20 Early Warning Signs That We Are Approaching A Global Economic Meltdown

Tyler Durden's picture

Submitted by Michael Snyder of The Economic Collapse blog,

Have you been paying attention to what has been happening in Argentina, Venezuela, Brazil, Ukraine, Turkey and China?  If you are like most Americans, you have not been.  Most Americans don't seem to really care too much about what is happening in the rest of the world, but they should.  In major cities all over the globe right now, there is looting, violence, shortages of basic supplies, and runs on the banks.  We are not at a "global crisis" stage yet, but things are getting worse with each passing day.  For a while, I have felt that 2014 would turn out to be a major "turning point" for the global economy, and so far that is exactly what it is turning out to be.  The following are 20 early warning signs that we are rapidly approaching a global economic meltdown...

#1 The looting, violence and economic chaos that is happening in Argentina right now is a perfect example of what can happen when you print too much money...

For Dominga Kanaza, it wasn’t just the soaring inflation or the weeklong blackouts or even the looting that frayed her nerves.


It was all of them combined.


At one point last month, the 37-year-old shop owner refused to open the metal shutters protecting her corner grocery in downtown Buenos Aires more than a few inches -- just enough to sell soda to passersby on a sweltering summer day.

#2 The value of the Argentine Peso is absolutely collapsing.

#3 Widespread shortages, looting and accelerating inflation are also causing huge problems in Venezuela...

Economic mismanagement in Venezuela has reached such a level that it risks inciting a violent popular reaction. Venezuela is experiencing declining export revenues, accelerating inflation and widespread shortages of basic consumer goods. At the same time, the Maduro administration has foreclosed peaceful options for Venezuelans to bring about a change in its current policies.


President Maduro, who came to power in a highly-contested election last April, has reacted to the economic crisis with interventionist and increasingly authoritarian measures. His recent orders to slash prices of goods sold in private businesses resulted in episodes of looting, which suggests a latent potential for violence. He has put the armed forces on the street to enforce his economic decrees, exposing them to popular discontent.

#4 In a stunning decision, the Venezuelan government has just announced that it has devalued the Bolivar by more than 40 percent.

#5 Brazilian stocks declined sharply on Thursday.  There is a tremendous amount of concern that the economic meltdown that is happening in Argentina is going to spill over into Brazil.

#6 Ukraine is rapidly coming apart at the seams...

A tense ceasefire was announced in Kiev on the fifth day of violence, with radical protesters and riot police holding their position. Opposition leaders are negotiating with the government, but doubts remain that they will be able to stop the rioters.

#7 It appears that a bank run has begun in China...

As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks. "Everyone wants to borrow and no one wants to save," warned one 'salesperson', "and loan repayments are difficult to recover." There is "no money" and the doors are locked.

#8 Art Cashin of UBS is warning that credit markets in China "may be broken".  For much more on this, please see my recent article entitled "The $23 Trillion Credit Bubble In China Is Starting To Collapse – Global Financial Crisis Next?"

#9 News that China's manufacturing sector is contracting shook up financial markets on Thursday...

Wall Street was rattled by a key reading on China's manufacturing which dropped below the key 50 level in January, according to HSBC. A reading below 50 on the HSBC flash manufacturing PMI suggests economic contraction.

#10 Japanese stocks experienced their biggest drop in 7 months on Thursday.

#11 The value of the Turkish Lira is absolutely collapsing.

#12 The unemployment rate in France has risen for 9 quarters in a row and recently soared to a new 16 year high.

#13 In Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.

#14 The unemployment rate in Spain is sitting at an all-time record high of 26.7 percent.

#15 This year, the Baltic Dry Index experienced the largest two week post-holiday decline that we have ever seen.

#16 Chipmaker Intel recently announced that it plans to eliminate 5,000 jobs over the coming year.

#17 CNBC is reporting that U.S. retailers just experienced "the worst holiday season since 2008".

#18 A recent CNBC article stated that U.S. consumers should expect a "tsunami" of store closings in the retail industry...

Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.


On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It's the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy's.


Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.

#19 The U.S. Congress is facing another deadline to raise the debt ceiling in February.

#20 The Dow fell by more than 170 points on Thursday.  It is becoming increasingly likely that "the peak of the market" is now in the rear view mirror.

And I have not even mentioned the extreme drought that has caused the U.S. cattle herd to drop to a 61 year low or the nuclear radiation from Fukushima that is washing up on the west coast.

In light of everything above, is there anyone out there that still wants to claim that "everything is going to be okay" for the global economy?

Sadly, most Americans are not even aware of most of these things.

