SOS: Distress Signals from the American Economy in Trouble

Red Flags Ahead: Unpacking Concerns about the Fully American Economy in Trouble

Warning Signs: Trouble for the American Economy

Updated May 30, 2023

Utilizing a historical backdrop to reinforce this assertion, we find that little has shifted since our initial declaration years ago. The Baltic Dry Index is a steadfast economic gauge, yet it has consistently fallen short of revisiting its past peaks. This index, known as a pivotal leading indicator, unequivocally signals that without the infusion of liquidity, the Fed has undertaken since the 2009 financial crisis, we could have been mired in a severe recession.

Sustaining this economy’s vitality hinges on a continuous influx of funds. Although the Fed has momentarily halted its financial injections, it’s inevitable that they will curtail rate hikes, considering our annual interest payments already exceed a staggering 1 trillion USD.

Baltic dry Index 2023

According to the BLS, the unemployment rate is roughly 5%. Shadow statistics, on the other hand, state that as of Dec 2015, the unemployment rate stands at 22.9%

3 charts illustrating american economy in trouble

The American Economy and the Issue of Wage Stagnation

Real wages have been declining since 2000. In fact, $22.41 today has the same purchasing power as an hourly salary of 4.03 cents hand in 1973. Median Income continues to drop; the middle class has been decimated since the financial crisis in 2008.  This trend is going to continue for the foreseeable future.

Median household Income declining: Obama Economic recovery a sham

Another factor contributing to lower wages is corporate greed.  Corporations use billions of dollars to buy back shares instead of investing and growing their companies. When you buy back shares, you artificially boost the earnings per share metric (EPS); this is alchemy at its best.  This is done without spending money on new equipment or hiring new workers. It is fast, simple and fraudulent, but the government is not prosecuting anyone so that this trend will continue. We covered this recently in an article titled “share buybacks just another Wall Street Scam.”

Number of households on food stamps indicates economic recovery is not real

Assessing the Progress: Is the American Economy on the Upswing?

This chart vividly portrays the ongoing deterioration of the situation across the years, extending beyond solely the recession of 2008-2009. The count of individuals reliant on government aid to secure basic sustenance has consistently risen throughout this so-called economic recovery period. Contrary to the expected trend of fewer people seeking government assistance as the economy improves, this chart signifies a transition from unfavourable circumstances to even more dire conditions. Injecting the markets with surplus money disproportionately benefits the exceedingly affluent, establishing an atmosphere that penalizes savers while favouring speculators.

Lastly, the looming issue of student debt represents a ticking time bomb. This debt currently stands at $1.3 trillion and is expanding at an alarming pace of approximately $2,800 per second. As of June 2015, Bloomberg data indicated that 11.5% of this debt had remained overdue for at least 90 days. An alarming 40 million Americans now bear some form of student loan, with 70% of college students graduating while burdened by debt and no assurance of securing employment upon graduation. According to the Department of Education, by 2025, this debt is projected to surge to nearly $2.5 trillion. A substantial default in this domain could potentially dwarf the impact of the 2008 financial crisis, rendering it comparably mild.

Insights and Observations: Random Notes on the Markets – September 2019

It requires minimal effort to succumb to panic, yielding no rewards whatsoever. Those who react with panic in the face of challenges ultimately reap the consequences they have earned. This has even less than zero value in the market context, given that the masses consistently sell when the market hits its lowest point and buy when it peaks. On the contrary, individuals who exhibit astute behaviour by refraining from panic stand to gain substantial rewards. This pattern has persisted for millennia and is unlikely to change for another millennium.

In the realm of markets, there are no definitive laws or fixed regulations, except for the necessity to possess the skill to adapt to various situations. Emotions play a significant role, and chaos ensues when emotions spiral out of control. This is why the masses often engage in stampede-like behaviour when markets experience a downturn, and conversely, they eagerly jump in when a bubble is on the verge of bursting. Despite centuries passing since the Tulip Bubble, little has evolved in this regard.

