22 Signs That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The Beginning

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

As bad as the month of January was for the global economy, the truth is that the rest of 2016 promises to be much worse.  Layoffs are increasing at a pace that we haven’t seen since the last recession, major retailers are shutting down hundreds of locations, corporate profit margins are plunging, global trade is slowing down dramatically, and several major European banks are in the process of completely imploding.  I am about to share some numbers with you that are truly eye-popping.  Each one by itself would be reason for concern, but when you put all of the pieces together it creates a picture that is hard to deny. 

The global economy is in crisis, and this is going to have very serious implications for the financial markets moving forward.  U.S. stocks just had their worst January in seven years, and if I am right much worse is still yet to come this year.  The following are 22 signs that the global economic turmoil that we have seen so far in 2016 is just the beginning…

1. The number of job cuts in the United States skyrocketed 218 percent during the month of January according to Challenger, Gray & Christmas.

2. The Baltic Dry Index just hit yet another brand new all-time record low.  As I write this article, it is sitting at 303.

3. U.S. factory orders have now dropped for 14 months in a row.

4. In the U.S., the Restaurant Performance Index just fell to the lowest level that we have seen since 2008.

5. In January, orders for class 8 trucks (the big trucks that you see shipping stuff around the country on our highways) declined a whopping 48 percent from a year ago.

6. Rail traffic is also slowing down substantially.  In Colorado, there are hundreds of train engines that are just sitting on the tracks with nothing to do.

7. Corporate profit margins peaked during the third quarter of 2014 and have been declining steadily since then.  This usually happens when we are heading into a recession.

8. A series of extremely disappointing corporate quarterly reports is sending stock after stock plummeting.  Here is a summary from Zero Hedge of a few examples that we have just witnessed…

  • SHARES OF LIONS GATE ENTERTAINMENT FALL 5 PCT IN EXTENDED TRADE AFTER QUARTERLY RESULTS – RTRS
  • TABLEAU SOFTWARE SHARES TUMBLE 40 PCT IN AFTER HOURS TRADING – RTRS
  • YRC WORLDWIDE SHARES DOWN 16.4 PCT AFTER THE BALL FOLLOWING RESULTS – RTRS
  • SPLUNK INC SHARES DOWN 7.6 PCT IN AFTER HOURS TRADING – RTRS
  • LINKEDIN SHARES EXTEND DECLINE, DOWN 24 PCT AFTER RESULTS, GUIDANCE – RTRS
  • HANESBRANDS SHARES FURTHER ADD TO LOSSES IN EXTENDED TRADE, LAST DOWN 14.9 PCT – RTRS
  • OUTERWALL SHARES FALL 11 PCT IN EXTENDED TRADING AFTER QUARTERLY RESULTS – RTRS
  • GENWORTH SHARES DOWN 16.5 PCT AFTER THE BELL FOLLOWING RESULTS, RESTRUCTURING PLAN

9. Junk bonds continue to crash on Wall Street.  On Monday, JNK was down to 32.60 and HYG was down to 77.99.

10. On Thursday, a major British news source publicly named five large European banks that are considered to be in very serious danger…

Deutsche Bank, Credit Suisse, Santander, Barclays and RBS are among the stocks that are falling sharply sending shockwaves through the financial world, according to former hedge fund manager and ex Goldman Sachs employee Raoul Pal.

11. Deutsche Bank is the biggest bank in Germany and it has more exposure to derivatives than any other bank in the world.  Unfortunately, Deutsche Bank credit default swaps are now telling us that there is deep turmoil at the bank and that a complete implosion may be imminent.

12. Last week, we learned that Deutsche Bank had lost a staggering 6.8 billion euros in 2015.  If you will recall, I warned about massive problems at Deutsche Bank all the way back in September.  The most important bank in Germany is exceedingly troubled, and it could end up being for the EU what Lehman Brothers was for the United States.

13. Credit Suisse just announced that it will be eliminating 4,000 jobs.

14. Royal Dutch Shell has announced that it is going to be eliminating 10,000 jobs.

15. Caterpillar has announced that it will be closing 5 plants and getting rid of 670 workers.

16. Yahoo has announced that it is going to be getting rid of 15 percent of its total workforce.

17. Johnson & Johnson has announced that it is slashing its workforce by 3,000 jobs.

18. Sprint just laid off 8 percent of its workforce and GoPro is letting go 7 percent of its workers.

19. All over America, retail stores are shutting down at a staggering pace.  The following list comes from one of my previous articles

-Wal-Mart is closing 269 stores, including 154 inside the United States.

