Economic Slowdown Confirmed: Here Are 14 Very Alarming Numbers That Reveal The Current State Of The Economy

The economic numbers just continue to get worse and worse, and at this point it has become exceedingly clear that an economic slowdown is happening.  In fact, even the chair of the Federal Reserve is using the term “slowdown” to describe what is taking place.  But of course many are still hoping that the U.S. economy can pull out of this slump and avoid the sort of crippling recession that we experienced in 2008.  Unfortunately, that may be really tough because the entire global economy is slowing down right now.  Our world is more interconnected than ever before, and what happens on one side of the planet is invariably going to affect the other side of the planet.  Some parts of the globe are already mired in deep economic problems, and the U.S. appears to be following down the same path.

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.

Get Prepared NowAbout 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 Chair Of The Federal Reserve Just Used The Term “Slowdown” To Describe What Is Happening To The U.S. Economy

Now even the Federal Reserve is publicly admitting that the U.S. economy is slowing down.  And that is quite remarkable, because usually the Federal Reserve is extremely hesitant to say that an economic slowdown is taking place.  As I pointed out the other day, in 2008 former Fed Chair Ben Bernanke kept insisting that a recession was not coming, but we found out later that a recession had already begun when he was making those statements.  Normally the Federal Reserve tries very hard to paint a rosy picture of our economic future, and one of the big reasons for that is because they want us to believe that they are doing a good job and that they have everything under control.  So it was quite stunning to hear Fed Chair Jerome Powell use the term “slowdown” to describe what is coming for the U.S. economy on Wednesday…

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.

FedEx Is Talking As If A Global Recession Has Already Begun – And The Numbers Back That Up

“Slowing international macroeconomic conditions” is just a fancy way to say that the global economy is in big trouble.  For months, I have been warning that economic conditions are deteriorating, and we just keep getting more confirmation that we are facing the worst global downturn since the last financial crisis.  For the second time in three months, FedEx has slashed its revenue forecast for this year.  In an attempt to explain why revenue is declining, FedEx’s chief financial officer placed the blame squarely on the faltering global economy.  The following comes from CNBC

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.

New Numbers Confirm That The Global Economy And The U.S. Economy Are The Weakest They Have Been Since The Last Recession

Even mainstream economists are admitting that economic activity is slowing down.  And at this point that fact would be very difficult to deny, because the numbers are very clear.  We haven’t faced anything like this in a decade, and many are deeply concerned about what is coming next.  Will it be just another recession, or will it be an even greater crisis than we faced in 2008?  According to Bloomberg Economics, the global economy experienced a “sharp loss of speed” over the course of 2008 and global economic conditions are now “the weakest since the global financial crisis”…

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.

U.S. Job Cut Announcements Rise 117 Percent To The Highest Level That We Have Seen In More Than 3 Years

We have not seen anything like this since the last recession.  Layoff announcements are coming fast and furious now, and the speed at which workers are being laid off is shocking a lot of people.  In this day and age, big companies have absolutely no loyalty to their workers.  The moment it becomes financially advantageous for them to start laying off employees, most of them will do it in a heartbeat.  I personally know someone that was an extremely hard worker and that put in extra time and effort for his company for many, many years, but he was just laid off because that is what the number crunchers determined was the right move.  It is a cold, cruel world, and as we witnessed back in 2008, job losses can occur at a pace that is absolutely breathtaking when a recession strikes.

Over the past couple of weeks, I have been documenting the numbers that indicate that a major economic slowdown has begun, and we may have gotten the biggest one so far on Thursday.

According to Challenger, Gray & Christmas, the number of job cut announcements in February was up 117 percent compared to the same period last year.  The following comes from Fox Business

While many experts and investors are eagerly awaiting data on status of the labor market Opens a New Window. to be released by the government on Friday, a new report shows U.S. employers cut more jobs Opens a New Window. last month than they have in the past 3.5 years.

Even though it is the shortest month of the year, U.S. employers announced plans to cut 76,835 jobs last month, according to a report from Challenger, Gray & Christmas. That’s a 117 percent year-over-year increase, and a 45 percent increase over January’s numbers.

You have to go all the way back to 2015 to find a month that was as bad as February.

Are you starting to see that the momentum for the economy has clearly shifted?

The economic news just keeps getting worse and worse as we roll through 2019, and the retail sector is being hit harder than just about anyone else.

