Fear

This Week In Doom, Sept.9: Crazytown


That-Was-The-Week-That-W-That-Was-The-Week-473964gc2smFrom the keyboard of Surly1
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Originally published on the Doomstead Diner on September 9, 2018

“Real power is, I don't even want to use the word, fear.”

 ― Donald Trump, interview with Bob Woodward, 2016  


This was a week in which the pace of bizarre and unsettling news swirling through the White House could only be described as "epic," a thesaurus full of superlatives thus drained. Excerpts from Bob Woodward's book, “Fear: Trump in the White House,” dropped, with the usual eruptions of "Lies!" and "Fake News!" uttered by the usual suspects. The book, which will be officially released on 9/11, promises to be a devastating, meticulously researched account of the Trump Presidency. This is Woodward's eighth book on a President; over 40 years, few have challenged his veracity. The book will be consulted as a first draft of the history of these dark times.

Major takeaways are that the work culture of Trump's White House is so toxic and volatile that many of 45’s top staffers are in the habit of working around a scattered, unstable and uninformed boss.

Trump has been floundering and reacting out of stress as a result of the Russia investigation and related probes. "Fear" was the first of a one-two punch, followed up by the "Anonymous" op ed published in the NYT.

 5 Takeaways From Bob Woodward’s Book on the Trump White House outlines key points, with few surprises:

  • The Russia investigation is a constant source of anxiety for Mr. Trump, and his lawyers.
  • Mueller engaged in lively conversations for months with Mr. Trump’s lawyers.
  • He's as ill-informed as you think: Trump’s advisers are repeatedly stunned by his lack of interest in and knowledge of major issues. 
  • Trump himself was not a primary source for the book.
  • John F. Kelly, the chief of staff, quickly soured on Mr. Trump

White House press secretary perpetual-motion-lie-machine Sarah Huckabee Sanders channeled her best Tammi Wynette with the usual dispatch:

“This book is nothing more than fabricated stories, many by former disgruntled employees, told to make the president look bad… Democrats and their allies in the media understand the President’s policies are working and with success like this, no one can beat him in 2020 – not even close.”

At least she's consistent. Trump was in rare form:

“The book means nothing, it’s a work of fiction…If you look back at Woodward’s past, he had the same problem with other presidents, he likes to get publicity, he sells some books."

Doubling down, he later tweeted:

Isn’t it a shame that someone can write an article or book, totally make up stories and form a picture of a person that is literally the exact opposite of the fact, and get away with it without retribution or cost. Don’t know why Washington politicians don’t change libel laws?

Those quoted rushed to declaim their innocence and to deny that they had said any such thing. Mattis was quoted as saying Trump had the "understanding of a fifth-or-sixth grader." Kelly is quoted as saying of Orange Jesus, “He’s an idiot. It’s pointless to try to convince him of anything. He’s gone off the rails. We’re in Crazytown.” His former attorney, John Dowd, gets credit for “Don’t testify. It’s either that or an orange jumpsuit.” Gary Cohn removed papers from the Resolute desk. Trump is quoted as having called his attorney general "mentally retarded,” and a "traitor." Just a taste: the first ones are free.

Woodward's usual technique is to exhaustingly interview many people people close to or in the White House on "deep background," meaning their anonymity is assured. His books are based on hundreds of hours of firsthand reporting. 

Woodward's reputation is pretty bulletproof. Not every detail is assured, but the gist is that his accounts are remarkably reliable. All 18 of his nonfiction books in the past 35 years have been national bestsellers and 12  have been No. 1 national nonfiction bestsellers. He also takes to the lecture circuit, where my wife and I saw him, and formed a minority-view opinion of his act. Yet for all that, he retains more credibility than the White House's current occupant.



Top appointees are ‘thwarting’ Trump, says ‘senior official’ in administration in New York Times opinion piece

The number two punch is the memo by "Anonymous" published in the NY Times. This really has our boy spun up, inviting him to instruct house hobbit Jeffy Bo to search for the guilty author, even though such an investigation would be patently illegal.

The unnamed author wrote:

“We believe our first duty is to this country, and the president continues to act in a manner that is detrimental to the health of our republic. That is why many Trump appointees have vowed to do what we can to preserve our democratic institutions while thwarting Mr. Trump’s more misguided impulses until he is out of office.”

