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20 Signs That The Global Economic Crisis Is Starting To Catch Fire
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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I don't see markets going up 1%+ per day for over a week straight to new highs on that list.
Markets going straight up without a downtick is bearish right guys?
...guys?
no definitely bullish - hope you bought as much as you could today on margin
Selling at the money SPX naked puts counts right? I hope so, I hedged it with some short at the money naked calls in UVXY to be on the safe side so I should be 'aight.
Oh! What difference does it make! I want to be the first 'female' President...dang it.
Wake me up when THEY take 10-90% of my money in the bank. Then, and only then will there be blood in the streets of Amerika.
Amerika? ?Money in the bank? Whaaa? Amerikan's don't have money to place in a bank. They don't have enough money in their account to survive a weekend without complete collapse, let alone a bail in of 90%. 90% of what? Shit, they're shooting each other in North Carolina for a can of beans because they had snow in winter.
If we have a sleight "glitch" with EBT rations, big cities in the US will burn to the ground within a week.
Hey, at least they'll be warm.
Long 55gal drum trash can fires
The day EBT cards quit working is the day the blood flows.
Yeah, it'll be your blood. Internet gangster.
"Internet Gangster", love it!
Keep on consuming. THEY have already taken way over 100% of your money, now it's just a game of ponzi. Will you keep your money in the bank in case you can make some extra before SHTF or would you rather cash out now and be safe? NO, you will keep your money in the bank, because human is a greedy cunt.
TBH I'm doing the same. I'm waiting for gold to become just a little bit cheaper, just because I'm a greedy cunt like the rest of my species.
you could be waiting for a while.
I'm gonna write my papers for school like this dude.
23 REASONS THAT 19TH CENTURY CHINA REMOVED FOREIGNERS
#11 China appears to be very serious about deleveraging.
Doesn't anbody understand that the buying of Gold (and Silver) Bullion is the only safeguard against the results of the Global Banker instigated collapse?
Just in case you are not convinced, China certainly does.
Banker corruption and racketeering wrought through their eager servants of politicians, bureaucrats and economists, etc., have brought this about while the CEOs' of the TBTF are just looting the system like the gangsters they are.
The final Race of the Epoch, is with us; the final stretch and the Trotskyites aka neocons aka Zionist Israel, are desperate to get the #TPP (and its cousins) into full play so that Global Totalitarianism, Bolshevism and Fascism can rule Supreme under "their" command, just like they did under Lenin in the 1917 October Revolution in Russia (Hail Trotsky). And that ended with >50 Millions ++ murdered. (The one thing that Stalin should be well remembered for was having that Ice-Pick placed firmly into Trotsky's head!)
http://verbewarp.blogspot.com.au/2013/02/waiting-to-die.html
Buy Gold (and Silver) Bullion - not paper. As Krugman says Fiat is backed by guns; this is "Economic Theory" along with "Political Expediency". This is the values that "they" expect you to embrace.
Survival has now become the issue du jour.
Ho hum
This collapse needs to happen tomorrow. I'm sick of this wait-and-see regarding armageddon.
*malaise sigh*
the question is, like all frauds or fads, there is no telling how long it will take to collapse. This will still go on for a while (maybe).
The ever increasing rate of bankers being suicided, civil disobedience, and currencies imploding around the world indicate it won't be too much longer...
Oddly enough, this morning on NPR's Morning Economic Report, the news flash was of the European Union's economy picking up speed in it's recovery with growth no fully on track, thus markets could be seen as bullish on Europe. Or at least that was their report, along with more good news on US housing market, which as we all know is a wealth effect multiplier.
Yes, NPR, the left head of the two-headed hydra of disinformation and distraction.
God Bill and melinda gates edutopia and chairs in "true black"
#21 Simon Black no longer has any recommendations for places to offshore your gold.....
One question. "Why in almighty fuck, should India be in a panic over what the US Federal Reserve is doing by way of taper"? Unless, the US Fed is also bankrolling Indian failed banks as well as the bankrupt US banking system.
