Investors Brace For Impact As The Cancer That Is Ravaging “The Real Economy” Starts To Spread

2019 sure has been a weird year so far.  On Wall Street, everything has been coming up roses for investors up to this point.  Stock prices have risen more than 10 percent year-to-date, and the horrible crashes of late last year are quickly fading from memory.  Meanwhile, the real economy is literally falling to pieces right in front of our eyes.  Debt delinquencies are at unprecedented levels, bankruptcies are soaring, retail stores are closing at a record pace, this is the worst economy for farmers since the early 1980s, exports are plummeting and a brand new real estate crisis has now begun.  Economic cancer is rapidly spreading throughout our country, and the U.S. economy is deteriorating at the fastest pace that we have seen since the last recession.  So how long will it be before Wall Street catches up with economic reality?

The retail industry is being hit particularly hard.  At the end of last week, major retailers announced 465 store closings in a single 48 hour period…

The ‘retail apocalypse’ is alive and well this week with major chains such as Gap, JCPenney, Victoria’s Secret and Foot Locker all announcing massive closures, totalling the death of more than 465 stores over the last 48 hours.

And those closings already bring the grand total for 2019 to “a whopping 4,309 store closures”

That builds on recent store closure announcements by Gymboree, Payless ShoeSource, Charlotte Russe and Ann Taylor parent company Ascena Retail, to name a few. A whopping 4,309 store closures were announced by retailers just in the first two months of this year, Coresight Research said in a research note on Friday. That’s well ahead of the number of announcements the market research firm was tracking this same time a year ago, it said.

The term “retail apocalypse” is being thrown around so frequently these days that it has almost lost its meaning, but the worst is yet to come.

Meanwhile, layoffs are starting to come fast and furious now.  For example, I was recently made aware of major job cuts that just happened in North Carolina

Duke Energy Corp. eliminated 1,900 positions in its latest round of job reductions, largely through voluntary buyouts but with some involuntary layoffs included.

For the first time since the last recession, I think that it is time to start visiting sites like Daily Job Cuts on a regular basis once again.  Millions of Americans lost their jobs in 2008 and 2009, and a lot of you can still remember how painful that was.

In the middle of the country, the big news is “the farm apocalypse”.  Last week, we learned that farm debt has now jumped 30 percent since 2013…

“Farm debt has been rising more rapidly over the last five years, increasing by 30% since 2013 – up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year – to levels seen in the 1980s,” Perdue said in his testimony to the House Agriculture Committee.

As a result of this giant mountain of debt, a ton of small and mid-size farms are going under.  As I noted the other day, farm debt delinquencies have now reached the highest level that we have witnessed in 9 years.

I really, really don’t understand the people that are telling us that everything is going to be okay.

Everything is not okay, and things are getting worse with each passing day.  ISM’s manufacturing survey just hit the lowest level in 26 months, and for a whole bunch more extremely ominous economic numbers please see my previous article entitled “18 Really Big Numbers That Show That The U.S. Economy Is Starting To Fall Apart Very Rapidly”.

Of course it isn’t just the U.S. that is hurting.  Up north, Canada is literally teetering on the brink of recession

The Canadian government shocked the professional financial and economic media with their latest fourth quarter GDP release showing the economy has essentially come to a grinding halt at 0.1% growth.

And over in Europe, things are arguably even worse.  Germany is supposed to have the strongest economy in the entire region, but they are also right on the brink of recession

The country’s economy just escaped entering recession territory last month, with GDP growing at just zero percent following a 0.4 percent contraction in the previous three-month period. But Germany could be just weeks away from a recession-threatening double whammy as a potential no-deal Brexit and Donald Trump’s warning to hike car tariffs by up to 25 percent could send the economy tumbling. Chancellor Angela Merkel’s ministers have entered into a frantic plan to avert an economic catastrophe which could end Europe’s biggest economy’s golden growth for a decade.

This is a global economic slowdown, and many believe that it will be even worse than what we experienced in 2008.

But as I have previously warned, we aren’t just heading toward an economic storm.  Everything that can be shaken will be shaken, and that includes our governmental institutions.

