The time is now to begin preparing for the next financial recession – if you haven’t already. Very soon, it will be too late, as preparations for economic downturns often take a year or more.
As of today, we are 10 years into an economic expansion that was greatly pumped up by various forms of stimuli (market manipulations by central banks). More commonly, recessions occur every 5-10 years, and we are today seeing early signs of troubles around the world. Some of the more troubling signs have already been at the forefront for over a year. According to Seeking Alpha, some of the indicators of an upcoming financial meltdown are:
- Rising interest rates
- Trade wars (which are paid for by the American consumer)
- Enormous accumulation of debt
- Decelerating global growth
- Credit card delinquencies have risen to the highest level in almost 8 years
- The resurgence of a cold war between the US and Russia
- In April, U.S. auto sales were down 6.1 percent; the worst decline in 8 years.
It’s also strange that anytime anyone mentions that we are past due for a recession, they are immediately called a “fear monger.” Well, so be it. We are past due for a recession, and the everything bubble we are currently in is going to make it a difficult one to recover from. We are not experiencing a “booming” economy when all the data is taken into consideration.
After taking an honest look at the facts, I don’t know how anyone can possibly claim that the U.S. economy is “booming”. I really don’t. We hear this sort of rhetoric from the mainstream media all the time, but it doesn’t make any sense. As I discussed yesterday, nobody should be using the term “booming” to describe the state of the U.S. economy until we have a full year when GDP growth is 3 percent or better, and at this point we haven’t had that since the middle of the Bush administration.
The latest numbers are clearly telling us that the U.S. economy is not even moving in the right direction. Economic conditions are getting worse, and they weren’t that great to begin with. According to the calculations that John Williams has made over at shadowstats.com, the U.S. economy is already in a recession, but of course the Federal Reserve will continue to tell us that everything is just fine for as long as they possibly can. Unfortunately for them, they can’t hide the depressingly bad numbers that are coming in from all over the economy, and those numbers are all telling us the same thing. –Michael Snyder, The Economic Collapse Blog and author of the book Get Prepared Now.
No one knows exactly when the house of cards will fall, but it will, and the evidence is out there if you want to see it. Unfortunately, there’s little anyone can do to stop the disaster that’s coming our way. We can prepare ourselves though.
https://www.shtfplan.com/headline-news/how-to-best-prepare-yourself-for-the-coming-financial-crisis_06282018
Get your personal finances in order making sure you’re eliminating as much debt (liabilities) as possible. Cut expenses and learn to live on less. Consider storing some extra food and water in case there is run on the grocery stores. There is no secret other than to take your survivalist mindset and apply it to your wallet. Be wise with money, and learn to live on less. If you still need help, Dave Ramsey’s The Total Money Makeover is an excellent resource, and we also suggest The Prepper’s Blueprint, by Tess Pennington.
If you believe that artificial scarcity is real, you are living under the govt that you deserve.
I agree with staying out of debt on a personal level. However, on a macro level, it will actually CAUSE a collapse. All currency (credit) is loaned into existence as a debt with compound interest attached. It is all debt. If it stops growing the whole kit and caboodle will collapse in a cloud of dust.
And another thing that mebbe is off topic…or not. People say max out your credit card and just default since it’s unsecured debt. What they don’t understand is that the bank trust will sell your defaulted debt to a collection agency for pennies on the dollar.The collection agency will file a judgement at your local magistrate and if you don’t pay THEM, they will send the sheriff to sell all your stuff and kick you out onto the street. The banks don’t care about the defaulted debt. It came from thin air and costs them nothing when it is destroyed by non-payment except some compound interest they may have collected. They make money by selling it to a collection agency who actually does care if it gets paid.
In the era of quasi-MMT that exists now, banks don’t want or need your deposits and won’t pay much for them. The grand daddy of central banks, the Bank of England released a white paper in 2014 that explained this. All credit/currency is created at the point of the loan and compound interest added. When the loan is paid off that principal is destroyed. They don’t loan from deposits. There is no “fractional reserve banking” where they hypothecate deposits. That’s gold standard economics. Yes, they do things different now since there is no tether to precious.