In fact, retailers announced more job cuts in February than any other sector did

The retail sector had the most planned job cuts, with 41,201 so far this year – the highest January-February total since 2009. The industrial goods sector – including some manufacturers – followed with nearly 32,000 cuts announced during the same time period.

The primary reasons employers cited for eliminating positions were restructuring and bankruptcy.

This is being called a “retail apocalypse”, and we are on pace to absolutely shatter the all-time record for store closings in a single year.

At this point, retailers have already announced the closure of more than 5,300 stores.  The following list of retailers that have announced that they are shutting down at least 10 locations comes from Business Insider

Payless ShoeSource: 2,500 stores
Gymboree: 805 stores
Family Dollar: 390 stores
Shopko: 251 stores
Chico’s: 250 stores
Gap: 230 stores
Performance Bicycle: 102 stores
Charlotte Russe: 520 stores
Sears: 70 stores
Destination Maternity: 42-67 stores
Victoria’s Secret: 53 stores
Kmart: 50 stores
Abercrombie & Fitch: 40 stores
Christopher & Banks: 30-40 stores
JCPenney: 27 stores
Beauty Brands: 25 stores
Henri Bendel: 23 stores
Lowe’s: 20 stores

And that list doesn’t even include the fact that Amazon is closing all 87 of its pop-up stores.

I have repeatedly warned that we will be facing a future of boarded up windows, empty retail stores and abandoned malls, and it is happening right in front of our eyes.

Of course it isn’t just the retail industry that is rapidly laying off workers.  Here are just a few of the highlights from the workforce reduction announcements that we have seen in recent days…

-Tesla continues to struggle, and they have already laid off 8 percent of their entire workforce.

-Microsoft is cutting approximately 200 jobs in their commercial sales business.

-JP Morgan is steadily shutting down bank branches in lower income neighborhoods.

-We Work has announced that they have let 300 employees go.

-Devon Energy is eliminating about 200 workers.

-Whole Foods is cutting back worker hours.

-Encana has announced that it is laying off 274 workers in the Houston area.

-In North Carolina, Duke Energy has eliminated 1,900 positions.

-Ocwen Financial is planning to lay off approximately 2,000 workers over the course of 2019.

And in my article yesterday, I noted that General Motors is shutting down four major production plants this year.

It’s really happening.

The bubble of debt-fueled false prosperity that we have been enjoying is disappearing, and the road ahead is going to be really rough.

On Thursday we also learned that U.S. household wealth has been plummeting.  In fact, the fourth quarter of 2018 was the worst quarter for household balance sheets since the last financial crisis

Americans’ net worth fell at the highest level since the financial crisis in the fourth quarter of 2018 as sliding stock market prices ate into the household balance sheet.

Net worth dropped to $104.3 trillion as the year came to an end, a decrease of $3.73 trillion from the third quarter, according to figures released Thursday by the Federal Reserve. The fall amounted to a drop of 3.4 percent.

An increasing number of families are feeling financially squeezed these days, and many of them are accumulating large amounts of debt as they attempt to keep things going.

But for a lot of Americans that are currently drowning in debt, the end of the road has already been reached.

In an article that I posted yesterday, I noted that an all-time record 7 million Americans are behind on their vehicle payments, 37 million credit card accounts are considered to be “seriously delinquent”, and 166 billion dollars worth of student loans are now in the “seriously delinquent” category.

This is a consumer debt crisis that already surpasses the numbers that we witnessed during the last recession.

Nobody is quite sure what is going to happen next.  This is very much a developing story, and I will share new numbers with you as I get them in.

We haven’t experienced anything quite like this since 2008, and most Americans are completely unprepared for a new economic downturn.

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.

Global Debt Surpasses 244 Trillion Dollars As “Nearly Half The World Lives On Less Than $5.50 A Day”

The borrower is the servant of the lender, and one of the primary ways that the elite keep the rest of us subjugated is through the $244,000,000,000,000 mountain of global debt that has been accumulated.  Every single day, the benefits of our labor are going to enrich somebody else.  A portion of the taxes that are deducted from your paycheck is used to pay interest on government debt.  A portion of the profits that your company makes probably goes to servicing some form of business debt.  And most Americans are continuously making payments on their mortgages, their auto loans, their credit card balances and their student loan debts.  But most people never stop to think about who is becoming exceedingly wealthy on the other end of these transactions.  Needless to say, it isn’t the 46 percent of the global population that is living on less than $5.50 a day.