On Sunday, we learned that the House Judiciary Committee is opening an investigation into obstruction of justice by President Trump.  The following comes from Reuters

The House Judiciary Committee will seek documents from more than 60 people and organizations as it begins investigations into possible obstruction of justice and abuse of power by President Donald Trump, the panel’s chairman said on Sunday.

Committee Chairman Jerrold Nadler told ABC’s “This Week” the panel wanted documents from the Department of Justice, the president’s son Donald Trump Jr. and Trump Organization chief financial officer Allen Weisselberg, among others.

This is going to be a year of great governmental shaking.  And no matter which side emerges victorious from the legal struggles and from the election of 2020, the truth is that our governmental institutions will never be the same again.

From 2016 through 2018, America experienced a time of relative peace and prosperity, and a lot of people out there were convinced that this bubble of unsustainable false prosperity could continue indefinitely.

Now it is becoming very clear what is ahead of us, and a lot of people are starting to freak out.

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.

“An Unavoidable Global Recession”: The Warnings Get Louder As Worldwide Economic Numbers Continue To Deteriorate

Economic numbers all over the world continue to get worse, and as you will see below, even New York Times columnist Paul Krugman is now warning of “an unavoidable global recession”.  Unfortunately, most Americans still have absolutely no idea that this is happening.  Most ordinary citizens are still under the impression that everything is going to be just fine, but the numbers suggest otherwise.  The Baltic Dry Index just plummeted to the lowest level that we have seen in three years, and this is yet another indication that the global trade war is causing widespread economic pain.  And according to Bloomberg, global economic growth has now dropped to the lowest level that we have seen since the Great Recession…

The global economy’s loss of momentum has left expansion now looking like its weakest since the global financial crisis, a development that’s already sparked a dramatic shift among central banks.

A UBS model suggests world growth slowed to a 2.1 percent annualized pace at the end of 2018, which it says would be the weakest since 2008-2009.

Unfortunately, it appears that things are getting even worse during the first few months of 2019.  In North America, Europe and Asia, signs of a major downturn are seemingly everywhere

Unfortunately, there hasn’t been much sign of that. China car sales dropped in January, and data last week showed U.S. retail sales posted their worst drop in nine years in December. In Europe, where the slowdown has been particularly marked, sentiment indicators continue to weaken, and the latest OECD leading indicator has also declined.

The numbers coming out of China are particularly striking.  Experts were stunned this week when it was announced that Chinese car sales had plunged 17.7 percent

Car sales in China continued to decline in January after their first full-year slump in more than two decades, adding to pressure on automakers who bet heavily on the market amid waning demand for cars from the U.S. to Europe.

Passenger vehicle wholesales fell 17.7 percent year-on-year, the biggest drop since the market began to contract in the middle of last year, while retail sales had their eighth consecutive monthly decline, industry groups reported Monday.

That is an absolutely disastrous number, and it is a sign that this will be a very, very tough year for the global auto industry.

Meanwhile, German industrial production is falling at a pace that we haven’t seen since the last global recession

“Unexpectedly,” German industrial production fell 3.9% in December 2018 compared to December 2017, after having fallen by a revised 4.0% in November, according to German statistics agency Destatis Thursday morning. These two drops were steepest year-over-year drops since 2009.

Even during the European Debt Crisis in 2011 and 2012 – it hit Germany’s industry hard as many European countries weaved in and out of a recession, with some countries sinking into a depression — German industrial production never fell as fast on a year-over-year basis as in November and December

But as bad as things are in Germany, they are even worse in Italy.

Italy’s economy has already fallen into a recession, and their debt problems continue to grow with each passing day.

Watch Italy, because it is going to be a key to the drama that is currently unfolding in Europe.

Here in the United States, we are still doing relatively better than much of the rest of the world, but our economy is slowing down too.  U.S. retail sales just suffered their “biggest drop in more than nine years”, and the stunning bankruptcy and liquidation of Payless ShoeSource has made front page news all over the nation

Payless ShoeSource confirmed Friday that it will close its 2,100 stores in the U.S. and Puerto Rico and start liquidation sales Sunday. The company is also shuttering its e-commerce operations.

The closings mark the biggest by a single chain this year and nearly doubles the number of retail stores set to close in 2019.

So what does all of this mean?

