Here’s 18 Signs That The Economic Meltdown We’ve Been Waiting For Has Already Begun
Here’s 18 Signs That The Economic Meltdown We’ve Been Waiting For Has Already Begun
Authored by Michael Snyder via The Economic Collapse,
In…

Authored by Michael Snyder via The Economic Collapse,
In all my years of writing, I have never seen more economic pessimism than I am seeing right now. Over the past couple of months there has been a monumental shift in public sentiment, and now just about everyone realizes that we are heading into very troubled economic times. Of course there were still a few economic optimists that were searching for a ray of hope, but the Federal Reserve left no room for optimism when it announced the largest interest rate hike in 28 years on Wednesday. When the Fed aggressively raised rates in the early 1980s, it resulted in one of the most painful recessions in American history. Unfortunately, many believe that what is ahead of us is going to be even worse.
For example, legendary Wall Street investor Michael Novogratz is openly warning that “the economy is going to collapse”…
“The economy is going to collapse,” he told MarketWatch. “We are going to go into a really fast recession, and you can see that in lots of ways,” he added.
“Housing is starting to roll over,” he said. “Inventories have exploded. There are layoffs in multiple industries, and the Fed is stuck [with a position of having to] hike [interest rates] until inflation rolls over.”
Novogratz is correct, but I think that it would be more accurate to say that “the economy is already starting to collapse”.
The following are 18 signs that the economic meltdown we have been waiting for has already begun…
#1 Stock prices have been plummeting in recent weeks, and that has resulted in almost 3 trillion dollars being erased from retirement accounts in the United States…
The U.S. stock market rout that has put U.S. equities in a bear market isn’t just reducing the net worth of billionaires like Elon Musk and Jeff Bezos. It’s also taking a toll on Americans’ retirement savings, wiping out trillions of dollars in value.
The selloff has erased nearly $3 trillion from U.S. retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. By her calculations, 401(k) plan participants have lost about $1.4 trillion from their accounts since the end of 2021. People with IRAs — most of which are 401(k) rollovers — have lost $2 trillion this year.
#2 The Dow Jones Industrial Average fell beneath the psychologically important 30,000 barrier for the first time in more than a year on Thursday. If it cannot return to that level within the next few trading sessions, a lot of investors are really going to start to panic.
#3 The Dow is now down 19 percent from the all-time high.
#4 The S&P 500 is now down 24 percent from the all-time high.
#5 The Nasdaq is now down 34 percent from the all-time high. Just think about that for a moment. A third of the value of the Nasdaq has already been wiped out.
#6 Two-thirds of the value of all cryptocurrencies has already been wiped out since the peak of the market. Last November, the total value of all cryptocurrencies had soared past the three trillion dollar mark. As I write this article, that number has fallen to less than a trillion.
#7 This week we witnessed the fastest rise in mortgage rates since 1987. Needless to say, this is going to absolutely devastate the housing market…
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan this week rose to 5.78% from 5.23%, the latest in a series of rapid increases and the biggest one-week jump since 1987. The rate is well above the 2.93% recorded just one year ago and marks the steepest level since November 2008.
#8 The largest percentage of sellers ever recorded reduced the list price on their homes during the four week period ending June 12th.
#9 In some parts of the nation, home prices have already fallen by as much as 20 percent.
#10 Compared to the same period a year ago, the total number of mortgage applications was down 52.7 percent last week.
#11 We just learned that housing starts in the U.S. fell 14.4 percent in May.
#12 The number of permits for the construction of new homes was down 7 percent in May.
#13 Wholesale prices continue to accelerate at a very alarming pace…
Wholesale prices rose at a brisk pace in May as inflation pressures mounted on the U.S. economy, the Bureau of Labor Statistics reported Tuesday.
The producer price index, a measure of the prices paid to producers of goods and services, rose 0.8% for the month and 10.8% over the past year. The monthly rise was in line with Dow Jones estimates and a doubling of the 0.4% pace in April.
#14 The Atlanta Fed’s GDPNow tracker is now projecting that economic growth during the second quarter will be 0 percent.
#15 The Philadelphia Fed Business Index came in at a negative 3.3 reading for the month of June. This represents the first contraction since the early days of the COVID pandemic.
#16 One recent survey discovered that small business owners are “feeling their gloomiest in nearly five decades”.
#17 At this point, 59 percent of manufacturers in the United States believe that a recession is coming.
#18 Bloomberg is projecting that the probability of a recession during the next 24 months is 98.5 percent.
But this was not supposed to happen.
Last year, the talking heads on television assured us that a golden new age of prosperity was just around the corner and that the stock market could just keep going up indefinitely.
In fact, many of those talking heads were telling us things that now look completely and utterly ridiculous in retrospect.
