At this point, we shouldn’t expect the Democrats to show any concern for our skyrocketing national debt.  During the Obama years the national debt increased by an average of more than a trillion dollars a year, and this unprecedented spending helped to stabilize the U.S. economy following the Great Recession.

However, if we could go back and remove the 9.3 trillion dollars that was added to the national debt during Obama’s time in office, those eight years would have been the worst eight years economically in the history of our nation.  We borrowed mountains of money from the future in order to make the present more pleasant, but in the process we literally destroyed the bright future our children and our grandchildren were supposed to have.

Of course most Americans don’t understand any of this, and many people look back on “Obama’s economy” with great fondness.

But isn’t Trump essentially doing the same thing?

Of course he is.

Just like Obama, Trump doesn’t want to preside over “a second Great Depression”, and so he is perfectly fine with taking our national debt into the stratosphere.  If we tried to live within our means and only spent the money that we actually brought in, the U.S. economy would immediately collapse.  And if the U.S. economy fell to pieces, Trump would have no chance of winning again in 2020, and we all know that Trump desperately wants to win the next election.

In the old days there were at least some Republicans that actually seemed to care about our financial future.  The Republican Party was supposedly “the party of fiscal responsibility”, and a big driver of the Tea Party movement was concern about the size of our national debt.

But these days very, very few Republican leaders are making a peep about our rapidly growing mountain of debt.  Instead, most of them seem absolutely fine with the fact that we are literally destroying ourselves financially.

This is yet another example that shows that there really is not that much of a difference between the two political parties at this point.  One may want to take us down the tubes a little faster than the other one, but the final destination is still the same.

I would love to hear any Republican voter make a rational defense for what we are witnessing right now.  According to the Congressional Budget Office, the federal budget deficit was 984 billion dollars during the fiscal year which just ended on September 30th…

The federal budget deficit for 2019 is estimated at $984 billion, a hefty 4.7 percent of gross domestic product (GDP) and the highest since 2012, the Congressional Budget Office (CBO) said on Monday.

The deficit was 205 billion dollars bigger than the previous fiscal year, and overall that represented an increase of 26 percent in just one year.

Of course the official “budget deficit” is a bit misleading, because it actually understates the amount by which our national debt increases.

According to official U.S. Treasury numbers, our national debt actually increased by 1.113 trillion dollars during the fiscal year that just ended.

Adding more than a trillion dollars to the national debt in a single year is certainly not “conservative”.

Can anybody out there possibly defend such recklessness?

If you think you can, please feel free to give it a shot.  Sadly, the truth is that all of our politicians that have supported such irresponsible spending should be completely and utterly ashamed of themselves.  What they are doing to future generations of Americans is beyond criminal, and if future generations of Americans get the chance they will look back and curse us for what we have done to them.

As our founders understood very well, government debt is a way for one generation to literally steal money from future generations.  And as Jason Pye has noted, our “unsustainable situation is only going to get worse”…

“Democrats and Republicans must be held responsible for the outrageous deficit reported today by the CBO,” said Jason Pye, vice president of legislative affairs at the conservative advocacy group FreedomWorks.

“This unsustainable situation is only going to get worse,” he added.

Unfortunately, there really isn’t anything to be done at this point.  Now that fiscal irresponsibility has become the official position of both major political parties, all that we can really hope for is that the coming financial implosion will be put off for as long as possible.

In the short-term, the Federal Reserve will undoubtedly attempt to stabilize things.  In recent days they have begun to start wildly printing money once again.  They aren’t calling it “quantitative easing”, but that is essentially what is going on.  The Fed balance sheet is beginning to rise at an exponential pace, and this “emergency intervention” that they are conducting is starting to look more permanent with each passing day.

Sadly, it is just another indication that our financial sins are starting to catch up with us.  Previous generations handed us the keys to the most powerful economy in the history of the planet, but that wasn’t good enough for us.  We always had to have more, and in our endless greed we have created the largest debt bubble in the history of the world.

Now we stand on the brink of oblivion, and yet our addiction to debt is so strong that we just can’t help ourselves.

There is no way that this story is going to end well, but even at this late hour most Americans still don’t realize what is coming.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep.  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 in written form on their own websites as long as this “About the Author” section is included.  In order to comply with 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.  You can follow me on social media on Facebook and Twitter.  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 this website.

The post America’s Financial Suicide: The Budget Deficit Rises 26% In 1 Year As Federal Spending Spirals Wildly Out Of Control appeared first on The Economic Collapse.

My father was a math teacher for many years, and so I like numbers.

I divided $72,000,000,000,000 by the current population of the United States (Google says it is 327.2 million), and I discovered that it breaks down to more than $220,000 for every man, woman and child in the entire country.

So if you have a family of four, your share of all this debt is $880,000.

This debt bubble has been growing much, much faster than the overall economy for a very long time.  When Ronald Reagan took office the total amount of debt in our system was less than 5 trillion dollars, and when George W. Bush took office the total amount of debt in our system was just over 29 trillion dollars.

Just prior to the last financial crisis we surpassed the 54 trillion dollar mark, and so since that time we have added nearly 18 trillion dollars to our total.

