much money, there are a lot of people out there that will treat you like dirt.  The following excerpt comes from a Washington Post article entitled “The poor are treated like criminals everywhere, even at the grocery store“…

Want to see a look of pure hatred? Pull out an EBT card at the grocery store.

Now that my kids are grown and gone, my Social Security check is enough to keep me from qualifying for government food benefits. But I remember well when we did qualify for a monthly EBT deposit, a whopping $22 — and that was before Congress cut SNAP benefits in November 2013. Like 70 percent of people receiving SNAP benefits, I couldn’t feed my family on that amount. But I remember the comments from middle-class people, the assumptions about me and my disability and what the poor should and shouldn’t be spending money on.

Have you ever seen this?

Have you ever experienced this yourself?

These days, most people on food stamps are not in that situation because they want to be.  Rather, they are victims of our long-term economic collapse.

And this is just the beginning.  When the next major economic crisis strikes, the suffering in this country is going to go to unprecedented levels.

As we enter that time, we are going to need a whole lot more love and compassion than we are exhibiting right now.

As a nation, we have made decades of incredibly bad decisions.  As a result, we are experiencing bad consequences which are going to become increasingly more severe.

The numbers that I just shared with you are not good.  But over the next several years they are going to get a whole lot worse.

Everything that can be shaken will be shaken, and life in America is about to change in a major way.

 

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