What all of this means is that this is the beginning of the end for the global economic bubble.  It is time to start getting serious about the economy again, and it is time to get prepared for the tough years that are ahead.

At this point, even the most clueless pundits in the mainstream media can see what is coming.  For example, New York Times columnist Paul Krugman is now warning that we are heading for “an unavoidable global recession” either at the end of this year or the beginning of next year

Professor Paul Krugman has warned a series of isolated downward economic trends around the world will spiral into an unavoidable global recession towards the end of 2019 or the beginning of next year. Mr Krugman said there is not “one big thing” prompting the stark forecast but instead blamed a number of incidents happening at the same time. He said a slump in the eurozone combined with the long-running US-China trade war, President Trump’s tax policy and world leaders’ lack of preparedness are increasing the risks of a worldwide economic slowdown.

If even Paul Krugman can see what is happening, then you know that time is short.

Prior to the Great Recession of 2008 and 2009, most people never would have imagined that we were about to enter a terrible global economic downturn.  Here in the U.S., it seemed like the economy was buzzing along quite nicely, and the vast majority of us had absolutely no idea what was really going on behind the scenes.

Similarly, right now most of us are conducting our lives as if nothing is going to change.  To most people, the system seems to be functioning normally and there appears to be no cause for alarm.

Unfortunately, things are not that simple.

Rubber bands can keep stretching for quite a while, but if you put too much pressure on them they will eventually snap.  At this point there is an enormous amount of pressure on our global economic bubble, and someday it will “snap” too.

It is just a matter of time.

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.

Trade War Causing Severe Pain As Farm Bankruptcies Surge Way Past The Level From The Last Recession

Farmers all across the middle part of the country are going bankrupt at an astounding rate, and over half of all farms in America are now losing money.  The trade war with China has been the most devastating crisis to hit the U.S. farming community in decades, and at this point there is no end in sight.  Farm after farm is being financially wiped out, and we haven’t seen this kind of economic pain for farmers since the Great Depression of the 1930s.  In fact, it is being reported that bankruptcies in the key farming regions of the country are way above the level that we witnessed during the last recession.  The following comes from Zero Hedge

Bankruptcies in three regions covering major farm states last year rose to the highest level in at least 10 years. The Seventh Circuit Court of Appeals, which includes Illinois, Indiana and Wisconsin, had double the bankruptcies in 2018 compared with 2008. In the Eighth Circuit, which includes states from North Dakota to Arkansas, bankruptcies swelled 96%. The 10th Circuit, which covers Kansas and other states, last year had 59% more bankruptcies than a decade earlier.

There has been a lot of debate about whether or not the U.S. economy as a whole is heading into a recession in the near future, but the farming industry is already very, very deep into a major downturn, and this downturn has been caused by the trade war

Trade disputes under the Trump administration with major buyers of U.S. farm goods, such as China and Mexico, have further roiled agricultural markets and pressured farmers’ incomes. Prices for soybeans and hogs plummeted after those countries retaliated against U.S. steel and aluminum tariffs by imposing duties on U.S. products like oilseeds and pork, slashing shipments to big buyers.

Low milk prices are driving dairy farmers out of business in a market that’s also struggling with retaliatory tariffs on U.S. cheese from Mexico and China. Tariffs on U.S. pork have helped contribute to a record buildup in U.S. meat supplies, leading to lower prices for beef and chicken.

In addition, it is also being reported that more than half of all U.S. farms are now losing money even though they continue to operate.  Needless to say, this is not sustainable, and many more farms will go out of business if this current crisis persists.

This could be the final nail in the coffin for America’s family farms.  After this crisis is over, if it ever actually ends, we may be left with only giant corporate farms and farms owned by foreign interests.

As I noted in my article yesterday, over 27 million acres of U.S. farmland is now owned by foreigners.  This should have never been allowed to happen, because it is a major national security risk.

If a trade agreement with China is reached soon, that would greatly ease the suffering of America’s farmers.  But as long as the U.S. and Canada continue to hold Huawei CFO Meng Wanzhou, that is not going to happen.  Instead, the Chinese are going to attempt to buy time by trying to get the U.S. to agree to suspend the implementation of additional tariffs as “negotiations” continue.