One Bank to rule them all, One Bank to find them,
One Bank to bring them all and in the darkness bind them.
Because a lot of the Fed's QE money printing has been invested in EMs?
And the Fed's tapering is causing that hot money to leave?? See Brazil et al.
"The unemployment rate in Australia has risen to the highest level in more than 10 years."
Yeah we hit a whopping 6%!! Notice how he includes the figures for other countries but conviently leaves Australias out? It's not all rainbows here but I'll sure as hell take it over other options.
Indian government should just get rid of the ridiculous gold tariffs.
The rupee then gets crushed, inflationary spiral takes place.. political violence ensues....
Not important. Smuggling is rapidly coming up to speed to meet demand
Max you must remember that Wall Street controls the US. The problem started in 1998 with Bill Asshole Clinton repealing the Glass Steagler Act. Immdly after you had the 2000 crash and then the 2008.
They have had access to no cost money. Not even printing costs as money is now put into the system digitally. Thw rold eyes are opening now and slowly.
The collpase effect when it comes is likely to take everyone by surprise. Till then it may appear as business as usual for you and others.
The scene is mathametically unsolvable. As also preactilcally of course.
The real good news is the price of 5.56x45mm and especially 7.62x39mm ammunition has gone down!
Ah, good re AK ammo. BTFD!
They'll be giving them away one at a time, free.
Why do you suspect the central planners are letting us buy all those guns and ammunition? Looking at the proposed legislation and proposed executive orders, it would appear that the administration looks on this with considerable alarm. Some of the elites in Washington would very much like to disarm the body politic. I believe the large purchases of ammunition and military hardware by various federal agencies is an attempt to prepare for economic and social collapse. I suspect the only reason the Administration has not attempted mass confiscations within the population is that it fears sparking another Concord and Lexington.
If you read the Death of Money, you will find that desperate city dwellers went Mad Max and looted the countryside during the collapse.
When there is not enough, it always devolves down to us versus them, whoever the them might be. Having read Becoming Evil, I have no doubt that the racial and regional hatreds would spiral out of control during a collapse. The resulting chaos would produce a level of ethnic cleansing the Rwandans could barely fathom. Imagine a nation where the cities are almost completely abandoned to the national minorities and the national majority has fled to the hinterlands.
It should be remembered that during the Rwandan genocide, the Hutu killed more people in a shorter period of time with machetes than the Germans were able kill with their mechanized death factories. They were able to perpetuate this madness because the targeted population was unarmed.
If the statists in Washington were to realize their dream I suspect the death toll in the event of collapse within the cities and surrounding countryside would be unimaginable. Can you imagine what it would be like to be unarmed and the local minority in Atlanta after systemic collapse?
Inasmuch as considerable portion of the population both within the minority and the majority are well armed I suspect the level of violence in the event of collapse will be much lower than it would have been in a less well armed society. The 20th century is replete with examples of unarmed populations being wiped out both in Europe and Asia.
Should the looting and home invasions start, I have little doubt the locals would band together and provide their own security. Look at what is happening in Mexico with the rise of local militias. Here in the United States, Mad Max marauders and genocidal mobs would have a short life expectancy facing our heavily armed population.
Could it be that the central planners have come to realize the old maxim that a well-armed society is a polite society and inherently much more stable?
Just bought another 4K of 7.62 @$330 shipping included. Local ammo plant is in full production of 5.56 and worker told me the HLS order has been finished 4 months ago. the 5.56 is not moving, so I expect it to drop in price and Union Metalic stock to start a down trend shortly!
Just dropped in for some "doom porn" and found just the average shit today!
Just bought another 4K of 7.62 @$330 shipping included. Local ammo plant is in full production of 5.56 and worker told me the HLS order has been finished 4 months ago. the 5.56 is not moving, so I expect it to drop in price and Union Metalic stock to start a down trend shortly!
Help me out here.
WHY do you (some) of you continue to buy ammo that will not work on the Goon Squads without VERY precise shots(which will be rare?).If it's for home protection from local animals I get it, point taken.But a TL IV vest(that they ALL wear will stop the rounds your buying "easily". You need to up grade your thinking and weaponry,IF your buying for DUAL pupose use.