Of course all of this debt will never actually be paid off.  The only thing left to do is to keep this debt bubble going for as long as possible, and the only way to do that is to keep it growing at a faster pace than the overall economy is growing.

And our financial engineers have definitely been successful in extending this Ponzi scheme for a lot longer than many of us had anticipated, but they can’t keep doing this indefinitely.

Every financial bubble in history has eventually ended, and this one will too.  I really like what Charles Hugh Smith had to say to Greg Hunter just the other day…

Journalist and book author Charles Hugh Smith says the next market crash and recession will unfold like the bursting of the 2000 Dotcom bubble. Smith explains, “The bubble popped or deflated not for any crisis, but simply because there was too much debt, too much leverage, too much euphoria and unrealistic valuations. I think we are seeing that now in stocks, housing and a lot of other assets around the world. The valuations just exceed what makes financial sense. . . . And remember, we are at the longest expansion in history. It’s over 10 years, and the average expansion lasts 5, 6 or 7 years. So, this expansion is pretty long in tooth. . . . You will get a slowdown, and that is a self-reinforcing feedback loop. Once people stop buying houses and once people stop buying cars . . . then you are going to get people being laid off, less people being able to afford to eat out, and then you get a self-reinforcing recession. It’s not a crisis, but like an erosion because everybody is kind of tapped out.”

In the end, nobody can “fix” our system, because our debt-based financial system was fundamentally flawed when it was designed.  This is something that I have repeatedly pointed out, but unfortunately most Americans still don’t seem to understand this very basic concept.

If you have a financial system that is literally designed to endlessly create more debt, more money and more inflation, then you are living in a “bubble economy”.

And a “bubble economy” can seem fine as long as the bubble is inflating and economic activity seems to be humming along, but when things start to go bad they can go really, really bad very rapidly.

Individually, there is very little that we can do about our national debt, state and local government debt or corporate debt.  We can try to vote people into office that want to do the right thing, but unfortunately fiscal responsibility and financial reform are not hot button political issues right now.

But what we can do is get our own financial houses in order.  Now is not the time to take on more debt, and paying off any debt that you have already accumulated would be a very good thing.  This is something that Mac Slavo commented on in one of his recent articles…

The real truth that no one seems to want to hear, is that those who took out these loans signed on the line and voluntarily entered into a contract.  If they didn’t understand the contract, it’s their responsibility (a big scary word) to ask or seek clarity before the agreement is made and signed. That’s called personal responsibility for your actions.  However, it’s lacking all over the globe, but particularly in the United States where people are always looking to blame others for their poor decisions that they themselves have made. “Blame the rich for my decision to go into debt and agree to bad terms!”

The debt crisis the U.S. has found itself in could very well cause another recession such as the one that started in 2008. This is exactly why personal wealth gurus such as Dave Ramsey and Future Money Trends‘ James Davis tell people to avoid debt if at all possible. Doing so will protect you when others start to default on their loans.  You can’t default if you haven’t borrowed money. It also won’t matter what type of predatory loans exist if people aren’t borrowing that money. Personal responsibility could help lead to more freedom. If people are not free to make bad decisions as well as good decisions, people are not free.

As for the nation as a whole, we can only hope that there is as much time as possible before the inevitable implosion comes.

For decades we have been making exceedingly foolish decisions, and the consequences of those decisions are going to be exceedingly painful indeed.

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.

The post $220,000 For Every Man, Woman And Child – America Is Now 72 Trillion Dollars In Debt appeared first on The Economic Collapse.

Very briefly, let’s review some of the reasons why we should expect to see the employment numbers get worse.  As the economy slows down, goods begin to pile up in our warehouses, and that is precisely what the numbers show.  In fact, the inventory to sales ratio in the U.S. has now increased for five months in a row.

Fewer sales should result in less stuff being shipped around the nation by freight, rail and air, and this is yet another thing that we see happening right now.  Overall, U.S. freight shipment volume has dropped for three months in a row.

Once businesses realize that economic conditions have changed, then they start reducing the number of job openings and laying off workers.  That is why employment statistics are often referred to as “trailing indicators”.  The employment numbers don’t usually start to go down until other indicators start dropping first.

And without a doubt, the employment numbers are starting to move.  Continuing jobless claims have been rising at the most rapid pace in 10 years, and U.S. businesses have been adding jobs at the slowest pace in 18 months.

With all of that in mind, we should not be surprised at all by this latest number…

Job openings, a measure of labor demand, tumbled by 538,000 to a seasonally adjusted 7.1 million, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS, report on Tuesday. The drop was the biggest since August 2015.

That is a really dreadful number, and there is no way to spin it to make it look good.

One factor that is shifting the employment environment is all of the minimum wage laws that are being passed around the country.

A number of liberal enclaves have raised the minimum wage to 15 dollars an hour, and as a result a lot of small businesses have been forced to let workers go…

In what has become just one more example of government intervention going the exact opposite of what socialists intend, minimum wage laws are driving a “payroll tsunami.”  Small businesses are being forced to lay off workers in order to comply with a law demanding an increase in wages.

