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12 Things That Just Happened That Show The Next Wave Of The Economic Collapse Is Almost Here

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

Are we running out of time?  For the last several years, we have been living in a false bubble of hope that has been fueled by massive amounts of debt and bailout money.  This illusion of economic stability has convinced most people that the great economic crisis of 2008 was just an "aberration" and that now things are back to normal.  Unfortunately, that is not the case at all.  The truth is that the financial crash of 2008 was just the first wave of our economic troubles.  We have not even come close to recovering from that wave, and the next wave of the economic collapse is rapidly approaching.  Our economy is like a giant sand castle that has been built on a foundation of debt and toilet paper currency.  As each wave of the crisis hits us, the solutions that our leaders will present to us will involve even more debt and even more money printing.  And each time, those "solutions" will only make our problems even worse.  Right now, events are unfolding in Europe and in the United States that are pushing us toward the next major crisis moment.  I sincerely hope that we have some more time before the next crisis overwhelms us, but as you will see, time is rapidly running out.

The following are 12 things that just happened that show the next wave of the economic collapse is almost here...

#1 According to TrimTab's CEO Charles Biderman, corporate insider purchases of stock have hit an all-time low, and the ratio of corporate insider selling to corporate insider buying has now reached an astounding 50 to 1....

While retail is being told to buy-buy-buy, Biderman exclaims that "insiders at U.S. companies have bought the least amount of shares in any one month," and that the ratio of insider selling to buying is now 50-to-1 - a monthly record.

#2 On Friday we learned that personal income in the United States experienced its largest one month decline in 20 years...

Personal income decreased by $505.5 billion in January, or 3.6%, compared to December (on a seasonally adjusted and annualized basis). That's the most dramatic decline since January 1993, according to the Commerce Department.

#3 In a stunning move, Michigan Governor Rick Snyder says that he will appoint an emergency financial manager to take care of Detroit's financial affairs...

Snyder, 54, took a step he avoided a year ago, empowering an emergency financial manager who can sweep aside union contracts, sell municipal assets, restructure services and reorder finances. He announced the move yesterday at a public meeting in Detroit.

If this does not work, Detroit will almost certainly have to declare bankruptcy.  If that happens, it will be the largest municipal bankruptcy in U.S. history.

#4 On Friday it was announced that the unemployment rate in Italy had risen to 11.7 percent.  That was a huge jump from 11.3 percent the previous month, and Italy now has the highest unemployment rate that it has experienced in 21 years.

#5 The youth unemployment rate in Italy has risen to a new all-time record high of 38.7 percent.

#6 On Friday it was announced that the unemployment rate in the eurozone as a whole had just hit a brand new record high of 11.9 percent.

#7 On Friday it was announced that the unemployment rate in Greece has now reached 27 percent, and it is being projected that it will reach 30 percent by the end of the year.

#8 The youth unemployment rate in Greece is now an almost unbelievable 59.4 percent.

#9 On Saturday, hundreds of thousands of protesters filled the streets of Lisbon and other Portuguese cities to protest the austerity measures that are being imposed upon them.  It was reportedly the largest protest in the history of Portugal.

#10 According to Goldman Sachs, bank deposits declined all over Europe during the month of January.

#11 Over the weekend, the deputy governor of China's central bank declared that China is prepared for a "currency war"...

A top Chinese banker said Beijing is "fully prepared" for a currency war as he urged the world to abide by a consensus reached by the G20 to avert confrontation, state media reported on Saturday.

Yi Gang, deputy governor of China's central bank, issued the call after G20 finance ministers last month moved to calm fears of a looming war on the currency markets at a meeting in Moscow.

Those fears have largely been fuelled by the recent steep decline in the Japanese yen, which critics have accused Tokyo of manipulating to give its manufacturers a competitive edge in key export markets over Asian rivals.

#12 Italy is an economic basket case at this point, and the political gridlock in Italy is certainly not helping matters.  Former comedian Beppe Grillo's party could potentially tip the balance of power one way or the other in Italy, and over the weekend he made some comments that are really shaking things up over in Europe.  For one thing, he is suggesting that Italy should hold a referendum on the euro...

"I am a strong advocate of Europe. I am in favor of an online referendum on the euro," Beppe Grillo told Bild am Sonntag.