When China has enough gold, the game is over.
When China's navy is ready, the game starts.
Crap man.. Just get it over with. The suspense is freakin killing me. Bring this muthafucka down now! Flush the shit down the black hole...reset the debts, write off the toxic assets, buy gold, throw the corruption out the windows.
If we survive this, the world will be better off.
No more suspense then. It WILL be much BETTER. You'll be ok. Peace.
http://www.thewarningsecondcoming.com/messages/all-messages/
< y a w n >
More of Michael Snyder's crap. Because we can never get enough generalized, ad nauseum "warnings" about the sky being about to fall by a totally unqualified attention-seeker.
It's disappointing to see ZH leaning so heavily on this asshat's blog.
Snyder is like John Wesley Rawles and uber-Catholic religious zealot FerFAL: NO qualifications, just a lot of time on their hands, a bloated ego, and a throng of 70 IQ true believers hanging on their every redundant word.
Is there nothing else out there to post here?
Pessimistic porn at its finest.
Here is some news, Ingrate:
For Sale: Spy Agency
https://baltimore.craigslist.org/off/4330071523.html
Is that a Federal building?
Follow the bouncing ball:
Why do they need a stazi security state with eyes and ears in every home and car?
Because they have and are doing very bad things and need to shut you up at the first sign of understanding or insightment to action. "They don't care if you know, they do care how serious you are about it."
Why hasn't the market gone done?
Because of the Fed's Trading Operation. It is a distributed platform running an economic model in supercomputers. Like ripples on a pond: inputs and outputs. Sad fact is the people running it are stuffing money in their own pockets as fast as they can. This is one of the "very bad things" they are watching for you to care about.
the quote:
"They care how much you care."
It's a big shit sandwich and we all have to take a bite.
"Burn baby burn! Disco inferno!"
We can only hope so; fucking Ponzi.
Keep your positions small. Get short and stay short.
Banksters are trying to rebalance by short squeezing because their traditional bagholder strategy isn't working.
If you stay small and short and hold the position, banksters are fucked and this market will roll over.
What happened ZH was it taken down?
Right. I could not load ZH for the past few hours. Not just me...
How about some careful research instead of Synder Fear Porn?
Maybe IT is about to blow, but I want straight facts w/o flavoring.
We're fucked....are TV test patterns broadcast in HD now?
catch fire did you say?
Its freezing cold in NY isn't it?
Is ZH now becoming a climate change denier?
Imagine that we now discuss causality of FED's actions on the world financial system as if we all had suffered memory loss since 2008...
Consequences; the real question is : is the 2013 mini spring in Eurozone, like thawing at Sochi, along with the floundering of EM elsewhere, a sign that the world economy moves out of DISINFLATION or is it a sign of coming mega deflation...?
Does the slowdown in EM mean we get some controllable reset in those over-hot markets that need to cool, all the while Euro zone licks its wounds and stabilizes its fall into deflation by a sustainable growth trend even amongst the deflated PIIGS?
Big questions to ask the FED cabal pulling all the QE strings in DC under the control of the Oligarchy gun of US big business.
Is mega deflation coming... or can we stabilise this monster... is the only question in financial global village!
I think markets are facing strong deflationary headwinds this year but central banks and governments will no doubt eventually overshoot and we end up with very high inflation.
If you are wrong which is worst to be prepared for inflation or deflation? Central banks and governments will not stand an extended period of deflation but I do think they like having a threat of deflation firmly planted in the minds of market participants. The threat of deflation gives credibility to their confidence game.
200 years of oil supply stored in the US? If you have 25 000 000 barrel per day consumption rate, a 200 year supply is going to be 1.8 trillion barrels of oil or about 60 percent of the world's known oil reserves.
You are completely out of your mind to believe any such notion.
Why would anybody be so stupid to store oil for 200 years when all you need to do is let it sit in the ground in its natural pools and then drill for it as is needed and time goes by?