All over the country today, the number one news headline is about Justin Bieber.  The mainstream media is absolutely obsessed with celebrity scandals, and so is a very large percentage of the U.S. population.

A great economic storm is rapidly approaching, and most people don't even seem to notice the storm clouds that are gathering on the horizon.

In the end, perhaps we will get what we deserve as a nation.

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bluestaq's picture

Here's #21, search term SUBPRIME in Google trends returns a chart suggesting increasing interest in SUBPRIME.  Top regional interest is in Singapore, Malaysia, Austraila, India, Ireland, UK, US.  Housing Bubble 2.0 is indeed close to popping if it hasn't already burst.


qqqqtrader's picture

I shouldn't be so critical, I use to complie data and it takes a lot of time. Maybe he stopped @ 20 to tie one on after he saw his 401K's YTD performance.

JohnnyBriefcase's picture

With recoveries like this, who needs depressions?!

Gankfest's picture

This kid's Composition/Grammar is atrocious!

Indian_Goldsmith's picture

Now this article comes from "'The Economic Collapse Blog", seriously a "blog" dedicated to economic collapse. That in itself is an indicator of the bias of the writer. show this too if you're neutral http://profit.ndtv.com/news/corporates/article-tcs-raises-hiring-target-...




".... Occuring at the National Press Club in DC on January 14, 'The World in 2050: Talent Mobility and the Future of Jobs' event sought answers to the fundamental questions of why global businesses face significant challenges in finding qualified talent with millions of STEM positions emerging..."


But showing this, the full truth, would go against your agenda, no?

The Mist's picture

To be fair a lot of these 20 points are ridiculous to take as a measure of global crisis approaching.


Argentina has collapsed before.

Ukraine is just rioting, nobody gives a fuck.

Turkish Lira? Who cares?


Those things don't have any significant impact that can trigger a global economic meltdown...

thatthingcanfly's picture

I noticed that too, Gank.

My favorite construction is: "...soared to a brand new all-time record high...."

Wow dude. How many synonomous adjectives do you really need to express that thought?

q0paz's picture

Yeah but he's artfully referring to the 'brand new' all time record highs as opposed to the 'old' all time record highs. And the 'all time' record highs are far more important than the 'subset of time' record highs.

PhilB's picture

If you think his writing is bad,imagine my disdane at reading f20 of the weakest arguments ever for an economic collapse. This dribble isnt worthy of an 8th grader's homework assignment.

nscholten's picture

Who gives a fuck..It's notan english class.  You take the time ad compile info and you write all the fucking articles you lazy dp shit.  Your probably a fat fuck as well

A Nanny Moose's picture

With what lies ahead, we're gonna wish we could party like it's 1999

old naughty's picture

A great economic storm is rapidly approaching, and most people don't even seem to notice the storm clouds that are gathering on the horizon. In the end, perhaps we will get what we deserve as a nation.


Except that "we" will "carry on" bitching to the end. 

Que sera sera...

PhilB's picture

When the sheeple rolled over as the banking cartel and political elite raliroaded the fools and allowed unsecured bank debt holders to use public money to bail them out and all those corportate bonuses based on ridiculous leverage over a decade of greed, crimes, and lies needed to be paid out despite bankrupting their companies, they and we will indeed "keep bitching"

Its only in the years ahead as the disparity from this heist continues to escalate and the fat fools are unable to lazily live off the system in the comfort they have been used to, that we may get those clouds for real.

michael63636's picture

We have been in an economic shit storm since the 1960's.

Stuck on Zero's picture

Here's #22, dozens of lists with reasons to worry are popping up everywhere.


Skateboarder's picture

Snyderman has been making 20 signs of doom lists for a while now. Hold on, my Snydey senses are tingling. I feel another list coming.

new game's picture

increasingly loans are becoming subprime but are called out as prime. dumbed down loans match dumbed down people. their back is covered as we found out in 07-08. so wtf. sign and live for the day. as i watch the markets correct i have a sic feeling that this finally getting to a point that dawn an age feudlalism-empires desparate, empire deplete of leadership based on sound priciples of the cycles of life and sound money(of course). like, fucken - eh man, cant you see the obvious?

all, activity financial is running on thin air-ready to drop to a point that beckons choas. a system based on non-productive assets, like a home built at the base of a volcano or a home in the flood zone or a home built on sand.

are humans this dumb? must be, plan, plan, plan b = find a place  away from major population centers. find a few like minded and meet regularily to tweek your plan. go into detail, as major roads will be closed. think martial law and i am stranded. if you think this is far fetched you are probably in debt and feel trapped, rightfully so. use this echo bubble to rid yourself of your excess real estate. it is your achiles heal. determine what you are willing to fight for and the rest is flight.

from that location the rest falls into place. cue H.Horseman for basic starting point of a new game...

a heart felt thanks to the most savy posters for your many insights...