This isn’t all that surprising. Economists, small business owners, and other analysts have said that the net result of higher wages is a loss of jobs. And small businesses, who don’t have the capital or return that large corporations do, are feeling the proverbial pinch. According to Fox News, several mom-and-pop coffee shops and restaurants, are responding by cutting hours, eliminating jobs or closing down entirely because they can’t keep up with rising wages under the law.

My very first job was flipping burgers for McDonald’s, and I made $3.35 an hour doing it.  As a teenager, I was grateful to have such a job, but now such minimum wage jobs are in danger.  Wal-Mart and other major corporations are already making extensive use of robots to perform basic tasks, and making human workers more expensive is going to hurt those at the bottom of the economic food chain the most.

But for the moment, things are still relatively stable.  Most Americans still seem to believe that the bubble of debt-fueled economic “prosperity” that we are currently enjoying is going to continue for the foreseeable future, and they are spending money as if tomorrow will never come.

According to Zero Hedge, U.S. consumer credit has now surged past the 4 trillion dollar mark…

After a few months of wild swings in mid 2018, in February US consumer credit continued to normalize, rising by $15.2 billion, slightly below the $17 billion expected, following January’s $17.7 billion increase. The continued increase in borrowings saw total credit storm above $4 trillion, and hit a new all time high of $4.045 trillion on the back of a America’s ongoing love affair with auto and student loans, and of course credit cards.

We better hope that the U.S. economy is able to pull out of this new slowdown, because most of us are living right on the edge financially.

Sadly, we never seem to learn.  The same mistakes that we made last time around are all happening again, and Americans are completely and totally unprepared for what is coming.

And the warnings are all around us.  On Tuesday, the IMF downgraded their forecast for global economic growth for the third time in six months.  Commenting on this downgrade, IMF executive director Christine Lagarde noted that this is a “delicate moment” for the global economy…

Christine Lagarde, the IMF’s executive director, said the global economy is in a “delicate moment.”

“Only two years ago, 75% of the global economy experienced an upswing,” Lagarde said, according to the text of a speech she’s due to give at the US Chamber of Commerce. “For this year, we expect 70% of the global economy to experience a slowdown in growth.”

It is not often that I agree with a globalist like Christine Lagarde, but she is quite right in saying that this is a “delicate moment”.

Global economic numbers have not been this bad since the last financial crisis, and many believe that we have now reached a major turning point.

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.

The post Uh Oh: The Number Of Job Openings In The U.S. Dropped By More Than Half A Million In Just One Month appeared first on The Economic Collapse.

If you still think that the economy is in “good shape”, please read over the following list very carefully.

The following are 14 very alarming numbers that reveal the true state of the economy…

#1 Continuing jobless claims are rising at the fastest pace in 10 years.

#2 U.S. businesses are adding jobs at the slowest pace in 18 months.

#3 General Motors, Ford, Nissan and Fiat Chrysler all reported sales declines of at least 5 percent on a year over year basis in March.

#4 Tesla vehicle deliveries were down a whopping 31 percent during the first quarter of 2019.

#5 U.S. consumer confidence fell more than 7 points in March.

#6 Manhattan real estate sales have now fallen for six straight quarters.  That is the longest losing streak in 30 years.

#7 London real estate sales just dropped by the most we have seen in 10 years.

#8 The owner of Kay, Zales and Jared jewelers just announced that they will be closing 150 stores.

#9 Retail layoffs are 92 percent higher than they were at this time last year.

#10 U.S. freight shipment volume has fallen for three months in a row.

#11 The inventory to sales ratio in the United States has risen sharply for five months in a row.

#12 At this point, almost half of all renters in America spend more than 30 percent of their incomes on rent.

#13 The real median net income for Minnesota farmers was only $26,055 in 2018, and that was before many of them were absolutely devastated by the recent flooding.

#14 Overall, U.S. economic numbers are off to their worst start for a year since 2008.

We didn’t see economic numbers like this last year.

But now things have clearly changed.  It is starting to feel more like 2008 with each passing day, and this is a point that Mac Slavo made in his most recent article…

The signs of yet another economic recession are everywhere. In fact, it seems hard to find any positive economic news anymore, even though a mere few months ago, it was difficult to find a report signaling the United States might be headed for some turmoil.

These days, many people get offended at the thought that the U.S. economy is heading for trouble.  But the truth is that we have been heading for trouble for a very long time.

Our economy is built on a foundation of sand.  More specifically, we have borrowed our way into “prosperity”.

The other day, I wrote an article about our $22,000,000,000,000 national debt.  It is the biggest single debt in the history of the world, and we continue to add to it at a rate that is absolutely insane.  In fact, our 234 billion dollar deficit in February broke the all-time record for a single month.  If we continue to do this, there is no way that our story ends well.

But that 22 trillion dollar debt is only a fraction of our overall debt.

When you add up all forms of debt in the United States, it comes to a grand total of more than 72 trillion dollars.  And that doesn’t even include a single dollar of our unfunded liabilities on the federal, state and local level.

When Ronald Reagan took office, the total amount of debt in the U.S. was less than 5 trillion dollars.

When historians look back on this time in history, they will not be surprised that our society ultimately collapsed.  What will surprise them is that it took so long for it to do so.