Such a vote would not be legally binding in Italy, where referendums can only be used to repeal laws or parts of laws, but would carry political weight. Grillo has said in the past that membership of the euro should be up to the Italian people.

In addition, Grillo is also suggesting that Italy's debt has gotten so large that renegotiation is the only option...

In an interview with a German magazine published on Saturday, Mr Grillo said that “if conditions do not change” Italy “will want” to leave the euro and return to its former national currency.

The 64-year-old comic-turned-political activist also said Italy needs to renegotiate its €2 trillion debt.

At 127 per cent of gross domestic product (GDP), it is the highest in the euro zone after Greece.

“Right now we are being crushed, not by the euro, but by our debt. When the interest payments reach €100 billion a year, we’re dead. There’s no alternative,” he told Focus, a weekly news magazine.

He said Italy was in such dire economic straits that “in six months, we will no longer be able to pay pensions and the wages of public employees.”

And of course government debt has taken center stage in the United States as well.

The sequester cuts have now gone into effect, and they will definitely have an effect on the U.S. economy.  Of course that effect will not be nearly as dramatic as many Democrats are suggesting, but without a doubt those cuts will cause the U.S. economy to slow down a bit.

And of course the U.S. economy has already been showing plenty of signs of slowing down lately.  If you doubt this, please see my previous article entitled "Consumer Spending Drought: 16 Signs That The Middle Class Is Running Out Of Money".

So what comes next?

Well, everyone should keep watching Europe very closely, and it will also be important to keep an eye on Wall Street.  There are a whole bunch of indications that the stock market is at or near a peak.  For example, just check out what one prominent stock market analyst recently had to say...

"Every reliable technical tool is warning of major peaking action," said Walter Zimmerman, the senior technical analyst at United-ICAP. "This includes sentiment, momentum, classical chart patterns, and Elliott wave analysis.

"Most of the rally in the stock market since 2009 can be chalked up to the Federal Reserve’s attempt to create a ‘wealth effect’ through higher stock market prices. This only exacerbates the downside risk. Why? The stock market no is longer a lead indicator for the economy. It is instead reflecting  Fed manipulation. Pushing the stock market higher while the real economy languishes has resulted in another bubble.

"The next leg down will not be a partial correction of the advance since the 2009 lows. It will be another major financial crisis. The worst is yet to come."

Sadly, most people will continue to deny that anything is wrong until it is far too late.

Many areas of Europe are already experiencing economic depression, and it is only a matter of time before the U.S. follows suit.

Time is running out, and I hope that you are getting ready.

So what do you think?

How much time do you believe that we have left before the next wave of the economic collapse strikes?

Please feel free to post a comment with your thoughts below...

Jeff Rowley Big Wave Surfer wipeout Photo Jaws Peahi by Xvolution Media

- See more at: http://theeconomiccollapseblog.com/archives/12-things-that-just-happened...

 

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Mon, 03/04/2013 - 11:56 | 3297813 Perpetual Burn
Perpetual Burn's picture

Gloom bitches.

Mon, 03/04/2013 - 11:57 | 3297817 camaro68ss
camaro68ss's picture

Doom bitchez

long booze, popcorn, and lawn chair.

Mon, 03/04/2013 - 12:00 | 3297828 Zer0head
Zer0head's picture
Is The World About To Experience A Devastating Economic Collapse?

http://theeconomiccollapseblog.com/archives/is-the-world-about-to-experi...

Mon, 03/04/2013 - 12:10 | 3297871 wareco
wareco's picture

Hmmm, apparently not, since that article was written over 3 years ago.  Making forecasts is always a bitch.  Ask those Italian seismologists.

Mon, 03/04/2013 - 12:16 | 3297889 Paul Bogdanich
Paul Bogdanich's picture

These forecasts are so ego-centric as to be comical.  Russia collapsed in 1990.  Everyoen ddn't die they just lost their empire and the inate landmass and population and insudtrial base has them back stronger than ever a mere 20 years later.  The U.S. has plenty of aridable land, water, population and industry and the inate motion of the society wil carry it forward assuming we do something about the political system.  For profit campaigns, hospitals, electric utilites, prisons and so on are a bust.  The corruption becomes overwhelming much too quickly.  

