18 Signs That Massive Economic Problems Are Erupting Everywhere

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

This is no time to be complacent.  Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine.  In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing.  Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer.  Just look at what is happening in Europe.  The eurozone is now in the midst of the longest recession that it has ever experienced.  Just look at what is happening over in Asia.  Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control.

One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have "kicked the can down the road" by recklessly printing money and by borrowing money at an unprecedented rate.  Unfortunately, the "sugar high" produced by those foolish measures is starting to wear off.  We are going to experience a massive amount of economic pain along with the rest of the world - it is just a matter of time.

But for the moment, there are a lot of skeptics out there.

For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead.

Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe.

The following are 18 signs that massive economic problems are erupting all over the planet...

#1 The eurozone is now in the midst of its longest recession ever.  Economic activity in the eurozone has declined for six quarters in a row.

#2 Italy's economy has now been contracting for seven quarters in a row.

#3 Industrial production in Italy has fallen for 15 months in a row.  It has now fallen to its lowest level in about 25 years.

#4 The number of people that are considered to be "seriously deprived" in Italy has doubled over the past two years.

#5 Consumer confidence in France has just hit a new all-time low.

#6 The number of unemployed workers seeking a job in France has hit a brand new all-time record high.  Many unemployed workers in France are utterly frustrated at this point...

"I've sent CVs everywhere, I come to the unemployment agency every day, for 3 or 4 hours to look for work as a truck driver and there's never anything," said 42-year old Djamel Sami, who has been unemployed for a year, leaving a job agency in Paris.

#7 Unemployment in the eurozone as a whole has just hit a brand new all-time record high of 12.2 percent.

#8 Youth unemployment continues to soar to unprecedented heights in Europe.  The following is from an article that was recently posted on the website of the Guardian that detailed how bad things are getting in some of the worst countries...

In Greece, 62.5% of young people are out of work, in Spain it's 56.4%, then Portugal with 42.5%, and then Italy with 40.5%.

#9 Youth unemployment is being partially blamed for the worst rioting that Sweden has seen in many years.  The following is how the Daily Mail described the riots...

Sweden is reeling after a third night of rioting in largely run-down immigrant areas of the capital Stockholm.

In the last 48 hours violence has spread to at least ten suburbs with mobs of youths torching hundreds of cars and clashing with police.

It is Sweden's worst disorder in years and has shocked the country and provoked a debate on how Sweden is coping with youth unemployment and an influx of immigrants.

#10 An astounding 10 percent of all banking deposits were pulled out of banks in Cyprus during the month of April alone.

#11 Economic growth in India is the slowest that it has been in an entire decade.

#12 Suddenly Australia is experiencing some tremendous economic challenges.  The following quotes are from a recent Zero Hedge article...

-“We’re seeing a much sharper contraction in the Australian economy than we’d anticipated four or five months ago”. Coffey MD, John Douglas. The engineering group has seen its shares, which traded above $4 in 2007, hit 10c last week.

-“By 10am, the Fitness First gym in the city is packed full of brokers who’ve had a gutful of sitting at their desk doing nothing – salary cuts are starting and next it will be jobs” Perth broker

-“Oh mate, the funding market is dead. You are now seeing a few deeply discounted rights issues for those that are reaching desperate levels ….. liquidity has completely disappeared” Perth broker

#13 The financial system in Japan is beginning to spin wildly out of control.  The Japanese stock market has now declined about 15 percent from the peak, and many believe that the yen will continue to get weaker and that interest rates in Japan will start to rise significantly.

#14 Global cash flow is declining at a rate not seen since the last recession.  This indicates that we could be headed for a global credit crunch.

#15 Real wages continue to decline in the United States.  Even though we are being told that the U.S. is experiencing an "economy recovery", real weekly earnings have declined from $297.79 in 2010 to $295.49 in 2011 to $294.83 in 2012.  (The preceding calculation is based on 1982-1984 dollars)

#16 Wall Street is buzzing about the fact that "the Hindenburg Omen" appeared at the end of last week.  So exactly what is "the Hindenburg Omen"?  The following are the criteria that are used to determine whether it has appeared or not...

