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(The Economic Collapse Blog)—Our standard of living is being systematically destroyed, but for a lot of years many Americans didn’t fully understand what was taking place because it was happening so slowly. But now we have reached a stage where the purchasing power of our money is collapsing and the cost of living has become exceedingly painful. Thanks to our rapidly rising cost of living, the middle class is becoming “the impoverished class”, and the poor are increasingly being pushed out into the streets. If we do not find a way to turn these trends around, it won’t be too long before we have tremendous societal turmoil on our hands.
Earlier today, I came across an article about a woman that found a receipt from Burger King that was dated August 10, 1986.
At that time you could buy a Whopper for just $1.54.
Today, that same Whopper will cost you $6.79…
A woman has been left stunned after discovering a retro Burger King receipt from the 1980s which reveals the staggering price increases that the fast food chain has implemented over the past four decades.
US-based Liza took to social media to share the receipt after her mother found it in a box in the garage while remodeling her home.
The faded paper from the fast food chain dates back to August 10, 1986, and lists three Whopper burgers purchased for $4.62 – which works out at $1.54 each.
A single Whopper burger currently costs $6.79 in today’s money – over four times the price listed on the vintage receipt.
In other words, if you had $6.79 back then, you could buy four whoppers and you would still have money left over.
This is what inflation does.
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It destroys our purchasing power.
Another woman named Melanie that makes 34 dollars an hour is so stressed financially that she literally tries to make one loaf of rye bread last her for the entire week…
“What I’ve started doing is I buy a loaf of rye bread, and I work really hard to keep that one loaf of rye bread lasting me the whole week. And I eat peanut butter, so I’ll eat peanut butter toast whenever I’m hungry.”
In the old days, if you were making 34 dollars an hour you were living the high life.
But now most people making 34 dollars an hour are just barely scraping by from month to month.
Of course it isn’t just food that has become absurdly expensive.
At this point, homes in the U.S. have never been more unaffordable than they are right now.
The following was recently posted on Twitter by The Kobeissi Letter…
Inflation adjusted home prices are now 85% above their average dating back to 1900.
Even after accounting for inflation, home prices have never been more expensive than they are now.
In fact, inflation adjusted home prices are now 20% above their 2008 peak, the previous all time high.
The median home now sells for an alarming 530% of the median annual income.
Meanwhile, the median house payment is now a record 49% of median PRE-TAX income.
Affordability has never been worse.
We have never seen anything like this in the entire history of our country.
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Since the beginning of 2019, the median price of a home in the U.S. has risen by more than a hundred thousand dollars…
In fact, comparing present prices to levels before the virus panic, St. Louis Fed numbers show a median priced U.S. home rose from $313,000 in the beginning of 2019 to $416,000 today.
Rental prices have gone completely nuts as well.
As I discussed last week, the median asking rent in the United States is now over $2,000 a month.
Over the past couple of years we have seen unprecedented rent hikes, and vast numbers of renters have been getting the boot.
In fact, we are seeing a tsunami of evictions in the Los Angeles area right now…
With COVID-era protections gone, the number of renters facing eviction in Los Angeles continues to climb by the thousands each month.
From February through the end of August, approximately 50,000 eviction notices were filed by landlords in the city, according to figures released on Monday by the L.A. Controller’s Office.
A spokesperson said 96% of them involve non-payment of rent, and landlords were owed $186.5 million collectively.
So where will all these people go?
If they are young enough, perhaps they can live with their parents. But many will not have that option.
Up to this point in 2023, homelessness in the United States has been rising at the fastest pace ever recorded, and a lot more Americans will find themselves without a home between now and the end of the year.
Meanwhile, those that are still scraping by will find it harder and harder to make ends meet.
The average rate of interest on our credit card balances has risen from about 16 percent in February 2022 to more than 22 percent today.
As a result, an increasing number of Americans find themselves unable to keep up with their payments, and it is being reported that credit card losses are rising at the quickest rate since the last financial crisis…
Credit card companies are racking up losses at the fastest pace in almost 30 years, outside of the Great Financial Crisis, according to Goldman Sachs.
Credit card losses bottomed in September 2021, and while initial increases were likely reversals from stimulus, they have been rapidly rising since the first quarter of 2022. Since that time, it’s an increasing rate of losses only seen in recent history during the recession of 2008.
It is far from over, the firm predicts.
More Americans are going bankrupt as well.
In fact, the number of bankruptcy cases in August 2023 was 18 percent higher than it was in August 2022.
Millions upon millions of Americans have been turning to debt in order to keep up with the cost of living, but as economic conditions deteriorate financial institutions are starting to get much tighter with their money.
So we are moving into a time when U.S. consumers will find it much more difficult to take on new debt…
Nearly 60% of the respondents in a New York Fed consumer expectations survey said it’s harder to get credit cards, mortgages and other loans than it was a year ago. It was the highest level since the New York Fed started the data series back in 2013.
Another Fed survey of loan officers reveals their fears aren’t unfounded. Banks reported that lending standards tightened across all consumer loan categories and all categories of residential real estate (RRE) loans. Meanwhile, the number of banks reporting tighter standards for credit cards rose by 36%.
Banks have also significantly tightened standards for business loans.
This is a recipe for disaster.
That is definitely true.
Without a doubt, this is certainly a recipe for disaster. But there is no going back now.
In fact, the rising price of oil is going to cause enormous inflationary pressures throughout our entire economic system in the months ahead.
On Tuesday, a senior market analyst at OANDA warned that it appears that “nothing is going to get in the way of this oil price rally”…
“It looks like nothing is going to get in the way of this oil price rally,” said Edward Moya, senior market analyst at OANDA, in emailed comments on Tuesday. “Energy traders know a bullish trend when they see one and it will take a lot more than a strong dollar, softer Russian ban, and weakening demand, to disrupt this rally.”
When the price of oil reaches 100 dollars a barrel, that will be painful, but we can handle that.
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But the chief executive of Continental Resources is projecting that the price of oil could eventually reach 150 dollars a barrel…
That’s Doug Lawler, chief executive of Continental Resources, the shale-drilling giant controlled by billionaire Harold Hamm, telling Bloomberg News on Monday that crude prices are set to remain elevated and could press to the $120- to $150-a-barrel range without new production.
More price pressure is coming, he said, unless policies are put in place to encourage more output.
If the price of oil reaches 150 dollars a barrel and stays there, it will be an unmitigated disaster for our economy, and the cost of just about everything will jump substantially.
That is because just about everything that we buy and sell has to be transported.
We need cheap energy in order to have a high standard of living, but unfortunately the era of cheap energy is coming to an abrupt ending, and that means that none of our lives will ever be the same again.
I kept warning my readers that a lot of the long-term trends that I have been writing about would catch up with us eventually, and now that time has arrived.
So enjoy the current economic conditions while you still can, because they will soon go from bad to worse.
Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
