20 Early Warning Signs That We Are Approaching A Global Economic Meltdown
January 25, 2014 By The Doc 6
Comments
Have you
been paying attention to what has been happening in Argentina, Venezuela,
Brazil, Ukraine, Turkey and China? If you
are like most Americans, you have not been. Most Americans don’t
seem to really care too much about what is happening in the rest of the world,
but they should. In major cities all over the globe right now,
there is looting, violence, shortages of basic supplies, and runs on the
banks. We are not at a “global crisis”
stage yet, but things are getting worse with each passing day. For a
while, I have felt that 2014 would turn out to be a major “turning
point” for the global economy, and so far that is exactly what it is
turning out to be.
The following are 20 early warning signs that we are rapidly approaching a global economic meltdown…
The following are 20 early warning signs that we are rapidly approaching a global economic meltdown…
From The Economic
Collapse Blog:
#1 The
looting, violence and economic chaos that is happening in Argentina right now
is a perfect example of what can happen when you print too much money…
For Dominga
Kanaza, it wasn’t just the soaring inflation or the weeklong blackouts or
even the looting that frayed her nerves.
It was all of
them combined.
At one point
last month, the 37-year-old shop owner refused to open the metal shutters
protecting her corner grocery in downtown Buenos Aires more than a few inches
— just enough to sell soda to passersby on a sweltering summer day.
#2 The
value of the Argentine Peso is absolutely collapsing.
#3
Widespread shortages, looting and accelerating inflation are also causing huge
problems in Venezuela…
Economic
mismanagement in Venezuela has reached such a level that it risks inciting a
violent popular reaction. Venezuela is experiencing declining export revenues,
accelerating inflation and widespread shortages of basic consumer goods. At the
same time, the Maduro administration has foreclosed peaceful options for
Venezuelans to bring about a change in its current policies.
President
Maduro, who came to power in a highly-contested election last April, has
reacted to the economic crisis with interventionist and increasingly
authoritarian measures. His recent orders to slash prices of goods sold in
private businesses resulted in episodes of looting, which suggests a latent
potential for violence. He has put the armed forces on the street to enforce
his economic decrees, exposing them to popular discontent.
#4 In a
stunning decision, the Venezuelan government has just announced that it has
devalued the Bolivar by more than 40 percent.
#5
Brazilian stocks declined sharply on Thursday. There is a
tremendous amount of concern that the economic meltdown that is happening in
Argentina is going to spill over into Brazil.
#6 Ukraine
is rapidly coming apart at the seams…
A tense
ceasefire was announced in Kiev on the fifth day of violence, with radical
protesters and riot police holding their position. Opposition leaders are
negotiating with the government, but doubts remain that they will be able to
stop the rioters.
#7 It
appears that a bank run has begun in China…
As China’s CNR reports, depositors in some
of Yancheng City’s largest farmers’ co-operative mutual fund
societies (“banks”) have been unable to withdraw “hundreds of millions” in deposits
in the last few weeks. “Everyone wants to borrow and no
one wants to save,” warned one ‘salesperson’, “and loan
repayments are difficult to recover.” There is “no money” and the doors are
locked.
#8 Art
Cashin of UBS is warning that credit markets in China “may be broken“.
For much more on this, please see my recent article entitled “The
$23 Trillion Credit Bubble In China Is Starting To Collapse – Global
Financial Crisis Next?”
#9 News
that China’s manufacturing sector is contracting shook up financial markets on
Thursday…
Wall Street was
rattled by a key reading on China’s manufacturing which dropped below the
key 50 level in January, according to HSBC. A reading below 50 on the HSBC
flash manufacturing PMI suggests economic contraction.
#10 Japanese
stocks experienced their biggest drop in 7 months on Thursday.
#11 The
value of the Turkish Lira is absolutely collapsing.
#12 The
unemployment rate in France has risen for 9 quarters in a row and recently
soared to a new 16 year high.
#13 In
Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.
#14 The
unemployment rate in Spain is sitting at an all-time record high of 26.7 percent.
#15 This
year, the Baltic Dry Index experienced the largest two week
post-holiday decline that we have ever seen.
#16
Chipmaker Intel recently announced that it plans to eliminate 5,000 jobs over the coming year.
#17 CNBC is
reporting that U.S. retailers just experienced “the worst holiday season since 2008“.
#18 A recent
CNBC article stated that U.S. consumers should expect a “tsunami” of
store closings in the retail industry…
Get ready for
the next era in retail—one that will be characterized by far fewer shops
and smaller stores.
On Tuesday, Sears said that it will
shutter its flagship store in downtown Chicago in April. It’s the latest
of about 300 store closures in the U.S. that Sears has made since 2010. The
news follows announcements earlier this month of multiple store closings from
major department stores J.C. Penney and Macy’s.
Further signs
of cuts in the industry came Wednesday, when Target said that it
will eliminate 475 jobs worldwide, including some at its Minnesota
headquarters, and not fill 700 empty positions.
#19 The U.S.
Congress is facing another deadline to raise the debt ceiling in February.
#20 The Dow
fell by more than 170 points on Thursday. It is becoming increasingly
likely that “the peak of the market” is now in the rear view
mirror.
And I have not even mentioned the
extreme drought that has caused the U.S. cattle herd to drop to a 61 year low or the nuclear radiation from Fukushima
that is washing up on the west
coast.
In light of everything above, is
there anyone
out there that still wants to claim that “everything is going to be
okay” for the global economy?
Sadly, most Americans are not
even aware of most of these things.
All over the country today, the
number one news headline is about Justin Bieber. The mainstream media is
absolutely obsessed with celebrity scandals, and so is a very large percentage
of the U.S. population.
A great economic storm is rapidly
approaching, and most people don’t even seem to notice the storm clouds
that are gathering on the horizon.
In the end, perhaps we will get
what we deserve as a nation.
No comments:
Post a Comment