The world has never seen anything like this mountain of debt ever before, and one of the central themes of The Economic Collapse Blog is that all of this debt will ultimately destroy our society.  According to the Institute of International Finance, the total amount of global debt is now  “more than three times the size of the global economy”

The world’s debt pile is hovering near a record at $244 trillion, which is more than three times the size of the global economy, according to an analysis by the Institute of International Finance.

The global debt-to-GDP ratio exceeded 318 percent in the third quarter of last year, despite a stronger pace of economic growth, according to a report by the Washington-based IIF released on Tuesday.

But it isn’t as if all of this spending has lifted billions of people out of poverty.  In fact, 46 percent of the population of the world is “living on less than $5.50 a day” according to the World Bank

Over 1.9 billion people, or 26.2 percent of the world’s population, were living on less than $3.20 per day in 2015. Close to 46 percent of the world’s population was living on less than $5.50 a day.

Global inequality continues to grow worse with each passing year, and that is because the global financial system is literally designed to funnel as much wealth to the very top of the pyramid as possible.

Of course things could be very different.  We don’t actually need to have a debt-based system which systematically makes the rich even richer.

One of the big secrets that nobody is supposed to talk about is the fact that governments don’t actually have to borrow money.  For example, the U.S. government could start issuing debt-free “United States notes” tomorrow, and this actually happened for a very brief period of time under President John F. Kennedy in the 1960s just before he was assassinated.  It is highly immoral for us to be borrowing trillions of dollars that we expect future generations to repay, and that is why I have been a huge proponent of shutting down the debt-based Federal Reserve system and ending the debt-based currency known as “Federal Reserve notes”.

But these days, only a small minority of the population seems to care.  We are literally debt slaves, and most Americans have seemingly embraced their enslavement.  I really like what Devvy Kidd had to say about this in her latest article

The average American is a debt slave already at birth. And by the time he dies, his debt will have increased exponentially, thus passing on an even bigger debt and greater enslavement to the next generation.

This is a vicious circle that has gone on for just over 100 years. A very small elite has become incredibly wealthy and the masses have become enslaved by private and government debt.

For the majority of people, it will be impossible to extricate themselves from this massive debt stone around their neck. Instead they will add to the debt by taking on more debt.

Wake up!

At least the “yellow vests” in France are willing to take a stand against the systematic tyranny that is raging all around them.  In America today, most people don’t really care about much of anything unless it somehow intrudes on the bubble of mindless entertainment that most Americans have constantly surrounded themselves with.

And guess who produces all of that mindless entertainment?

It is produced by giant media corporations that are owned by the same global elitists that control our giant mountain of debt.

The system of our enslavement is far more sophisticated than it was in previous eras of human history, but it is still deeply insidious.

There is one more thing that I would like to mention today.  On many previous occasions, I have discussed how the elite have transformed Wall Street into the largest casino on the entire planet, and it is true that some people have made a lot of money in that casino.

But so many others have been deeply burned and have lost everything.  Here is just one example

I had quit day-trading back in November but was still using a swing trading system that damn near never lost (really), until I got completely run over last week. Literally every move I made was wrong, and I managed to completely wipe out my entire gambling account. I want to be clear, we’re not broke or anything near it (still get to claim millionaire status), but holy crap did I decimate my account something stupid.

So, I’m here to tell you that the scary stories you hear from elders who quit trading? They’re true. Trading is a losing game. It’s just gambling.

Most people who claim to be winners just ignore their losses and pretend everything is ok. To be sure, some people really can make a living at it, and good for them. But the odds are massively against you. The system is designed to take your money while you’re stressed, guessing, nervous, angry, depressed, or most of all – desperate.

The game is literally rigged against us, and we need to realize what we are up against.

Tinkering around with the current system is not going to fix anything.  We need to ditch this current system and start again from scratch, but it will probably take a horrific collapse before most people start to understand this.

Get Prepared NowAbout 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.