Sometimes I get criticized for urging people to get prepared.  But those that really deserve the criticism are those that are assuring everyone that everything is going to be just fine.  If we got the smartest minds in the entire country together and treated this like a major national emergency, perhaps we could find a way to engineer some sort of a soft landing when this debt bubble bursts.

But as it stands, there is no plan and our long-term problems get worse with each passing day.  Our economy is headed for a crash of epic proportions, and it isn’t going to matter who is in power in Washington when it happens.

And at the rate that our economy is currently slowing down, America may become an economic horror show a lot sooner than many people had anticipated.

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.

The post Economic Slowdown Confirmed: Here Are 14 Very Alarming Numbers That Reveal The Current State Of The Economy appeared first on The Economic Collapse.

Citing a more modest outlook for the economy, the Federal Reserve on Wednesday held interest rates steady and signaled it did not plan to raise rates at all this year and would bump them up just once in 2020, providing a road map for a sustained period of easy-money policy.

“The U.S. economy is in a good place,” Fed Chairman Jerome Powell said at a news conference, adding policymakers foresee “a modest slowdown, with overall conditions remaining favorable. We see no need to rush to judgment (by lifting or cutting rates).”

Admittedly, he did only say that it would be a “modest slowdown”, and so to most people that won’t sound that bad.

But this is the very first time that Powell has talked like this, and the truth is that the Atlanta Fed’s GDPNow model is currently forecasting that U.S. growth in the first quarter will be less than half a percent.  Fed officials are hoping that growth will be better in the second quarter, but there is also a very strong possibility that the economy will continue to decelerate.

Because the economy is entering a “slowdown”, the Federal Reserve announced on Wednesday that it does not anticipate any more interest rate hikes for the rest of the year.

Normally Wall Street would experience a huge surge of euphoria upon hearing such news, but stocks were actually down on Wednesday…

The Dow Jones Industrial Average and S&P 500 closed lower on Wednesday after the Federal Reserve’s latest monetary-policy announcement dragged Treasury yields lower, pushing bank shares down.

Goldman Sachs led the 30-stock Dow to end the day down 141.71 points at 25,745.67. The S&P 500 closed 0.3 percent lower at 2,824.23. The Nasdaq Composite eked out a gain, closing 0.1 percent higher at 7,728.97.

This certainly could not have been the reaction that the Federal Reserve was hoping for.

Could it be possible that bad news for the U.S. economy is no longer good news for Wall Street?

Without a doubt, we are witnessing a huge wave of pessimism in the business community right now.  Yesterday, I noted that Federal Express is talking as if a global recession had already started, and other corporate leaders are making similar statements.

For example, just consider what the CEO of banking giant UBS just said…

The head of UBS was among the latest to blame the world’s backdrop for weaker-than-expected results. CEO Ermotti told a conference in London on Wednesday that it “one of the worst first-quarter environments in recent history,” Reuters reported. The Swiss bank slashed another $300 million from 2019 costs after revenue at its investment bank plunged. Investment banking conditions are among the toughest seen in years, especially outside the U.S., he said.

And the CFO of BMW told investors on Wednesday that BMW’s earnings may be exposed to “additional risks” from the global economy in the months ahead…

“Depending on how conditions develop, our guidance may be subject to additional risks; in particular, the risk of a no-deal Brexit and ongoing developments in international trade policy,” CFO Nicolas Peter said in BMW’s quarterly earnings report Wednesday.

Last, but certainly not least, the co-CEO of Samsung just said that his company is anticipating “slowing growth in major economies” for the remainder of 2019…

“We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts,” Samsung Co-Chief Executive Kinam Kim said.

Here in the United States, whoever is in the White House at the time usually gets most of the credit or most of the blame for how the economy is performing.

But the truth is that President Trump did not create the financial bubble that caused the boom on Wall Street.

The Federal Reserve did.

And President Trump is not going to be responsible when that bubble bursts either.

The Federal Reserve has far, far more control over the performance of the U.S. economy than either the president or Congress does.  And since the Federal Reserve was initially created in 1913, there have been 18 distinct recessions and/or depressions, and now we are heading into the 19th one.

If we want to finally get off this economic roller coaster ride permanently, we need to abolish the Federal Reserve.  But this isn’t even part of the national political discussion at this point.

However, that could soon change.  In the aftermath of the financial crisis of 2008, we witnessed a huge backlash against the Federal Reserve system.  Eventually that backlash subsided, but now that we are entering a new crisis, perhaps it is time to start dusting off all of those old “End the Fed” signs.

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.

The post The Chair Of The Federal Reserve Just Used The Term “Slowdown” To Describe What Is Happening To The U.S. Economy appeared first on The Economic Collapse.

The multinational package delivery service reported declining international revenue as a result of unfavorable exchange rates and the negative effects of trade battles.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,” Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer, said in statement.

The use of the word “trends” implies something that has been going on for an extended period of time, and obviously FedEx doesn’t expect things to get better any time soon if they have cut profit projections twice in just the last three months.

