Virtually every piece of hard economic data is telling us that the U.S. economy is slowing down dramatically. Many of the pundits have been warning that we could officially enter recession territory later this year or next year, but these numbers seem to indicate that it could happen a whole lot sooner than that. But the stock market has been surging over the last two months, and at this point stocks are off to their best start to a year since 1987, and as long as stock prices are rising a lot of people are simply not going to pay much attention to the economic alarm bells that are ringing. But everyone should be paying attention, because things are really starting to get bad out there. The following are 18 really big numbers that show that the U.S. economy is starting to fall apart very rapidly…
#1 Farm loan delinquencies just hit the highest level that we have seen in 9 years.
#12 In January, sales of existing homes fell 8.9 percent from a year earlier. That was the third month in a row that we have seen a decline of at least 8 percent. This is an absolutely catastrophic trend for the real estate industry.
#13 U.S. housing starts were down 11.2 percent in December compared to the previous month.
#14 Compared to a year earlier, home sales in southern California were down 17 percent in January.
#15 In December, home sales in Sacramento County fell a whopping 22.5 percent compared to a year earlier.
#17 More than 166 billion dollars in student loan debt is now “seriously delinquent”. That is an all-time record.
#18More than 7 million Americans are behind on their auto loan payments. That is also a new all-time record, and it is far higher than anything that we witnessed during the last recession.
It appears that “the recovery” has finally come to an end. After seeing all of those numbers, there is no way that anyone can possibly claim that economic conditions are “getting better”.
And even though the official government numbers are highly manipulated, we never even had one “boom year” throughout the entire “recovery”.
The final numbers for 2018 are now in, and last year was the 13th year in a rowwhen U.S. GDP growth was below 3 percent.
The last time we had a “boom year” when economic growth was above 3 percent was all the way back in 2005. That was in the middle of the Bush administration.
We have never seen a bad streak like this before in modern American history. The following comes from CNS News…
But prior to the current 13-year period when real GDP has failed to grow by 3.0 percent in any year, there has been no stretch (in the years since 1930) when the United States went as long as five straight years with real GDP failing to grow by at least 3 percent.
Even though the Federal Reserve pumped trillions of dollars into the financial system over the last decade, and even though we added nearly 12 trillion dollars to the national debt, the best that the authorities have been able to do is to stabilize the system for a while. Now it is starting to sputter once again, and many believe that the next crisis will be far worse than the last one.
By contrast, the Great Depression of the 1930s featured some really bad years, but following those bad years the U.S. experienced a tremendous economic boom…
By contrast, after the stock market crash in 1929, the United States saw four years of negative annual GDP—1930 (-8.5), 1931 (-6.4), 1932 (-12.9) and 1933 (-1.2). But then in the nine full years from 1934 through 1942, real GDP grew by an average of 9.75 percent.
We should have had some boom years too, but we didn’t, and now things are going to get bad again.
The Democrats are going to blame the Republicans and the Republicans are going to blame the Democrats, but all of that arguing isn’t going to solve anything.
What is coming next has been a central focus of my work for a very long time. The last recession was very painful, but it did not fundamentally alter life in America.
This next crisis will.
The “Everything Bubble” is bursting, the “Perfect Storm” is coming, and all of our lives will never be the same again.
But that doesn’t mean that there isn’t hope. In fact, once things really start getting crazy hope is going to be one of the major themes in my work because people are really going to need it.
There will be great challenges, and life will be very different, but that doesn’t mean that life is over.
America is about to experience the consequences of decades of exceedingly foolish decisions, and the pain will be extreme. But difficult times also offer an opportunity for dramatic change, and that is something that we will need to embrace.