by Amy S.
The US government has already run past the critical mass point of where interest payments on debt are greater than the amount of money it takes in via taxes, fines, etc… By about a couple of billion at this point. So, in other words: it will never be able to pay down debt. The debt has nowhere to go but ,up. Even if the government stops all spending right now ,and just pays interest on the debt. We are now permanently on the highway to hell, and the sheet show is gonna get real. All we can do is hunker down and wait for the collapse. It’s too hard to even try to argue against the blatantly absurd. At least three rounds of QE this year.
America is owned by offshore private banks, period! They set the rules of the game and choose how to play the game. More money on its way. We injected so much liquidity causing yields to rise faster than we expected, which threatens the viability of our risk-free rate valuation balloon.Hence our best course of action is to add even more liquidity at a faster pace. Massive fiscal and monetary stim suggests coming higher inflation Supply not able to meet increased dollars demand. Hence, investors engage in a battle royale with the Fed.
The Fed tries to keep the lid on yields through QE and rate policy. While these investors strive for rational and sane price discovery. The Fed have so painted themselves into an ever-growing asset inflation corner that they’ll do anything in order to support these valuations. They won’t admit they’ve lost control of inflation and prices until forced to do so by the market. Central Banks think it’s okay to keep yields low and money supply infinite. Because it’s all, they can do. The biggest monetary crime of our lifetime is that all Central Banks were warned of this, ignored that advice, and now, unforgivably ( out of sheer panic), deny that they are in that corner. So it makes you wonder what the real objective is here.
According to “GartmanNomura Analytics” from about a week ago, it should’ve been GAME OVER for the markets (and pretty much everything else) when the 10-year yield hit 1.5%. As of now, the 10-year yield is at 1.635%, and the stock markets made new all-time record highs while the 10-year yield stayed above 1.5%. Although the stock market keeps on up and up, regardless of the underpinning factors of the economy.
However, one day, the laws of economic reality will set in. After 12 years of below reality market rates, the bond vigilantes are reborn. And it won’t be pretty. 50 basis points most scenarios can be handled, but if we breach 2.50% on the 10-year yield, it will create a crater in the middle of American finances from sea to shining sea. Interest rates will never go up until the currency used to suppress them becomes worthless. Neither Powell nor the Fed will allow rates to rise far enough.
Are you ready for a major stock market crash and the next Great Depression? We continue to get more indications that U.S. economic conditions are going to deteriorate rapidly during the second half of this year. Yesterday, I reported on a brand new survey which found that 69 percent of U.S. CFOs believe that the next economic collapse is coming “by the end of 2020”, and today we learned that Morgan Stanley’s Business Conditions Index has crashed dramatically.
In fact, the sudden drop in the index was “the largest one-month market crash on record”… A reading of the economy from Morgan Stanley is signaling “June gloom.” Morgan Stanley’s Business Conditions Index, which captures turning points in the economy, crashed by 32 points in June, to a level of 13 from a level of 45 in May. This market crash is the largest one-month decline on record and the lowest level since December 2008 during the stock market crash and economic crisis, according to the firm. At this point, I really don’t see how anyone can possibly claim that the U.S. economy is not heading for the next economic collapse. We also just learned that U.S. unemployment claims have now risen for three weeks in a row, and the trade war is clearly beginning to take an immense toll on the economy.
This week, Walmart, Costco and hundreds of other companies jointly sent President Trump a letter that essentially begged him to end this trade war with China. There aren’t going to be any winners in this trade war, and anyone that suggests that there will be is just being delusional. If there had been a quick resolution to the trade war, large corporations could have perhaps swallowed the increased costs that they are facing. But since it appears that this trade war will be with us for the foreseeable future, big companies are going to be forced to pass those costs on to consumers, and some top executives are openly admitting this… If prices go up but our paychecks stay the same, that means that our standard of living is going to go down. And as I noted yesterday, it is being projected that U.S. corporate earnings will be way down in the second quarter, so the big corporations are definitely suffering as well. Meanwhile, China is warning of substantial damage to their economy too, and the Chinese Ministry of Commerce just told the press that this trade war could lead to a global recession… Of course we were almost certainly heading toward a global economic collapse anyway, but the trade war is definitely accelerating our problems.
At this point, global trade has already collapsed to levels not seen since the depths of the last economic crisis. Manufacturing numbers are plunging all over the world, and we just got some brand new numbers from the U.K. that are extremely alarming… Most Americans are completely and utterly unprepared for any sort of an economic collapse. Today, 59 percent of us are living paycheck to paycheck, and a survey that was just released discovered that the financial situation of most Americans has not improved since the last stock market crash and crisis. For most of us, the pain of the last recession is a fading distant memory, and things have been relatively stable for an extended period of time. So for the moment, most of the population is not too alarmed about what is coming. Unfortunately, that will soon change in a major way.
Stock Market Crash Has Begun! Morgan Stanley Economic Index Suffered The Biggest Collapse In History
Deutsche Bank Collapse Has Begun! Prepare For The Economic Collapse 2020 Stock Market CRASH
Dark clouds have been looming as Deutsche Bank staff are bracing themselves for one of the most severe job culls in banking since Lehman Brothers collapsed a decade ago with the German lender’s board set to approve plans to shed tens of thousands of people and more than €50bn of assets.