One trillion kilometers cubed would be 10 000 km x 10 000 km x 10 000 km, or a cube the size of the earth sans the arced spheroid quadrants outside the cube's sides.
One km cubed would be 1 000 000 000 cubic meters. One cubic meter has 6.29 barrels of oil. 16 cubic meters are going to have 100 barrels of oil.
1 billion divided by 16 times 100 is going to be the total number of barrels in one km cubed.
The answer is 6.25 billion barrels of oil in one kilometer cubed.
If there are 3 trillion in known reserves, then there will be 480 cubic kilometers of oil existing on the earth.
3 000 000 000 000/6 250 000 000 = 480
480 cubic kilometers of known oil within a cubic space of more than 1 trillion kilometers cubed is a glitch in the earth's timeline of its entire existence. A mere blip.
In a long enough timeline, there is no oil.
Life goes on.
Irrelevant and dumb.
But wait a sec...even the NPR economist said on the radio last night despite plunging manufacutuing....sinking housing sales....tumbling retails sales....."we'll need to wait and see what happens the next few quarters b/c all this bad news may be simply due to the weather."
...even NPR. Shameful.
The true extent of slowdown in the world economy can be judged by the data points which are not subjected to adjustments by the government. Eg. Change in Electricity and Fuel consumption, Ratio of working population to the total population of a country, Miles driven, Baltic Dry Index, Change in commercial Rental Rates etc.
There is no economic recovery because all the efforts of politicians, government, central banks etc are focused on saving banks instead of targeting job creation which is the only way economy can recover.
The weakness in the democratic process ensures the victory of the Wall Street over the Real Economy for the foreseeable future. Things are definitely going to get much much worse before they get better for the real economy i.e. for more than 90% of the population.
www.marketoracle.co.uk/Article40231.html
I read thruogh a good number of comments on this thread. As always you ZHers are interesting and fun.
At the risk of being annoying and a bore, please let me point out the fact yet again that if you are viewing this as an economic collapse, you are missing the "real" engine of collapse.
We are in an incipient SOCIO-economic collapse. The deterioriation of the social compact especially in the developed world is being driven by population and technology. (The curves are virtually identical) The economic turmoil is really only a symptom of the social collapse. This is going to be much bigger and much more violent than anybody believes.
Stock up on TP, cigarettes, and booze...
;-D
Don't forget Zoloft and the likes.....a staggering number of Americans are on it.....gonna be worth a fortune on the black market.
Y'all stock up on TP, smokes, and booze. Don't worry about ammo. Your women will be mine! MUWAHAHAHAHA!
LOL TP. Better start learning to wash your ass with a cup of ditch water.
Koos Jansen: January Chinese Gold Demand All-Time Record, 247 Tons
Koos Jansen reports on continued unprecedented appetite from China for Gold, according to his information, after the unprecedented demand of 2,181 tons of Gold from China in 2013 Chinese Gold demand hits All-Time record of 247 tons in January. Now Gold today's breakout above $1,322 level can be put in another perspective.http://sufiy.blogspot.co.uk/2014/02/koos-jansen-january-chinese-gold-dem...
A lot of people commenting to slag down Mr Snyder and his gloom and doom.
But the truth is that the fears he raises today and other times are very real.
But who knows how important any one of them is to keeping the whole show on the road?? I certainly don't.
Seems to me the whole global financial system is weighed down by massive amounts of unsustainable and unrepayable debt and it resembles a giant ring of dominos. If any one of them falls over, then it's curtains and good night.
We are led to believe that the actions by the IMF and central banks are intended to prevent one single domino falling over and you take your pick whether you think they are right, wrong, plain madness or just kicking the can down the road.
I do not think anyone of us would disagree that the financial weight of debt on world economic systems is about to break the camel's back. His formula is the same for his articles, but if that awakens a few from the Sirens song of American bread and circus, so be it. It will give us, the awakened, a few more friendlies instead of roaming zombies of the horde to fight off.