Taking command of one’s life is imperative, without relying on the government or any private entity for rescue. This entails living within 1-2 standards below your means and channelling the surplus funds into the stock market. Consider it from this perspective: You would inevitably spend this money on unnecessary purchases aimed at impressing people you don’t truly value with money you can’t genuinely afford to pay.

Other articles of interest 

Women and heart disease; the silent epidemic

Unveiling the Silent Threat: Women and Heart Disease

Women and Heart Disease: US statistics Updated May 2023 Introduction Heart disease is a significant health concern for women in ...
Homeschooling Benefits: A Comprehensive Guide

Homeschooling Benefits: A Comprehensive Guide

Homeschooling Benefits: A Complete Overview May 11, 2023 You're not alone if you're considering whether to send your child to a ...
Google News Trends. News can't be trusted today

Google News Trends Unveiled: Gossip Promoted as News

Google News Trends Unveiled: Gossip Disguised as news Updated May 2023 In today's digital age, discerning between real and fake ...
Benefits Of Homeschooling: US Education System Is Crumbling

Benefits Of Homeschooling: US Education System Is Crumbling

Benefits of Homeschooling May 6, 2023 The benefits become apparent once you see how Broken our education system is Our ...
Neocon Perceptions of Nuclear Warfare

Neocon Perceptions and the Illusion of Nuclear Warfare

The Unlikelihood of Nuclear War: Neocon Perspectives May 04, 2023 If anyone out there believes that the top brass would ...
Stocks To Buy Today Reddit -

Stocks To Buy Today Reddit – Focus on the Trend, Ignore the Noise

Stocks to Buy Today Reddit: Exploring Investment Insights from the Online Community Updated May 1, 2023 In the modern era ...
12 Best Tropical Paradises to Visit for Your Dream Getaway

12 Best Tropical Paradises to Visit for Your Dream Getaway

Best Tropical Paradises to Visit: Your Ultimate Travel Guide updated May 8, 2023 Are you looking for a tropical getaway ...
Neocon 2023: Unveiling the Political Landscape

Neocon 2023: Debunking the Nuclear War Myth

  Unveiling the Political Landscape: Shaping the Future with Neocon 2023 April 29, 2023 While some may believe a nuclear ...
Gold Spot Price History: Is Gold Going To Continue Trending Upwards

Gold Spot Price History: Will Gold Continue Trending Upwards

Gold Spot Price History: Is The Trend Still Strong Take a chance! All life is a chance. The man who ...
MACD strategy

Mastering the MACD Strategy: A Powerful Tool for Investors

I. What, indeed, is the MACD strategy? Apr 26, 2023 Venturing into the realm of stock trading may prove challenging ...
death of education

Surviving the Death of Education: Navigating the New Age of Learning

The Death of Education: AI Disrupting the Landscape April 27, 2023 As AI and language generation models continue to advance, ...
AI Wars Unveiled: The Epic Battle for Supremacy

AI wars: The battle for Supremacy

ChatGpt vs the Rest: Navigating the AI Wars Updated May 30, 2023 Amidst the AI wars, some argue CHATGPT lacks ...
Why Is Inflation Bad for the Economy?

Why Is Inflation Bad for the Economy? Demystifying the Menace

Why Is Inflation Bad for the Economy? Apr 14, 2023 Inflation is a complex economic phenomenon that is often difficult ...
The Rise of Chinese ChatGpt Rivals

Chinese ChatGPT Rivals: Threat to Industry Dominance?

Can China's ChatGpt Rivals Keep Up with Microsoft and OpenAI? Apr 12, 2023 China's Alibaba Group has unveiled its latest ...
rethinking education

Rethinking Education: Embracing AI and its Implications

Rethinking Education in the AI Age 15 Apr, 2023 As the death of education looms, it's time for rethinking education ...