The Times column — headlined “I Am Part of the Resistance Inside the Trump Administration”, described a curious flavor of resistance is is indeed:

Ours is not the popular “resistance” of the left. We want the administration to succeed and think that many of its policies have already made America safer and more prosperous…

There are bright spots that the near-ceaseless negative coverage of the administration fails to capture: effective deregulation, historic tax reform, a more robust military and more.

This ain't a "resistance" I recognize. We're supposed to be somehow grateful?  Charlie Pierce said it best when he called out

… the careerist bleatings of anonymous sources who would like you to know that, by enabling El Caudillo Del Mar-a-Lago and his long, slow slide into howling madness,they are really keeping him from doing some real damage to the country, and shouldn't we all be grateful for their noble, selfless work. 

What the writer wants are Trumpian policies with less baggage, like fewer tweets or porn star payoffs. Trump later tweeted a one-word, all-caps reaction: “TREASON?” The search for the author began almost immediately and continues.

What this op-ed represents is and attempt to build lifeboats for those inside-the-Beltway conservatives who find themselves part of the Trump administration, but who envision the coming endgame, and imagine a life after Trump as part of a ruling Coalition of winners who will inherit power after the Great Man is gone. This is the same technique employed by conservatives after Bush the lesser, in which they shunned Bush, donned tricorn hats, and branded themselves "Tea Party independents." This only works because Americans, as a rule, remember nothing. Not for nothing did Gore Vidal once referred to this country as the "United States of Amnesia."Thus we will we skate on the frozen lakes of hell before Trump offers testimony to the Special Counsel. 


​Short takes

Some other things happened this week, but you may already be familiar with them. The confirmation hearings for Brett Kavanaugh occurred this week featuring a great deal of contention over hidden papers, demonstrations, and debate about whether or not the nominee had lied to Congress under oath..

Senate concludes Kavanaugh hearing

Harris puts Kavanaugh on edge with Mueller question

Sen. Kamala Harris put Supreme Court nominee Brett Kavanaugh on edge with a surprise question at his confirmation hearing on whether he spoke with anyone about the investigation into Russian election meddling. This after a week of scorched-earth procedures and tactics to prevent Trump from appointing his own judge in a possible future impeachment trial. This includes the Republicans hiding documents proving that Kavanaugh may have committed perjury. Whether any of this will be enough to derail his confirmation is not known.


The Collapse Of Society Is Coming

Michael Snyder sees harbingers in the fact that the rich have their own plans to survive the coming economic collapse (caused by out-of-control algorithms and flash trading) in survival bunkers being shipped from a Texas warehouse to the shores of New Zealand, where they’re buried 11 feet underground. The rich are planning their bolt-holes. Their plans don't include us.

Obama delivers full-throated rebuke of Trump's presidency

BHO returned to the campaign trail ahead of the midterms to rally the troops for the midterms, calling out Trump by name: "He is a symptom, not the cause." Obama is absolutely right, but he's decades too late. 

The loutish, bigoted and aggressively ignorant nature of the Republican base has never been a mystery to anyone… since Lee Atwater unleashed "Willie Horton" nigh on to 40 years ago….except, apparently, to Republican analysts, pollsters, ad-men, every Never Trump Republican now out pimping a book, every conservative think tank, media outlet and the entire Beltway political press. And any right wing troll who wanders into these hallowed grounds.

As noted above, Republicans rebranded themselves as a mighty army of Imaginary "Independents" who always arrive on the verge of saving us all from the Extremes on Both Sides. They are trying to escape the righteous judgment of history by rebranding themselves as some sort of faux resistance.

The "Tea Party" was always an astroturfed fraud. Nothing less than a heavily funded, carefully coordinated political playtoy designed to herd the rubes — the latest layer of Koch-funded, Fox News-promoted bilge splashed over the same goddamn box full of bigots and Bible-thumpers who have comprised the backbone of the Republican Party for most of my adult life.

After they led Poppy away by his drool-cup, there were four kinds of people in the GOP: traitors (e.g. the Kochs), messianic dominionist nut jobs (e.g. Pence), useful idiots (e.g. Tea Tarty), and geriatric bigots on holiday from the John Birch Society. They have always been with us, but we made them wear shoes and leave the room when company came. These people are less conservatives than dangerous, bomb-throwing, vehicular-manslaughter-committing white nationalists and nazis.