And on Friday, we got word that a new trade war between the United States and Europe may be about to begin

With little apparent progress in U.S.-China trade talks, the Trump administration could be about to open up a new front in the trade wars by taking on the European auto industry — and that could spook markets.

Global financial markets have bounced back a bit in recent weeks, but more trade chaos could easily send them tumbling once again

Some strategists fear investors are keenly focused on China, and expect a resolution, but could be surprised by ramped-up trade friction with Europe.

“The market would tank,” said Peter Boocvkar, chief investment officer at Bleakley Advisory Group. “The market has spoken loud and clear that it’s had enough of these tariffs… The market is fed up with this. Global growth is slowing dramatically because of trade. You want to put another bullet in it’s head?

Meanwhile, we continue to get more indications that the global economy is slowing down substantially.

For example, we just learned that German industrial production plummeted dramatically for the second month in a row in December

“Unexpectedly,” German industrial production fell 3.9% in December 2018 compared to December 2017, after having fallen by a revised 4.0% in November, according to German statistics agency Destatis Thursday morning. These two drops were steepest year-over-year drops since 2009.

Even during the European Debt Crisis in 2011 and 2012 – it hit Germany’s industry hard as many European countries weaved in and out of a recession, with some countries sinking into a depression — German industrial production never fell as fast on a year-over-year basis as in November and December

And here in the United States, General Motors has begun giving out pink slips to thousands of workers

General Motors on Monday said it was starting to hand pink slips to about 4,000 salaried workers in the latest round of a restructuring announced in late November that will ultimately shrink its white-collar workforce in North America by 15 percent out of 54,000.

Two people briefed on the cuts said GM is cutting hundreds of jobs at its information technology centers in Texas, Georgia, Arizona and Michigan and more than 1,000 jobs at its Warren, Michigan Tech Center. GM is filing new required mass layoff notices with state agencies and disclosed the cuts to lawmakers.

Needless to say, General Motors would not be doing this if the U.S. economy really was “booming”.

A global economic downturn has arrived, and it looks like it is only going to escalate as we move deeper into 2019.

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 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.

10 Very Strange Facts About The August 21 Solar Eclipse That Will Absolutely Blow Your Mind

In just a matter of days we are going to witness the most unusual solar eclipse in U.S. history. Could it be possible that all of the very strange “coincidences” surrounding this event have some sort of special significance?  The mainstream media has been buzzing about this upcoming solar eclipse for months, and it will easily be the most watched eclipse in all of U.S. history.  Last week, I published an article entitled “12 Critical Events That Are Going To Happen Over A 40 Day Period From August 21st To September 30th” that received an extraordinary amount of attention, and of course the first event on that list was “the Great American Eclipse” on the 21st.  As you will see below, so many numbers seem to indicate that this eclipse could have some sort of special significance, and it begins a period of exactly 40 days that many believe could be a turning point for America.

In the Scriptures, we are specifically told that one of the reasons why God created the sun and the moon was so that they could serve as “signs”.  The following is what Genesis 1:14 tells us…

“And God said, Let there be lights in the firmament of the heaven to divide the day from the night; and let them be for signs, and for seasons, and for days, and years

And in Luke 21:25, the Lord Jesus specifically warned us to watch for signs “in the sun, and in the moon, and in the stars” just prior to His return.

So we should be watching, and we should fully expect to see something happen up there before Christ comes back.

With that in mind, I would like to share some amazing facts about the solar eclipse on August 21st with you.  These were originally compiled by The Countdown Report, and when I first read them they definitely got my attention…

-First contact is in the state of Oregon, the 33rd state in the USA. The last contact is in South Carolina on the 33rd parallel. This eclipse happens on day 233 of the year. If the Revelation 12 sign is valid, then the eclipse is also 33 days before September 23, 2017. Jesus is thought to have been 33 when He died.

-Just for fun: It is 99 years (3 x 33) since the last eclipse to go coast-to-coast in the US, in 1918. From September 23, 2017 (Revelation 12 sign) to the end of the year, December 31, 2017 is 99 days (or 3 x 33). The number of days from the 1918 eclipse to the August 21 eclipse are 26,234 days. (2+6+2+3+4 = 17; 2017?). From August 12, 2017, the date of the Charlottesville Virginia “State of Emergency” declared to the August 21, 2017 Great Solar Eclipse is 9 days (3+3+3) and the dates are also mirrored – 12 and 21.