1. The daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.

2. The smaller of these numbers is greater than or equal to 69 (68.772 is 2.2% of 3126). This is not a rule but more like a checksum. This condition is a function of the 2.2% of the total issues.

3. That the NYSE 10 Week moving average is rising.

4. That the McClellan Oscillator ( a market breadth indicator used to evaluate the rate of money entering or leaving the market and interpretively indicate overbought or oversold conditions of the market)is negative on that same day.

5. That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs).

When the Hindenburg Omen makes an appearance, it supposedly means that the U.S. stock market is likely to experience a serious decline within the next 40 days.

#17 As I wrote about the other day, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years.  That means that lots of "smart money" has been getting out of the market and lots of "dumb money" has been pouring in.

#18 Margin debt on the New York Stock Exchange has set a new all-time high.  The following is from a recent Market Oracle article...

Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 billion as the key stock indices hit new record-highs. (Source: New York Stock Exchange web site, last accessed May 29, 2013.) The highest margin debt ever reached prior to this was in July of 2007, when it stood just above $381.0 billion. At that time, just like today, the key stock indices were near their peaks and “buy now before it’s too late” was the prominent theme of the day

Whenever margin debt spikes like this, a stock market crash almost always follows.  If you doubt this, just check out the chart in this article.

Wall Street has had a good couple of years, but it has been a "false prosperity" that has been pumped up by reckless money printing by the Federal Reserve.  Just like all of the other stock market bubbles that we have seen in recent years, this one is going to burst too.  And as Marc Faber recently pointed out, this bubble has been particularly beneficial to the wealthy...

The Fed has been flooding the system with money. The problem is the money doesn't flow into the system evenly. It doesn't increase economic activity and asset prices in concert.


Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market - things like stocks, bonds, art, wine, jewelry, and luxury real estate.


Money-printing boosts the economy of the people closest to the money flow. But it doesn't help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.

The fact that the U.S. stock market has set new all-time record high after new all-time record high in recent months means very little.  At this point, the stock market has become completely divorced from economic reality.  When this current bubble bursts, the adjustment is going to be very painful.  Wall Street will likely whine and complain and ask for more bailouts, but they may find that authorities are not nearly as sympathetic this time.

Much of the rest of the world is already experiencing the next major wave of the economic collapse.  Reckless money printing by the Fed and reckless borrowing and spending by the federal government may have delayed the inevitable in the United States for a little while, but those measures have also made our long-term problems even worse.

There was one piece of advice that Ben Bernanke included in his commencement speech to students at Princeton recently that I thought was particularly ironic...

"Don't be afraid to let the drama play out."

Will he take his own advice when the next great financial crisis strikes the United States?

That seems very unlikely.

Unfortunately, things are not going to be so easy to fix this next time.

What happened back in 2008 was just a preview.

What is coming next is going to absolutely shock the world.

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You forgot sign number nineteen. 


Silver and gold - safe havens in a cluster of fuck.

Copper, lead and brass are useful commodities to invest in as well. 

famousisourname's picture

Im buying silver and gold any time they smack the paper price down

kaiserhoff's picture

As unsustainable as a hair ball speech code in fight club.

SafelyGraze's picture

fortunately, the young people are finding new ways to cope, rather than crying over spilled milk


spoiler: I've fallen and I can't get up


kaiserhoff's picture

The purges will continue until morale improves, Comrade Citizen.

All together now.  Jawohl!

MillionDollarBogus_'s picture

The writer completely disregarded Europe's shadow economy.

"...According to the latest data available from VISA Europe, the interbank credit-card service, Europe's shadow economy grew by 5 percent from 2007 to 2011. The VISA study put the total value of the shadow economy in 2011 at some 2.2 trillion euros (2.8 trillion dollars).

The shadow economy does not include typical criminal activities such as drug-dealing racketeering, or burglary..."


Italy's shadow economy is about 22% of the legit economy. 

derek_vineyard's picture

listen to the markets..........don't try and tell them what to do

in retrospect......don't fight the Fed again proved true..........those who listened to the tape (2009 to date) now realize the markets were screaming the power/resolve of the Fed to prop the market

CrashisOptimistic's picture


Horrendously Old Normal thinking in a world where HFT is 80% of volume.

There are no markets.

ratso's picture


Shocker's picture

No, but its called things are not good.