In Conservatives Without Conscience, John Dean had it exact:

“Probably about 20 to 25 percent of the adult American population is so right-wing authoritarian, so scared, so self-righteous, so ill-informed, and so dogmatic that nothing you can say or do will change their minds… They would march American into a dictatorship and probably feel that things had improved as a result. They have the mentality of ‘old-time religion’ on a crusade and they generously give money, time and effort to the cause. They proselytize; they lick stamps; they put pressure on loved ones; and they revel in being loyal to a cohesive group of like thinkers. And they are so submissive to their leaders that they will believe and do virtually anything they are told. They are not going to let up and they are not going to go away.”


They remain a minority, which is why they have to ease into control, one child-kidnapping, sanctuary-denying, flag-worshipping, pro-torture, Nike-burning, intolerant, anti-choice, anti-science, Republiconfederate skirmish at a time. No faux-sincere op-ed can disguise the cornpone, “Aw Shucks” Christopathy that, seen over the course of decades, has bumrushed this country relentlessly towards the coming authoritarian nightmare.


banksy 07-flower-thrower-wallpaperSurly1 is an administrator and contributing author to Doomstead Diner. He is the author of numerous rants, screeds and spittle-flecked invective here and elsewhere. He lives a quiet domestic existence in Southeastern Virginia with his wife Contrary. Descended from a long line of people to whom one could never tell anything, all opinions are his and his alone, because, by making every mistake in the book, he paid full retail for everything he has managed to learn.

 

The United States of Anxiety

gc2smFrom the keyboard of Thomas Lewis

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Published on The Daily Impact on June 10, 2015

atomic-bomb

Any minute, in any place, the terrorists could strike. We’re the only ones who can save you. Vote for us.

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In this the fifteenth successful year of the War on Terror, it is fitting that the leaders of a crumbling empire report to their terrified citizens on the hard-won battles that have been prosecuted in their names. Yesterday, the Director of the Central Intelligence Agency, John Brennan, did just that, with a forthright report to the oxymoronic Senate Intelligence Committee. Allow me to set the stage:

  • For 15 years, the military power of the largest, richest, most advanced armed forces in the world, in the history of the world, have been deployed against a force of musket-wielding, Toyota-truck-driving desperadoes whose aggregate numbers have probably never exceeded the population of Winchester, Virginia.
  • The United States has spent approximately $14 million per hour on this war, for 15 years — nearly two trillion dollars and counting — on an enemy that has no air force, no navy, no heavy missiles, no armor, no artillery, and not much money.
  • On 9/11/2001, Al Qaeda had about 20,000 fighters. To punish them for their attack on the World Trade Center, we invaded two countries, killed an estimated 1.3 million people (that’s just in Iraq, Afghanistan and Pakistan) and suffered 10,000 American fatalities.

 

Now to the gist of Director Brennan’s report on the state of play, with just a tad of paraphrasing:

  • Today, ISIS has more fighters and holds more territory than Al Qaeda (the organization from which ISIS sprang) ever did. “Despite all our progress against ISIL on the battlefield,” Brennan said, with a completely straight face, “our efforts have not reduced the group’s terrorism capability and global reach.”
  • Given that level of success, Brennan indicated that we intend to continue the same efforts, and the same spending levels, until, and here I am paraphrasing just a bit, hell freezes over.
  • Should we expect ISIS to fold anytime soon? No, said Brennan, we should expect that it “will intensify its global terror campaign to maintain its dominance of the global terrorism agenda.”

Meanwhile, back at home, the war on domestic terror is having similar success. In just two years, 90 Americans have been charged with having something to do with ISIS. This is not nearly as many Americans as claim to have been abducted by extraterrestrials, but is still a significant number.

The bad news is that in at least two thirds of the cases brought, undercover FBI agents have suggested the alleged plot, often aggressively; have facilitated the plot with cash, transportation, and suggestions to people not obviously adept at problem-solving; and have provided weapons and explosives to people who would have trouble buying and using cell phones.

Former FBI undercover agent Michael German told The New York Times this week that his former colleagues target people who, as German put it, “are five steps away from being a danger to the United States.” They are, he says bluntly, “manufacturing terrorism cases.”

