Uh Oh: U.S. Layoffs Rise 38 Percent – Highest Level For August Since 2009

We continue to get more numbers that indicate that U.S. economic activity is really starting to slow down.  According to Challenger, Gray & Christmas, the number of layoffs in the United States was 38 percent higher in August than it was in July.  A 38 percent increase in one month is more than just a little bit startling, and many believe that if this momentum continues we could soon be facing an avalanche of job losses similar to what we witnessed in 2008.  And without a doubt, all of the other economic numbers that have been rolling in lately also confirm that the U.S. economy is heading into harder times.  But is our country ready to handle another major economic downturn?

Even though there have been moments of difficulty over the past decade, we truly haven’t seen anything like this since the last recession.  In fact, the latest job cut numbers that we just got from Challenger, Gray & Christmas are the highest that we have seen during any August since 2009

Employers also announced the most layoffs of any August since 2009, the outplacement firm Challenger, Gray & Christmas said.

Job cuts rose 38 percent over July, with 53,480 positions to be slashed from employer payrolls, led by workforce reductions in health care, which had been a mainstay of recent job creation, the tech sector and manufacturing.

So why is this happening?

Well, certainly there are many factors at play, but Andrew Challenger has singled out “the trade war” as one of the biggest reasons

“Employers are beginning to feel the effects of the trade war and imposed tariffs by the US and China,” Andrew Challenger, the firm’s vice president, said in a statement.

Other nations are really starting to feel the effects of the trade war as well.  This week, Germany reported a startling drop in new manufacturing orders

Contracts for ‘Made in Germany’ goods fell 2.7% from the previous month in July, data showed on Thursday, driven by a big drop in bookings from non-euro zone countries, the economy ministry said. That undershot a Reuters consensus forecast for a 1.5% drop.

“The misery in manufacturing continues. The decline in new orders significantly increases the risk of a recession for the German economy,” VP Bank analyst Thomas Gitzel said.

During the second quarter, German GDP growth fell into negative territory, and it looks like that will happen again here in the third quarter.

That would mean that Germany is already in a recession right now, and that is very troubling news for all of Europe.

Here in the U.S., just about everything that we would expect to see happen just prior to the beginning of a recession is happening in textbook fashion right in front of our eyes.

In particular, the transportation industry is already mired in a very deep downturn, and we just learned that orders for heavy trucks in August were down by 80 percent compared to a year earlier…

Orders for heavy trucks that haul part of the economy’s goods across the US plunged by 80.1% in August 2019 compared to August last year, to about 10,400 orders, according to preliminary estimates by FTR Transportation Intelligence. It was the 10th month in a row of year-over-year declines, and the second month in a row of 80%-plus declines, with orders in July having plunged 81.2% to about 9,800, not seen since 2010.

I don’t know about you, but an 80 percent decline sure seems like an awfully big red flag to me.

Overall, it is still being projected that the U.S. economy will stay out of contraction territory in the third quarter, but GDP forecasts have continued to slip.  The following comes from Reuters

The U.S. economy is likely growing at a 1.7% annualized rate in the third quarter, based on weaker-than-forecast data on domestic manufacturing activity and construction spending, the Atlanta Federal Reserve’s GDPNow forecast model showed on Tuesday.

This was slower than the 2.0% pace estimated by the Atlanta Fed’s GDP program on Aug. 30.

In the end, any number above zero for the third quarter should be considered a big victory in this global economic environment.

But even if we eke out slight growth in the third quarter, nobody should be using the word “booming” to describe our economy.  In fact, we haven’t been “booming” for a very, very long time.  We haven’t had a full year when U.S. GDP grew by at least 3 percent since the middle of the Bush administration, and at this point nearly 40 percent of the nation struggles to pay for the basics

Many people still struggle to pay bills — even for something as basic as food.

That’s the difficult conclusion of a new report released this week by the Urban Institute, a nonpartisan, nonprofit policy group based in Washington, D.C., which surveyed almost 7,600 adults last December. Some 39.4% of adults said their families had trouble meeting at least one basic need for food, health care, housing, or utilities last year.