-First big city the eclipse hits in Oregon is Salem – Salem was named after Jerusalem. The eclipse also begins in Oregon exactly at sunset time in Jerusalem. So technically speaking, as the sun sets in America it will be setting in Jerusalem at the same time.

-The center line crosses through 12 primary states to receive total darkness. 12 disciples, 12 months in a year, the meaning of 12, which is considered a perfect number, is that it symbolizes God’s power and authority, as well as serving as a perfect governmental foundation.

-The eclipse path is exactly 70 miles wide. 70 has a sacred meaning in the Bible that has two perfect numbers, 7 that represents perfection and 10 that represents completeness and God’s law. 70 also symbolizes perfect spiritual order and a period of judgment. 70 is also specially connected with Jerusalem with so many references it would take a book to write.

-Another eclipse comes in 2024, 7 years after the August 21, 2017 and marks an X over the United States. The combined time of totality of these eclipses together will be 7 minutes. The day of the eclipse is August 21, 2017 – (7 + 7 + 7 = 21). The exact point where the two eclipses cross is right next to Cedar Lake in Illinois… specifically right next to SALEM Road. (Salem again!)

-The original form of the Hebrew letter Tav is like the English letter X or T – which is in the shape of a cross, or X– like the X that is made by the two solar eclipses on the cross paths over 7 years. The letter Tav means “a sign”.

-The path of the eclipse will be situated in such a way that every single state of the US will experience it, even Hawaii and Alaska.

-The totality will reach Oregon at 10:16 AM Pacific, and will end in South Carolina at 2:49 PM Eastern. That means it will take 1 hour and 33 minutes to cross the country. There is that 33 again.

-The eclipse is also exactly 40 days from Yom Kippur. Yom Kippur means “Day of Atonement” and is a time of repentance. While the eclipse day itself may come and go with everything remaining “normal” afterwards, we need to be focused on what could be coming soon after.

You can read the entire list of 33 facts that were compiled by The Countdown Report right here.  I just pulled out the ten that I considered to be the most remarkable.

According to Rachel Baxter, “40 is the number for waiting, preparation, testing or punishment. It is also the number to start a new chapter of the history of salvation”, and we see the number 40 pop up time after time in the Bible.

For instance, in Jonah 3:4 the prophet Jonah gave Ninevah a period of 40 days to repent before judgment would begin…

And Jonah began to enter into the city a day’s journey, and he cried, and said, Yet forty days, and Nineveh shall be overthrown.

Could this coming 40 day time period have some sort of special significance for us?

Like I said in my previous article, I don’t know if all of this means anything.

But Jesus did specifically instruct us to watch for signs in the sun and the moon, and the solar eclipse on August 21st involves both the sun and the moon.

On August 21st, I am going to be able to travel into the path of this eclipse.  Hopefully it will be a very clear day and I will be able to get some very clear pictures for my readers.

I don’t expect anything world shattering to take place on that particular day, but like millions of other Americans, I will definitely be looking up into the sky to see what happens…

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

12 Critical Events That Are Going To Happen Over A 40 Day Period From August 21st To September 30th

We are about to witness an extremely unusual convergence of events that many believe could represent a major turning point for our nation.  By now you have probably heard that on August 21st a total solar eclipse will move across the entire continental United States for the first time in decades.  In fact, we have not seen a total solar eclipse cross from the west coast to the east coast in 99 years.  And it will be the very first total solar eclipse that is only visible in this country since the United States first became a nation.  Starting with that event, there is going to be a whole lot going on until we reach the end of September.  The following are 12 critical events that are going to happen over a 40 day period from August 21st to September 30th…

August 21 – The “Great American Eclipse” will sweep across portions of Oregon, Idaho, Wyoming, Montana, Nebraska, Iowa, Kansas, Missouri, Illinois, Kentucky, Tennessee, Georgia, North Carolina and South Carolina.  Seven years later, another very unusual total solar eclipse will move across our nation, and when you plot the paths of both eclipses on a map, they form a giant “X” right over the center of the United States.