$COIN a year later ???????? pic.twitter.com/993EJ5CmLf
— Rahul (@rhemrajani9) June 14, 2022
Our leaders thought that they could defy the laws of economics, and for a while their “economic voodoo” seemed to be working.
But the truth is that every time they kicked the can down the road they just made our long-term problems even worse.
Now we have reached a point where the immediate future looks extremely bleak, and the outlook for our long-term future is absolutely nightmarish.
[ZH: In an effort to quantify the level of stress the average American is suffering, we created an 'adjusted' Misery Index that combines inflation (CPI) and labor market (inverse of the labor force participation) signals. Under the Biden administration, "Misery" has soared to levels not seen since Jimmy Carter was president (and at the same time UMich consumer sentiment is at a record low...]
If we would have made much different decisions along the way, we would not be facing such a horrifying crisis today.
Unfortunately, what is done is done, and now we get to reap the consequences for the very foolish decisions that our leaders have been making.
* * *
It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.
Uncategorized
Australian Banking Association’s cost of living inquiry reveals bank pressure
An analysis of the rising inflation and concurrent collapse of Silicon Valley Bank proved that more than 186 banks in the U.S. are at risk of a similar…

An analysis of the rising inflation and concurrent collapse of Silicon Valley Bank proved that more than 186 banks in the U.S. are at risk of a similar shutdown if depositors decide to withdraw all funds.
The trade association for the Australian banking industry — the Australian Banking Association (ABA) — launched a cost of living inquiry to closely study the impact of the COVID-19 pandemic, global supply chain constraints, geopolitical tensions and more on Australians.
An analysis of the rising inflation and concurrent collapse of three major traditional banks — Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank — recently proved that more than 186 banks in the U.S. are at risk of a similar shutdown if depositors decide to withdraw all funds. The ABA’s inquiry aims to identify ways to ease the cost of living in Australia and the Government’s fiscal policy response.

ABA acknowledged that many Australians would struggle to adjust to a higher cost of living, while it may be easier for some, adding that:
“The ABA notes most customers will manage the higher cost of living and their mortgage commitments by changing their spending patterns, applying their accumulated savings to their higher repayments in anticipation of higher borrowing rates, or refinancing their mortgage.”
One of the most significant pressures for banks was when citizens rolled over from a fixed-rate mortgage to a variable rate. However, ABA urged customers to be proactive and ensure they are getting the best deal for their banking services.

Property rent across Australia has also witnessed a steady increase as markets normalized following the end of COVID-19 restrictions. Citizens experiencing financial difficulty can contact their banks and get help, including fees and charges waivers, emergency credit limit increases and deferral of scheduled loan repayments, to name a few.
Related: National Australia Bank makes first-ever cross-border stablecoin transaction
Alongside this attempt to cushion Australians against rising fiat inflation, the Reserve Bank of Australia and the Department of the Treasury have been holding private meetings with executives from Coinbase, with discussions revolving around the future of crypto regulation in Australia.
Consultation open! Today we released the token mapping consultation paper. This consultation is part of a multi step reform agenda to develop an appropriate regulatory setting for the #crypto sector. Read paper & submit views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
— Australian Treasury (@Treasury_AU) February 2, 2023
Cointelegraph confirmed from an RBA spokesperson that Coinbase met with the RBA’s payments policy and financial stability departments in mid-March “as part of the Bank’s ongoing liaison with industry.”
crypto pandemic covid-19 cryptoInternational
What Follows US Hegemony
What Follows US Hegemony
Authored by Vijay Prashad via thetricontiental.org,
On 24 February 2023, the Chinese Foreign Ministry released a…

Authored by Vijay Prashad via thetricontiental.org,
On 24 February 2023, the Chinese Foreign Ministry released a twelve-point plan entitled ‘China’s Position on the Political Settlement of the Ukraine Crisis’.
This ‘peace plan’, as it has been called, is anchored in the concept of sovereignty, building upon the well-established principles of the United Nations Charter (1945) and the Ten Principles from the Bandung Conference of African and Asian states held in 1955. The plan was released two days after China’s senior diplomat Wang Yi visited Moscow, where he met with Russia’s President Vladimir Putin.
Russia’s interest in the plan was confirmed by Kremlin spokesperson Dmitry Peskov shortly after the visit: ‘Any attempt to produce a plan that would put the [Ukraine] conflict on a peace track deserves attention. We are considering the plan of our Chinese friends with great attention’.
Ukraine’s President Volodymyr Zelensky welcomed the plan hours after it was made public, saying that he would like to meet China’s President Xi Jinping as soon as possible to discuss a potential peace process. France’s President Emmanuel Macron echoed this sentiment, saying that he would visit Beijing in early April. There are many interesting aspects of this plan, notably a call to end all hostilities near nuclear power plants and a pledge by China to help fund the reconstruction of Ukraine. But perhaps the most interesting feature is that a peace plan did not come from any country in the West, but from Beijing.