A Metaphor For America: 700 Pound Man Plans To Eat And Play Video Games While Naked Until He Dies

34-year-old Casey King is so obese that he can’t work, he has to bathe outside in a trough like a pig, and he has to rely on his father to constantly take care of him.  He now weighs more than 700 pounds, but he just keeps on eating massive amounts of unhealthy food.  Just like America as a whole, he has absolutely no self-discipline and absolutely no desire to turn his life around.  On some level he understands that he is literally killing himself with his destructive behavior, but he does not have a desire to change.  Instead, he told TLC that he “will just eat until I am dead”

Featuring in a TLC TV series called Family by the Ton, Casey said: “I will just eat until I am dead, probably.

“I wake up around 12, figure out something I’m going to eat immediately [then it’s] TV, video games, bed — it’s not a lot of activity.”

Because of the hot weather in Georgia he prefers to skip clothes, wearing only a headset through which he uses to chat to other gamers playing online.

It is easy to criticize Casey for his lack of activity, but he is really not too different from most other Americans.

As I have written about before, the average American spends approximately five hours a day watching television.  We are willingly plugging ourselves into “the propaganda matrix” for thousands upon thousands of hours, and of course that is going to greatly affect our outlook on life and how we see the world.

But of course most Americans don’t watch television and play video games while naked.  But for Casey, clothes have become too restricting and so he just sits on his bed naked all day long

‘It’s hot in Georgia, and all my clothing is restricting and tight, so I just sit there naked, free as can be and no one bothers me — door’s shut, we’re good,’ he explained.

The gaming community has become a safe space for him because it allows him to escape his everyday life.

‘I’m accepted in all those virtual reality worlds and the gaming world I’m in,’ he said. ‘No one sees me. That is my outside. That is my world that I can be the Casey I want to be, but not be judged on my weight.’

The only reason why Casey is able to live this kind of lifestyle is because his father takes care of him and pays all the bills.

And on a much grander scale, isn’t this what our country is turning into?  Young adults are flocking to socialist ideas because they want the nanny state to take care of them from the cradle to the grave and give them everything for free.

At 34 years of age, Casey should be in the prime of his life, but instead he is utterly dependent on his father as he waits around to die.  He needs a reason to live, and right now he doesn’t have one.  In the end, this is not how he anticipated his life would turn out

‘I never would’ve thought at 34 I’d be living with my father, and I’d have no job, have no real money, and just be playing video games all day and eating,’ he said.

It would be really easy to look down on Casey, but the truth is that our nation is just like him in so many ways.

At this point, we are a nation that completely lacks self-discipline.  Obesity is at an all-time high in the United States, millions of us are addicted to legal and illegal drugs, we have one of the highest rates of alcoholism on the planet, 37 percent of all Americans have eaten fast food within the last 24 hours, and the CDC says that 110 million Americans currently have a sexually-transmitted disease.

But when I first learned about Casey, I didn’t think about any of those things.

Instead, I thought about our exploding mountain of debt.  Like Casey, we just can’t stop ourselves from going back for more.  We have been on the greatest debt binge in the history of the world, but our hunger just keeps growing.

In just a matter of days, the U.S. national debt will hit the 22 trillion dollar mark, but nobody in Washington seems to care.  But if you were to sit down and talk with most of our politicians, they would ultimately admit that all of this debt is an existential threat to our nation.  It is just that they completely lack the willpower to do anything about it.

We know that what we are doing is definitely going to kill us, but we are not willing to change.

Meanwhile, state and local government debt levels are at record highs, public and private pensions are unfunded by trillions upon trillions of dollars, corporate debt has doubled since the last financial crisis, auto loan debt is at an all-time high, credit card debt is absolutely soaring, and student loan debt has roughly tripled over the last decade.

So please don’t be too critical of Casey, because the truth is that he would make a perfect poster boy for what we have become as a nation.

When people point to a modestly good short-term economic number as some sort of “victory”, I just laugh, because the truth is that all of those numbers are fueled by record amounts of debt.

During 2018, we added close to 1.4 trillion dollars to our national debt.  If all of that money was pulled out of the economy and we had only been spending what we had been bringing in, we would be in the worst depression in American history right now.

The only way we can maintain our economic facade is by endlessly gorging ourselves on debt, but in the process we are literally destroying the bright future that our children and our grandchildren were supposed to have.

In the final analysis, what we are doing to ourselves as a nation makes Casey King look like a sharp, disciplined, athletic young man in comparison.

If we keep doing this to ourselves, we have no future, and nobody can argue with that.

Get Prepared NowAbout 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.

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