Layoff / Business Closing List



markmotive's picture

Manhatten hookers are shopping at Target. Now I know it's bad!


THE NUMBER ONE SIGN THE END IS NEAR - MILLION DOLLAR BONUS - crawls out from under Bernanke's ass to assure us that all is well. Theft, robbery, and murder will save the day - lots of job openings in an economic miracle growth industry !

BoNeSxxx's picture

That's not Bonus... It's Bogus.

Bonus is the troll... Bogus is actually legit


Well. I'll be dipped in shit. who the fuck woulda thunk ? All i ever see is the troll.

Hey, bogus - man - change up the avatar to create seven degrees of separation from the MDB paperboy, please ?

King_Julian's picture

Initially, I thought Bonus had finally figured something out, but it was Bogus all along.

Errol's picture

Silvergeddon, I guess Bonus'es satire was a little too subtle for you...

sgorem's picture

don't know about the dipped in shit part, but you just got bogied............

stocktivity's picture

The writer completely ignores # 19 also - Until Benny stops printing, It's all Bullshit!!!

SeattleBruce's picture

The shadow economy exists in good and bad times. It's volume has gotten larger across time, but it's existence doesn't mean Italy, and others aren't in bad shape.

Davalicious's picture

"Italy's shadow economy is about 22% of the legit economy. "

The real figure is far higher. There is a shadow economy in the shadow of that shadow economy.

vamoose1's picture

what  a  repulsive  fucking   country  the   united  states   you   animals  make   hitlers   germany  look  like  a   hospice     do  the  math    7  point  one   billion  people  in   2013   half  the  world   would   merrily eviscerate  this  place   which  renders   you  numerically  by  far  the   most   hated    country  in  the   history  of  this  groaning  planet     fucking  crawling   animals   rise  up   be  a  turkey

Bay of Pigs's picture

Hey Vamoose, what's shakin buddy? 

Sounds like you're not going to Disneyland this summer.  

vamoose1's picture

  hi  bay   nice  to  see  ya

  just   pissed  off    what  a   fucking   waste   the   country  is   irrevocably   hijacked   by  cunning   criminals   they  won  the  war  for  us   for  the  second  time........................  they  bestride  the  world  like  a   colussus   then  rapidly   devolve   into   this   steaming  pile  of  ignorant  shit  on   food  stamps.....  they   should  sell  tickets  to  this travesty      these  islamists   the  new   bosses  pray   resolutely  with  their  skinny   brown  asses  upraised   in  their   girl   robes ......  its   quite  a  sight     but  practise  makes   perfect

NoDebt's picture

Knock  it  off  with  the extra  spaces,  please.    It messes  with  our word - scanning  and  user - intent - tracking  software.

Sincerely, the CIA.


Chump's picture

Don't worry, we're going down, and several of those billions will starve by the time we hit bottom.  So take heart, I guess.

disabledvet's picture

this market has indeed been the most surprising of all. that's why millionaires read the stock tables while billionaires read horoscopes. "at the level of the latter you're dialed into something or other." ALWAYS. the problem with Europe is that..we all now know but how could we have?..."they're small fry." the dollar amounts they're talking simply aren't equal to the task. Germany Inc...as with Japan Inc...are MASSIVE economies...they require MASSIVE supports. "listening to some billionaire tell you what to do" is like asking Albert Einstein tell you how to get to the moon. "just doesn't work." Wall Street is doing multi billion dollar debt deals now folks...everyone of these companies has an EXPENSIVE for sale on them now. Where's the competition for that again now? I say pretty much nowhere...for the time being.

Pizza man's picture

Vamoose, I would suggest you look at the gross migration numbers on a global basis and see where folks literally die to get into. I travel the world and can tell you when I am asked where I am from and I tell them America, the reaction is almost embarrassing. Gushing. I get respect I honestly don't deserve.Young people in Italy, strangers tell me they wish they could move to America. Indonesia? Young girls wear US Army T-shirts.

You are a puke with no idea of what the people of the world think nor want. We may be heading in the wrong direction, but life here is 10X bettter than anywhere else on the globe. And the average jamoke knows it.

TahoeBilly2012's picture

"Jamoke"? That's it you have crossed the line!!