JR's picture

We either have private property or we have slavery.

Prior to this great episode in American freedom, the world was run this way, as a feudal system. But when this government was created, it was created to support the market system.  This government was to be limited; it was intended that the private system would grow and grow, that a greater and greater prosperity would ensue, and that the government would come along to protect the rights that provided that growth.

But when the International-bankers founded their private Fed cartel and gained control of America’s money supply and, thus, all commerce, suddenly it was the government that was going to grow and grow and the private sector was going to provide the value for the new tyrant. And thus began debt slavery as the bankers and the corporations around them began depriving the people of their property.

The reason for America is private property, so people can have something. We are not on this earth to be slaves. Without private property we are slaves. It has been proven a million times over that the opposite of private property is slavery. If you don’t own anything, somebody owns you. It can be the socialists or it can be the Maos.

And the answer is to take them out and hang them.

“How can a man speak freely if there is no spot on which he and his audience have the right to stand? How can he practice his religion if he has no right to own a religious edifice, or to his own person? How is a free press to exist if the materials are not in private ownership? With state ownership, nothing can be done except by command or permission. A slave is under command and permission.

“He is not free.” -- Isabel Patterson, The God of the Machine

+100, new game. Excellen insight.


michael63636's picture

The Rothschilds were involved in the American Revolution.  They got the soldiers from Hesse for King George.  They received a commission for each soldier supplied AND a portion of the life insurance premium when one died.

We can surmise they were involved in fomenting the revolution as well, because of the huge amount of profit they would make.

Perhaps they were also lending money to King George and charging huge amounts of interest, which would be the reason King George raised taxes. And the excessive taxation led to the revolution.

At any rate, making it a free country allowed those who originally enslaved us the freedom to come to America and enslave us all over again.

And what could be easier.  The average American has no 5 year plan, nor 10 year, nor 100 year plan, nor 1000 year plan, as the Rothschilds do.  The average American's plan, if he plans at all, consists of drinking beer on the weekend and watching a game on TV.

That the Rothschilds have at least 100 year plans can be shown by their comments to the Tsar at the time of the war of 1812. The Tsar did not want a central bank in Russia run by the Rothschilds.  The Rothschilds controlled the Bank of England, and there by controlled England.  They engineered the war of 1812 to force a central bank upon America. The Tsar came in on the side of America to prevent the Rothschilds from establishing a central bank in America. [Why are we not taught these things in school?]


This so enraged the Rothschilds that they vowed to kill the Tsar and all his family.  It took them 100 years to do it, but they did.  This demonstrates that all things are possible if you have a plan.

DaveyJones's picture

"are humans this dumb"

that's what the animals are asking 

Miffed Microbiologist's picture

I've come to the conclusion the only serious economic activity going on in this country is car purchases. Everywhere I go people are driving new high end vehicles. At my work, people who make less than half what I do are driving Mercedes and Lexuses. I'm astounded. We have no budget for a new car and the idea of a 97 month car loan tells us others really can't afford a car either. People either can't do math, are pathetically stupid or are drugged up to the point they can't perceive reality.


nscholten's picture

True.  I work in costrucion and the ony "private indstry" rojects we do are new car dealerships and big ones at that.

Erus Unius's picture

I would have to agree. I noticed the same thing here, and it was the same in the runup to 2008.

michael63636's picture

In 1994 the Mexicans were stealing 10,000 cars a month out of Los Angeles.  The rate of theft has increased since then.  Multiply that by the number of cities they have conquered.  Also add to that all the rest of the stuff they steal.  That is a huge amount of economic activity. Just welfare fraud by Mexicans is over 500 Billion a year.

michael63636's picture

The muslims are worse though.


Plan now. They plan to exterminate us.

Miffed Microbiologist's picture

This is something I am so confused about. Western women can boast they have the best lives anywhere in the world. The right to education, rights to abortion, freedom to pursue any job or profession. They cannot be beaten under the auspices of a religion. Yet, they are eerily quiet when a very strict religion that would quickly subjugate them if given the chance starts to infiltrate their world. I have several Persian women friends who are fighting for women's rights in the Middle East and are horrified by their tales. Some of their compatriots in Iran have been beaten for days in prison for defying oppressive treatment. I am amazed of their courage and wish I could see some of it here in American women. I guess when you lead a life of privilege for so long you become lazy and complacent.