Mon, 03/04/2013 - 12:27 | 3297941 Xibalba
Xibalba's picture

US Spring will make Arab Spring look like a college frat party.   I suggest you go watch 'IDIOCRACY' since that's likely to become a documentary of our future.  

Mon, 03/04/2013 - 12:31 | 3297958 darteaus
darteaus's picture

I'll take that over "Triumph of the Will", or "Ten Days That Shook the World".

Mon, 03/04/2013 - 13:02 | 3298081 Bicycle Repairman
Bicycle Repairman's picture

No doubt these are all bad things.  Do they protent a discrete event in a short timeframe?  Not necessarily.

And if the timing is wrong, then you are wrong.

Mon, 03/04/2013 - 13:10 | 3298100 Shocker
Shocker's picture

13) The Job Situation is horrible

http://www.dailyjobcuts.com

-

Mon, 03/04/2013 - 13:17 | 3298126 knukles
knukles's picture

14)  DHS buys 1000's of tanks for domestic use.

http://www.thegatewaypundit.com/2013/03/obama-dhs-purchases-2700-light-a...

Mon, 03/04/2013 - 13:24 | 3298148 redpill
redpill's picture

Sadly the article is not correct.  It is not almost here, it is not imminent.  Could be another few years away even.  Central bankers will stretch out this gruesome act for as long as possible.

Mon, 03/04/2013 - 14:03 | 3298282 chumbawamba
chumbawamba's picture

"Our economy is like a giant sand castle that has been built on a foundation of debt and toilet paper currency"

That analogy is as tenuous as what it tries to describe.

I am Chumbawamba.

Mon, 03/04/2013 - 14:09 | 3298294 THX 1178
THX 1178's picture

The economy is like a building that was built with sub-par rebar in a part of town known for high crime and sinkholes. It is difficult to sleep in this part of town because people be chattin' loudly outside your windows in the alleyway and cats be yowlin like crazy an shit. The landlord is a surly asshole who says things like "oh yeah?" and leaves yo' EXTREMELY LEAKY PLUMBING FIXTURES still slighlty leaking after he "fixes" them. The economy is like that.

Mon, 03/04/2013 - 14:15 | 3298315 NidStyles
NidStyles's picture

What is collapsing is the artificial paper based economy. the real one is working just fine, just has some dust on it from people not having used it in a few decades.

Mon, 03/04/2013 - 14:25 | 3298338 Paul Bogdanich
Paul Bogdanich's picture

"What is collapsing is the artificial paper based economy. the real one is working just fine"

 

Which was my orignal point  You said it better than I did though. 

Mon, 03/04/2013 - 14:28 | 3298348 francis_sawyer
francis_sawyer's picture

As you stumble along... Jus take care to keep the 'evil Episcopalians' off your jock...

Mon, 03/04/2013 - 15:59 | 3298640 12ToothAssassin
12ToothAssassin's picture

Thanks for not pimping your blog or subscription news letter!

Mon, 03/04/2013 - 17:52 | 3299046 BTFDemocracy
BTFDemocracy's picture

Your account balance is zero. You are an unfit mother. Your children will be placed in the custody of Carl's Jr.

Would you like some extra big ass fries? Carls Jr. Fuck you. I'm eating.

 

Wed, 03/06/2013 - 15:29 | 3305690 12ToothAssassin
12ToothAssassin's picture

GO AWAY! BAITIN'

Mon, 03/04/2013 - 14:43 | 3298393 SeattleBruce
SeattleBruce's picture

"the real one is working just fine"

That may have also been the case to some large degree in the US in 1931, and in Germany in 1923, but the collapse of the paper economy did impact those real economies in major ways, and dictated some very real life changes for most people.  Things can't just collapse without there being some very real, difficult impacts and adjustments.  We'll see how long it takes for it to kind of get back to normal, but that interim is going to be a bear.  Prepare accordingly.

Mon, 03/04/2013 - 14:30 | 3298359 Tango in the Blight
Tango in the Blight's picture

More time to stack up the metals.