The typical targets of the FBI stingers are poor, unstable misfits many of whom suffer from, even are under treatment for, mental illness. In one 2012 case, the FBI, after laboriously talking Sammi Osmakac into becoming a terrorist, provided a camera and crew so he could record his martyrdom video, a “suicide belt” for him to wear to the Irish bar that was his target, an AK-47 assault rifle, a pistol — oh, and cab fare to the scene of the crime. Then they arrested him and called a news conference. Another victory in the war on terror.   

Which continues.

Global Economic Collapse ERUPTS!

youtube-Logo-2gc2reddit-logoOff the keyboard of Michael Snyder

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Published on The Economic Collapse on April 10, 2016

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Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic

Mainstream news outlets are already starting to use the phrase “economic collapse” to describe what is going on in some areas of our world right now.  For many Americans this may seem a bit strange, but the truth is that the worldwide economic slowdown that began during the second half of last year is starting to get a lot worse.  In this article, we are going to examine evidence of this from South America, Europe, Asia and North America.  Once we are done, it should be obvious that there is absolutely no reason to be optimistic about the direction of the global economy right now.  The warnings of so many prominent experts are now becoming a reality, and what we have witnessed so far are just the early chapters of a crushing economic crisis that will affect every man, woman and child in the entire world.

Let’s start with Brazil.  It has the 7th largest economy on the entire planet, and it is already enduring its worst recession in 25 years.  In fact, at the end of last year Goldman Sachs said that what was going on down there was actually a “depression“.

But now the crisis in Brazil has escalated significantly.

I want to share with you an excerpt from a recent article entitled “Brazil: Economic collapse worse than feared“.  I know, that title sounds like it comes directly from The Economic Collapse Blog, but I didn’t write it.

It actually comes from CNN

Amid political chaos, Brazil’s economic collapse is worse than its government once believed.

In the midst of rising calls to impeach President Dilma Rousseff, Brazil’s central bank announced Thursday that it now expects the country’s economy to shrink 3.5% this year.

That’s worse than the central bank’s previous estimate for a 1.9% contraction. The darker forecast matches what the International Monetary Fund projected for Brazil — Latin America’s largest country — and what many independent economists have suspected.

It is one thing for Michael Snyder to tell you that Brazil is in the midst of “economic collapse”, but it is another thing entirely for CNN to say it.

And of course I have been warning about the crisis down in Brazil for quite some time now.  For much more on this, please see my previous article entitled “The Economic Collapse Of South America Is Well Underway“.

Meanwhile, things are actually much worse in Venezuela than they are in Brazil.  Food and basic supplies are in short supply, the inflation rate has hit 720 percent, and crime is completely out of control.

The following is from an article in the Independent entitled “Venezuela is on the brink of complete economic collapse“…

The only question now is whether Venezuela’s government or economy will completely collapse first.

The key word there is “completely.” Both are well into their death throes. Indeed, Venezuela’s ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it’s hard to see that getting any better for them any time soon — or ever.

Incumbents, after all, don’t tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.

Once again we see a very respected mainstream publication using the phrase “economic collapse” to describe what is happening in South America.

You can find some stunning video of the “economic Armageddon” that is taking place in Venezuela right here.  I would encourage you to watch that video, because what is happening down there will eventually be happening here.

Meanwhile, over in Europe the collapse of the Italian banking system has entered a disturbing new chapter.  Italy’s finance minister has called a meeting in Rome for Monday that will be focusing on a “last resort” bailout plan for the troubled banks…

Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy’s largest financial institutions to agree final details of a “last resort” bailout plan.

Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to ringfence the weakest of Italy’s large banks, Monte dei Paschi di Siena, from contagion, according to people involved in the talks.

Italian bank shares have lost almost half their value so far this year amid investor worries over a €360bn pile of non-performing loans — equivalent to about a fifth of GDP. Lenders’ profitability has been hit by a crippling three-year recession.

As Italy descends into financial chaos, the rest of the continent better be paying attention.

Do you remember how hard it was for the rest of Europe to rescue Greece?

Well, Greece has the 44th largest economy on the planet.

Italy has the 8th.