When I read ‘China’s Position on the Political Settlement of the Ukraine Crisis’, I was reminded of ‘On the Pulse of Morning’, a poem published by Maya Angelou in 1993, the rubble of the Soviet Union before us, the terrible bombardment of Iraq by the United States still producing aftershocks, the tremors felt in Afghanistan and Bosnia. The title of this newsletter, ‘Birth Again the Dream of Global Peace and Mutual Respect’, sits at the heart of the poem. Angelou wrote alongside the rocks and the trees, those who outlive humans and watch us destroy the world. Two sections of the poem bear repeating:
Each of you, a bordered country,
Delicate and strangely made proud,
Yet thrusting perpetually under siege.
Your armed struggles for profit
Have left collars of waste upon
My shore, currents of debris upon my breast.
Yet today I call you to my riverside,
If you will study war no more. Come,
Clad in peace, and I will sing the songs
The Creator gave to me when I and the
Tree and the rock were one.
Before cynicism was a bloody sear across your
Brow and when you yet knew you still
Knew nothing.
The River sang and sings on.…
History, despite its wrenching pain
Cannot be unlived, but if faced
With courage, need not be lived again.
History cannot be forgotten, but it need not be repeated. That is the message of Angelou’s poem and the message of the study we released last week, Eight Contradictions of the Imperialist ‘Rules-Based Order’.
In October 2022, Cuba’s Centre for International Policy Research (CIPI) held its 7th Conference on Strategic Studies, which studied the shifts taking place in international relations, with an emphasis on the declining power of the Western states and the emergence of a new confidence in the developing world. There is no doubt that the United States and its allies continue to exercise immense power over the world through military force and control over financial systems. But with the economic rise of several developing countries, with China at their head, a qualitative change can be felt on the world stage. An example of this trend is the ongoing dispute amongst the G20 countries, many of which have refused to line up against Moscow despite pressure by the United States and its European allies to firmly condemn Russia for the war in Ukraine. This change in the geopolitical atmosphere requires precise analysis based on the facts.
To that end, our latest dossier, Sovereignty, Dignity, and Regionalism in the New International Order (March 2023), produced in collaboration with CIPI, brings together some of the thinking about the emergence of a new global dispensation that will follow the period of US hegemony.
The text opens with a foreword by CIPI’s director, José R. Cabañas Rodríguez, who makes the point that the world is already at war, namely a war imposed on much of the world (including Cuba) by the United States and its allies through blockades and economic policies such as sanctions that strangle the possibilities for development. As Greece’s former Finance Minister Yanis Varoufakis said, coups these days ‘do not need tanks. They achieve the same result with banks’.
The US is attempting to maintain its position of ‘single master’ through an aggressive military and diplomatic push both in Ukraine and Taiwan, unconcerned about the great destabilisation this has inflicted upon the world. This approach was reflected in US Defence Secretary Lloyd Austin’s admission that ‘We want to see Russia weakened’ and in US House Foreign Affairs Committee Chairman Michael McCaul’s statement that ‘Ukraine today – it’s going to be Taiwan tomorrow’. It is a concern about this destabilisation and the declining fortunes of the West that has led most of the countries in the world to refuse to join efforts to isolate Russia.
As some of the larger developing countries, such as China, Brazil, India, Mexico, Indonesia, and South Africa, pivot away from reliance upon the United States and its Western allies, they have begun to discuss a new architecture for a new world order. What is quite clear is that most of these countries – despite great differences in the political traditions of their respective governments – now recognise that the United States ‘rules-based international order’ is no longer able to exercise the authority it once had. The actual movement of history shows that the world order is moving from one anchored by US hegemony to one that is far more regional in character. US policymakers, as part of their fearmongering, suggest that China wants to take over the world, along the grain of the ‘Thucydides Trap’ argument that when a new aspirant to hegemony appears on the scene, it tends to result in war between the emerging power and existing great power. However, this argument is not based on facts.
Rather than seek to generate additional poles of power – in the mould of the United States – and build a ‘multipolar’ world, developing countries are calling for a world order rooted in the UN Charter as well as strong regional trade and development systems. ‘This new internationalism can only be created – and a period of global Balkanisation avoided’, we write in our latest dossier, ‘by building upon a foundation of mutual respect and strength of regional trade systems, security organisations, and political formations’. Indicators of this new attitude are present in the discussions taking place in the Global South about the war in Ukraine and are reflected in the Chinese plan for peace.
Our dossier analyses at some length this moment of fragility for US power and its ‘rules-based international order’. We trace the revival of multilateralism and regionalism, which are key concepts of the emerging world order. The growth of regionalism is reflected in the creation of a host of vital regional bodies, from the Community of Latin American and Caribbean States (CELAC) to the Shanghai Cooperation Organisation (SCO), alongside increasing regional trade (with the BRICS bloc being a kind of ‘regionalism plus’ for our period). Meanwhile, the emphasis on returning to international institutions for global decision-making, as evidenced by the formation of the Group of Friends in Defence of the UN Charter, for example, illustrates the reinvigorated desire for multilateralism.
