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Will the economic collapse happen in 2019?
Things are starting to go downhill rather quickly now. A day after the Federal Reserve cut interest rates for the first time in more than a decade, we received a whole bunch more bad economic news. Most Americans don’t realize it yet, but our economy is in serious trouble and heading to an economic collapse. We haven’t seen anything like this since the last recession, but most people seem to think that since stock prices are still very high that everything must be fine. No, everything is definitely not “fine”, and as I noted yesterday, a lot of prominent names are loudly sounding the alarm. Many analysts are expecting things to really start breaking loose as we get deeper into the second half of this year, and what we witnessed on Thursday certainly didn’t make the outlook any brighter.
President Trump completely shocked Wall Street when he announced that yet another round of tariffs will be imposed upon Chinese goods. These new tariffs will go into effect on September 1st. This is essentially the equivalent of a “gut punch”, and it definitely takes our trade war with China to an entirely new level. And Trump told the press that the tariffs will remain in place until the U.S. and China agree to a deal. But as I have repeatedly explained to my readers, there isn’t going to be an agreement any time soon. So these tariffs are here to stay, China will inevitably retaliate once again, and global economic collapse will arrive.
After Wall Street learned of the new tariffs on Thursday, stock prices immediately began to plummet. And it certainly would not be a surprise if stock prices continued to go down. As I noted the other day, the stock market is more primed for a crash than it has ever been before. At this point, stock prices are completely and totally disconnected from economic reality. As stocks hit record high after record high in July, bad economic news just kept pouring in.
Of course August certainly just started off with a bang. On Thursday, we learned that a key measure of U.S. manufacturing activity has fallen to the lowest level since September 2009. In addition, Lowe’s just announced that they will be “laying off thousands of workers”… Lowe’s is laying off thousands of workers. Layoffs will include assemblers, who put together items like grills and patio furniture. The company will also cut maintenance and facility-service jobs, such as janitors. The company said it is outsourcing those positions to third-party companies. Lowe’s (LOW) declined to say exactly how many workers will be laid off. It said that workers whose jobs are being eliminated will be given transition pay and have the opportunity to apply for open roles at Lowe’s. The Wall Street Journal first reported Lowe’s plan.
This is the continuation of a trend that I have been tracking for months. Big companies have been laying off workers at a level that we haven’t seen since the last recession, and many believe that what we have witnessed so far is just the beginning. Also, the “trucking apocalypse” just continues to accelerate.
Sadly, instead of heeding the warning signs and using this time to get prepared for the economic collapse ahead, most Americans are choosing to use this time to party. And there is certainly not anything wrong with enjoying life, but we have gotten to the point where it is crystal clear that a new economic meltdown is upon us, and most Americans are completely and utterly unprepared for what is about to happen.
I will continue to track these developments as they unfold. We are truly in unprecedented territory, and I have a feeling that the second half of 2019 is going to be far more “interesting” than the first half was.
Script written by Michael Snyder, author of: www.theeconomiccollapseblog.com
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