(The Economic Collapse Blog)—How in the world can anybody possibly claim that the U.S. economy is in good shape? Honestly, I don’t see how anyone can make a rational argument that this is the case. Actually, the only people that seem to be trying to claim that the U.S. economy is heading in the right direction are those in the upper tiers of the economic food chain.
At this stage, those in the lower tiers of the economic food chain are very well aware of how much they are suffering. Poverty, homelessness and hunger are rapidly growing all over America right now. But if you still have plenty of money and those around you still have plenty of money, you may be wondering what all of the fuss is about. If you are one of those people, hopefully this article will be a wake up call for you.
Let’s start with the housing market. On Friday, we learned that sales of previously owned homes in December 2023 were 6.2 percent lower than they were in December 2022…
Sales of previously owned homes fell 1% in December compared with November to 3.78 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors. Sales were 6.2% lower than in December 2022, marking the lowest level since August 2010.
For 2023 as a whole, sales of previously owned homes were the lowest that we have seen in 28 years…
Home sales fell to their lowest level in 28 years in 2023 as soaring mortgage rates and red-hot prices dampened buyer demand.
Figures from the National Association of Realtors (NAR) show sales of existing properties slid 19 percent last year to 4.09 million – their lowest level since 1995.
Can anyone out there come up with a way to put a positive spin on those numbers?
I certainly can’t.
Meanwhile, 2023 was a year when Americans got further behind on their credit card bills “in 49 of the 50 states”…
The number of people falling behind on their credit card bills increased in 49 of the 50 states last year, a sobering new report reveals.
As inflation took its toll on household budgets, Americans in their millions became delinquent on credit card debt – with some states much more badly affected than others.
According to analysis by WalletHub, the number of borrowers struggling to keep on track of their credit card bills has risen the fastest in Oregon. Between September 2022 and September 2023, delinquencies in the state soared by 51 percent.
Delinquency rates on all forms of credit have been steadily rising from coast to coast.
This will be an important trend to watch in 2024.
Meanwhile, large layoff announcements continue to pile up at a very frightening pace.
For example, Macy’s just announced that it will be laying off a total of 2,350 workers…
Department store chain Macy’s is planning to lay off about 13% of its corporate staff and close five stores in an effort to trim costs and redirect spending to improve the customer experience.
The Wall Street Journal first reported the news on Thursday, adding that the job cuts will total about 2,350 positions, or about 3.5% of Macy’s overall workforce excluding seasonal hires.
And Wayfair is telling us that somewhere around 1,650 of their workers will soon be hitting the bricks…
Wayfair is cutting 13% of its global workforce as the digital home goods retailer continues its efforts to trim down its structure, cut out layers of management and reduce costs after going “overboard” with corporate hiring during the Covid pandemic, it announced Friday.
The company plans to lay off around 1,650 employees, including 19% of its corporate team, with a focus on people in management and leadership positions, Wayfair said.
I apologize in advance if there are some major layoff announcements that I miss in the days ahead.
We are witnessing such a large tsunami of layoffs now that it is virtually impossible to keep up with them all.
On the west coast, employees of the Los Angeles Times are extremely upset about the “massive” layoffs that are reportedly coming…
With “massive” and “significant” layoffs coming soon, “the L.A. Times Guild announced a one-day walkout from both its L.A. and Washington D.C. offices this Friday,” reports TheWrap.
Staffers are “abstaining from work for the entire day while also staging a rally. It’s the first union work stoppage in the newsroom’s history, according to the union, dating back to when it started printing in 1881.”
This act of suicide is called the “Rally to Save Local Journalism” and will take place Friday at noon.
And earlier today I was stunned to learn that the entire staff of Sports Illustrated is being terminated…
Following through on a warning earlier this month, Authentic Brands Group has revoked Sports Illustrated‘s license to publish due to a missed payment.
As a result of the move, the entire staff of the 70-year-old print and online publication was notified on Friday that their jobs were being eliminated.
“We appreciate the work and efforts of everyone who has contributed to the SI brand and business,” SI operator The Arena Group wrote in a memo to employees that set off outrage on social media.
Once upon a time, Sports Illustrated was a truly great magazine.
Sadly, those days are long gone.
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There is so much bad news these days.
At this point the economic outlook is so troubling that even Google is getting ready to conduct yet another round of layoffs…
Google has laid off over a thousand employees across various departments since January 10th. CEO Sundar Pichai’s message is to brace for more cuts.
“We have ambitious goals and will be investing in our big priorities this year,” Pichai told all Google employees on Wednesday in an internal memo that was shared with me. “The reality is that to create the capacity for this investment, we have to make tough choices.”
So far, those “tough choices” have included layoffs and reorganizations in Google’s hardware, ad sales, search, shopping, maps, policy, core engineering, and YouTube teams.
Of course what I have shared with you above is just a small sampling of what is really going on out there. For many more recent layoff announcements, please see my previous article entitled “Alert! Here Is A List Of 20 Large Companies That Have Just Decided To Conduct Mass Layoffs”.
Before I end this article, I wanted to update all of you on the horrifying stock market crash in China.
Zero Hedge is reporting that Chinese stocks just experienced their “worst weekly loss since March 2023″…
Amid ‘snowball derivative liquidations‘, China’s stock market is falling faster than its population.
The Hang Seng China Enterprises Index crashed 6.5% this week – its worst weekly loss since March 2023 with Wednesday seeing the biggest daily loss since Oct 2022 as the index plummeted to key support levels around the Oct 2022 lows…
The phrase “snowball derivative liquidations” really got my attention, and a lot of you know why.
I have been warning about the derivatives bubble in my books for over a decade.
Derivatives are going to become a very hot topic the closer we get to a full-blown implosion of the global financial system.
We are in far more trouble than most people realize.
2024 is going to be such a tumultuous year, but many of the “experts” will continue to insist that everything is “just fine” for as long as they can.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
