20 Signs That The Global Economic Crisis Is Starting To Catch Fire

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

If you have been waiting for the "global economic crisis" to begin, just open up your eyes and look around.  I know that most Americans tend to ignore what happens in the rest of the world because they consider it to be "irrelevant" to their daily lives, but the truth is that the massive economic problems that are currently sweeping across Europe, Asia and South America are going to be affecting all of us here in the U.S. very soon.  Sadly, most of the big news organizations in this country seem to be more concerned about the fate of Justin Bieber's wax statue in Times Square than about the horrible financial nightmare that is gripping emerging markets all over the planet.  After a brief period of relative calm, we are beginning to see signs of global financial instability that are unlike anything that we have witnessed since the financial crisis of 2008.  As you will see below, the problems are not just isolated to a few countries.  This is truly a global phenomenon.

Over the past few years, the Federal Reserve and other global central banks have inflated an unprecedented financial bubble with their reckless money printing.  Much of this "hot money" poured into emerging markets all over the world.  But now that the Federal Reserve has begun "tapering" quantitative easing, investors are taking this as a sign that the party is ending.  Money is being pulled out of emerging markets all over the globe at a staggering pace and this is creating a tremendous amount of financial instability.  In addition, the economic problems that have been steadily growing over the past few years in established economies throughout Europe and Asia just continue to escalate.  The following are 20 signs that the global economic crisis is starting to catch fire...

#1 The unemployment rate in Greece has hit a brand new record high of 28 percent.

#2 The youth unemployment rate in Greece has hit a brand new record high of 64.1 percent.

#3 The percentage of bad loans in Italy is at an all-time record high.

#4 Italian industrial output declined again in December, and the Italian government is on the verge of collapse.

#5 The number of jobseekers in France has risen for 30 of the last 32 months, and at this point it has climbed to a new all-time record high.

#6 The total number of business failures in France in 2013 was even higher than in any year during the last financial crisis.

#7 It is being projected that housing prices in Spain will fall another 10 to 15 percent as their economic depression deepens.

#8 The economic and political turmoil in Turkey is spinning out of control.  The government has resorted to blasting protesters with pepper spray and water cannons in a desperate attempt to restore order.

#9 It is being estimated that the inflation rate in Argentina is now over 40 percent, and the peso is absolutely collapsing.

#10 Gangs of armed bandits are roaming the streets in Venezuela as the economic chaos in that troubled nation continues to escalate.

#11 China appears to be very serious about deleveraging.  The deflationary effects of this are going to be felt all over the planet. The following is an excerpt from Ambrose Evans-Pritchard's recent article entitled "World asleep as China tightens deflationary vice"...

China's Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons.

The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China's $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle.

This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications.

#12 There was a significant debt default by a coal company in China last Friday...

A high-yield investment product backed by a loan to a debt-ridden coal company failed to repay investors when it matured last Friday, state media reported on Wednesday, in the latest sign of financial stress in China's shadow bank sector.

#13 Japan's Nikkei stock index has already fallen by 14 percent so far in 2014.  That is a massive decline in just a month and a half.

#14 Ukraine continues to fall apart financially...

The worsening political and economic circumstances in Ukraine has prompted the Fitch Ratings agency to downgrade Ukrainian debt from B to a pre–default level CCC. This is lower than Greece, and Fitch warns of future financial instability.

#15 The unemployment rate in Australia has risen to the highest level in more than 10 years.

#16 The central bank of India is in a panic over the way that Federal Reserve tapering is effecting their financial system.

#17 The effects of Federal Reserve tapering are also being felt in Thailand...

In the wake of the US Federal Reserve tapering, emerging economies with deteriorating macroeconomic figures or visible political instability are being punished by skittish markets. Thailand is drifting towards both these tendencies.

#18 One of Ghana's most prominent economists says that the economy of Ghana will crash by June if something dramatic is not done.

#19 Yet another banker has mysteriously died during the prime years of his life.  That makes five "suspicious banker deaths" in just the past two weeks alone.

#20 The behavior of the U.S. stock market continues to parallel the behavior of the U.S. stock market in 1929.

Yes, things don't look good right now, but it is important to keep in mind that this is just the beginning.