The gap between the “haves” and the “have nots” continues to grow in our country, and that has dire implications for our future.  If those with money and power continue to have a “let them eat cake” attitude about all of this, eventually we will see chaos in our streets, and this is something that Umair Haque recently discussed

How can the economy be “strong” when 40% of people are struggling to eat? Isn’t that a little bit like the Hunger Games actually coming to life? Is that where America is now? What on earth?

Think about the fact itself for a second, before we discuss it — 40% of people in the world’s richest country struggle to afford food. It’s a “Let Them Eat Cake” moment happening before our eyes. How much more Versailles can you get? There’s nothing — nothing — more basic than being able to afford food. When a society can’t provide food for its people, it’s one of the most severe and fundamental indicators that something’s badly, badly wrong.

More government handouts are certainly not the answer.  The U.S. government already hands out money and benefits to more than 100 million people every month, and yet our problems just continue to escalate.

In the end, people want to be able to work hard and provide for their own families.  We need an economy that creates more good paying jobs and makes it easy to start businesses, and we haven’t had such an economy for a very long time.

And now it appears that we are heading into a new economic crisis.  The job losses are likely to escalate in the months ahead, and many believe that the economic pain that we will experience will be even greater than what we experienced during the last recession.

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 Tariffs, Stocks Plunge, Manufacturing Falls Again And More Layoffs – But Everything Is “Fine”?

Things are starting to go downhill rather quickly now.  A day after the Federal Reserve cut interest rates for the first time in more than a decade, we received a whole bunch more bad economic news.  Most Americans don’t realize it yet, but our economy is in serious trouble.  We haven’t seen anything like this since the last recession, but most people seem to think that since stock prices are still very high that everything must be fine.  No, everything is definitely not “fine”, and as I noted yesterday, a lot of prominent names are loudly sounding the alarm.  Many analysts are expecting things to really start breaking loose as we get deeper into the second half of this year, and what we witnessed on Thursday certainly didn’t make the outlook any brighter.

President Trump completely shocked Wall Street when he announced that yet another round of tariffs will be imposed upon Chinese goods.  According to CNBC, these new tariffs will go into effect on September 1st…

Trump said in a series of tweets the tariff will be imposed on $300 billion worth of Chinese goods. The levy will take effect Sept. 1.

He said later in the day those levies could go up to 25%. Trump’s comments came after a U.S. delegation met with Chinese trade officials earlier this week. Those were the first in-person trade talks between China and the U.S. since both countries reached a truce on the situation.

This is essentially the equivalent of a “gut punch”, and it definitely takes our trade war with China to an entirely new level.

And Trump told the press that the tariffs will remain in place until the U.S. and China agree to a deal.  The following comes from Fox Business

President Trump said on Thursday the U.S. will continue to tax China until the world’s two largest economies reach a trade agreement .

“When my people came home they said we were talking. We have another meeting in September. Until such time as there is a deal we will be taxing them,” he said from the White House’s south lawn.

But as I have repeatedly explained to my readers, there isn’t going to be an agreement any time soon.  In fact, it is extremely doubtful that we will see one before the 2020 presidential election.  Trump is not going to back down from his core demands, the Chinese will never accept them, and China would much prefer to negotiate with whoever follows Trump in the Oval Office.

So these tariffs are here to stay, China will inevitably retaliate once again, and global economic activity will suffer.

But Trump doesn’t seem alarmed.  On Thursday, he also told reporters that if China doesn’t want to trade with the United States anymore “that would be fine with me”

“For many years China has been taking money out by the hundreds billions of dollars a year. We have rebuilt China so now it is time that we changed things around. If they didn’t want to trade with us anymore that would be fine with me. It would save us a lot of money,” Trump told reporters Thursday.

Those are very strong words, and Trump actually has a point.

In the short-term, decoupling from the Chinese economy is going to be extremely painful for us.  But the truth is that we should have never integrated our economy so deeply with China’s economy in the first place.  The Chinese government is one of the most tyrannical regimes on the entire planet, and they have no respect for basic human rights.  Trade agreements that were extremely unfavorable for the United States allowed China to become exceedingly wealthy at our expense, and the Chinese would like to continue taking advantage of us indefinitely if they could.

So something definitely needed to be done about China, but it is going to be a really, really painful period of adjustment for the U.S. economy.

After Wall Street learned of the new tariffs on Thursday, stock prices immediately began to plummet

When President Donald Trump announced a new round of tariffs on Chinese imports on Thursday, the Dow was up 311 points. Then it was down nearly 300 points.