Mon, 03/04/2013 - 15:35 | 3298563 mind_imminst
mind_imminst's picture

redpill is spot on here. Stocks have not experienced a blow off top yet. We have not gone full-Zimbabwe yet. The FED will keep printing (2x, 3x, 4x, whatever it takes), the real economy and real wealth will continue to deteriorate, but people in the developed world still have food, drugs, and entertainment, so no madmax-style collapse or revolution just yet.

Mon, 03/04/2013 - 18:54 | 3298821 TheGardener
TheGardener's picture

One to sixteen points preferably in ascending order is too much school assignment style to me, I usually skip all guest posts labeled as such. Assign a number to your points
and you are pointless . No structure, no style.

20 reasons for , 21 reasons against, 42 reasons for seasoned
subscribers : silly format : I have so so many arguments in my favour don`t you dare to argue...

Mon, 03/04/2013 - 13:34 | 3298180 kralizec
kralizec's picture

Well gosh, whatever could they be thinking of?

/

Mon, 03/04/2013 - 14:12 | 3298298 prains
prains's picture

15) evil bankster oligarchs to the world; "IT puts the lotion on its skin"
Crying poor of the world "noooooooooooo please no"

Evil banksters "IT puts the FUCKING lotion ON ITS SKIN"

Mon, 03/04/2013 - 13:43 | 3298203 Never One Roach
Never One Roach's picture

I'm going to take off my 'Mood Ring" from now on before I read the ZH articles. Those colors don't look normal.

Mon, 03/04/2013 - 13:15 | 3298119 Fredo Corleone
Fredo Corleone's picture

"Are there no prisons?" asked Scrooge.

"Plenty of prisons," said the gentleman, laying down the pen again.

"And the Union workhouses?"  demanded Scrooge.  "Are they still in operation?"

"They are.  Still," returned the gentleman, "I wish I could say they were not."

"The Treadmill and the Poor Law are in full vigour, then?"  said Scrooge.

"Both very busy, sir."

"Oh!  I was afraid, from what you said at first, that something had occurred to stop them in their useful course," said Scrooge.  "I'm very glad to hear it."

Mon, 03/04/2013 - 12:34 | 3297969 Blythes Master
Blythes Master's picture

"Go away, I'm batin'"

Mon, 03/04/2013 - 13:39 | 3298189 IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Not too long until we start watering crops with Brawndo as a means of "job creation"

Mon, 03/04/2013 - 19:47 | 3299312 monkeyboy
monkeyboy's picture

It's got what bankers crave, it's got electrolytes.

 

http://www.youtube.com/watch?v=e1fKzw05Q5A

 

I'm pretty sure bankers grow outta toilets...

 

 

Mon, 03/04/2013 - 12:54 | 3298050 Spastica Rex
Spastica Rex's picture

Seriously? Walmart shoppers out in the town square being beaten with camel crops?

They'll stay home, I think.

Mon, 03/04/2013 - 14:01 | 3298270 SamAdams
SamAdams's picture

as much as "i loik moenay", I beg to differ regarding our future.  the future will resemble the past.  if you research Greek history, you will find that the aristocracy ruled over the serfs and used the spartans to enforce their rule.  that is where this is heading, slowly, but surely...

Mon, 03/04/2013 - 16:52 | 3298818 tenpanhandle
tenpanhandle's picture

but how will the Spartans get over here?

Mon, 03/04/2013 - 14:06 | 3298286 chumbawamba
chumbawamba's picture

Incorrect.  Idiocracy is a documentary of contemporary America.  The bottom has already been reached.  We are now excavating the bottom to see how much lower it can go.  Researchers expect a breakthrough any day now.

I am Chumbawamba.

Mon, 03/04/2013 - 18:24 | 3299105 prains
prains's picture

+100

Mon, 03/04/2013 - 17:01 | 3298838 Not Too Important
Not Too Important's picture

Actually, once the Fukushima radiation starts culling the herd, our future will look like 'The Road', only with more radiation, leading to 'On The Beach'.

That is our future.

Tue, 03/05/2013 - 07:17 | 3300250 matrix2012
matrix2012's picture

Idiocracy (2006)

The film tells the story of two ordinary people who are taken into a top-secret military hibernation experiment which goes awry, and awaken 500 years in the future.