This is just the leading edge of the next great financial storm.

The next two years (2014 and 2015) are going to represent a major "turning point" for the global economy.  By the end of 2015, things are going to look far different than they do today.

None of the problems that caused the last financial crisis have been fixed.  Global debt levels have grown by 30 percent since the last financial crisis, and the too big to fail banks in the United States are 37 percent larger than they were back then and their behavior has become even more reckless than before.

As a result, we are going to get to go through another "2008-style crisis", but I believe that this next wave is going to be even worse than the previous one.

So hold on tight and get ready.  We are going to be in for quite a bumpy ride.

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Fri, 02/14/2014 - 21:22 | 4438382 AMGdesignnl
Fri, 02/14/2014 - 21:25 | 4438393 autofixer
autofixer's picture

It is fortunate that my friends in Rio de Janerio are so poor, that they will never notice a recession or even a depression in the favelas. 

Fri, 02/14/2014 - 22:05 | 4438471 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Remedies...:

1) Sell US stocks

2) Buy physical gold

3) Keep some CA$H handy in case of deflation

4) If you are extra paranoid (like me): guns & ammo, and other preps.

Fri, 02/14/2014 - 22:30 | 4438544 max2205
max2205's picture

Heard this shit from 2006 through 2014.

Fri, 02/14/2014 - 22:40 | 4438576 americanspirit
americanspirit's picture

max2205 - ever hear the story of the boy who cried wolf? Good story.  Worth considering.

Fri, 02/14/2014 - 23:11 | 4438653 BoNeSxxx
BoNeSxxx's picture

Exaclty.  Every empire has fallen in exactly the same way.  Only difference is no economy has been able to export its pain (inflation) across the globe to prolong it.  The Romans were the closest parallel... and let's just say that we are not speaking Italian today...

It doesn't end well.  And the end is near.

Fri, 02/14/2014 - 23:34 | 4438710 johngaltfla
johngaltfla's picture

If you would like some good news, our Emperor in Chief took one up the ASS tonight:

 

Even After Obama Interference, UAW LOSES VW Vote at Chattanooga, TN Plant

Fri, 02/14/2014 - 23:43 | 4438727 WillyGroper
WillyGroper's picture

Wake me when it's Snowden or Putin making the delivery.

Sat, 02/15/2014 - 00:23 | 4438734 Prisoners_dilemna
Prisoners_dilemna's picture

#10  Riots roaming Venezuela

The Ignoble Rahm Emanuel taught us to "never let a crisis go to waste".

So i decided to reach out again thru twatter to my good friend, the ignoble Nicolas Maduro, and offer some unsolicited advice about his current non-crisis-everything-is-calm.

Hat tip to LTER for the inspiration and content of this tweet.

https://twitter.com/LevonMarcellus/status/434536313132290048

 

Any good boyscout can tell you this is going be a conflagration once the spark catches.

Be prepared.

      .--.
   .'' ;  |.-.
   |  |  |  |
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   |  |  |  |_
   |  | _|  / `,
   }  /``) /  /
   |`/   /:__/ \
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    \    `.     /
     |         |
 jgs |        |

Sat, 02/15/2014 - 03:06 | 4438965 Frank -THE COIN -
Frank -THE COIN -'s picture

Do Your Thing !

Sat, 02/15/2014 - 08:20 | 4439054 GetZeeGold
GetZeeGold's picture

 

 

Heard this shit from 2006 through 2014.

 

You only pull off TARP once....and that's how many times we've done it. The smart people used it to get out.

 

Janet Yellen has a monthly needle for your arm. Just one more big slug might do the trick.

http://www.youtube.com/watch?v=VAMTXnh2O9M

 

 

Sat, 02/15/2014 - 17:43 | 4439202 Shocker
Shocker's picture

Everyone is going through interesting times at this moment.

 

Sat, 02/15/2014 - 07:08 | 4439030 Jendrzejczyk
Jendrzejczyk's picture

Ha! Maduro responded to you.

 

"El Fascismo basa su acción en sembrar el odio y la intolerancia,vamos a demostrarle donde esta la Fuerza y la MayoríadelAmor de esta Patria."