The United States remains a powerful country, but it has not come to terms with the immense changes taking place in the world order. It must temper its belief in its ‘manifest destiny’ and recognise that it is nothing more than another country amongst the 193 members states of the United Nations. The great powers – including the United States – will either find ways to accommodate and cooperate for the common good, or they will all collapse together.
At the start of the pandemic, the head of the World Health Organisation, Dr Tedros Adhanom Ghebreyesus, urged the countries of the world to be more collaborative and less confrontational, saying that ‘this is the time for solidarity, not stigma’ and repeating, in the years since, that nations must ‘work together across ideological divides to find common solutions to common problems’.
These wise words must be heeded.
Uncategorized
Fed, central banks enhance ‘swap lines’ to combat banking crisis
Currency swap lines have been used during times of crisis in the past, such as the 2008 global financial crisis and the 2020 coronavirus pandemic.
…

Currency swap lines have been used during times of crisis in the past, such as the 2008 global financial crisis and the 2020 coronavirus pandemic.
The United States Federal Reserve has announced a coordinated effort with five other central banks aimed at keeping the U.S. dollar flowing amid a series of banking blowups in the U.S. and in Europe.
The March 19 announcement from the U.S. Fed comes only a few hours after Swiss-based bank Credit Suisse was bought out by UBS for nearly $2 billion as part of an emergency plan led by Swiss authorities to preserve the country's financial stability.
According to the Federal Reserve Board, a plan to shore up liquidity conditions will be carried out through “swap lines” — an agreement between two central banks to exchange currencies.
Swap lines previously served as an emergency-like action for the Federal Reserve in the 2007-2008 global financial crisis and the 2020 response to the COVID-19 pandemic. Federal Reserve-initiated swap lines are designed to improve liquidity in dollar funding markets during tough economic conditions.
Coordinated central bank action to enhance the provision of U.S. dollar liquidity: https://t.co/Qs4cYY8BFO
— Federal Reserve (@federalreserve) March 19, 2023
"To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of seven-day maturity operations from weekly to daily," the Fed said in a statement.
The swap line network will include the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and the Swiss National Bank. It will start on March 20 and continue at least until April 30.
The move also comes amid a negative outlook for the U.S. banking system, with Silvergate Bank and Silicon Valley Bank (SVB) collapsing and the New York District of Financial Services (NYDFS) takeover of Signature Bank.
The Federal Reserve however made no direct reference to the recent banking crisis in its statement. Instead, it explained that they implemented the swap line agreement to strengthen the supply of credit to households and businesses:
“The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.”
The latest announcement from the Fed has sparked a debate about whether the arrangement constitutes quantitative easing.
U.S. economist Danielle DiMartino Booth argued however that the arrangements are unrelated to quantitative easing or inflation and that it does not "loosen" financial conditions:
MISINFORMATION PREVENTION MOMENT
— Danielle DiMartino Booth (@DiMartinoBooth) March 19, 2023
Swap lines do NOT constitute loosening financial conditions.
One more example: You're a doctor. A patient is having cardiac arrest. You can SEE the paddles to revive him/her but you can't REACH the paddles. These swap lines HAND you the paddles. https://t.co/RXOPiBmsif
The Federal Reserve has been working to prevent an escalation of the banking crisis.
Related: Banking crisis: What does it mean for crypto?
Last week, the Federal Reserve set up a $25 billion funding program to ensure banks have sufficient liquidity to cover customer needs amid tough market conditions.
A recent analysis by several economists on the SVB collapse found that up to 186 U.S. banks are at risk of insolvency:
“Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk.”
Cointelegraph reached out to the Federal Reserve for comment but did not receive an immediate response.
currencies pandemic coronavirus covid-19 crypto-
Government11 hours ago
“True Stories… Could Fuel Hesitancy”: Stanford Project Worked To Censor Even True Stories On Social Media
-
Uncategorized7 hours ago
Fed, central banks enhance ‘swap lines’ to combat banking crisis
-
International5 hours ago
What Follows US Hegemony
-
International21 hours ago
The limits of expert judgment: Lessons from social science forecasting during the pandemic
-
Government18 hours ago
Royal Caribbean Officially Makes Controversial Change
-
Government21 hours ago
Is The US Funding An Experiment In Digital Control In Ukraine?
-
Spread & Containment13 hours ago
“The New Normal”: New York To Lower Math And English Proficiency Standards Due To Poor Test Result
-
Uncategorized20 mins ago
Australian Banking Association’s cost of living inquiry reveals bank pressure