August 23 – A FEMA exercise known as “EarthEX2017” will simulate “catastrophes such as mega earthquakes, cyber terrorism or high altitude electromagnetic pulse attacks”

An exercise sponsored by FEMA and the U.S. Department of Energy set to take place on August 23 called EarthEX2017 will wargame responses to catastrophes such as mega earthquakes, cyber terrorism or high altitude electromagnetic pulse attacks.

The exercise will simulate a “subcontinent-scale, long duration power outage, with cascading failures of all other infrastructures,” according to the official Earth Ex website.

“Black sky events” are defined as, “Catastrophic occurrences caused by man or nature that bring society to its knees.”

September 1 – This marks the start of FEMA’s annual “National Preparedness Month“.

September 1 – The U.S. State Department’s ban on U.S. citizens traveling into North Korea goes into effect.  Many are concerned that this is yet another sign that we are moving toward war with North Korea.

September 11 – This will be the 16th anniversary of 9/11.

September 20 – Rosh Hashanah begins at sunset.

September 21The UN International Day Of Peace

September 23 – This is the date of what has become known as “the Revelation 12 sign”.  If you are not familiar with this alignment yet, the following is a very brief summary

On September 23rd a unique astronomical alignment of the Sun, Moon, constellation Virgo, constellation Leo, and planets Jupiter, Mars, Mercury, and Venus is going to fulfill this passage from the book of Revelation:

And a great sign appeared in heaven: a woman clothed with the sun, with the moon under her feet, and on her head a crown of twelve stars.  She was pregnant and was crying out in birth pains and the agony of giving birth.

September 24 – Very important national elections will be held in Germany.

September 29 – Yom Kippur begins at sunset, and it concludes on September 30th.  Of course September 30th will be the end of a 40 day period that began back on the day of the Great American Eclipse on August 21st.

September 29 – U.S. Treasury Secretary Steven Mnuchin says that the debt ceiling will be breached on this day if Congress does not raise it by then.

September 30 – If Congress does not pass a budget by the end of this day, there will be a government shutdown just like we witnessed in 2013.

On top of everything else, the month of September is when the Federal Reserve is scheduled to begin unwinding  their 4.5 trillion dollar balance sheet

The other big market force that could ruffle markets is clearly the Fed, which is expected to begin the untested task of unwinding its $4.5 trillion balance sheet in September.

In addition, it is very interesting to note that a large asteroid will come within 4,200 miles of our planet on October 12th…

The asteroid has not been seen since its 2012 discovery, when it sped past Earth at about one-fourth the distance from Earth to the moon. It’s been too distant and too faint to be detected over the last five years. As it starts to approach Earth this summer, large telescopes will be used to detect it and re-establish the asteroid’s precise trajectory.

The asteroid, known as 2012 TC4, could come as close as 4,200 miles to Earth, NASA said. That’s actually fairly close, when you consider that the moon is about 239,000 miles away.

So what does all of this mean?

I don’t know, but I am sure that I will receive even more criticism for putting this list together.  Those of us that monitor global events and warn about where things are headed are often highly criticized.  But in this day and age, we desperately need independent thinkers that are willing to challenge the system.  Way too often people just go with the herd and will believe whatever the mainstream media tells them to think.

Never let someone else do your thinking for you.  Investigate things for yourself and come to your own conclusions.  Learning to think critically is one of the most important skills that you can have, and you will find that it is one of the most common traits among those that are truly “awake” to what is going on in the world.

The truth is out there, and if you diligently seek it you will eventually find it.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

The Worst Financial Nightmare In Illinois History Erupts As State Comptroller Declares ‘We Are In Massive Crisis Mode’

Margaret Thatcher once said that the big problem with socialist governments is that “they always run out of other people’s money”, and unfortunately we are witnessing this play out in a major way in the state of Illinois right now.  At this point, the Illinois state government has more than 15 billion dollars of unpaid bills.  Yes, you read that correctly.  They are already 15 billion dollars behind on their bills, and they are on pace to take in 6 billion dollars less than they are scheduled to spend in 2017.  It is the worst financial crisis in the history of Illinois, and State Comptroller Susana Mendoza sounds like she is about ready to tear her hair out in frustration

“I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,” said Mendoza, a Chicago Democrat. “The magic tricks run out after a while, and that’s where we’re at.”