It would be hard to overstate the seriousness of what is going on over in Europe, and it is not just Italy we are talking about.  All over the continent major banks are in deep trouble, and the chairman of France’s second largest  retail bank recently told reporters that “I am much more worried than I was in 2009“.

And there is very good reason for concern.  On Sunday, we learned that a major “bail-in” had just been announced for one of Austria’s most prominent banks.  The following comes from Zero Hedge

And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.

The highlights from the announcement:

Today, the Austrian Financial Market Authority (FMA) in its function as the resolution authority pursuant to the Bank Recovery and Resolution Act (BaSAG – Bundesgesetz über die Sanierung und Abwicklung von Banken) has issued the key features for the further steps for the resolution of HETA ASSET RESOLUTION AG. The most significant measures are:

  • a 100% bail-in for all subordinated liabilities,
  • a 53.98% bail-in, resulting in a 46.02% quota, for all eligible preferential liabilities,
  • the cancellation of all interest payments from 01.03.2015, when HETA was placed into resolution pursuant to BaSAG,
  • as well as a harmonisation of the maturities of all eligible liabilities to 31.12.2023.

According to the current resolution plan for HETA, the wind-down process should be concluded by 2020, although the repayment of all claims as well as the legally binding conclusion of all currently outstanding legal disputes will realistically only be concluded by the end of 2023. Only at that point will it be possible to finally distribute the assets and to liquidate the company.

The dominoes are starting to fall in Europe, and I would expect even bigger announcements in the weeks and months to come.

Over in Asia, economic chaos is beginning to prevail as well.

In China, the stock market is already down more than 40 percent from the peak, Chinese exports were down 25.4 percent on a year over year basis in February, and Chinese economic numbers overall have not been this poor since the depths of the last global recession.

At the same time, the Japanese economy is really struggling right now.  As I wrote about the other day, Japanese GDP has shrunk for two out of the last three quarters, we just saw Japanese industrial production experience the biggest one month decline that we have witnessed since the tsunami of 2011, and business sentiment has fallen to a three year low.  The Nikkei has dropped by about 5,000 points from where it was last summer, and some analysts believe that Japanese markets “are being destroyed” due to massive intervention by the Bank of Japan.

Here in the United States, we haven’t been hit quite as hard as the rest of the world just yet, but there are lots of very disturbing warning signs all around us.

At the end of last week, we learned that it is being projected that U.S. GDP will have grown by just 0.1 or 0.2 percent during the first quarter of 2016.  And on Monday corporate earnings reporting season begins, and it is expected to be a very, very bad one.  The following comes from Business Insider

We are about to get confirmation that earnings growth for America’s biggest companies was negative in the first quarter, compared to the same period a year ago.

When aluminum giant Alcoa releases its results on Monday, it will mark the unofficial start of the heaviest reporting season for S&P 500 companies.

The final scoreboard is expected to show a 9.1% earnings drop for the quarter, according to FactSet senior earnings analyst John Butters.

If these projections turn out to be accurate, it will be the fourth quarter in a row of earnings declines.  This is something that we never see outside of a recession.

And for a whole bunch more numbers which indicate that the U.S. economy is in very serious trouble, please see my previous article entitled “19 Facts That Prove Things In America Are Worse Than They Were Six Months Ago“.

Of course I am just another voice in the crowd when it comes to predicting that the U.S. economy is headed for rough times.  For example, just check out what Societe Generale economist Albert Edwards is saying

A tidal wave is coming to the US economy, according to Albert Edwards, and when it crashes it’s going to throw the economy into recession.

…the profit recession facing American corporations is going to lead to a collapse in corporate credit.

“Despite risk assets enjoying a few weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red”

He continued:

Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided — even more so than the ridiculously overvalued equity market — is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default.

As you can see, it isn’t just one nation or one region of the world that we need to be concerned about.

Economic chaos is erupting literally all over the planet, and global leaders are starting to panic.

Unfortunately, they have had seven years to try to fix things since the last global recession, and they didn’t get the job done.  Anyone that believes that by some miracle they will be able to pull us out of the fire this time and that everything will somehow be okay is simply engaged in wishful thinking.