This could lead to the biggest stock market crash in History as the global financial system is very vulnerable, global stock markets are on all time high and we are in the biggest bubble in the history of mankind. The things are happening in with Deutsche Bank is a serious economic collapse warning sign. Deutsche’s investment banking chief Garth Ritchie has gone from Deutsche Bank, and Christian Sewing’s plan to make 15,000 to 20,000 job cuts across the bank looks increasingly like a done deal. On Sunday, the board seems likely to rubber-stamp the proposed reorganisation, which would see up to 50% of jobs in the corporate and investment bank disappear. On Monday, it will all begin.
Many experts sounding the alarm about the economic collapse that Deutsche Bank could cause in the near future. “You could see Lehman-style scenes outside Deutsche Bank on Monday,” says one recently ex-managing director from the German bank, referring to the staff who streamed out of Lehman with their posessions in boxes in 2008. “It’s very sad what’s happening.” Renaissance Technologies, the hedge fund giant that Deutsche Bank AG has counted as one of its largest clients, has been taking money out of its prime brokerage accounts with the German lender over the past few months, according to people familiar with the move. Hedge funds have been migrating away from DB for years. Representatives for Renaissance and Deutsche Bank declined to comment.
Many important chief, manager, trader are leaving Deutsche Bank and this also a big warning sign that Deutsche Bank Collapse Has Begun -if things will getting worse, this could lead to a major stock market crash and in worse scenario: economic collapse.www.youtube.com/embed/2P0JXCSUMEk
What is an economic collapse?
Simply put, an economic collapse, interchangeably used with the term financial collapse, is a series of very severe economic conditions. Many survivalists and preppers say an economic collapse is the one thing that they are preparing for, as it includes a number of symptoms that place a risk on our necessary needs, such as food, water, power, and safety.
One of the worst factors about a financial collapse is the fact that it doesn’t abide by a timeline. Natural disasters, for instance, while very destructive, are short, with their duration measuring only for days let alone weeks. This allows recovery efforts to commence almost immediately. Economic downturns, however, are unmeasurable in length and for most, will last a minimum of a year, with the aftereffects resonating for several years as a nation recovers.
During an economic collapse, there are symptoms that affect large companies and industries, with very visible signs felt in the family home. For instance, common symptoms of a collapse are high bankruptcy rates, widespread unemployment, hyperinflation, a spike in death rates (attributable to depression or other financial causes), a social collapse and a high increase in crime.
What are the warning signs of an economic collapse?
As we have seen above, a financial downturn can set in very rapidly, and before we know it we have lost our jobs, stores are shutting down, and we’re left high and dry. But there are some warning signs to watch out for. These are early indicators for a potential financial downturn and possible economic collapse.
Of course, your first source is to stay up to date with the news. All good survivalists are avid readers of politics, finance, and weather – the three things that can kick us out of our home or make us go hungry. So inevitably, they are the go-to sections for survivalists, and anyone else that cares about what happens in the world, and indirectly themselves.
There are five signs that an economic collapse is about to happened:
- Growing government debt: when an economy slows, the government usually steps in to help stimulate spending again, but with a high debt, the government might not be able to make that injection.
- Stock markets trading at all-time highs: investors are taking more risk on the market, markets continue to trade higher meaning investments are bull-market driven and not research-based which could lead to a stock market bubble.
- Unemployment rate: eligible worker, retirement, and student rates all identify trends in people not contributing to the economy and could slow down economic growth
- Unstable government: this boils down to the leader and government team in the decisions and actions that may affect the economy in various ways
- Rising national debt: this means less consumer spending in the economy and more money spent on paying debt.
Robert Kiyosaki is an entrepreneur, educator, and investor, best known as the author of Rich Dad Poor Dad—the #1 personal finance book of all time. He has challenged and changed the way tens of millions of people around the world think about money. And he has become a passionate and outspoken advocate for financial education.
People need to start preparing.
If a financial collapse does occur, you are going to want to start prepping so that, should an economic downturn occur, you have enough food saved up while you either grow your own food in the garden to supplement it, or find another source of free food. Chances are you will need food more than water as water will still run, but stores may close down and shelves may empty out quite quickly.
Food Crisis queuing case of a food shortage you should be aware that grocery stores only have about 3 days of food in stock. People will rush and buy as much as they can so probably the food will vanish in less than a day or hours. So if anything was to disrupt the food supply chain for an extended period of time, there would be chaos in most communities. It’s very important to start preparing NOW. There are several ways to start. The choice you make should depend on the event you are preparing for. Of course the best way is to prepare for all scenarios including long periods.
Part of our guide to start prepping involves identifying a but out plan, location, a suitable bug out bag and bug out contents. If a true economic collapse was to occur, there will be a high increase in crime rates, social disorder, looting and likely clashes with law enforcement and military. It is a safe option to consider leaving busy urban areas as these are most likely the areas that will be prone to violence.
America is in trillions of dollars in debt this bubble is gonna collapse and no one understands that.