And FedEx certainly has a lot of company when it comes to having a gloomy outlook for the global economy.  In one recent article, Bloomberg boldly declared that the global economy is in the worst shape it has been “since the financial crisis a decade ago”…

The global economy’s in its weakest shape since the financial crisis a decade ago, Bloomberg Economics analysis shows. And the reminders are all around: China got more affirming evidence of its big slowdown, with industrial output and retail sales softening and a jump in unemployment. The question now is how big that slowdown will be, and what China’s stimulus — and the U.S.-China negotiations — will do to put a floor under it. The Chinese premier pledged Friday that they wouldn’t use quantitative easing or massive deficit spending to ease the pain. Japan got more bad news on manufacturing sentiment and in the hard investment data. Germany, Europe’s growth driver, can’t hide from the daunting external risks. And Turkey just entered its first recession in a decade.

In recent weeks I have been sharing lots of numbers that back up the claim that global economic conditions are getting worse, and over the past few days we got a few more…

-U.S. freight volume has dropped for three months in a row.

-In February, orders for Class-8 freight trucks were down 58 percent from a year ago.

-U.S. manufacturing output was down for a second straight month in the month of February.

-U.S. residential construction spending just plunged for the sixth month in a row.

-Industrial production on a year-over-year basis in Europe has fallen for three months in a row.

When we see numbers like those, normally everyone is screaming “recession” by now.

And retailers continue to shut down at a staggering pace here in 2019.  Sadly, we just learned that Shopko is officially heading for bankruptcy and liquidation…

Shopko will liquidate its assets and close all of its remaining locations by mid-June.

The company was unable to find a buyer for the retail business and will begin winding down its operations beginning this week, the company said in statement released Monday. The decision to liquidate will bring an end to the brick-and-mortar business that began in 1962 with one location in Green Bay, Wisconsin.

There is a Shopko about 20 minutes from where I live, and it will definitely be missed.

Meanwhile, things just continue to get even harder for farmers in the middle part of the country.  I wrote about the devastating impact that this historic flooding is having on Midwest farmers a few days ago, and now Fox Business is reporting that all of this flood damage is likely to make our rapidly growing farm bankruptcy crisis even worse…

The number of farms filing for bankruptcy already spiked, following low prices for corn, soybeans, milk and beef, according to analysis from the Federal Reserve Bank of Minneapolis. In the 12-month period ending in June, 84 farms filed for bankruptcy in Wisconsin, Minnesota, North Dakota, South Dakota and Montana — double the number over the same period in 2013 and 2014.

Now, some of these farmers have lost their livestock as a result of the devastating flooding. Some farmers, the Times reported, said they’ve been separated from their animals by walls of water, while others are unable to get into town for food and other supplies for the livestock.

We can see so many elements of “the perfect storm” starting to come together, and many believe that events are going to start greatly accelerating in the months ahead.

And as the global economy continues to deteriorate, we could quickly have a giant mess on our hands, because the global financial system is far more vulnerable today than it was in 2008.  Just consider these numbers…

Global debt levels have become “higher and riskier” than that of a decade ago, meaning that “another credit downturn may be inevitable”, S&P Global Ratings has warned.

In a report entitled Next Debt Crisis: Will Liquidity Hold?, published on Tuesday (12 March), S&P found global debt has surged by around 50% since the 2008 Global Financial Crisis, led by major-economy governments and Chinese non-financial corporates, while global debt-to-GDP ratios have risen to more than 231%, compared with 208% in June 2008.

Shipping companies often feel the effects of an economic slowdown earlier than just about anyone else.  When a lot less stuff is being moved around by truck, rail and air, that should be a clear indication for the rest of us that economic activity is really starting to slow down significantly.

So the fact that FedEx has such a bleak outlook for our immediate economic future is a very ominous sign.

Tough times are ahead, and considering how tense things already are in our country, an economic downturn at this time could ultimately set off a very disturbing chain of events.

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.

The post FedEx Is Talking As If A Global Recession Has Already Begun – And The Numbers Back That Up appeared first on The Economic Collapse.

The global economy’s sharp loss of speed through 2018 has left the pace of expansion the weakest since the global financial crisis a decade ago, according to Bloomberg Economics.

Its new GDP tracker puts world growth at 2.1 percent on a quarter-on-quarter annualized basis, down from about 4 percent in the middle of last year. While there’s a chance that the economy may find a foothold and arrest the slowdown, “the risk is that downward momentum will be self-sustaining,” say economists Dan Hanson and Tom Orlik.

This is definitely the worst condition that the global economy has been in since I started The Economic Collapse Blog, and I am personally very alarmed about where things are heading.  The tremendous economic optimism of early 2018 has given way to a tremendous wave of pessimism, and the speed at which the economic environment is changing has stunned a lot of the experts.

In fact, Bloomberg economists Dan Hanson and Tom Orlik openly admit that they are “surprised” by how quickly the global economy has shifted…

“The cyclical upswing that took hold of the global economy in mid-2017 was never going to last. Even so, the extent of the slowdown since late last year has surprised many economists, including us.”

Of course the U.S. has not been immune from the changes.  The U.S. economy is rapidly slowing down as well, and this is something that I have been heavily documenting on my website.