The banks have little risk anymore. They securitize almost everything. Credit card debt, car loans, school debt and mortgages are all off loaded to investors. They put it in a trust and tranche the loans and sell securities to pension funds and other retail investors. Only the worst performing notes are left in the trust. This removes virtually all risk from their books and puts it on the investor that bought the security. The bank gives the investor the loan payments and a portion of the interest they collect and keeps the majority of the interest as their income. The trust insulates them from most risk much like a trust does for you. Nice gig.
jrs, you’re right it IS all debt. And the only way to clear that debt – the only way – is to reset the entire system (maybe to one that is not built on the same premise). How to prep? For an entire societal (if not worldwide) collapse? One stack at a time. And for those who’ve not even begun, life is going to get real hard…. and probably not too long from now.
Yup.
“Life is hard, it’s even harder if your stupid.”
John Wayne
Our Nation has been run by criminal thieves for decades. They manipulate any economy they like, ups and downs orchestrated for them to profit off of. We are just along for the ride.
Only way to avoid that ride, is to be OFF THEIR GRID as much as possible. Fly under their radar and off idiot social media websites, taxation stations and utility dependency.
Think “Rural Off their Grid.” You can do it. I took the leap 4 year ago. No looking back.
Great article as always Mac. It’s not fear mongering, it’s reality. 8+ years of “Quantitative Easing” where the Fed pumped hundreds of Billions of dollars into the markets will eventually prove to be the biggest “bubble” in the history of mankind. Best to get completely out of debt if possible, or get used to interest rates in the 20% range.
I have to keep saying that people who don’t prep are inept. Pay cash for all your preps and stay away from credit cards, loans, etc. So what if I don’t have any credit? I’m debt-free and don’t regret that for one minute. I’m well-prepped for years to come so I have peace of mind. There’s nothing negative about being debt-free.
Deplorable Renegade
To a great degree “prepping” today, certainly regarding home economics is just going back to what was normal 60 years ago (yes it’s likely been that long). The depression kids, our parents if we’re about 60 and certainly our grandparents called this normal. Like most things today normal is socially abnormal and damn sure abnormal they’re socially making normal. It’s all upside down and convoluted.
Kevin2, you said a mouthful with that post. Everything really is backwards and upside down. All of those misled people are going to pay a horrible price.
We’re all paying a price for society’s good is bad and bad is good. Society is like clay, once molded and let to set it’s difficult to reform. Media does the molding, modern technology is essentially hot water and plenty of it dissolving the functional norms and ultimately establishing dysfunctional in its place.
As an example the juvenile 16 in the Colorado school shooting was born a female but is a male (?) and the judge will consider them a male. Seriously…WTF? What kind of insane family has that? The kid is screwed up; no shit, that’s obvious. Welcome to the new normal.
Deplorable Renegade, glad to hear that you are at your bug-out location. I hope all is well with you and yours. I have been busy the past few weeks so I haven’t had time to post. But I keep prepping.
The next few months I need to pay off my credit cards that I let run up. Like you always say, “stay away from credit cards” and “pay cash”. Always good advice!
Justice, get those cards paid off and you won’t know how to act, LOL.
Hey everybody, here’s some good insight. The elites pain of a collapse and doom and gloom, does not have too be our pain. I could care less if 1000 banks collapse tonight. I’ve lost nothing. I do use credit unions. And that unsecured CC debt I have from that bank, good luck on collecting that after you collapse. Are you and your personal assets positioned, with a moat full of alligators on your parameters protecting you and what you own? Better have your GO TO Battle Rifle and a Battle Belt full of extra magazines and knife water, and a camel back with 2 liters of water you can sling on in an instant? Adrenalin in an instant, will make your saliva as thick as molasses, as you better have plenty of water to immediately hydrate yourself into battle. You take some shrapnel and your blood supply lowers and what ever water you have in your body will instantly make more blood from that water in your system, to increase your blood volume. Heart beating faster, saliva thick, exhaustion,.. How many fronts can you maintain for your home security at the same time? How far away is your house from any public access or a moltov cocktail throw away, for a surprise on your roof top, and or a way to fight the fire, and not be shot at as you pile out of your burning dwelling. Are all of your preps in your house? Or spread out some in caches, even a week of food hidden is a real moral booster, until you can get your situation under control. A few boxes of MRE’s and a case of bottled water, stashed away with some weapons and ammo and a small pack. Never try to defend your house from the inside of your house. Always get outside and you can create a larger perimeter and sit in the shadows and shoot anything that is a threat from outside of your house. So take guard shifts and a communication system. So train at night. You would be surprised how well you can see at night, when you get out there and do some star gazing,, except for in the shadows, sound, or movement could lurk a threat. Having night vision even a monocular will give you the advantage in the night.
