Do you remember what economic conditions were like in 2008 and 2009? Well, what is ahead of us is likely to be significantly worse. There will be severe pain for those that get blindsided by this new crisis, but those that choose to get prepared in advance will have the best chance of successfully weathering the coming storm. This week, we learned that the rate of inflation in the United States surged even higher last month. And this is happening even though the overall economy is steadily slowing down. At this point, the vast majority of the population understands that economic conditions are rapidly deteriorating. In fact, one recent survey discovered that 70 percent of all Americans now believe that an economic downturn is ahead of us…
Most Americans — 70% — already believe an economic downturn is on its way, according to a new survey from MagnifyMoney. The online survey was conducted between June 10 and 14 and included 2,082 respondents.
Sadly, it is likely that a recession is already here. The U.S. economy contracted during the first quarter of 2022, and the Atlanta Fed’s GDPNow model is currently projecting -1.2 percent growth for the second quarter.
Two quarters of negative growth in a row would mean that we are officially in a recession at this moment.
But many experts are warning that much worse is ahead, and we continue to get more evidence of this with each passing day.
For example, it is being reported that the number of vehicle repossessions is exploding, and many of these vehicles were just purchased during the “mini-boom” that we witnessed in late 2020 and early 2021…
Lucky Lopez is a car dealer who has been in the business for about 20 years. In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas origination dates are normally scattered because people fall on hard times at different times; loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%; and many of the loans were extended to buyers who had temporary pops in income during the pandemic. Those monthly incomes fell—sometimes by half—as pandemic stimulus programs stopped, and now they look even worse on an inflation-adjusted basis and as the prices of basics in particular are climbing.
It is very alarming to read things like that.
Unfortunately, as bad as things are already, the outlook for the months ahead is even worse. The following comes from Zero Hedge…
Finally, a Chicago Fed survey on the outlook for the US economy decreased to minus 60 in June, the worst reading since the survey began and worse than at the depths of the COVID lockdowns in 2020…
So if a major economic downturn is in our future, what should we be doing?
Well, the following are 5 things that you can do right now to get prepared for the severe recession that is ahead…
#1 Make Sure That You Have A Source Of Income
Last year, if you didn’t have a source of income it wasn’t that big of a deal. Thanks to an unprecedented shortage of workers, the number of job openings surged to a record high. It was so easy to get a job, and so if you felt like taking some time off you could always jump back into the employment pool later.
But now things are changing very quickly. The number of job openings is plunging, and layoff announcements have started to spike.
When the music stops playing, you don’t want to be one of the people without a chair. So unless you have your own business, I would greatly encourage you to make sure that you have secure employment while you still can. If you wait, it will be much more difficult to find a good job later.
#2 Build Up Your Emergency Fund
When a recession hits, it is extremely important that you are able to continue to pay the bills no matter what happens.
When economic conditions deteriorate, bad things happen. Some people lose their jobs and others lose their businesses. If you get hit with some bad luck, you don’t want to be in a position where you could suddenly lose everything.
During 2008 and 2009, many Americans lost their homes because they suddenly could no longer pay their mortgages. Don’t let that happen to you.
Now is the time to build up a very large emergency fund. Cutting your spending will help you to do that. I know that it is not easy to reduce your spending, but later on you will be glad that you did.
#3 Get Out Of Debt
After you have built up your emergency fund, getting out of debt should be a high priority. I would start with eliminating anything that has high interest rates such as credit card debt.
Mortgages, student loans and other debts that have lower interest rates should be lower on the list. Those that are “lean and mean” will have the best chance of getting through this crisis in good condition.
#4 Stock Up On Essentials Now
Prices are going to keep going higher. So that means that the things that you are going to need during the months ahead will not be any cheaper than they are right now.
Don’t spend money on unnecessary items, but for the essentials that you use on a regular basis it is a good idea to stock up right now while you still can.
#5 Maintain A Positive Attitude
This is so important. Have you ever known anyone that was truly successful in life that had a negative attitude about everything? Yes, bad things are going to happen, but we need to believe that we can make it through whatever challenges we are going to face.
Being depressed and defeated because economic conditions have deteriorated will not get you anywhere. But if you approach each day with a positive attitude you will give yourself the best opportunity to make it through the storm. Of course most Americans will have an extremely difficult time staying positive as things get worse and worse.
Already, there is so much anger and frustration out there, and Joe Biden’s approval ratings just keep getting worse and worse. Just check out these absolutely dismal numbers…
Just 18% of Americans say President Biden should run for reelection in 2024, according to the latest Yahoo News/YouGov poll — the lowest number to date. Nearly two-thirds (64%) say he should bow out.
And for the first time, more Democrats now say Biden should pass on a second term (41%) than say he should pursue one (35%).
The survey of 1,672 U.S. adults, which was conducted from July 8 to July 11, represents perhaps the starkest evidence to date of the president’s deteriorating position with voters — including those in his own party.
Things aren’t even that bad yet, and only 18 percent of all Americans want Biden to run again at this point. So what will those numbers look like once this new economic downturn becomes quite severe?
We will soon see things happen in this country that are absolutely unprecedented. But we don’t have to let events overwhelm us.
So I would encourage you to stay positive and to get prepared while there is still time to do so. The clock is ticking, and time is quickly running out.
***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***
About the Author: My name is Michael and my brand new book entitled “7 Year Apocalypse” is now available on Amazon.com. In addition to my new book I have written five other books that are available on Amazon.com including “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, “Get Prepared Now”, and “Living A Life That Really Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending digital copies as gifts through Amazon to family and friends. Time is short, and I need help getting these warnings into the hands of as many people as possible.
I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.
I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, I strongly urge you to ask Jesus to be your Lord and Savior today.
Article cross-posted from End of the American Dream.
Two Storms, One Harvest
Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.
What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.
Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.
This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.
Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.
Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.
The Fertilizer Clock Is Already Running
While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.
The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.
Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.
The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.
Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.
The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?
The System Has No Slack Left
The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.
Today’s supply chain challenges are tomorrow’s hunger crisis.
There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.
The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.
What Joseph Knew
Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.
Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.
Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.
Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.
None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.
Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.
