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Are We Heading For a 2008-Style Economic Implosion
The media is jumping for joy over last week’s US jobs numbers. But beneath the veneer of headline numbers lies a truly horrible economic reality.
Let’s have a look at the two key economies for the world: China and the US.
For starters, China’s recent economic data, as massaged as it is to the upside, is downright awful. China’s PMI numbers were the worst in two years. Staffing levels in the Chinese service sector decreased for the first time since January 2009 (remember that year).
China’s LEI also shows no sign of recovery. If anything, it indicates China is heading towards an economic slowdown on par with that of 2008. And if you account for the rampant debt fueling China’s economy you could easily argue that China is posting 0% GDP growth today.
In the US, last week’s jobs report didn’t look too bad until you dug deeper into the report and found that the average workweek declined by 0.2 hours from March- April.
So what you may ask… 0.2 hours? Just under a 15 minutes per week?
The issue here is that if you apply this drop to the total number of people employed in the private sector, this is the equivalent of over 21 million work hours being lost in one month.
That is the single biggest drop since April of 2009 when the US economy was absolutely imploding. It’s the numerical equivalent of firing 718,000+ people.
This is how companies deal with economic contractions. They don’t start laying people off en masse… they start cutting work hours bit by bit. The mass layoffs don’t come until the official numbers announce that we’re in a full-blown recession.
The first stage of this is already happening. 99% of investors fail to see it, but the clear signs are there.
Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.
We are getting precisely the same warnings this time around.
If you are not already preparing for a potential market collapse, now is the time to be doing so.
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Best Regards
Graham Summers
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Somehow we need to spin this and trick ourselves into believing that these are exciting times and we should be happy to be a part of this time in history.
Sounds fucking insane, and it is, but beats sitting in the corner babbling to ones self waiting for the end. Look at the bright side.......you may get to blow some motherfucker away that you can't stand before this is all over. LOL.
Ya.ummm, really!? I will bet anyone here we turn into a shithole within a year! Hell, it already is for many.
Of course it will. But this time it will be far worse than 2008 and they know it because they planned it.
QE infinite is just a hedging strategy to position themselve so that it won't happen too soon. At least not until the billions of bullets, 1000's of MRAP's and automatic weapons are delivered to the traitors that will kill us. I mean protect us.
Everyone I know left on Wall Street believes that we're due for a collapse and 'It's going to be worse than last time.' It's grab what you can while you stillcan...... Tha Casino is full of finance guys sitting at the roulette table playing with government money knowing they can keep the winnings and pass on the losings to Uncle Sam.....Nobody goes to jail for anything - everyone has a permanent 'Get Out of Jail Free' card. The fat cats are stashing all they can in their bunkers preparing for the mobs with torches and pitchforks.
All those former Colonials around Greenwich with old colonial stone walls are now Megamansion French Chateaus surrpuonded by 6' high walls with iron gates. I wonder if Paraguay is once again more welcoming for fleeing oligarcghs with the recent change of government back to the old right wing guys. The Bush family had a huge compound there until the leftists took over.
The elites' have a plan...
Word on the Street is Ben has a replacement lined up... Are you ready??
'Handicapping the Potential Successors to Ben Bernanke'
http://www.caseyresearch.com/articles/handicapping-the-potential-success...
Four "candidates "being discussed": Janet Yellen, Roger Ferguson, Tim Geithner, and Larry Summers...
Firewood...check
Firearms/Ammo...check
Water purifying kit...check
Rural property with underground spring...check
Stacked metals...check
Might want to rethink the spring for water if you're anywhere near fracking...... have it tested regularly whatever - amazing how many water surces are po;;uted - even small village dry cleaners or local gas station tank leaks manage to mess up local well (nevermind septic field contamination).
Are you asking us Graham? Or is your rhetorical question title a self pleasuring statement?
I wasn't thinking of gasoline. I was thinking of a few bottles of propane so you can use your camp stove or barbecue if the power goes off. And keep your fuel tank full if you have an oil furnace. These are normal precautions if you live in a rural area in the north. Just in case an unexpected snow storm blocks roads and knocks down power lines.
Wood burning stove, not gas. Gas can be stolen. Firewood can also be stolen, but it can be fairly quickly replaced. Most gas burning furnaces require electricity to run.
Most gas burning furnaces require electricity to run.
I've had several occasions on which I was VERY glad I had a no-power-needed gas furnace, even if it was only 30K BTU. If you're getting a gas furnace it is a no-brainer to get one that doesn't need power. But make sure it has a thermostat to prevent overdoing it.
It could be a secondary unit if you need more BTU than is available.
I use a portable (on wheels) propane heater that runs for several days off a 20 lb tank and can heat an entire room.
If you are not already preparing for a potential market collapse, now is the time to be doing so.
The markets have not had relevance in the real world for some time. That said, what's to prepare for? I assumed the markets collapsed a long time ago and moved into other areas.
Oh... and someone above suggested "fuel" as a collapse hedge? Wrong choice unless the collapse happens within a year of your gas purchase and you had the foresight to put gasoline stabilizer in what you bought. After the year, even gasoline with stabilizer gets iffy. Diesel is a lot more stable and can be made locally with the right ingredients. But most people don't have diesel vehicles to burn it in... I've been waiting for someone to bring out a wood burning car... :-D
Propane is an excellent alternative to gasoline and can be stored long term.
Diesel
yeh the choice of petrol vs diesel is a tough one long term. I mean 5 year post zombie.