Sat, 02/15/2014 - 07:56 | 4439057 RSloane
RSloane's picture

Wasn't it Maduro who recently said "Trust me I'm a socialist, I know what I'm doing?"

Sun, 02/16/2014 - 15:06 | 4442503 Keyser
Keyser's picture

Much like when a redneck shouts, hey Bubba, hold my beer and watch this!!! You know it won't end well, but it will be entertaining... 

 

Sat, 02/15/2014 - 00:12 | 4438771 RafterManFMJ
RafterManFMJ's picture

One of Ghana's most prominent economists says that the economy of Ghana will crash by June if something dramatic is not done.

Hee Hee Hee

I've read the entrails of the goat, and the signs portend a 10 billion taper in March.

Sat, 02/15/2014 - 03:53 | 4438996 Villageidiot777
Villageidiot777's picture

No worries, Chinese are helping them out. Chinese are going to make Ghana the biggest open pit mine and after they are done, farmers of Ghana just need to fill the hole with land and start farming. Worrying about fresh water, pollution, erosion, lack of everything can be done afterwards.

Sat, 02/15/2014 - 08:43 | 4439098 Semi-employed W...
Semi-employed White Guy's picture

Ghana has an economy?

Sat, 02/15/2014 - 14:52 | 4439858 Matt
Matt's picture

They have resources ... lots of gold I think.

Sat, 02/15/2014 - 00:56 | 4438857 boogerbently
boogerbently's picture

Same with WalMart.

Unions want businesses, workers DON'T want unions.

They vote them down every time they get the chance.

Sat, 02/15/2014 - 02:03 | 4438916 Ward no. 6
Ward no. 6's picture

i worked at walmart once and after getting hired one has to sit through lectures of why unions are bad....

i thought it was really strange that they would do this

workers are against them there cuz they are afraid to go vs. what walmart wants...

at least that is the way i saw it

 

Sat, 02/15/2014 - 02:06 | 4438923 -NaN-
-NaN-'s picture

You dont need a union to quit your job if you dont like the way they do things.  If enough people quit, then they have to up their standards to keep their workers around.  And if Walmart is the best you can do for yourself, who's fault is that?

Sat, 02/15/2014 - 02:24 | 4438942 Ward no. 6
Ward no. 6's picture

i worked there for 2 months xmas time for xtra money while i had a full time job somewhere else....

 

Sat, 02/15/2014 - 09:43 | 4439159 imapopulistnow
imapopulistnow's picture

1)  The nation needs more people like you.

2) Something needs to be done to increase the take home pay for people like you (without screwing up the economy in the process)

Sat, 02/15/2014 - 13:07 | 4439553 zjxn06
zjxn06's picture

Good for you Ward #6. Better than being a parasite and sucking off the government teet.

One Christmas holiday, between semesters at college, I worked for Manpower (temp agency) to earn some quick coin.

They told me to show up at a location in town.

Turned out to be an abandoned 7-11.  Greek guy had bought it and was going to convert it to a greasy spoon.

Our job was to break out portions of the concrete foundation so he could re-route plumbing for his new restaurant.

It was 20 degrees outside - and 20 degrees inside.  No heat.  Greek guy gave us all 8 lb sledge hammers and told us to go at it.

By lunch time I was the only guy still swinging a hammer.  The other three guys - winos - just dropped their hammers and left.

Each day new guys would show up, but after a few hours they were gone.

Was able to finish the job by myself by the end of the week.  Afterward, Greek guy offered me a job to come work for him as manager.

Chose instead to continue college and get my engineering degree.

Hard work, tenacity and integrity still pay off.  Unions are apposed to all three.

Sun, 02/16/2014 - 03:22 | 4441600 jeff montanye
jeff montanye's picture

hee, hee.  corporations, governments, unions all had excellent reasons to come into being and much good work was done.  looking at the current manifestations one can be forgiven for thinking some metamorphoses may need to occur.

Sat, 02/15/2014 - 10:09 | 4439183 Accounting101
Accounting101's picture

Oh, the Oligarchs just love you.