-K-Mart is closing down more than two dozen stores over the next several months.

-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.

-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.

-The Gap is in the process of closing 175 stores in North America.

-Aeropostale is in the process of closing 84 stores all across America.

-Finish Line has announced that 150 stores will be shutting down over the next few years.

-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.

20. According to the New York Times, the Chinese economy is facing a mountain of bad loans that “could exceed $5 trillion“.

21. Japan has implemented a negative interest rate program in a desperate attempt to try to get banks to make more loans.

22. The global economy desperately needs the price of oil to go back up, but Morgan Stanley says that we will not see $80 oil again until 2018.

It is not difficult to see where the numbers are trending.

Last week, I told my wife that I thought that Marco Rubio was going to do better than expected in Iowa.

How did I come to that conclusion?

It was simply based on how his poll numbers were trending.

And when you look at where global economic numbers are trending, they tell us that 2016 is going to be a year that is going to get progressively worse as it goes along.

So many of the exact same things that we saw happen in 2008 are happening again right now, and you would have to be blind not to see it.

Hopefully I am wrong about what is coming in our immediate future, because millions upon millions of Americans are not prepared for what is ahead, and most of them are going to get absolutely blindsided by the coming crisis.

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Father Thyme's picture
Father Thyme (not verified) Feb 5, 2016 9:03 PM

<---We've only just begun.

<---White lace and promises.

Truther's picture

What about the geopolitical tensions in the ME. Saudi and the Turks are about to invade Syria.

Long lead, brass, gold, food, and.... Popcorn

Dostojevskij's picture

long ice creams, more safe.. and screamin conspiracy guys of course.. they are gonna roll the money!

Father Thyme's picture
Father Thyme (not verified) Dostojevskij Feb 5, 2016 9:19 PM

Screamin' Conspiracy Guys sounds like a great band name.

zeronetwork's picture

World is so poor that there is no place left for US to rob.

Chupacabra-322's picture

Laughable at best. The number one & only reason you'll need is the following:

1. Its a Criminal False Economic Ponzi System of Fractional Fiat Currency of Debt Bondage & Enslavement.

38BWD22's picture

 

 

That very low Baltic Dry Index is something that I follow somewhat closely.  At 297 now, down something like 95% off its all time highs.  HOW it interacts with other components of the world economy, I cannot say, but it DOES show that bulk commodities are in the tank.  And that ain't good.

stockcharts.com has the easiest way to track the BDI, type in ticker $BDI.

Arnold's picture

You think that at least a couple of the 'Masters of th Universe' types recently laid off would foment a revolution, or start a Boy Band or something.

August's picture

If Marco Rubio can't save us...  no one can! 

 

PS  Marco Rubio can't save us.

Scooby Dooby Doo's picture

"The Euclidean" --Jean Dubois

"Oh I'll find you alright. You think never but have no idea that the 4th dimension will lead me right to you.

One night you will arrive home, fumbling for your keys and a bad man will blast out of the dark shadows. He kills with his hands, weapons are thought of as weakness.

His hands are upon you."

Scary scary reading! No scary reading materials on ZERO Hedge.

MASTER OF UNIVERSE's picture

....and beer & potato chips.

SgtShaftoe's picture

Organic popcorn that you grew in your own garden that wasn't contaminated with GMO corn.  We don't need to get breast cancer while we watch the shitshow. 

Croesus's picture

"because millions upon millions of Americans are not prepared for what is ahead, and most of them are going to get absolutely blindsided by the coming crisis."

I hope they do get blindsided, a good culling would go a long way towards fixing the problems. 

The unprepared FSA crowd, and the "do nothing but complain" minorities will be the biggest losers, and when they lose their collective minds, they'll be out on the streets keeping the gubmint goon squads busy. 

Fun times. 

 

Scooby Dooby Doo's picture

We must reverse all of this negative thinking about our economy. There is plenty of goodness to look forward to. We live in the greatest country of all times. It affords us great comfort. That alone is something positive to think about.

