Although many declared the deceleration in the economy in December to be a “soft patch” that we’ve somehow recovered from, others aren’t so sure. The rest of the global economy is slowing down and sinking at a fairly rapid rate, and the U.S. economy will likely go with it.
According to a report by Forbes, there is no “economic immunity” for the United States once the global economy is in tatters. The report points to many problems in the global marketplace that could signal a major downturn for the economy pushing the U.S. ever closer to an unavoidable recession. When the U.S. consumer goes on strike (quits buying things for any reason), the odds of a recession skyrocket. So, it would behoove market watchers to stop ignoring the growing potential for a significant economic slowdown.
Japan’s latest employment data was very poor while China’s high and rising bond defaults are still showing a contraction although the February number (49.9 PMI – still slightly in contraction) moved up from the 48.3 January disaster. Other problems are arising in the Eurozone as well. The manufacturing PMI (Purchasing Managers Index) of 49.3 is the lowest since 2013. The latest U.S. trade deficit number was a record -$79.5 billion. Exports fell -2.8%. This confirms the weakness in foreign economies. Perhaps the only good news is that Germany did show decent January retail sales growth. That means consumers spent more of their disposable income.
The U.S. did not fare well when it came to auto sales either. New car sales in February were at an 18-month low. Part of the problem is that new and used car prices are now at record highs, and bank credit has tightened making getting into a brand new vehicle simply too expensive for many. A report earlier in February also indicated that auto loan delinquencies are now at highs seen right before the Great Recession.
Just on the heels of the United States government’s debt surpassing $2 trillion comes the news that there are now a record number of Americans who are behind on their record high car payments. According to CNBC, more than 7 million Americans are at least 90 days behind on their auto loans, according to the New York Fed. This is a major concern, considering the average car payment in the U.S. is now $523. –SHTFPlan
Forbes states that it may be too soon to come to the conclusion that the U.S. has made it through the “soft patch,” or December of 2018’s market downturn.
Middle class Americans are broke and tappedout. I know because I am one. What really killed the hard working class like myself is the cost of health insurance. I have a family with two young kids and thru my job i pay $900 a month for the family plan insurance. Where as 20yrs ago that money would of gone to a new superduty or SUV. We get by and i do side jobs to buy my preps, but I don’t think I’m the only one that is tapped out.
Same here. I am a little older but I am trying to save as much as possible to be debt-free. The cost of everything, from insurance to every stuff, goes up, never down.
Same here. I save as much as possible, now. If I don’t eat it, or use it every day, I’m not buying it.
“The rest of the global economy is slowing down and sinking at a fairly rapid rate, and the U.S. economy will likely go with it.”
LMFAO !!! 🙂
Yes, its true, but didn’t someone here say YEARS ago that when the Global Depression finally hit, it would be caused by either Europe or China: as the economy of both are structurally flawed. Who was that Masked Man ???
It’s in the archives. 🙂
Archives, huh? Month and year please. (sarc)
None of these guys predicting an econ. meltdown have a precise timeline.
some these guys have put out this type info since the ’80’s like McIlvany, Quayle, Ray Gano, and others. Zero credibility, and morons who pay for their advice and/or newsletters.
global depression began due to the fact that the world economy is 85%, and accounting and calculations are carried out in dollars whose economy is 15% of the world. This is the same as the unemployed will pay for the work of the worker. everything .
It’s not because of China or Europe.
It’s because the latest global reserve banking pyramid swindle is reaching it’s expiration date with massive amounts of leveraged debt.
This can only end in default!
Pyramid schemes always reach the point where they can’t any longer inflate.
No, there are unfortunately MILLIONS and millions like you, like us and it is simply unacceptable. All this filthy vile incompetent Gov’t does is STEAL yes steal 40-50% from us every other week and have been since our very first cruddy job and will tell the damn day we die and then they take the money and waste it on giving away FREE stuff to illegal invaders, filthy, sub-human, Low I.Q. “moozlim” baboons and on and on and on and what do we get out of it really??
Well Huh! Sh#%t happens.
Well you blame Trumps Tariffs for the perceived troubled Economy in the USA? Yet the entire glowbull economy is in decline. Which is it?
I don’t blame Trump’s tariffs YET as he wisely backed off. I say “wisely” because, while this fight needs to happen eventually… do you normally go picking a fight when you have a broken arm and a black eye? Like our economy presently does? 10 year cycle, this is worse than usual too.
But I can assure you the Dems will run on this platform, watch and see.
Old Guy, the whole world economy was going down the tubes way before Trump came along. It goes all the way back to NAFTA and GATT.
The problem is debt. It is at record levels for individuals and thus they can’t afford to consume more. Most people are being eaten alive by rent, utilities and taxes.