Sat, 02/15/2014 - 02:56 | 4438960 Muppetrage
Muppetrage's picture

If an american builds a factory in china is he a commie lovin, traitor exploiting the poor or is he a union bustin, freedom lovin, randian hero?

Sat, 02/15/2014 - 06:58 | 4439027 ParkAveFlasher
ParkAveFlasher's picture

False dichotomy.  He is neither of those two choices.  He is simply toeing the globalist line.  From what I've seen of Chinese commercial goods, one gets what one pays for.  Chinese suppliers know precisely how to price their offerings, usually a few cents per unit lower than any American or European can offer at rock-bottom, at-cost, or regulation-skirting terms.  Sure, we can sell you that for less.  How many you need?  If there is one certainty in life, it's that you get what you pay for.

Sat, 02/15/2014 - 09:50 | 4439166 imapopulistnow
imapopulistnow's picture

China will give you the land to build on, will permit your plans overnight, will give you favorable tax treatment, will not impose excessive regulatory requirements and will offer low cost, quality labor.

A factory can be up and running in less than a year.  Here, that same factory would be about 1/3rd through its permitting process after a year.

Any company that does this is simply responding as they must.  One can piss and moan about how they should be socially responsible, but it is a competitive jungle out there and the ones who do not constantly strive to improve their competitive position will not be around for very long.

Sat, 02/15/2014 - 10:57 | 4439252 Muppetrage
Muppetrage's picture

Ok since you see human beings as a commodity, ask yourself honestly if you would encourage your adult children to work in a Chinese factory if it was their only prospect for work.

Sun, 02/16/2014 - 15:13 | 4442525 Keyser
Keyser's picture

If it were a mattter of survival, what would you do? At some point reality wins out over moralistic principals. 

 

 

Sun, 02/16/2014 - 03:30 | 4441606 jeff montanye
jeff montanye's picture

if you believe that "if there is one certainty in life, it's that you get what you pay for" you clearly haven't been investing enough money with bernie madoff, jon corzine, jamie dimon, goldman sachs generally....

probably didn't contribute less than $1,000 to the first obama campaign either.

Sat, 02/15/2014 - 07:02 | 4439028 Rafferty
Rafferty's picture

Good question.  My own response would be that were his native country to enable him to undertake his business without undue interference he'd be the former.  In the current climate, what with AA, OSHA and every other kind of impediment to excellence I'd say he'd be the latter.

Sat, 02/15/2014 - 09:53 | 4439167 imapopulistnow
imapopulistnow's picture

You nailed it.

Sat, 02/15/2014 - 10:06 | 4439181 Accounting101
Accounting101's picture

He nailed his stupidity.

Sat, 02/15/2014 - 10:05 | 4439179 Accounting101
Accounting101's picture

Right, he will build it China because of OSHA. Not because he can pay a Chinese girl 5 cents a day with no absolutely no benefits. You're a dumbass. It's because of economic illiterates like you that we are economically dying. Your idiocy perpetuates the power of the Oligarchs.

Sat, 02/15/2014 - 10:28 | 4439211 theliberalliberal
theliberalliberal's picture

the 5c a day is bullshit.  those days are gone.

a skilled welder gets about $400 a week.

sure he's worth $1400 a week in a developed nation,   and sure you can pay only $150 in indonesia, 

but people dont use indo that much (although Batam is getting more and more work) coz China works start their shift the second the bell rings.  

source: welding inspector in australia going over a client supt.

 

 

Sat, 02/15/2014 - 15:27 | 4439966 Colonel Walter ...
Colonel Walter E Kurtz's picture

But I need you to understand something...OSHA never stops regulating (as well as every other government agency). They have long ago taken care of the obvious big issues and now are regulating down to minute levels. Their job depends on continually finding new issues that only they can solve. These regulations are just like most of our criminal laws....everyone can end up being a criminal because everyone is breaking laws. It is only a matter of time until your local friendly regulator comes around and examines your actions with a fine tooth comb for violations (ever hear of the EPA nightmares) . Trying to comply is costly and if OSHA had there way, nothing would get done because you would one safety person per one productive worker.  It has gotten to the point (not just OSHA regs) that to survive you must ignore regulations at your own peril. Hence if you can escape them by going outside the country.....that is exactly what you do.