That was the biggest swing since early January.

And it certainly would not be a surprise if stock prices continued to go down.  As I noted the other day, the stock market is more primed for a crash than it has ever been before.

At this point, stock prices are completely and totally disconnected from economic reality.  As stocks hit record high after record high in July, bad economic news just kept pouring in.

Of course August certainly just started off with a bang.  On Thursday, we learned that a key measure of U.S. manufacturing activity has fallen to the lowest level since September 2009

The IHS Markit Manufacturing Purchasing Managers’ Index fell to 50.4 in July, down from 50.6 in June, driven by a weaker demand. The firm also noted managers’ signaled slower hiring.

In addition, Lowe’s just announced that they will be “laying off thousands of workers”

Lowe’s is laying off thousands of workers.

Layoffs will include assemblers, who put together items like grills and patio furniture. The company will also cut maintenance and facility-service jobs, such as janitors. The company said it is outsourcing those positions to third-party companies.

Lowe’s (LOW) declined to say exactly how many workers will be laid off. It said that workers whose jobs are being eliminated will be given transition pay and have the opportunity to apply for open roles at Lowe’s. The Wall Street Journal first reported Lowe’s plan.

This is the continuation of a trend that I have been tracking for months.  Big companies have been laying off workers at a level that we haven’t seen since the last recession, and many believe that what we have witnessed so far is just the beginning.

Also, the “trucking apocalypse” just continues to accelerate.  The following comes from Zero Hedge

Yet another trucking company has fallen victim to the recession in freight this year, according to FreightWaves. Terrill Transportation of Livermore, California shut its doors unexpectedly on July 30. The company had been in business 25 years.

Customer Manny Bhandal, president of Bhandal Bros. Inc., said that three of his trucks arrived at Terrill on July 30 to drop off a shipment and were turned away. Kevin Terrill, president of Terrill Transportation, did not respond to FreightWaves.

If the U.S. economy really was in “fine” shape, trucking company after trucking company would not be shutting their doors.

Sadly, instead of heeding the warning signs and using this time to get prepared for rough times ahead, most Americans are choosing to use this time to party.

And there is certainly not anything wrong with enjoying life, but we have gotten to the point where it is crystal clear that a new crisis is upon us, and most Americans are completely and utterly unprepared for what is about to happen.

I will continue to track these developments as they unfold.  We are truly in unprecedented territory, and I have a feeling that the second half of 2019 is going to be far more “interesting” than the first half was.

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.

This Wasn’t Supposed To Happen: U.S. Employment Growth Just Plunged To The Lowest Level In 9 Years

If the U.S. economy was heading into a recession, we would expect to see a slowdown in the employment numbers, and that is precisely what is happening.  According to payroll processing firm ADP, the U.S. economy only added 27,000 new jobs in May, and that is way below the number that is needed just to keep up with population growth.  Of course some in the mainstream media are attempting to put a positive spin on this, but there really is no denying that this is a truly awful number.  In fact, we have not seen a number this bad in more than 9 years

Job creation skidded to a near-halt in May in another sign that the U.S. economic momentum is slowing.

Companies added just 27,000 new positions during the month, according to a report Wednesday from payroll processing firm ADP and Moody’s Analytics that was well below Dow Jones estimates of 173,000.

The reading was the worst since around the time the economic expansion began and the jobs market bottomed in March 2010 with a loss of 113,000.

9 years is a very long time, but this terrible employment number is perfectly consistent with all of the other horrible economic numbers that have been rolling in lately.

Time after time in recent weeks I have been using phrases such as “since the last recession” to describe what we are witnessing.  The U.S. economy has not been in such rough shape in nearly a decade, and things just keep getting worse.

So how did Wall Street respond to the latest employment news?

Actually, stock prices surged, because investors are super excited about the prospect that the Federal Reserve could soon lower interest rates

Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles.

The Dow Jones Industrial Average rose 207.39 points to 25,539.57, while the S&P 500 advanced 0.8% to 2,826.15. The Nasdaq Composite closed 0.6% higher at 7,575.48.

Pushing interest rates all the way to the floor certainly helped the stock market recover after the last recession, but this time around there is a major twist.