And now we have just received more confirmation that the economy is decelerating.  The Atlanta Fed has just updated their GDPNow model yet again, and with this new revision they are now projecting that the U.S. economy will grow at a rate of just 0.2 percent during the first quarter of 2019…

Moments ago we got another confirmation of this, when following the latest retail sales report which saw a dramatic cut to December retail sales even as January surprised modestly to the upside, the Atlanta Fed slashed its Q1 GDP nowcast, and after rebounding modestly from 0.3% to 0.5% a week ago, it has once again slumped, and is now at the lowest recorded level, and just 0.2% away from economic contraction.

This is how the AtlantaFed justified its latest Q1 GDP cut, which as of March 11 was just 0.2 percent, down from 0.5 percent on March 8: “After this morning’s retail sales report from the U.S. Census Bureau, the nowcast of first-quarter real personal consumption expenditures growth declined from 1.5 percent to 1.0 percent.”

In other words, we are just a razor thin margin away from entering an economic contraction.

Last week, we learned that U.S. job cut announcements were up 117 percent in February when compared to last year.  All of the economic momentum is in a negative direction right now, and it is going to be exceedingly difficult to avert a recession at this point.

And of course a lot of analysts believe that what is coming will be a whole lot worse than just a recession.  The greatest debt bubble in the entire history of our planet is in the process of bursting, and the consequences are going to be absolutely horrific.  I really like how financial expert Egon von Greyerz recently made this point…

People must understand that the world has never faced risk of this magnitude. We are now in the final seconds of the global mega bubble, the likes of which the world has never seen before. What will happen next will be worse than the fall of the Roman Empire, much worse than the South Sea and Mississippi Bubbles, and will create a disaster that will dwarf the Great Depression of the 1930s.

The problem is simple to define and is all based around debts and liabilities. At the beginning of this century, global debt was $80 trillion. When the Great Financial Crisis started in 2006, global debt had gone up by 56% to $125 trillion. Today it is $250 trillion.

There is no way that a 250 trillion dollar bubble is going to burst in an orderly fashion.  Essentially, we are looking at the sort of apocalyptic financial scenario that I have been warning about for a long time, and most people have no idea that it is coming.

And if people only listened to the financial authorities, it would be easy to get the impression that everything is going to be just fine.

For example, Fed Chair Jay Powell just told 60 Minutes that the outlook for the U.S. economy “is a favorable one”.  The following comes from Fox Business…

Jay Powell, the head of the Federal Reserve, says he does not see a recession hitting the U.S. economy anytime soon.

“The outlook for our economy, in my view, is a favorable one,” Powell said Sunday in an interview with CBS’s Scott Pelley for “60 Minutes.”

If you are tempted to believe Powell, let me remind you of what former Fed Chair Ben Bernanke told Congress in early 2008…

“The U.S. economy remains extraordinarily resilient,” the U.S. central bank chief said in answering questions after testifying before the House of Representatives Budget Committee.

Bernanke added that growth will be worse this year. “We currently see the economy as continuing to grow, but growing at a relatively slow pace, particularly in the first half of this year,” he said.

Of course we all remember what happened next.  The U.S. economy plunged into the worst economic downturn since the Great Depression of the 1930s, and we are still dealing with the aftermath of that crisis to this day.

Nobody is going to ring a bell when the next recession starts.  It is just going to happen, and just like last time, most Americans are going to be blindsided by it.

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.

The post New Numbers Confirm That The Global Economy And The U.S. Economy Are The Weakest They Have Been Since The Last Recession appeared first on The Economic Collapse.

The U.S. economy is growing at a 0.3 percent annualized rate in the first quarter, based on data on domestic construction spending in December released on Monday, the Atlanta Federal Reserve’s GDPNow forecast model showed.

For years, the goal has been to get U.S. growth above the key 3 percent threshold, but what this forecast is telling us is that economic growth is currently at one-tenth of that level.

That is just barely above recession territory.

So when I say that we are teetering on the brink of a recession, I am not exaggerating.

We also just got some really bad news about construction spending…

Construction spending fell 0.6% in December from November, based on a seasonally adjusted annual rate, released today by the Commerce Department. Compared to December a year earlier, total construction spending inched up only 0.8% (not seasonally adjusted), the lowest growth rate since Oct 2011, coming out of the great recession.

Now we can add that to the list of all the other numbers that are telling us that very rough times are ahead.

Meanwhile, debt levels in the U.S. just continue to explode.

According to the latest report, Americans now have 480 million credit cards.  That is about 100 million more than during the last recession.

In other words, there are about 1.5 credit cards for every man, woman and child in the entire country.

The total amount of credit card debt in the United States has now reached a whopping $870,000,000,000.  That number has never been higher in the history of our nation.

And when you total up all forms of individual debt, U.S. consumers are now 13.5 trillion dollars in the hole.

Corporate debt levels are exploding as well, and this is something that Dallas Fed President Robert Kaplan warned about on Tuesday…

U.S. nonfinancial corporate debt consists mostly of bonds and loans. This category of debt, as a percentage of gross domestic product, is now higher than in the prior peak reached at the end of 2008, Kaplan said.

A number of studies have concluded this level of credit could “potentially amplify the severity of a recession,” he noted.

The lowest level of investment-grade debt, BBB bonds, has grown from $800 million to $2.7 trillion by year-end 2018. High-yield debt has grown from $700 million to $1.1 trillion over the same period. This trend has been accompanied by more relaxed bond and loan covenants, he added.

