There Is An Increasing Amount Of Buzz That China Could Invoke The Rare Earth “Nuclear Option” In The Trade War

If China wants to cause a massive amount of pain for the U.S. economy in this trade war, they certainly have the firepower to do so.  Today, China accounts for more than 80 percent of the world’s rare earth element production, and approximately 80 percent of the rare earth elements that are used by U.S. companies are imported from China.  The U.S. does have one facility that mines rare earth elements in California, but everything that is mined there has to be shipped to China for processing.  So at this point we do not have the ability to supply our own rare earth element needs, and that gives the Chinese a tremendous amount of leverage. (Read More...)

Trade Talks Are Dead, And So U.S. Consumers Should Brace For A Long, Bitter, Painful Trade War With China

There is not going to be a trade deal between the United States and China any time soon, and that is going to mean a tremendous amount of pain for the U.S. economy.  For months, hope that the U.S. and China would soon reach a trade deal helped to elevate global financial markets, but now that hope has disappeared.  In order for a trade deal to happen, the two sides have to talk, and at this point no negotiations are scheduled.  And unless one side or the other decides that they are willing to move dramatically from their current positions, there really isn’t any reason to talk.  In fact, the Chinese government is openly saying that it is in “no rush” to negotiate with the United States… (Read More...)

On The Edge Of Disaster: 59 Percent Of Americans Are Living Paycheck To Paycheck

Living on the edge, being dragged down by debt, and having little hope for the future is no way to live.  But that is precisely where most Americans find themselves in 2019.  Despite a supposedly “booming economy”, the middle class continues to shrink and most of the country is barely scraping by from month to month.  In fact, a brand new survey that was just released by Charles Schwab discovered that 59 percent of all Americans are currently living paycheck to paycheck(Read More...)

Credit Card Charge-Offs Hit The Highest Level In Nearly 7 Years And Credit Card Delinquencies Hit The Highest Level In Almost 8 Years

When people are having a harder time paying their bills, that is a signal that the economy is slowing down.  This is something that we witnessed back in 2008, and it is something that is happening once again right now.  Credit card charge-offs at major U.S. banks haven’t been this high since the U.S. economy was pulling out of the last recession, and the same thing is true regarding credit card delinquencies.  So even though the mainstream media keeps telling us over and over that the U.S. economy is “booming”, the cold, hard numbers are telling us something completely different.  This is a point that I made yesterday in my article about how homelessness is absolutely exploding in New York City, and it is a point I will undoubtedly have to make many more times as long as the mainstream media feeds us this fictional narrative about a “booming economy”.  Look, the truth is that you can’t say that we have a booming economy until we have a year when the U.S. economy grows by at least 3 percent, and at this point we haven’t had that since the middle of the Bush administration. (Read More...)

Homelessness In New York City Is The Worst That It Has Ever Been

The mainstream media continues to try to convince all of us that the U.S. economy is “booming”, but meanwhile the number of homeless people is setting all-time record highs in major cities all over the nation.  The recent article that I published about how wealthy elitists on the west coast are freaking out as hordes of homeless people take over their neighborhoods received a tremendous amount of attention, but nobody has a worse problem with homelessness than New York City does.  According to the Department of Housing and Urban Development, approximately 14 percent of all the homeless people in the entire country currently live in New York City(Read More...)

100s Of Millions Of Dollars In Crops Destroyed By Flooding, And Farmers Are Being Told “There’s Nothing The U.S. Government Can Do To Help”

This is the worst economic disaster for U.S. farmers in modern American history.  Our ongoing trade war with China had greatly depressed prices for wheat, corn and soybeans, and so farmers were storing more crops on their farms than ever before in early 2019.  And then the floods came.  The water moved so fast that the vast majority of the farmers in the affected areas could not have moved what they had stored even if they wanted to, and the scale of the losses that these farmers have suffered is starting to become clearer.  According to UPI, “hundreds of millions of dollars in crops” that were destroyed by the flooding were not covered by insurance… (Read More...)

The True Size Of The U.S. National Debt, Including Unfunded Liabilities, Is 222 Trillion Dollars

The United States is on a path to financial ruin, and everyone can see what is happening, but nobody can seem to come up with a way to stop it.  According to the U.S. Treasury, the federal government is currently 22 trillion dollars in debt, and that represents the single largest debt in the history of the planet.  Over the past decade, we have been adding to that debt at a rate of about 1.1 trillion dollars a year, and we will add more than a trillion dollars to that total once again this year.  But when you add in our unfunded liabilities, our long-term financial outlook as a nation looks downright apocalyptic.  According to Boston University economics professor Laurence Kotlikoff, the U.S. is currently facing 200 trillion dollars in unfunded liabilities, and when you add that number to our 22 trillion dollar debt, you get a grand total of 222 trillion dollars. (Read More...)

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