Herd Redirection Committee's picture

Yeah, thats why Americans put Canadian flags on their luggage when they travel, because Americans are treated with awe...

Never One Roach's picture
Israel to send African migrants to third country



JERUSALEM (AP) — Israel has reached an agreement to send thousands of African migrants to an unidentified country, according to a court document obtained Monday, a plan that has elicited criticism over its potential harm to the migrants.

The plan, if implemented, is an attempt to address one of Israel's more pressing issues: what to do with an influx of roughly 60,000 African migrants who have sneaked into Israel from Egypt over the past eight years.




'Multiculturalism' ain't for everyone....only good for "them"...not for "Us."

Herd Redirection Committee's picture

A third country.  Got to love how the one taking the money and the immigrants doesn't want to be ID'd.

And hey, Israel, "Thats rayciss"

disabledvet's picture

anti immigrant too. imagine that. you should hear the rhetoric...and how it gets acted upon. beyond appalling...truly shameful. full on "Japanese Internment Camp" in my view. History will not judge these folks well...and it's judgement looks to be coming far soon than expected.

Kirk2NCC1701's picture

Sent to Syria, and from there to the EU and US as 'Syrian refugees'? Bono & U2, Sting, Springsteen, etc to do Benefit Concert.

Ppl will lap it up. Saps.

TahoeBilly2012's picture

"Jamoke"? That's it you have crossed the line!!

BigJim's picture

 but life here is 10X bettter than anywhere else on the globe.

LOL, really? 10x better than Australia, or New Zealand? Or Denmark or Norway? 

Flag-waving morons... gotta love 'em.

BeetleBailey's picture

Thumbs down on Sweden and Norway....seriously?

TheReplacement's picture

Word is the Aussie PM is fond of sammiches.

Denmark is the place to go if you want to get beheaded for drawing the wrong cartoon.

NZ... who actually cares about NZ?  Once the US is gone the PacRim bad guy of the day can overrun them with a sneeze and a fart.

Norway, hmm, let's wait and see if the Swedish riots spread.  Either way, they wouldn't have a social shit if the US wasn't there to protect them.  In fact, that goes for every country you mentioned.  They spend next to nothing on defense because Uncle Sam is there to save the day and they all know it.  That, my friend, is coming to an end one day very soon.

rwe2late's picture

Pizza man

10X better than the rest of the world,

and many don't care about the price paid by rest of humanity and this planet

to support their wasteful and destructive lifestyle.

10X better, is that you believe with respect especially to ethics, regard for others, practicing a sustainable lifestyle, respect for human rights,

or are you just enamored with the "better" militarism and top concentration of wealth?


Jreb's picture

"but life here is 10X bettter than anywhere else on the globe"

Except maybe Canada. And Australia. Maybe New Zealand too. I've heard Iceland is nice now that the bankers have been run out of town....

Not that the USA is a bad place at all but I'm just sayin...

in fact Vegas reminds me of a slightly upscale Bangkok so I guess that's good right??


buyingsterling's picture

life is better here, and it has nothing to do with our criminal government and its predations: This is the only (industrialized) place on earth where the first human right is still respected to a large degree, the right to defend one's life, thanks to the 2nd amendment. Without that you're sheep in the truest sense of the word.

Hobie's picture

New Zealand? Terrible place. I recommend Australia to all future refugees. Lots of empty land there. Nice beaches.

El Tuco's picture

but life here is 10X bettter than anywhere else on the globe.


I don't know about that, it's real nice in the Caymans. Anyone else see the fireworks at the Ritz tonight... 


obelisks's picture


 Pizza man at this moment perhaps yes but that could change at the drop of a hat? What will it be like when the money runs out and 40 million former food stamp recipients are wandering around with guns looking for  something to eat?



ebear's picture

Brains!  Must. Have. Brains!!!

Chump's picture

By that token, in foreign country 'X' what happens to that new American fellow down the road when the JiT supply lines stop?

PhilofOz's picture

"but life here is 10X bettter than anywhere else on the globe."  That comment is just ridiculous. I swear if someone offered me a trip to the US, fully paid for, travel, hotels, the works.... I'd refuse it. I know some Filipinos that once thought the sun shone out of the arse of the USA, but after a year there they could not wait to get back home.