By Michael Snyder | Guest Writer
The mainstream media continues to tell us that the economy is in fine shape, and you can believe that if you want. But evidence continues to mount that indicates that we are headed for very serious trouble. Inflation is out of control, home sales have fallen for 12 months in a row, large corporations all over America are conducting mass layoffs, and hunger is spreading like wildfire as economic conditions rapidly deteriorate. If this is “fine”, I would hate to see what “bad” would look like. Virtually everything that normally occurs during the early stages of a major economic downturn is happening right now, and that includes an inversion of Treasury yields…
On Tuesday, the difference in the yield on 2-year and 10-year Treasury notes further inverted, with the yield on the 10-year falling 103 basis points, or 1.03 percentage points, below the yield on the 2-year yield. This dynamic has preceded each of the last eight U.S. recessions.
Please read that last sentence again.
This has happened for eight recessions in a row.
Do you think that by some miracle we won’t have a recession this time?
At this point, we are actually witnessing the deepest inversion that we have seen “since September 1981”…
The spread between the monetary policy-sensitive two-year U.S. Treasury yield (US2Y) and the 10-year (US10Y) UST yield reached the deepest inversion since September 1981, as bond-market investors priced in higher-for-longer interest rates following Federal Reserve Chair Jerome Powell’s Senate testimony earlier in the session.
1981 was more than 40 years ago.
As one analyst told his clients, this is “a big psychological level” that has just been breached…
“We are not sure that -100bps means anything different than -80bps or -90bps did, but it is likely a big psychological level that many will notice,” BTIG analyst Jonathan Krinsky wrote in a note to clients.
But don’t worry.
CNN says that everything will be just fine.
You believe them, don’t you?
Needless to say, a lot of Americans don’t believe them.
In fact, at this point the amount of confidence that Americans have that their finances will improve in the next year has dropped to a depressingly low level…
Americans’ confidence in their finances is at its lowest level in at last 13 years, as inflation and fears of a recession cast a pall of uncertainty over the economy.
In February, just 31% of Americans believed their personal financial situation would improve in the next year, the lowest figure on records dating back to 2010, according to Fannie Mae’s monthly survey released on Tuesday.
The bureaucrats in Washington can radically “adjust” the economic numbers that they are giving us in a desperate attempt to make us feel better, but they can’t hide the fact that mass layoffs are happening all around us.
For example, a historic paper mill in North Carolina that has been in business for more than a century is now shutting down and laying off all of their employees…
Union representatives with Smokey Mountain Local 507 were reportedly called to a meeting with Pactiv Evergreen officials Monday and told about the plans to close the paper mill.
It employs 1,100 people and is considered a keystone of the local economy.
The words are simply not enough,” Canton Mayor Zeb Smathers said, according to local outlet ABC15. “When I was downtown and I saw grown men with tears in their eyes, there are not words, and no one was prepared on this dark Monday to deal with that.”
What can you possibly say to those men to convince them that everything is going to be okay?
That town will never be the same again after this.
A massive economic implosion is already happening all around us, but as long as stock prices remain elevated many people will be fooled into thinking that conditions are normal.
But the financial markets are starting to show cracks too.
In fact, one expert just told Fox News that the indicators that he closely watches are pointing to “one of the highest probabilities of a crash in the stock market looking out 60 days”…
After Federal Reserve Chair Jerome Powell indicated the bank isn’t finished raising rates, one market expert has warned a crash could come in a matter of days.
“They’re playing catch up, and while they were doing quantitative easing in 2021, inflation started to rage and now they’re trying to catch up,” The Bear Traps Report founder Larry McDonald said Wednesday on “Mornings with Maria.”
“Our 21 Lehman systemic risk indicators that look at equity and credit point to one of the highest probabilities of a crash in the stock market looking out 60 days,” McDonald, who is also known for writing a best-selling book on the Lehman Brothers collapse, cautioned.
I really hope that he is wrong.
I really hope that we have more time.
But the reality of what is now taking place should be evident to everyone.
A major economic meltdown has begun, and it will eventually get a whole lot worse.
We aren’t just witnessing the end of an economic cycle.
What we are actually witnessing is the end of a deeply corrupt, deeply flawed system.
The greatest debt bubble in the history of the entire planet is starting to burst, and the whole world will soon be experiencing severe pain as a result.
Now That’s Interesting
Between December 2007 and June 2009 the United States experienced the most severe recession in the post-war period. The over 4% decline in gross domestic product (GDP) was only reversed more than three years after the beginning of the recession. During the worst part of the Great Recession, virtually every segment of the U.S. economy was adversely affected. Employment losses were severe, but also unevenly distributed: men, the young, and the less educated suffered disproportionately in the recession’s aftermath.
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About the Author
My name is Michael and my brand new book entitled “End Times” is now available on Amazon.com. In addition to my new book I have written six other books that are available on Amazon.com including “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending copies as gifts to family and friends. Time is short, and I need help getting these warnings into the hands of as many people as possible. I have published thousands of articles on The Economic Collapse Blog, End of the American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, and financial or health decisions. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is definitely a great help. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, which he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, I strongly urge you to invite Jesus Christ to be your Lord and Saviour today.
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Read more on The Upcoming Economic Crisis: The Economic Nightmare That You Have Been Waiting For Is Here
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