Sure, canola oil or olive oil can be used for diesel, but fuck planting a field of canola, then harvesting and squeezing.
I would think alcohol would be way easier to make than a diesel alternative, and most petrol engines can run on alcohol, at least for a time.
rotton food - check
fire wood, drum and pipes to distill - check
The advantage of diesel-fueled engines lies mainly in their complete lack of any electric ignition. Also, the fuel-air ratio can never get too lean (which would cause damage to gasoline engines). Alcohol-fueled engines are more complicated and less reliable in comparison.
http://www.lowtechmagazine.com/2010/01/wood-gas-cars.html
Had this on my project list for sometime, already have an old ford truck for the project. Would like to adapt to a 4wheeler as well. Not sure why the vehicles with this on the back of them don't have some kind of a bumper..........someone simply backing into you at low speed or backing into something yourself would be disaster.
Of course fuel might not be such an expense if we didn't need thousands of pounds of steel to get from point A to point B. Or plastic lol.
or you could go even simpler and build an "HHO cell" as they're called.
I wish I would have bought a VW Jetta tdi. Before they were in Amerika, I drove from Strausbourg France to Cannes with one tank of gas - it was like 78 mpg.....
Be fair. Somewhere the sky is always falling.
so what happened to the European implosion?
I thought that europe would be blown off the globe before anything even started to flutter in good ole USA?
Do you change your party line as often as you change your shirt?
So, if we've already gotten out - which we have - and you can't get your hands on any 'physical' because it isn't available - what do you do? If you've got $80K sitting in a 3%'er - do you cash it in just to have the paper on hand? We don't have a lot, but what we have is a lot to us. What do you advise that somebody living in a small town in nowhere can do?
Move abroad like this guy recommends.
http://dailycaller.com/2013/05/05/the-great-american-migration/
When it blows sky high, you'll be sitting on a beach somewhere in the middle of nowhere -- far away from the carnage. $80K goes a hell of a lot farther in developing countries than in the U.S. anyway.
A 3%'er? That's a righteous return and will be for a long, long time. Stay put.
Is there any chance that we can get the GPS coordinates of the bank where one gets 3 % ?! ;-)
Consider taking a page from the Book of Mormon and put in a year's worth of food. It might come in handy. If the shit does't hit the fan it won't go to waste if you buy things you eat anyway and learn to love Spam. its not going to get any cheaper than it is right now.
If this helps anybody............................................
http://www.thepowerhour.com/news/items_disappearfirst.htm
You can get physical - the premiums suck though. Try Texas Precious metals.
Monster box BITCHEZ.....
Cash on hand will be good for wall paper and wheel barrow filler.
Buy,buy,buy things you can barter with. Also weapons and ammo. I'm Not crazy I'm preparing for what history has pointed out. Cash will be good maybe for 3 days. After that gold, silver will purchase. Things that people will really want....alcohol , tobacco, fuel....any usefull item. 80,000 can make you a millionare by today's standards.
Yes...
You bet red or black...
RED= The system will be ok, trust the banks, keep your 401K or other investments.
BLACK= Buy pots, pans, seeds, tools. guns, ammo, storable food, fortify your perimeter.
Let the chips fall..
Or, buy a house grow a garden, have food fuel and other supplies on hand for an emergency . 10% of your savings in precious metals, the rest in stocks, bonds, or whatever conventional investments you prefer. This way you are pretty safe no matter what happens.
A good selection of tools is money well spent.
Tillable Farm Land. This is NOT investment advice.
Hopefully you will have banksters working your fields without any power tools or automation.
Toilet paper is one of the most sought after “thing” when the SHTF, from what I have read (countries that have a total collapse).
Want some butt wipe ……. Hmmm mighty fine wife ya got there, maybe we can work sumpten out.
Along with the with the TP, get some garbage bags - need someplace to put the trash.
Don't forget the seeds and a tractor....
...and boring things like water.
But hey, so they laid everyone off 15 minites a week and this is suppose to be the end of the world? I'd bet 95% of people wouldn't mind getting off 15 minites early Friday night to go home, relax and get ready to party.
Wake me up when they officially devalue the USD by 20%.
I like your point, but I also understand Graham's point too.
When almost everyone loses 15 min. off their work week, it indicates that productivity just took a major drop, which should (but won't) reflect as an aggerate supply drop, and would decrease the supposed growth in GDP. (we all know that GDP is even proganda now, unless you read shadowstats.com.)
Noone can advise because noone knows
Spock?
Captian, we have entered unknown space. It seems we have been thrown 500 light years by some unknown Force.
The real economy is crappy but nothing $85,000,000,000 per month, not to mention BOJ yen tsunami can't prop up markets with. . .
What happens to working people is of no fucking interest to the wealth class. There will only be an implosion when the assets of the elites are threatened, such as the Lehman crisis. Then they might panic. In the meantime, everything else like inflation, deflation, unemployment, health care, can be "dealt with" since those costs have absolutely no impact on the financial operators in the NY penthouses and Connecticut mansions. You want to see things happen, you'll have to wait until they start trying to cut each other's throats. But for now, they could give a flying fuck about "inflation" and "unemployment".
Actually they are trying to cut each other's throat especially in europe with the handing over of data about who has what in secret bank accounts.
Apparently you are correct, Precious. Bernanke is on record stating his belief that if the market is supported, the economy will follow. Personally I think he has it backwards, but who am I?
It's only backwards if the 99% are more important than the 1%.