 

 

 

 

 

 

 

 

 

 

 

 

Now is the Time

Off the keyboard of Michael Snyder

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Published on The Economic Collapse on July 27, 2015

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Fear Rises As Financial Markets All Over The Planet Start To Crash

Can you feel the panic in the air?  CNN Money’s Fear & Greed Index measures the amount of fear in the financial world on a scale from 0 to 100.  The closer it is to zero, the higher the level of fear.  Last Monday, the index was sitting at a reading of 36.  As I write this article, it has fallen to 7.  The financial turmoil which began last week is threatening to turn into an avalanche. On Sunday night, we witnessed the second largest one day stock market collapse in China ever, and this pushed stocks all over the planet into the red.  Meanwhile, the twin blades of an emerging market currency crisis and a commodity price crash are chewing up economies that are dependent on the export of natural resources all over the globe.  For a long time, I have been warning about what would happen in the second half of 2015, and now it is here.  The following is a summary of the financial carnage that we have seen over the past 24 hours…

-On Sunday night, the Shanghai Composite Index plunged 8.5 percent.  It was the largest one day stock market crash in China since 2007, and it was the second largest in history.  The Chinese government is promising to directly intervene in order to prevent Chinese stocks from going down even more.

-Over 1,500 stocks in China fell by their 10 percent daily maximum.  This list includes giants such as China Unicom, Bank of Communications and PetroChina.

-Ever since peaking in June, the Shanghai Composite Index has dropped by a total of 28 percent.

-Even Chinese stocks that are listed on U.S. stock exchanges are being absolutely hammered.  The following comes from USA Today

The 144 China-based stocks with primary listings on major U.S. exchanges have erased nearly $40 billion in paper wealth since the Shanghai Composite index peaked on June 12. It’s an enormous destruction of wealth that in effects wipes out the market value of a company the size of cruise ship operator Carnival.

-The Chinese stock market crash pushed European stocks significantly lower on Monday…

The pan-European FTSEurofirst 300 provisionally closed 2.1 percent lower, while the Germany’s DAX and France’s CAC closed respectively 2.4 percent and 2.5 percent lower.

The U.K.’s benchmark FTSE outperformed its euro zone peers, but still closed unofficially down 1.0 percent.

-Overall, European stocks have been falling steadily since the beginning of last week.  To get an idea of how much damage has been done already, just check out this chart.

-As I mentioned above, an emerging market currency crisis is causing havoc for economies all over the planet.  The following comes from an article that was published by the Telegraph

The currencies of Brazil, Mexico, South Africa and Turkey have all crashed to multi-year lows as investors flee emerging markets and commodity prices crumble.

The drastic moves came as fears of imminent monetary tightening by the US Federal Reserve combined with shockingly weak figures from China, which stoked fears that the country may be sliding into a deeper downturn and sent tremors through East Asia, Latin America and Africa.

-The government of Puerto Rico has announced that it does not have enough cash to make a scheduled debt payment of 169 million dollars on August 1st.  The Obama administration says that there are no plans in the works to bail out Puerto Rico.

-On Monday, the Dow was down another 127 points.  It was the fifth day in a row that the Dow and the S&P 500 have both declined.

-Overall, the Dow is now down more than 650 points since July 20th.

-480 stocks on the New York Stock Exchange have hit new 52-week lows.  Many analysts consider this to be a very, very ominous sign.

-I have repeatedly written about the danger of the commodity collapse that we are currently witnessing, and the Bloomberg Commodity Index fell another 1.22 percent on Monday to a fresh low of 92.1493.

-On Monday, the price of U.S. oil hit a 52-week low of $46.92.

-So far, the price of U.S. oil has fallen about 20 percent this month.

-Back in June 2014, the price of a barrel of West Texas Intermediate crude was above 107 dollars.  Since then, the price of U.S. oil has fallen an astounding 56 percent.

-Thanks in large part to the collapse in energy prices, junk bonds are cratering.  This is something that happened just before the financial crisis of 2008, and now it is happening again.  The following comes from Wolf Street

Among the bonds: Cliffs Natural Resources down 27.6%, SandBridge down 30%, Murray Energy down 21.2%, and Linn Energy down 22.3%, according to Bloomberg.

For example, Linn Energy 6.25% notes due in 2019 were trading at 78 cents on the dollar at the beginning of July and at 58 on Friday, according to LCD. There was bloodshed beyond energy, such as AK Steel’s 7.625% notes due in 2021. They were trading at 62 cents on the dollar, down 22% from the beginning of July.