The U.S. is currently engaged in a major trade war with China, and the normal tools that the Fed utilizes may not be powerful enough to overcome the negative effects of such a conflict.

And to make things worse, now the U.S. is also starting a trade war with Mexico.  On Wednesday, President Trump made it clear that “not nearly enough” progress had been achieved during negotiations with Mexican officials…

President Donald Trump said “not nearly enough” progress was made in talks with Mexico to mitigate the flow of undocumented migrants and illegal drugs, raising the likelihood that the U.S. will follow through with tariffs next week.

So tariffs will be slapped on Mexican goods starting on Monday, and President Trump seems quite excited about this

“If no agreement is reached, Tariffs at the 5% level will begin on Monday, with monthly increases as per schedule,” Trump tweeted Wednesday. “The higher the Tariffs go, the higher the number of companies that will move back to the USA!”

Of course the Mexicans will almost certainly retaliate, and both countries will start seeing higher prices and significant job losses.

In fact, one study has concluded that the U.S. economy could lose more than 400,000 jobs as a result of these tariffs on Mexico.  The following comes from CNN

If the 5% US tariff on all goods from Mexico takes effect and is maintained, more than 400,000 jobs in the United States could be lost, an analysis released this week found.

The tariffs on Mexico, set to go in effect on Monday, would cost Texas alone more than 117,000 jobs, according to the analysis by The Perryman Group, an economic consulting firm. Texas is Mexico’s largest export market, making the two economies closely intertwined.

And the truth is that those numbers could actually be on the low side.

According to Marc Thiessen, a trade war with Mexico would literally put millions of U.S. jobs at risk…

Indeed, Mexican tariffs could be even more devastating for Americans than those imposed on China. Deutsche Bank estimates the tariffs could raise the average price of automobiles sold in the United States by $1,300. Indeed, U.S. and Mexican auto-supply chains are so deeply integrated that many parts cross the border multiple times before they end up in a finished vehicle — which means they would be hit by tariffs multiple times, compounding costs. Ten million U.S. workers’ jobs depend on this supply chain; tariffs would put those jobs at risk, including those of the “forgotten Americans” in the industrial Midwest whose jobs Trump vowed to protect.

We shall see what happens, but the outlook for the U.S. economy for the rest of this year is not good at all, and beyond that things look exceedingly grim.

Hopefully I am wrong, but it certainly appears that a major economic downturn is developing just in time for the 2020 presidential election.

There is one more thing that I would like to mention before I wrap up this article.  This week, a Russian news source reported that Russia and China “will sign an agreement” regarding the use of their own national currencies in bilateral trade with one another…

Russia and China will sign an agreement on possible payments in national currencies. A decree of the Russian government on signing of a relevant agreement with the Chinese side was released on the official portal of legal information on Wednesday.

According to the draft decree approved through that government document, “settlements and payments for goods, service and direct investments between economic entities of the Russian Federation and the People’s Republic of China are made in accordance with the international practice and the legislation of the sides’ states with the use of foreign currency, the Russian currency (rubles) and the Chinese currency (yuan).”

In other words, they are dumping the dollar in favor of their own national currencies when trading with each other.  This is a direct threat to the international dominance of the U.S. dollar, and other countries have been discussing similar moves.

For decades, the U.S. dollar has essentially been a global currency.  More dollars are actually used outside of the United States than within this country, and most Americans don’t realize that.

This has given us some enormous advantages in the global marketplace, and it could be just a matter of time before those advantages begin to disappear.

Things that used to take months or years to happen are now happening in a matter of days.  The pace of change is really picking up, and right now the momentum of events is heading in a direction that is definitely not favorable to the United States.

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.

Even Before The Recession Has Officially Begun, Some Large U.S. Firms Are Laying Off Thousands Of Workers

If the U.S. economy is “booming” and very bright days are ahead, then why are many large U.S. corporations laying off thousands of workers?  Layoffs are starting to come fast and furious now, and this is happening even though the coming recession has not even officially started yet.  Of course many are convinced that we are actually in a recession at this moment.  In fact, according to John Williams of shadowstats.com if the government was actually using honest numbers they would show that we have been in a recession for quite some time.  But the narrative that the mainstream media keeps feeding us is that the U.S. economy is “doing well” and that the outlook for the future is positive.  Well, if that is true then why are big companies laying off so many workers right now?