Sun, 02/16/2014 - 15:17 | 4442541 Keyser
Keyser's picture

Economic illiterates, really? Then why has the majority of manufacturing been offshored from the US over the last 30 years? Me tinks you protest too mutt due to you belief that Americans and the US is exceptional... That moralistic turpitude, plus $4 with get you a cup of Joe down at Starfucks... 

 

Sat, 02/15/2014 - 09:08 | 4439112 falak pema
falak pema's picture

if he twerks his pecker to the left he is a commie if he twerks it to the right he is an Ayn Rand addict. 

If he jerks it around like a helicopter blade he has to be a neo con plant who is saying its time to bomb the Manchurian candidate. 

I think we should ask Miley to act as Olympic games judge, she knows all about twerking n jerking off. 

Sat, 02/15/2014 - 11:58 | 4439381 Sven Sikztu
Sven Sikztu's picture

no he is a moron building something he will never actually OWN. As a great woman once said, if you can't stand in front of it with a high powered rifle you don't own it!!

Sat, 02/15/2014 - 13:20 | 4439607 HL Shancken
HL Shancken's picture

That great Woman is Ann Barnhardt and she makes the rest of us look like government shills by comparison. Everyone in the country needs to know who she is and what she stands for, because she's on the road to matyrdom. Her arrest and detainment at some future date should be the tipping point, the catalyst, for the real start of the counter-revolution, but that will only happen if the word is spread right now.

Sat, 02/15/2014 - 14:44 | 4439835 Brit_Abroad
Brit_Abroad's picture

Yup

A bit too much Religion for my tastes, but by God she has a big pair of Brass ones.

If 1% of American males were like her it would be game over already for the PTB.

Sat, 02/15/2014 - 08:10 | 4439065 Drifter
Drifter's picture

"Every empire has fallen in exactly the same way."

Yep, slow and boring, not a "flash crash" we'd all like to see.

Our slow boring demise "officially" began in 2008 when Fed really cranked up the presses.

An empire dies as the currency dies, our currency started dying in 2008, it won't die overnight, it's taking years obviously.

They're doing an admirable job of covering up our slow currency collapse, but you see it if you look at multi-year trends, like USD losing half its purchasing power since 2008.  Half.  50%.  Why prices of food and gas have doubled.

If it happens slowly people don't notice it much.  So the key is keep it collapsing slowly, over years. 

It works until some outside force causes a sudden collapse.  Some outside force beyond their control.

Sat, 02/15/2014 - 09:53 | 4439168 Abi Normal
Abi Normal's picture

LOL, you mean the $ has lost a whopping .02 cents of it's .04 cent value since 2008?  Spare me, the $ has been crashing since 1913, or there abouts. 

2008 was just a big as bubble bursting, you know, housing prices will never go down kinda thought, just like it will happen to the stawk mkt, etc...

We live in the twilight of human civilization right now, the thin veneer holding our society toghether is being finished off as we speak, yet all we do is pound sand, or our keyboards....apathy is the silent killer of America.

You can't blame the American people too much, the uneducational system here has dumbed us down quite effectively...just read the Congressional record from 1963 to see where the scorecard stands...the commies are just about done with us now.

I guess I will die a free man, because I will never live on bent knee to a tyrannical govt, like the one we have now.  Will it be the roving gangs, or the MIC that gets me, or will it be the anarchists?  I will say this, either way, you better bring a fucking army!

Sat, 02/15/2014 - 09:58 | 4439172 imapopulistnow
imapopulistnow's picture

I got my Daisy Repeater locked and loaded.

Sat, 02/15/2014 - 10:43 | 4439226 Abi Normal
Abi Normal's picture

LOL, you got the right idea, but the caliber wrong...pssst, think a tad bigger!

Sat, 02/15/2014 - 09:59 | 4439174 ncdirtdigger
ncdirtdigger's picture

Not to be too critical, but the debasement of our currency began long before 2008. Trickie Dickie was clipping gold coins back in the 70's.

Sat, 02/15/2014 - 12:57 | 4439532 tempo
tempo's picture

As long as equity prices move higher, no one believes there are problems!! Its all quite simple for the .01%.

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