 They discover that the world has degenerated into a dystopia where advertising, commercialism, and cultural anti-intellectualism run rampant and dysgenic pressure has resulted in a uniformly stupid human society devoid of intellectual curiosity, social responsibility and coherent notions of justice and human rights.

But rather, this society emphasized anti-intellectualism perspectives and an emphasis on popularity, sexual attraction and hedonism. See it here

AVI, DVD5, 720x400, Language: English[default] Spanish French 

Optional subtitles : 
English, French, Spanish, Portuguese, Brazilian, Russian, Chinese, Dutch, Finnish, Swedish, Danish, Arabic, German, Hungarian, Hebrew, Polish, Romanian, Norwegian, Czech, Greek, Turkish, Serbian, Croatian, Bulgarian, Korean, Slovak, Estonian, Lithuanian.
To use a subtitle : just copy and paste it in the same archive as the movie

 

Mon, 03/04/2013 - 12:28 | 3297944 Dr Paul Krugman
Dr Paul Krugman's picture

Oil's price is transitory, and here is why - Peak Oil Doomers are Wrong: http://www.cnn.com/2013/03/04/opinion/frum-peak-oil/

Mon, 03/04/2013 - 12:34 | 3297967 HD
HD's picture

Erections are also transitory but they'll still fuck you...

Mon, 03/04/2013 - 14:36 | 3298371 Rogue Trooper
Rogue Trooper's picture

I wonder if Dr. Paul Krugman and Maxine Walters are an 'item'?  They seem to be on the same intellectual level. However, Maxines math is a little better....

Mon, 03/04/2013 - 12:38 | 3297987 BoNeSxxx
BoNeSxxx's picture

I see CNN in the link.

Therefore, I don't click.

Simple as that.

Mon, 03/04/2013 - 12:44 | 3298009 CPL
CPL's picture

CNN, hardly a reputable source of anything anymore.  Well, unless I need to catch up on what Bieber was doing last weekend even then, most people that are interested don't go to CNN anymore.

 

How's things Krugman?  You out of the Market yet?

Mon, 03/04/2013 - 12:51 | 3298031 caimen garou
caimen garou's picture

go preach to the n koreans with d rodman pog!

Mon, 03/04/2013 - 13:09 | 3298090 Kirk2NCC1701
Kirk2NCC1701's picture

PK, not to be nasty or anything, but talk to us when you get a real degree in Natural Sciences or Engineering.  An 'Oscar' from the Swedish CB (Sveriges Riksbank) does not count in real life, where real things are made and real services provided. 

And lest you get too huffy & puffy about your CB world of complex numbers (with some real but mostly imaginary components), remember that the ONLY difference between a counterfeit money operation and the fiat-Fed is that only one of them is backed by the US Army.  Were it not so, they'd (a) have competition from banks offering real money, or (b) be put out of business.

Einstein, on being asked the greatest invention in the 20th century: "Compound interest!"  Indeed, where else, outside the laws of God or Nature can you make something out of nothing, and where paper "earns" (!?) begets paper. 

Stick to (selling) your Blue pills, and I'll stick to my Red pills.

 

Mon, 03/04/2013 - 13:19 | 3298134 knukles
knukles's picture

Go share a cuppa cold coffee with Maureen Dowd.  She'll listen to your rubbish and tell you she cares.

Mon, 03/04/2013 - 14:39 | 3298379 Meat Hammer
Meat Hammer's picture

Stop giving yourself up-arrows, Krug"man".

Mon, 03/04/2013 - 17:35 | 3298994 nightshiftsucks
nightshiftsucks's picture

Hey fuck face,how much does it cost to get that oil out of the ground ? Of course some ass whipe who uses CNN opinion has shit for brains anyway.

Mon, 03/04/2013 - 12:39 | 3297971 Cursive
Cursive's picture

@Paul Bogdanich

What are you smoking?  No one suggesting an economic collapse is saying that the land won't still be here.  You simplify what was a major social upheaval in the USSR as a no big deal. Europe was better after the Black Plague? Living in the South was better after the War Between the States?  Europe was better after WWI?  The Gulf of Tonkin Resolution "saved" Vietnam?  Speaking for myself, I'd rather not go though another Red Revolution a la 1917ish Russia  or a geopolitcal breakup a la 1990ish USSR.  Lots of people die and there is heavy misery.

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