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(The Economic Collapse Blog)—If it seems to you that the economic headlines that we are being fed by the mainstream media are completely and utterly disconnected from reality, you are definitely not alone. They tell us that inflation is under control, but I was just at the grocery store today and I could hardly believe the prices. They tell us that unemployment is “low”, but large companies are laying off workers in droves. And they tell us that things are getting better for the middle class, but the truth is that by mid-2024 the vast majority of Americans will have less money than they did in 2019…
The majority of Americans have burned through their excess savings piled up during the COVID-19 pandemic, and in the coming months, JPMorgan says it is likely that almost everyone will be worse off financially than they were in 2019.
In a Thursday note, the bank’s top stock strategist Marko Kolanovic said 80% of consumers, a group that accounts for nearly two-thirds of consumption, has already depleted any savings cushion they may have built during lockdowns.
“It is likely that only the top 1% of consumers by income will be better off than before the pandemic,” Kolanovic wrote, pointing to the growing signs of credit card and auto loan delinquencies, as well as Chapter 11 filings.
If almost all of us are getting poorer, how is that good news?
Of course the money that we still have in our bank accounts continues to lose even more value with each passing day.
An absolutely outstanding article that was just posted on Schiff Gold analyzes how much a basket of groceries that Kevin bought in the 1990 movie “Home Alone” would cost today…
Kevin bought a basket full of groceries including a half-gallon of milk, orange juice, Wonder Bread, a Stouffer’s frozen turkey dinner, toilet paper, Snuggle dryer sheets, Tide liquid laundry detergent, plastic wrap, Kraft macaroni and cheese, and a bag of army men. He paid a grand total of $19.83 with a $1 off coupon for the orange juice.
In 2022, that same basket of groceries would have cost around $44.40 based on a shopping trip by a West Virginia mother. That’s a 123.9% increase. (Keep in mind prices vary somewhat depending on the store and location.)
This year, Kevin would have to fork out a whopping $72.28 for his provisions at a Chicago store. That’s another 62.8% increase in just one year. Since 1990, the price of Kevin’s groceries has gone up over 264%.
So how in the world can they possibly claim that inflation is “low”?
It is almost as if we are living in Bizarro World.
At this point, it would cost the typical U.S. household 3.4 million dollars to live the American Dream over the course of a lifetime…
The “American Dream” costs about $3.4 million to achieve over the course of a lifetime, from getting married to saving for retirement, according to a recent analysis from financial site Investopedia.
Meanwhile, median lifetime earnings for the typical U.S. worker stand at $1.7 million, earlier research from the Georgetown University has found.
Such figures underline the financial pressures that many families face trying to afford a middle-class life as expenses like child care, college tuition and buying a home continue to climb. The Investopedia analysis tallies the average cost of achieving other aspects traditionally associated with the American Dream, such as owning a house and raising two children to age 18.
If you are like most Americans, you are never even going to come close to earning enough money to live a middle class lifestyle.
That is why so many people out there have given up.
In this economic environment, just hanging on to a decent job is an accomplishment.
This week, we learned that General Motors will be laying off approximately 900 employees…
General Motors’ Cruise on Thursday announced internally that it will lay off 900 employees, or 24% of its workforce, the company confirmed to CNBC.
The layoffs, which primarily affected commercial operations and related corporate functions, are the latest turmoil for the robotaxi startup and come one day after Cruise dismissed nine “key leaders” for the company’s response to an Oct. 2 accident in which a pedestrian was dragged 20 feet by a Cruise self-driving car after being struck by another vehicle.
Meanwhile, Ford is cutting production of the F-150 Lightning pickup in half…
Ford Motor will cut planned production of its all-electric F-150 Lightning pickup roughly in half next year, marking a major reversal after the automaker significantly increased plant capacity for the electric vehicle in 2023.
The new production plans call for average volume of around 1,600 F-150 Lightnings a week at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, starting in January, according to a source familiar with the decision. The automaker most recently planned to produce roughly 3,200 of the vehicles on average per week.
They want us to purchase electric vehicles, but what they don’t tell us is that maintenance and repairs are insanely expensive…
Lucas Turner was driving his 2014 Infiniti hybrid when its check engine light made its annoying appearance on the scene, according to KPHO-TV.
Not good, but with fewer than 70,000 miles on the vehicle, he was not expecting the bill would be a whopper.
Wrong.
“They called me and said, ‘Oh, I’ve got bad news, Mr. Turner. You need a new hybrid battery and it’s going to cost $18,000 for the battery and another $2,000 to have it installed.’
No thank you.
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I could never see myself buying an electric vehicle, and there are tens of millions of other Americans that feel the exact same way.
Switching to another industry, Hasbro just announced that it will be laying off more than a thousand workers…
Toy giant Hasbro is laying off more than a thousand workers and closing its office in Providence, Rhode Island.
Why would a toy company be laying off so many workers just before Christmas? Shouldn’t this be a boom time for them? Some people suspect it is directly due to their partnership with Disney, a brand which has become toxic for many Americans in recent years.
People aren’t exactly lining up to buy toys linked to the last Indiana Jones movie or the latest offering of the Marvels, both of which were total duds at the box office.
When a major toy company is laying off workers even before the holiday season is over, that is a really bad sign for the economy.
Of course things in Europe are even worse.
At this point, it appears that Europeans are facing “a continent-wide recession”…
The latest GDP figures show that the eurozone contracted in the third quarter and looks like it will do the same in the last three months of the year falling into a continent-wide recession, Oxford Economics said in a note on December 8.
“Final figures confirmed eurozone GDP contracted 0.1% in the third quarter. What’s more, the detailed breakdown showed the European economy has no engines of growth at the moment. Although private consumption posted a small gain over the previous quarter, the near-term outlook still looks dire, and with both investment and exports unlikely to provide much momentum, the economy looks set to slide into recession in the fourth quarter,” Oxford Economics said.
And on the other side of the globe, we are being told that “China’s banking system is collapsing”…
China’s banking system is collapsing, and the real estate crisis in the country could end up wiping out $4 trillion from its financial system, according to veteran investor Kyle Bass.
In an interview with Andrew Ross Sorkin on CNBC on Monday , the Hayman Capital Management CIO pointed to China’s property sector, which has been reeling in recent years as debts from major property owners sour and some firms default on their bonds. The real estate crisis has left enough empty homes in China to house 3 billion people, a former top Chinese official said, and the flood of unused supply will generation huge financial losses in the real estate sector.
So don’t believe the hype.
The mainstream media would like us to believe that 2024 will be a wonderful year for the economy.
But the truth is that economic conditions have already been deteriorating all around us, and I am extremely concerned about what is coming during the year ahead. I would encourage you to check out my brand new book entitled “Chaos” for a detailed analysis of what is coming in 2024.
We have been propping up our standard of living for years by engaging in the greatest debt binge in the history of the world, but now that bubble has started to burst.
A tremendous amount of discomfort is ahead of us, but the mainstream media will continue to insist that every jolt of pain is simply a bump on the road to endless prosperity.
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Michael’s new book entitled “Chaos” 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.