It’s a new low, even for a state that’s seen its financial situation grow increasingly desperate amid a standoff between the Democrat-led Legislature and Republican Gov. Bruce Rauner. Illinois already has $15 billion in overdue bills and the lowest credit rating of any state, and some ratings agencies have warned they will downgrade the rating to “junk” if there’s no budget before the next fiscal year begins July 1.

Would you continue to do work for the Illinois state government if you knew that they were this far behind on their bills and that it is doubtful that you would be paid any time in the foreseeable future?

Of course the answer to that question is quite obvious.  As contractual relationships break down, social services are starting to suffer, and there is not much hope that things will take a turn for the better any time soon.

At this point things have gotten so bad that the Illinois Department of Transportation is planning to cease all roadwork starting on July 1st, and even the Powerball lottery is threatening to cut all ties with the state

As reported previously, the state Transportation Department said it would stop roadwork by July 1 if Illinois entered its third consecutive fiscal year without a budget – the longest such stretch of any US state – while the Powerball lottery said it may be forced to dump Illinois over its lack of budget. For now, state workers have continued to receive pay because of court orders, but school districts, colleges and medical and social service providers are under increasing strain.

So what has caused this unprecedented crisis?

At the core, the problem is political.  A tense standoff between a Republican governor and a Democratic legislature has resulted in the state going 700 days without a budget

On May 31, Illinois will have gone 700 days without a budget, an unprecedented political failure. Also on May 31, if a budget is not passed, it could mean that the state could go until 2019—an unimaginable idea, except that senators have already imagined it.

How does a state, led by a successful businessman as governor, a brilliant political strategist in the House, and a consummate dealmaker in the Senate, end up in this kind of political disorganization? Bad political errors led to bad political incentives, and as the problem worsened, so did the political risk of solutions—and what politicians had to ask of their constituents.

This is another example of how deeply divided we are as a nation right now.  Democrats hate Republicans and Republicans hate Democrats, and it is getting to the point where the two parties cannot work together on even the most basic things.

In the end, the state of Illinois is either going to have to cut spending dramatically, raise taxes substantially or some combination of both.  And since the Democrats have very large majorities in both chambers of the state legislature, I wouldn’t count on spending being cut that much.

This is the thing with big government – it always has a tendency to get even bigger.  And the bigger government gets, the more of our money and the more of our freedom it takes away.

That is why I am a huge advocate of dramatically shrinking the size of government on the federal, state and local levels.  Like Rand Paul has often said, I want a government so small that I can barely see it.

When you let government get out of control, what you end up with is a ravenous beast that has an endless appetite for more of your money.  In Illinois, the money is all gone and the beast is desperately hungry for more.

Sadly, what is happening in Illinois is just the tip of the iceberg.  If stock prices start declining from these massively inflated levels, state pension funds all over America are going to be in crisis mode very rapidly.  And a new recession would greatly accelerate the financial problems of a whole bunch of states that are already dealing with huge budget shortfalls.

Unfortunately, experts all over the country are warning that the next major downturn is coming very quickly.  For example, just consider what Bernard Arnault just told CNBC

A financial crisis could be just around the corner, according to the chief executive of LVMH, who has described the global economic outlook as “scary”.

“For the economic climate, the present situation is…mid-term scary,” Bernard Arnault told CNBC Thursday.

“I don’t think we will be able to globally avoid a crisis when I see the interest rates so low, when I see the amounts of money flowing into the world, when I see the stock prices which are much too high, I think a bubble is building and this bubble, one day, will explode.”

There is always a price to pay for going into too much debt.

A financial day of reckoning can be delayed for a while, but eventually bad financial decisions are going to catch up with you.  The state of Illinois is learning this lesson in a very harsh manner right now, and the country as a whole is on the exact same path as Illinois.

I am often criticized for endlessly warning about America’s coming day of reckoning, but you can’t pile up the biggest mountain of debt in the history of the world without paying a price.

Just like the state of Illinois, we will pay for decades of exceedingly foolish decisions, and unfortunately this is going to cause severe economic pain throughout our entire society.

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