Come on Gang! Let's be happy!

Arnold's picture

Thanks SSDD, there's a dozen soldiers screaming my name from the 'fridge right now!

All  of them begging to be sacrificed before noon.

I am only one man, only a few will be chosen.

stant's picture

Can't be the magic knee grow said everything is fine today

SgtShaftoe's picture

NPR admited today that there have been a spike in newly unemployed but the unemployment rate is only 8%! yeay!!  They don't tell you that people fall of the rolls and we are right smack in the middle of an event the scale of the great depression.  I wonder how they're going to spin it when the primary crash occurs?

Citxmech's picture

OMG - NPR's economic bits are almost as bad as CNBC.  It's like they all drank the KoolAid.

Proofreder's picture

- majic knee grow

- nitwit nigger

E.F. Mutton's picture

The TSLA believers are losing faith and selling - that was a big red flag for me.  That was almost a religious investment amongst the Man Bun/Prius Set.

Dostojevskij's picture

no believers, only money.. that's probably a huge part of the problem we are experiencing.. money comes, money goes

Dostojevskij's picture

of course they do believe something, but its not TSLA, its the bloody money bro

Truther's picture

That's hope and fucking change for ya.

yogibear's picture

All these layoffs yet corporations and Obama keeps flooding the country with H1Bs, L1s and H2 visa holders.

One prime example is Disney and how it replaced Americans with visa holders. Americans need to boycott these businesses.

Truther's picture

Jobs are fiiiine.

Just Fiiiine....

sarc/

Proofreder's picture

 F I N E

Fouled-up. Insecure, Neurotic and Emotional

Yeah, jobs.  USA USA Usa usa  ...   fuckit - walks off with hands in pockets

Winnipegger's picture

The system is dying.

Peter Pan's picture

The system deserves to die. But what really worries me is that people are dying, their hopes are dying as are their savings.

The problem with the system is that its being killing every positive aspect that can come from a world that has plenty of resources, plenty of technology and know how but instead seeks to enrich only those that are involved either in finance, war or politics.

SgtShaftoe's picture

I like the way you think.  You can help your fellow human beings by starting a garden and taking the surplus to the soup kitchen.  The "food" pantry won't take real food unless it has the sign of CON agra, or Nestle on it.  Get local and eat local.  It's important and will be far more important in the coming years. 

lasvegaspersona's picture

The system could bounce back but the dollar must die. Using the medium of exchange as a store of value was wacky...and we have been doing it for a hundred years. Once folks see currency as just a medium of exchange and see gold as the best store of value we can turn arround...the dollar still has to go though.

The Euro, with 10,800 tons of gold on it's balance, marked to market, will survive...barely.

Before this is over we will have a new US dollar. It will be structured like the Euro. As it is now there is no gold at all behind the dollar. Once we see universal free floating currencies and limited intervention in the FOREX markets (using gold) we'll get right again.

Thus say me...

...again..

I usually get down voted (but mostly ignored)....its OK...just get some gold and we can laugh together later.

SgtShaftoe's picture

I don't think so.  I'm with Grant willams on this one.  We wil keep the dolar and be merged with the IMF SDR.  The ignorant masses won't even notice other than the price going up for everything. They may try to delay the incorporation with gold if they can manage it. Even so it won't last very long maybe a few years, but wil then hyperinflate, then gold wil return. 

vega113's picture

The the best possible scenario. But IMO - we will implode a lot earlier. 

MASTER OF UNIVERSE's picture

Entropy kills closed looped cybernetic systems via the laws of Thermodynamics which are universally known all over the World with the exception being one of the Social Science domain of Economics in the Western World. Academic Economists in the Western World Ivory Tower don't like Science so they pretend to know it instead of actually studying it. This is how they achieved the mark-to-fantasy, and Securitization/Financialization, plus the dark pool derivatives universe. Only Western educated Economists believe in bubble blowing Central Planning, Greenspan puts, Subprime borrowing, offshore tax havens, et cetera. These ingredients are necessary to appropriately fudge the books to taste and then spin the numbers at election time.

 

The electorate would never buy the truth, but they sure do like a good bullshit story.

sleigher's picture

Sheeet, and I thought they were just criminals.  You mean they actually believe that crap?

