BIG News on the Economy

On Wednesday night, 8-14-19, in their News broadcasts, the Corporate Media finally admitted that a Recession "may be" in the near future.  Isn't it amazing how we (according to them) went from "our booming economy" to a Bust "may be" right around the corner.  Ha!

Of course, the Corporate Media have known that for at least a couple of years.  Their News isn't "fake", but it's often incomplete.  The metrics for the next Crash have been in place for, at a minimum, the last three years.  News of a "booming economy" meant a "boom" only for a relatively small percentage of income earners.  The underlying, base economy has been pretty much a disaster.  Half the workers in this country are either in poverty, or bordering on it.  HALF.
We're talking about workers, not people on assistance/welfare.

The greatest transfer of wealth (to the Upper Crust) in the history of humanity is still in full swing.  The so-called "recovery" doesn't apply to the majority of Americans.  I've gone through the stats in many previous posts, and don't have the time or energy to repeat that now.  The reasons for this dire situation also have been detailed in previous posts.

Here's all you need to know for the near-term future:  there's no "may be" or maybe (see the first paragraph above) about the coming Crash.  It's about 99.9% guaranteed.  We're overdue for it.  Again, if you don't believe that, simply look at the time intervals between Booms & Busts from the 1973 Recession to present day.  It won't be only here in the USA; it will be worldwide.  It won't be a minor downturn.  It will be a major Crash.  All you can do is plan and act accordingly.

What does "plan and act accordingly" mean?  Here are my main suggestions.
1.  Pay down as much of your debt as possible.  When the Crash hits, your income & purchasing power may go down, but debt payments likely won't.
2.  Stock up on extra, everyday household goods...not only food, but paper goods, OTC meds, toiletries, anything you use regularly.  Credit will dry up for a time (maybe a week, or two, or ?), and businesses run on credit, not cash.  That means delivery of goods to stores will slow way down or stop...temporarily.
3.  Keep some ready cash handy.  How much depends on your comfort zone.  Banks very well may limit withdrawals for a time.
4.  Hang on to (or obtain with cash) hard assets.  Their value will increase when inflation hits.
5.  Don't take on more major debt, unless it's for an asset that you can sell relatively quickly.  When announcing their "news" about the Recession, the Media suggested that you perhaps (because of current lower interest rates) should now buy a house or a car.  That's wise advice only if you can pay cash and have no extra debt.  Corporate interests want you to take on more debt...don't.

Not only my opinion.  Be Well

The Economic Crash Already Has Started

Carefully consider the following:

1.  Wall Street just had its worst opening week in history.

2.  China's Bubble is rapidly deflating.  China is the world's second largest economy.

3.  The U.S. (and most of Europe) currently is experiencing deflation, which will be followed (most likely) by inflation.  The real estate market, the housing rental market, and grocery prices still are inflated...but as the Collapse intensifies, they too will deflate.  Stocks and bonds are on the cusp of bursting completely.

4.  The Corporate Media, which usually have no more than half a sentence if the news about the Stock Market is negative, couldn't ignore number 1. above.  They attempted to smooth it over by stating, in essence, "Nothing to worry about...it's only volatility in the Market.".  Several analysts don't think so.

5.  Let's not forget the Stock plunge on August 24, 2015.  Only half of the historic 1,000-point drop was recovered by day's end.

6.  Our Stock Market is rigged to favor the high-frequency traders who use computer algorithms that make trades in milliseconds.

7.  Financialization has converted our economy largely into one of nonproduction.

8.  The Corporate Media are touting the December jobs report as evidence our economy is strengthening...December, the month of temporary Christmas employment. 

9.  Wages basically still are stagnated.

10.  Crude oil prices continue to deflate.

11.  European Stocks had their worst week since August, 2011.

12.  Our Fed Gov't has been waging a Currency War against China for awhile now; China is retaliating (most likely) with Cyber attack reconnaissance.  It's the belief of some analysts that they are gearing up for a major Cyber attack on our financial system, perhaps even our utilities (such as power & water systems).  I think the probability of that is very high.  Nothing is secure regarding computers, the internet, etc.  Even the Pentagon has been hacked.

13.  The Fed Reserve finally realizes that it can't artificially control any of this.  Its recent rate hike and any future ones are nothing more than an attempt at face-saving.  They are out of ammo.  This whole thing is a worldwide event.  To believe that the Fed Reserve somehow can manage this is to be deluded.  All they are doing now is bursting the U.S. Asset Bubble.  A few people will make a ton of money.

All the above does not mean things will go bust tomorrow, or the day after, or next week.  The Crash will continue to build until, at some point, the economy will be pushed over the precipice by an event or a relatively quick series of events.  I'm afraid that the analysts who predict 2016 as the year of the Collapse are correct...at least, the probability of that is extremely high...extremely high.

Don't despair--- the Powers-That-Be will prop up the System once again.  IF the Collapse ultimately is not as large as the Great Depression, the time to get things up & running again may be relatively short--- a week, or two weeks, or a month, or two months, or???  Nobody knows for certain.  Nobody. 

Be prepared.  Stock up on household commodities now.  There still will be goods around in warehouses when the Crash reaches its peak, but 
distribution essentially will cease because credit will dry up.  At the wholesale level, businesses run on credit, not cash.  Banks will restrict access to cash anyway for both business people and consumers...in order to prevent bank runs.  Some banks already have changed their Bank-Customer Agreement to reflect the BAIL-IN, which means in a Crisis they are allowed to confiscate your deposits.  Obama and the rest of the G-20 leaders signed that into existence.  Get out of Mega Banks NOW.  The FDIC Fund is a pittance compared to the amount of $$$ on deposit...you'll be lucky to get a penny on $100.

Once again, the Rigged System is designed to protect banks and the Oligarchy, not consumers and the economy.  And so it goes.

p.s.  The ten-year Great Depression (of the 1930's) was not recognized and/or named as such until halfway through it.

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Not only my opinion.  Be Well