“The performance is a disappointment to investors who purchased about $40 billion of junk-rated bonds from energy companies this year, thinking that the worst of the slump was over,” Bloomberg noted.

This is exactly what we would expect to see during the early stages of a financial crisis.

Of course global financial markets may bounce back somewhat tomorrow.  If you will remember, some of the largest one day gains in stock market history happened right in the middle of the stock market collapse of 2008.  So don’t get fooled by what happens on any one particular day.

With so much fear in the air, literally anything could happen in the weeks and months ahead of us.  One month ago, I issued a red alert for the last six months of this year.  I warned that a major financial crisis was imminent and that people needed to start protecting themselves immediately.

As I write this article on Monday evening, financial markets are already opening up over in Asia.  Japanese stocks are already down 251 points even though the market has only been open for about an hour over there.

We have entered a time when what is happening to global stock markets will once again be headline news.  We are right on the precipice of another great financial crisis, only this one is going to ultimately end up being much worse than the last one.

Now is the time.

Please get prepared while you still can.

The Hope in Understanding Collapse

Off the keyboard of Michael Snyder

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Published on The Economic Collapse on December 17, 2014

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There Is Hope In Understanding That A Great Economic Collapse Is Coming

If you were about to take a final exam, would you have more hope or more fear if you didn’t understand any of the questions and you had not prepared for the test at all?  I think that virtually all of us have had dreams where we show up for an exam that we have not studied for.  Those dreams can be pretty terrifying.  And of course if you were ever in such a situation in real life, you probably did very, very poorly on that test.  The reason I have brought up this hypothetical is to make a point.  My point is that there is hope in understanding what is ahead of us, and there is hope in getting prepared.  Since I started The Economic Collapse Blog back in 2009, there have always been a few people that have accused me of spreading fear.  That frustrates me, because what I am actually doing is the exact opposite of that.  When a hurricane is approaching, is it “spreading fear” to tell people to board up their windows?  Of course not.  In fact, you just might save someone’s life.  Or if you were walking down the street one day and you saw someone that wasn’t looking and was about to step out into the road in front of a bus, what would the rational thing to do be?  Anyone that has any sense of compassion would yell out and warn that other person to stay back.  Yes, that other individual may be startled for a moment, but in the end you will be thanked warmly for saving that person from major injury or worse.  Well, as a nation we are about to be slammed by the hardest times that any of us have ever experienced.  If we care about those around us, we should be sounding the alarm.

Since 2009, I have published 1,211 articles on the coming economic collapse on my website.  Some people assume that I must be filled with worry, bitterness and fear because I am constantly dealing with such deeply disturbing issues.

But that is not the case at all.

There is nothing that I lose sleep over, and I don’t spend my time worrying about anything.  Yes, my analysis of the global financial system has completely convinced me that an absolutely horrific economic collapse is in our future.  But understanding what is happening helps me to calmly make plans for the years ahead, and working hard to prepare for what is coming gives me hope that my family and I will be able to weather the storm.

I do not believe in living my life in a state of fear, and I do not want anything that I write to ever cause fear in my readers.  The ancient Hebrew greeting “Shalom” is roughly translated as “peace” or “completeness”, and that is what we are constantly pursuing in my household.  My wife and I know that incredibly challenging times are coming, but we also know who we are, what our purpose is, and where we are headed.  We also believe that the greatest chapters of our lives are ahead even in the midst of all the chaos that is coming.

When times are the darkest, that is when light is needed the most.  Just think about it.  When you look back over history, what heroes do you admire the most?  If you truly think about it, almost all of those heroes arose during times of great adversity and conflict.

The years ahead can be a time of great adventure for you, or they can seem like hell on Earth.  It all depends on how you respond to your circumstances.

Do you want to know who is going to respond to the years ahead with fear, panic and depression?

The millions of people that have absolutely no idea what is coming and have made absolutely no preparations are going to be absolutely blindsided by the coming economic collapse.  Just like the 1930s, we are going to see people jumping out of windows and jumping in front of trains.  Others will sink into a state of despair so deep that nobody will ever be able to shake them out of it.

It doesn’t have to be that way.