Overall, corporate debt has more than doubled since the last financial crisis, and that is just one of the reasons why our financial system is far more vulnerable today than it was just before the last financial crisis.

This week we also learned that the federal budget deficit is exploding as well.  The following comes from Business Insider…

According to a report from the Treasury Department released Tuesday, the budget deficit — that is the difference between what the federal government takes in and what it spends — hit $310 billion in the first four months of fiscal year 2019.

Fiscal years for the federal government run October through September, so the data reflects the shortfall from October 2018 through January 2019. Based on the data, the deficit increased by 77% compared to the same period the prior year.

A 77 percent increase in one year?

I don’t even have the words to describe how foolish this is.

We are on pace to add way over a trillion dollars to the national debt this year, and one of the big things fueling this horrific debt binge is our rapidly expanding interest payments…

Finally, and perhaps most concerning, is that for the first four months of this fiscal year, interest payments on the U.S. national debt hit $192 billion, $17 billion, or 10% more than in the same four-month period last year and the most interest ever paid in the first third of the fiscal year. As Reuters’ Jeoff Hall points out, annualizing the $192BN interest expense means that the interest on U.S. public debt is on track to reach a record $575 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to 2.7% of estimated GDP, the highest percentage since 2011.

But according to the proponents of modern monetary theory (MMT), we can spend as much money as we want because “deficits almost never matter”…

Because MMT holds that government spending isn’t funded by taxes, the Green New Deal doesn’t include any measures to finance the very large, open-ended fiscal commitments it would undertake. According to MMT economists, the only possible danger from the resultant government debt would be inflation, which can usually be controlled with tools other than raising taxes. In other words, deficits almost never matter. So confident are they of their theory’s universal applicability that MMT proponents often respond to their critics with scorn.

If you can believe it, there are actually members of Congress that believe this stuff.  Of course the truth is that our national debt is an existential threat to the continued existence of our nation, and this is a point that I have made repeatedly.

The U.S. economy was in far better shape just prior to the financial crisis of 2008 than it is now, and today we are drowning in far more debt than we were at that time.

The stage is set for the most terrifying economic horror show in American history, and the clock is ticking away with each passing day.

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.

The post As The Economy Teeters On The Brink Of A Recession, U.S. Debt Levels Are Absolutely Exploding appeared first on The Economic Collapse.

The following are 35 mind blowing facts about America that previous generations of Americans never would have believed…

#1 Approximately one-fourth of the entire global prison population is in the United States.

#2 By the time an American child reaches the age of 18, that child will have seen approximately 40,000 murders on television.

#3 The average U.S. adult “logs 6 hours, 43 minutes of total screen time daily”.

#4 Approximately 96 percent of all Americans use the Internet.

#5 According to the American Road and Transportation Builders Association, nearly 56,000 bridges in the United States are currently “structurally deficient”.  What makes that number even more chilling is the fact that vehicles cross those bridges a total of 185 million times a day.

#6 In more than half of all U.S. states, the highest paid public employee in the state is a football coach.

#7 The Pentagon has more square footage of office space than any other office building in the entire world.

#8 The state of Alaska is 429 times larger than the state of Rhode Island.  But Rhode Island has a significantly larger population than Alaska does.

#9 Alaska has a longer coastline than all of the other 49 U.S. states put together.

#10 The city of Juneau, Alaska is about 3,000 square miles in size. It is actually larger than the entire state of Delaware.

#11 The average age of America’s dams is now 52 years.

#12 The average supermarket in the United States wastes about 3,000 pounds of food each year.

#13 There are more than 75 million dogs in the United States, and that number is constantly growing.

#14 Montana has three times as many cows as it does people.

#15 The grizzly bear is the official state animal of California. But no grizzly bears have been seen in the state since 1922.

#16 The only place in the United States where coffee is grown commercially is in Hawaii.

#17 More than 2 million Americans work for Wal-Mart.

#18 Half of all American workers make less than $30,533 a year.

#19 According to one recent survey, 37 percent of all Americans eat fast food every 24 hours.

#20 One study found that one-third of all American teenagers haven’t read a single book in the past year.

#21 Almost one-third of all Millennials are still living with their parents.

#22 The suicide rate in the United States has risen by 33 percent since 1999.

#23 Women have earned at least 57 percent of all bachelor’s degrees in the United States for 18 years in a row.

#24 If the U.S. health care system was a country, it would have the fifth largest GDP on the entire planet.

#25 America does not have a single airport that is considered to be in the top 25 in the world.

#26 Today, a million Americans are living in their RVS, and that number is rising with each passing year.

#27 More than 100 churches in the United States are dying every single week.

#28 The original name of the city of Atlanta was “Terminus“.

#29 There are three towns in the United States that have the name “Santa Claus“.

#30 There is actually a town in Michigan called “Hell“, and during the recent polar vortex it actually froze over.

#31 Almost one-third of all land in the United States is owned by the federal government.

#32 More than 27 million acres of U.S. farmland is owned by foreigners.

#33 Congestion on our highways costs Americans approximately 101 billion dollars a year in wasted fuel and time.