Omega_Man's picture

the auther must be a ball of laughs and a joy to spend time with... he also does info wars interviews 

rhadamanthus's picture

What does Marco Rubio have to do with anything?

swmnguy's picture

 An example of a trend.

DownWithYogaPants's picture

Don't you just want to smash a pie into a guys face when he tries to make a point by saying 

"my wife says .........."  

"I told my wife last weet ........."

Like it is supposed to carry more weight?  I'm sorry but I find women to be even more self centered and simple in outlook.  They are good for some things.  I'm not sure they should have been given the vote though.

Golden Showers's picture

What, an ad for Rubio? I stopped reading there for a sec. This list is three day old shit.

Things are going forward exactly according to plan. Liquidity is being mopped up. The world is being re-tooled for the next planned world war.

The average American ain't going to be blindsided by shit. The average American is ignorant beyond belief.

Is there anyone you know who can provide a good or service to you? Can you provide a good or service to the people in your community?

Shit, getting a goat is more useful than any one of these Iowa chicken shit players. That's what I told your wife last night, Mike.

sleigher's picture

"The world is being re-tooled for the next planned world war."

And a couple generals are saying women should sign up for the draft.  

Victory_Garden's picture
"22 Signs.."

Ah ha!

So that is what was in Hitlery's emails!

22winmag's picture

Precious metals miners will soon take the biggest shit in the outhouse.

 

Gold and silver to the moon!!!!!!!!!!!!

August's picture

Lake Erie through a fire hose!

Doug Casey redeemed!

AR 15's picture

Once they signed NAFTA country was finished ! We don't manufacture anymore ! Every job was exported to slave labor countries ! So you have lazy people who like cheap crap to buy and are on the govts tit ! We are broke and printing money wait til they pull the plug on freebies ! We were de industrialized and our wealth is being redistributed ! We are helpless at this point we import 40 percent of our food and most of our everyday products ! The msm is like the band on the titanic playing your song right til we hit the bottom of the ocean ! The truth is like poetry unfortunately most people hate poetry ! How does is feel to be steerage ?

MASTER OF UNIVERSE's picture

MASTER OF UNIVERSE ain't steerage, dork, got it? And I was raised by a Poet so I have the artistic right to dislike poetry given that I have known a good many Poets over my lifetime. In that time I have only read a couple of poems that I like.

 

Sigmund Freud characterized the artist as an 'incipient introvert pining after the love of women'. Don't forget that the Sigmeister was in Vienna when he formulated that thought.

AR 15's picture

One of my favorite Poems , Suck a WHAT ??

not dead yet's picture

Quit whining and do some research. The US is the number 2 manufacturer on the planet and only surpassed by China a few years ago. Over 50 auto assembly plants and plenty of supplier plants. Over 50% of a Tesla is USA made. Ford F150 the worlds largest selling vehicle over 70%. #4 in steel manufacturing. Caterpillar may be closing a few small plants but they have several large and lot of smaller plants. Boeing and small plane manufacturers employ hundreds of thousands. Plus all those defense contractors and gun makers we're always whining about. Until the recent oil patch carnage a great deal of the equipment was manufactured in Texas. The US is one of the worlds largest exporters of food so to insinuate we are food deficient is ignorant. Foreign autos got a foothold and now a dominate position in the US because years ago Detroit was putting out unreliable quick to rust junk for decades and the foreigners offered a far better alternative. At the same time US electronics were expensive unreliable crap and those "cheap" Japanese and Korean stuff were reliable and attractive eventually resulting in an almost non existant electronics mfg in the US. Textiles and steel started their foreign exodus back in the 60's due to greedy inflexible unions and foreign dumping. Don't blame the consumers for buying cheap crap but put the blame where it belongs on unfair trade deals, government regulations that get even more numerous and draconian every day, greedy unflexible unions, and greedy lazy CEO's more concearned with lining their pockets while pushing junk out their doors or taking the easy way out and outsource rather than put in the hard work to make it themselves. We are going broke because of the constant wars, tax dodging highly profitable corporations paying little or no tax, and freebies to the rich. Those at the botton rungs of society rarely vote and when they do it's because their church got paid off by one of the parties and they exhorted their congregations to get out and vote accordingly, many times they get bussed in, so to say they are voting themselves freebies is nonsense.