Let’s start by talking about Ford Motor Company.  On Monday, they announced that they will be laying off approximately 7,000 workers

Ford Motor said Monday that it is laying off about 7,000 managers and other salaried employees, about 10% of its white-collar workforce across the globe, as part of a restructuring plan designed to save the No. 2 automaker $600 million annually.

The cuts, some of which were previously announced by the company, will be completed by August, Ford CEO Jim Hackett said in an email to employees Monday.

If the U.S. economy was about to take off like a rocket, this move doesn’t make any sense at all.

But if we are headed into a recession, this move makes perfect sense.

Another large firm that is laying off thousands of workers is Nestle

Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.

And we also recently learned that 3M is planning to get rid of about 2,000 workers

3M plans to cut 2,000 globally as part of a restructuring due to a slower-than-expected 2019.

The maker of Post-it notes, industrial coatings and ceramics said Thursday that the move is expected to save about $225 million to $250 million a year. The St. Paul Minnesota-based company anticipates a pretax charge of about $150 million, or 20 cents per share, this year.

Did you catch that part about these layoffs being due to “a slower-than-expected 2019”?

Unfortunately, things are slow for a lot of companies out there these days.

Another company that is dumping a large number of workers is MGM Resorts

MGM Resorts International MGM, -2.09% plans to cut about 1,000 positions by the end of the current quarter amid a cost-cutting and operational overhaul that calls for fewer managers across its properties.

That figure includes some 254 positions that the company moved to eliminate last week.

In addition, Dressbarn just announced that all of their stores will be closing

Dressbarn is closing all of its stores.

The women’s retailer announced Monday “plans to commence a wind-down of its retail operations, including the eventual closure of its approximately 650 stores.”

I am not sure how many employees they have per store, but even if it is just a handful we are talking about the loss of thousands of jobs.

The U.S. economy has been slowing down for months, and now the complete breakdown of trade talks with China threatens to plunge us into a prolonged trade war.  As I noted in another article, a couple of different studies have concluded that an extended trade war could literally cost our economy millions of lost jobs.

And once the job losses start rolling, they can really get out of hand very quickly.  We saw this in 2008, and it is just a matter of time until we see it happen again.

On Sunday, a reader sent me an article about a factory closing that was happening in her neck of the woods in Pennsylvania.  One worker that was laid off said that the closure of the facility “was the final kick in the gut”

Robert and Brooks Gronlund, owners of Wood-Mode Inc., wrote a text to workers Friday, saying they “are extremely appreciative” of the employees’ contributions and commitments. The company owners then confirmed all of them were terminated, as were their benefits.

“It was the final kick in the gut,” Michele Sanders, a 22-year employee of the company, said Saturday.

The privately-owned company in Kreamer, which produced custom wood cabinets, shut its doors Monday, leaving nearly 1,000 people without jobs. The abrupt closure of the plant stunned workers and community leaders.

So now almost 1,000 people do not have a way to support themselves and their families.

We are talking about hard working people with real hopes and real dreams.

Kreamer is a very small town.  According to Wikipedia, only 773 people live within the city limits, and so obviously there are not a lot of employment opportunities in the town.

And if those workers are anything like the rest of the U.S. population, most of them were probably living paycheck to paycheck.

I keep encouraging my readers to build an emergency fund, because you never know when you will be next on the employment chopping block.  I personally know a number of people that have just lost their jobs, and it can be an absolutely devastating experience.

Unfortunately, it looks like what we have witnessed so far is just the beginning.  All of the numbers tell us that economic activity is slowing down, and so we should all get ready to potentially face a rapidly deteriorating economic environment during the second half of 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. 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.

Uh Oh: The Number Of Job Openings In The U.S. Dropped By More Than Half A Million In Just One Month

According to the Labor Department, the number of job openings in the United States just plunged by the largest amount we have seen in nearly four years.  The latest JOLTS report shows that the number of job openings has declined by 538,000, and that is a really big number for just a single month.  But we shouldn’t be surprised by this at all, because it is perfectly consistent with all of the other dismal economic numbers that have been coming in recently.  An economic slowdown is here, and many believe that it is just getting started.

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.

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.

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.

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