#34 According to Bloomberg, it is being projected “that by 2025, shortfalls in infrastructure investment will subtract as much as $3.9 trillion from U.S. gross domestic product.”

#35 In 1980, the U.S. national debt had just surpassed the one trillion dollar mark.  In 2019, we are about to surpass the 22 trillion dollar mark with no end in sight.

These days, just about everyone that tries to step forward and shake up the system is slapped with heavy criticism.

But at least they are trying to do something.

Holding an important position does not make you a leader.  Rather, being a leader is about having a positive vision for the future and doing whatever you can to achieve that vision.

We have way too many “leaders” out there that are simply filling seats.  Our country is literally falling apart at the seams, and all they can think about is protecting their careers.

America desperately needs change, but unfortunately we have very few change agents.  So we continue to steamroll toward our date with destiny, and time is not on our side.

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 all over the nation.  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.

The post 35 Mind Blowing Facts About America That Previous Generations Of Americans Never Would Have Believed appeared first on The Economic Collapse.

The Congressional Budget Office projects that the national debt and interest on that debt will both explode at an exponential rate in future years if we stay on the path that we are currently on.  According to the CBO, the federal government spent 371 billion dollars on net interest during the most recent fiscal year…

In fiscal 2018, the government spent $371 billion on net interest, while the Defense Department budget was $599 billion. Social Security benefits cost $977 billion, Medicare $585 billion and Medicaid $389 billion, according to the CBO estimates.

But the CBO said interest outlays’ rate of growth in fiscal 2018 was faster than that for the three mandatory federal programs: Social Security (up $43 billion, or 5 percent); Medicaid (up $14 billion, or 4 percent); and Medicare (up $16 billion, or 3 percent). In comparison, net interest on the public debt increased by $62 billion, or 20 percent.

The 371 billion dollars that we spent on interest could have been spent on roads, schools, airports, strengthening our military or helping the homeless.

Instead, it was poured down a black hole.

As interest rates rise, it is being projected that we will soon be spending more on interest on the national debt than we do on national defense.  And not too long after that, interest on the national debt will cost us more than the entire Social Security program each year.

The bigger our debt gets, the more interest we have to pay, and the CBO is projecting that we will add another 12 trillion dollars to the debt during the 2020s…

Washington has been drowning in red ink for years and it’s only going to get a lot worse over the next decade, a fresh government estimate shows.

The U.S. is likely to add $12 trillion in public debt from 2020 to 2029 through a combination of higher government spending and slower economic growth, according to the Congressional Budget Office.

Of course CBO estimates are almost always way too optimistic, and so reality will probably be a lot worse than that.

But if government debt is so bad, why do we just keep on accumulating more of it?

Well, the truth is that government debt always makes the short-term look better.  When the government borrows money and spends it into the economy, it increases GDP.  In essence, we are sacrificing our long-term prosperity in order for some short-term gain.

If we went back and removed the 11 trillion dollars that the federal government borrowed and spent over the last decade, we would be in the worst economic depression in American history right now.  But by stealing from the future, the federal government has been able to stabilize things.

Unfortunately, the future always arrives eventually, and our future is looking extremely bleak at the moment.

If we want to turn things around, we should not be afraid to learn from what other countries have done.  Switzerland and Sweden have both found a lot of success in managing their budgets by adopting very strict fiscal frameworks…

What magic formula keeps the Swiss and Swedish fiscal houses in order?

In both cases, they adopted a comprehensive fiscal framework anchored by sensible fiscal targets and enforced by spending and tax limits. It allows them to live with prevailing economic cycles by pegging federal spending and debt to GDP — spending more when the economy is down, and less when growth is strong — and establishing a process for living within those goals.

But that would require discipline, and that is something that is severely lacking in our nation’s capital right now.

In fact, on the left it has become very trendy to say that the U.S. can never face a debt crisis because we can always “print more money”.  Here is one example…

All lending to the U.S. government is done in dollars, and the Treasury controls the supply of that currency. It is literally impossible for America to face a pure debt crisis because it can always print enough money to pay its bills.

Again, that creates its own problems. Doing so would risk significant inflation which would almost certainly harm the country’s credit rating, making future borrowing more expensive. However, America structurally can’t reach a point where it doesn’t have the money to pay its debts; only a point where it prioritizes different concerns.

There is so much wrong with those two paragraphs that I don’t even know where to begin.

First of all, the U.S. Treasury does not control the supply of our currency.  The Federal Reserve does, and under normal circumstances more “Federal Reserve notes” do not come into existence unless a corresponding amount of U.S. debt is also issued.

In other words, the process of creating more money also creates more debt.  Most Americans simply do not understand that the Federal Reserve system was designed to be a perpetual debt machine, and it is the primary reason why we are now nearly 22 trillion dollars in debt.  During my run for Congress, abolishing the Federal Reserve was one of the key issues that I ran on, and we need to continue to educate the American people about these issues.

Because the truth is that the national debt is an existential threat to the future of this nation, and we are systematically destroying the very bright future that our children and our grandchildren were supposed to have.

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 all over the nation.  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.

The post The Most Depressing Stat Of The Month: The U.S. National Debt Is About To Pass The $22 Trillion Mark appeared first on The Economic Collapse.