OT/ But relevant to Oligarchy rule/
Here is a direct rebuttal of the neo-Statist thesis that current Obammy administration is NOT a continuation, a FALSE NOSE, for the Neo -con Bush Oligarchy, making the red blue divide a false dichotomy in terms of helping the ONLY AGENDA that counts : the vital strategic interests of US Oligarchy big business :
Obama Lame Duck Watch: Pelosi Puts Another Nail in Toxic Trade Deal Coffin, Says She Opposes Giving Administration "Fast Track" Authority | naked capitalism
These trans atlantic/pacific trade deals are meant to shape the future dominance of Private corporations over nation state legislation by making "intellectual" and "property rights" override national legislation about social/environmental/toxic content of Oligarchy transnational product dissemination on a global basis, imposing huge fines on all nations who would subsequently balk the treaty fine print.
"What's good for Google, Yahoo, Apple, Facebook, Monsanto, Big Pharma, Big Oil lobbies is good for both US and consumers world wide."
Who can argue with such one way only hegemonic logic.
#21 Another "Collapse by Numbers" blog.
Plenty of gasoline sloshing around the global necronomy. Cremation can't be too far behind.
Have we been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years? This is a key question we must face. Have these actions really worked or merely masked over major flaws and problems? By not demanding the right kind of growth and by throwing money at problems we have only delayed and added to festering issues that face us in the future. In this fast moving world many people have come to think if it doesn't happen today or in the next few weeks it is simply not going to happen at all.
Getting the timing right on when things will get nasty is difficult. Those in power, the politicians, central bankers, and the infamous one percenters have often appeared to have painted themselves into a corner but they also have super powers that allow the constant creation of new exits. Pray tell what, you might ask. The power of the pointed finger and the placing of blame should never be underestimated for they are indeed magical. More below on why we should not grow to complacent,
http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complace...
Where is the evidence that China is deleveraging? They bailed out the tiny credit=gold#1 trust a few weeks ago. That is not the actions of a country that decided to prick the bubble.
Can't see it coming from my house
-Cleetus
unemployment is not an economic crisis. little people don't count. it's not even a political crisis. "they" will change puppets around to placate the sheep but "they" own the system and any crisis is artificially manufactured just for show to achieve certain ends. there is no market, there is only old yeller.
They have to eliminate the excess worker inventoy to make room for automation, a nice world war just ought to do the trick...
Didn't they shoot "old yeller"?
not until the end
Don't worry, everything is fine. Go back to your consumerish type thing and take out loans and get deeper in debt. Don't buy gold, just trust us. The great and powerful Oz has spoken. Pay no attention to that man behind the curtain.
http://www.youtube.com/watch?v=YWyCCJ6B2WE
This all sound bullish to me in the new normal. Lever up and go all in.
20 reasons that markets will move higher
20 x 200 = 4,000
16,000 + 4,000 = 20,000
So, your saying Dow 20,000?
I'm not worried.
20 million illegal aliens to eat if things get rough.
Hunger Games, life imitates art...
Hedge wisely.
No problem here. "They" will just reset all financials to pre-Blythe and Sarbanes-Oxley elimination levels. The mess will all be cleaned up in a couple of weeks.
June 19th, 2013 mark the date. Bernanke announced the Fed would "start to wind down..." asset purchases.
THen the other date to mark down Sept 18. Bernanke bails and announces NO FED TAPER after watching the markets panic and fielding dozens of CB calls from EM and elsewhere.
Last date to remember : Dec 18 Fed announces $5B/$5B T-bills and MBS trim ie EMFH
Yes it will get ugly but USA will still be least Ugly (unless you're Norwegian or Bruneian or something)
"The central bank of India is in a panic over the way that Federal Reserve tapering is effecting their financial system."
That cart before the horse thing, again. It is the QE that is effecting India's financial system. The FED could not taper, if it had not QE'd, first.
YEah, been waiting for the end of times for about 2,000 years.
Wake me up when it comes
*Yawn*
Till then, anyone catch the preview for Game of Thrones? The dragon looks great.