Over the past five years I have spent thousands of hours studying the coming economic collapse.  In my articles you can find tens of thousands of facts and statistics that prove that the U.S. economy is hurtling toward oblivion.

It is not always the most pleasant thing to write about, but it is the truth.  And that is what matters.  If you believe that I am wrong, prove it to me.  I work very hard to put out the most accurate information that I possibly can.  So if you can prove that I am wrong, I will change my mind.

But of course that is not going to happen.  As I have stated previously, anyone with half a brain should be able to see that we are living in the greatest debt bubble in human history.  Anyone with half a brain should be able to see that the “too big to fail” banks are being extraordinarily reckless (derivatives, etc.).  Anyone with half a brain should be able to see that our formerly great manufacturing cities are being transformed into crime-infested hellholes.  Anyone with half a brain should be able to see that the middle class is dying.  Anyone with half a brain should be able to see that the exact same patterns that led up to the great financial crisis of 2008 are happening again.  Anyone with half a brain should be able to see that we simply cannot consume far more wealth than we produce as a nation indefinitely.  Anyone with half a brain should be able to see that the incredibly foolish decisions that our politicians have been making for decades have placed us on a road to utter disaster.

So it doesn’t take anyone special to do what I am doing.  I am just a “watchman on the wall” sounding the alarm the best that I can.  And there are lots of others that are doing the same thing.  We are deeply concerned about where this nation is heading, and we have been pleading with our leaders to do something about it for a long time but they have not listened to us.

Since our leaders just continue doing “business as usual”, there is not going to be a solution to our problems on the national level.

So that is why I am encouraging people to get prepared for the hard times that are coming on a family level and a community level.

Unfortunately, it seems like some people always have an excuse for not getting prepared.  In fact, a few have even gone so far as to accuse me of being “anti-faith” for suggesting that people actually get off their couches and do something to help their families deal with the nightmare on the horizon.  They seem to have the attitude that we should all just sit back and wait for God to do everything for us.

So I am not quite sure why those people get up in the morning and go to work, since they should just “trust God” to deposit paychecks into their banks.  And I am not quite sure why they ever fill up the tanks of their vehicles with gasoline, because they should be able to “trust God” to put more gas there when they need it.

I covered all of this in much more detail in my previous article entitled “Is It ‘Anti-Faith’ To Prepare For The Coming Economic Collapse?

For now, let me just state that what those people are suggesting is the exact opposite of what the Bible teaches.  Trusting God is not about sitting back and doing nothing.  In the Scriptures, we are told that faith is about stepping out and taking action on what God has revealed to us.  That includes working hard, being wise and providing for our families.  For example, just check out Proverbs 6:6-11…

Go to the ant, you sluggard! Consider her ways and be wise. Which, having no guide, overseer, or ruler, provides her bread in the summer, and gathers her food in the harvest.

How long will you sleep, O sluggard? When will you arise out of your sleep? Yet a little sleep, a little slumber, a little folding of the hands to sleep— so will your poverty come upon you like a stalker, and your need as an armed man.

In the end, each one of us needs to make the decisions that we feel are best for our own families.

So that is why it is so incredibly important not to let someone else do your thinking for you.

In America today, the average person watches 153 hours of television a month.  In addition to that, we also spend countless hours watching movies, playing video games, listening to music, reading books and surfing the Internet.

What most Americans don’t realize is that there are just six giant corporations that control almost all of that content, and that makes them immensely powerful.

These giant media corporations are constantly manipulating our attitudes, opinions and beliefs.  And at this point most Americans seem quite content to remain “plugged into the matrix” and to allow corrupt corporate executives somewhere to do their thinking for them.

I urge you to break free from that system.

Do your own research and do your own thinking.

Don’t take what I say or what anyone else says as truth without critically examining it yourself.  This can be difficult at first, because in this nation our young people are no longer trained to think critically.  Instead, we are trained to just blindly accept whatever information the system feeds us.

George Orwell once said that “during times of universal deceit, telling the truth becomes a revolutionary act“.

That perfectly describes the era that we are currently living in.

The truth does not bring fear and despair.

Rather, the truth brings hope and it sets people free.

Share the truth with as many people as you can, because we live in a world that desperately needs it.

Knarf plays the Doomer Blues

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