WakeUpPeeeeeople's picture

Let's not forget that Americans, as a group, are fat, lazy and duuuuuuuuumb.

Fish Gone Bad's picture

And thanks to outcome based education, everyone in America now gets a trophy.

Lore's picture

That's my main gripe about the OLYMPICS.  EVERYBODY deserves a medal for doing their PERSONAL BEST!

Ness.'s picture

Personal best??  


Mariel Hemingway and Patrice Donnelly.. Enjoy.



mt paul's picture

two naked women

and a plastic pelican


what's not to love 

Marge N Call's picture

Yes, I was expecting some pelican-infested orgy, not a meeting of the local chapter of the IBTC.

michael63636's picture

The smaller the tits, the tighter the pussy.

Ranger_Will's picture

I always hated the shit out of that kinda crap in grade school.  Fuck personal bests I want to win damnit!

thatthingcanfly's picture

The worst manifestation of this "no losers" mantra might be the Special Olympics. Have any of the (apparently) guilt-ridden Special Olympics organizers ever paused to consider whether or not running races, leaping hurdles, throwing shot, long jumping, etc. makes a mentally retarded child (or adult) less retarded, or conveys any meaningful benefit to the "winners" of such silliness?

Seems to me the purpose of such exhibitions is to make (generally leftist) moral busybodies feel better about the fact that retarded people exist. Special Olympics certainly doesn't help the participants, whether they did their personal best or not.

Trample the Weak. Hurdle the Dead.'s picture

You are a cunt.  A disease infested, pus ridden cunt.  Your shallow perspective and obvious failed experiences at real human interaction reek of 'second semester, freshman year finance major', so basically a cunt.  Welcome to Fight Club, dick.  Keep the comments sophisticated and if you can't? "Come and get one in the yarblesif you have any yarbles, you eunuch jelly thou."

viahj's picture

a worrld without compassion is how we got in this mess to begin with.  "i gots to get mine and fuck everyone else!"  we saw this on wall street and in DC.  now, people who are fed up of that mess are preparing (get theirs) and all of the others (sheep) can get fucked.  ironic.  others here have shown the way; get local, get your tribe together, work together to survive.

thatthingcanfly's picture

Let me guess, you came in last place at the Special Olympics, didn't you?

It's OK, you're still a very very special person. You did a good job!

e_goldstein's picture

(until people are too stupid to figure out how to make trophies).

orez65's picture

Bill Maher, left wing loney comedian who I detest, has it correct:
'The only thing exceptional about Americans is their stupidity'
Sad but true.

ncdirtdigger's picture

As evidenced by those who quote him?.

BeanusCountus's picture

This article is way off. I just watched CNBC and none other than Don Luskin assured everyone that Argentina, Turkey, South Africa, etc, currency issues dont mean anything! Man, are we in trouble. Best argument for not listening to that station I have ever seen.

Kudlow: "free market capitalism will overcome!" And then: "but I'm worried the Fed will do something stupid like taper More at their next meeting!" So sad, he doesnt even realize when he contradicts himself in two sentences. And all of his conclusions begin with stating the "facts" that "Europe is improving, the Us is growing, and China is going great!" The man will require potty training in the next year or so.

disabledvet's picture

"trading dollars for gold." everyone here should love this stuff. there really is a point where you're buying a country.

what would make me laugh is a rate of return on a savings account.

then I'll know the world has come to an end.

in the meantime "you'll know when everyone gets called to go over to someplace"...and, yeah...I'm totally serious. There is a point where this becomes "all too real all too quickly."

one week? ten days? in the world of "false flags" I'm counting about 200 of them right now.

"take your pick for the drop down menu, sir."

and to me "that's what's different this time." I know this won't be well received but near as I can tell there really is no going back this time. we've gone from "arsenal of democracy" to "Gods of War" as a result of being "successful." (meaning in the policy sense...being "saved" from the Great Depression as it were.) The old saw in history is "World War I was a surprise but World War II was not."

Again...we'll see...but these "affairs" can move very quickly once it comes time to "appropriate" things...and there is nothing left to steal.

I say again "short this market at your peril."

Onthebeach's picture

Krudlow never recovered from his cokehead years ... he still thinks it's 1985.

Keyser's picture

He's a relic from the cold war era mentality. I used to watch his show ocassionally until the ramp up to Syria began. Krudlow was beating the war drum harder than John McCain is you can believe that. Fuck him and the MIC.