What is needed is debt forgiveness and cash stipends for anyone with a middle class or lower income. This would provide lift-off for the economy and enable people to save again.
@ frank thoughts….you dont think if we washed away everybodys debt….the same trash wouldn’t have right back in debt a year later?
Touche’ Lineman. I can envision Big flat Screen TV’s rolling out de door of Best Buy now. The merry-go-round is still spinning and the music is still playing.
And the tattoo parlors would be running 24/7. I seen people not be able to pay their utility bills but run to the tattoo parlor when the tax return came in. Of course they had to call in a day off to get the tattoo.
Finally. The collapse you all prepared for is coming. You did prep, right?
Yep. Wake me when we breach the debt ceiling. Then we’ll know the end is near. *Sarc*
We have been in uncharted territory (despite all the charts) for some time now.
Breaching the debt ceiling is just a few months away.
What’s the point of having a debt ceiling anyway when all they do is keep lifting it higher and higher with no fiscal responsibility.
Yep. Fiscal responsibility was supposed to be the reason the debt ceiling was established. I mean, not because a balanced budget isn’t constitutionally mandated, or anything. *sarc*
M+ Start digging the well before you get thirsty!
Decide NOW….will you help those who come to you in need? Would I use a gun to stop someone who threatened violence? (I have a moral right to protect my life)
Sorry but I have to provide for my wife and for myself and that is it!! I got nothing for some knuckle-headed buffoon that didn’t bother to handle his business for himself and his family and on and on, nope. I am not the filthy Gov’t, so don’t come knocking on my door thinking your ass is going to get anything other that very warm, fast lead up the ass if you try anything stupid or just plum annoy me. Nope got nada for the clowns so beat it and keep on stepping.
I have been coming here for almost 10 years now. Thanks MAC for what you do. I started prepping when I realized the financial issues that can and will hit this country and the world. I wonder if the next few years are the times we have all prepped for. We are over due now for some sort of big event.
I would have thought things would have went south years ago. I wonder how long things can continue to go without drastic change.
Keep stacking and it has been a pleasure to be part of this community.
Mike in VA, me too and likewise.
Mike in VA, good to see you back. I used to be Braveheart.
Mike In Va
If I remember correctly we (I’m retired) were in similar lines of work, power generation with you in a public utility. You’ll be the last to be effected if at all as thats about as secure of employment that there is for the common person.
“I would have thought things would have went south years ago. I wonder how long things can continue to go without drastic change.”
I have been thinking the same here but I figure as long as the USD maintains Reserve Currency Status with the Oil Peg being it’s cornerstone the boat might be rocked but the ship will still float. If it appears that this would end I see WWIII as a result. If I see this then “they” see this. It’s an illogical plan so there is something that I’m apparently not seeing. Something is in store because it’s impossible for the world system that we have to continue indefinitely.
Everything paid up, no debt. I have plenty of cash on hand and am waiting a bit for prices to drop, then SPEND SPEND SPEND! People like me will yank the economy back up, or at least slow down the fall. People, LIVE WITHIN YOUR MEANS!
As the economy gets worse people will have to cut back on fixed expenses. At the top of the list of things to go will be cable. Several months ago I cut cable and internet so that I could afford to stock up on certain supplies.
Recently I have been focusing on SHTF entertainment. This is not JUST for a grid down situation but also the inevitable cord cutting that will happen, as all costs continue to rise.
I have spent time and money digitizing my movie and TV series collections. So that I will have them available in a multitude of SHTF situations.
Having a Tablet is a low energy way to view digitized/electronic files. But this is another useful tool that preppers may not be aware of:
Micca Speck G2 1080p Full-HD Ultra Portable Digital Media Player For USB Drives and SD/SDHC Cards
What’s great about it is that you can hook-up an external hard drive up to 2 terabytes. That’s a lot of movie mozzarella!
Good lord, $7200 a YEAR for a car? EVERY YEAR because you chuck the old one out eventually and start over? What are you people insane or something? I could get another used car every single year for the rest of my life at that rate, and my used tend to last me ballpark 10 years at least…
I have had the same used SUV for the past 10 years or so and she is a bit banged up and this and that but she runs pretty well and the AC still works and the 4×4 so I am good for now and most importantly NO NO NO Payment. How these people get $600 a month car payments is just stupid. And then the rip-off insurance and gas and all of the other robbery we have to deal with, nah, no way brother.
That stuff with the auto loans… clearly my definition of “middle class” is radically different from everyone else’s. That shit’s just stupid. That’s into the land of carelessly rich for sure.
“Just on the heels of the United States government’s debt surpassing $2 trillion ”