Never give up, never be afraid, never be afraid to exercise your freedoms and stand up for what is right. Love our Country, our way of life and cultures, and destroy anybody wanting to harm us or take that away from us.
Politely get right into the faces of these elected politicians or Sheriff’s, and do that in a pubic setting if possible with witnesses, and hold them and their departments and agencies accountable for their corruption. Its our patriotic duty to do this, to save us from the swam creatures that lurk all around us. Look around.. You may be prepared in a collapse, but how many of your neighbors are not. Are you prepared for that? Who do you trust? Answer. NOBODY BABY!!
Just a question to the folks out there. Not really because of this article or many others making the prediction of the upcoming financial crisis, isn’t the prepping an ongoing thing and not waiting until or just before the crisis happens? Getting out of debt, food, water supply, seeds, meds, etc etc. isn’t that an ongoing process? Anyway just to get started now will put a person ahead of most no matter how many warnings or alarm bells ring because people just do not listen. One thing that always comes to my mind is when the super storm Hurricane Sandy hit the east coast a few years back. There was probably no less than two weeks of continuous warnings there were still people dumpster diving for food three days after the storm. God bless and keep your powder dry!!
OFF TOPIC
Ordered my final load of ammo today from Natchez Shooters. According to the guy who took my order over the phone ammo sales have gone through the roof the past couple of days and really big orders too like 5-10K rounds of 5.56 green tips.
Watch out fur dem hogs, bye!
Somebody is stocking up big time, why? What has changed recently?
The government would like to thank you for registering your ammo purchase.
Fine example of late stage alcohol induced psychosis. Paranoid much dumb ass? Be careful, FBI agents are hiding under your bed!
Ruh-roh! A troll is on our site.
Must be a democrat lol!
Try Target Sports, FAST free delivery on full cases. Excellent prices too !
Maybe these recent shootings have something to do with it.
Got good info from Vdare.com. April jobs info not published by the MSM. American born workers lost 560,000 jobs in April. Immigrant workers gained 457,000 jobs in April. Your replacement is here, now just die, and the government will be happy.
There are reportedly 102 million not counted as unemployed because they are considered……..wait for it………
Not ….in…..the….work ….force!!!
I can’t make this **** up!!!
JJ,
Be careful. Workforce is considered 15-65 years old, that get W-2 forms or admit to working as self employed. That number you refer to, is old, but is one for people no longer looking for “work”, this includes early retired people, people working off the books, Homemakers, Caretakers, et al. Hard to count these kinds of people, so they don’t.
Granted that about 1/3 of that 102 million number don’t want jobs and live on some sort of welfare, which is the real problem. The government doesn’t know how to, or want to count them, probably from the out-roar that would occur if Americans knew there were deadbeats by choice, who they were, and how much they cost us.
A good woman can help in so many ways. There is no sound reason for a woman to leave her children with strangers while she goes off chasing the almighty dollar. It is pure propaganda that a family needs two paychecks to get by.
There are ways. Figure it out.
.
Hp,
I experienced both a stay at home mom and a working mom.
My only observation is; Sometimes Moms, need more social interaction than just Dad and the older kids. Once the kids got old enough Mom wanted to do more than sit at home all day waiting for us to come home, it could seem like slavery.
Each instance is unique.
Personally, I liked the stay at home mom, but in old age I realize the damage done when it was a forced decision, work or stay at home, as opposed to something freely chosen.