Has the economic slowdown begun? Here are 12 ominous signs.
Recessions happen. They are built into our modern central-banking economy. The question is: when will the next recession arrive?
The modern business cycle is created by the central banks of the world. When they inflate, they kick off a boom. When they slow down, stop, or reverse, they bring in a recession.
12 OMINOUS SIGNS
There are important signs that the economy may be weakening. An article at Zero Hedge provides 12 of them that are worth taking note of:
Commercial and industrial loan growth is declining, auto loan defaults are rising, bankruptcies are absolutely surging and we are on pace to break the all-time record for most store closings in a single year in the United States by more than 20 percent. All of these are points that I have covered before, but today I have 12 new facts to share with you.
The following are 12 signs that the economic slowdown that the experts have been warning about is now here…
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#1 According to Challenger, the number of job cuts in May was 71 percent higher than it was in May 2016.
#2 We just witnessed the third worst drop in U.S. construction spending in the last six years.
#3 U.S. manufacturing PMI fell to an 8 month low in May.
#4 Financial stocks have lost all of their gains for the year, and some analysts are saying that this is “a terrible sign”.
#5 One new survey has found that 39 percent of all millionaires “plan to avoid investing in the coming month”. That is the highest that figure has been since December 2013.
#6 Jobless claims just shot up to a five week high of 248,000.
#7 General Motors just reported another sales decline in May, and it is being reported that the company may be preparing for “more job cuts at its American factories”.
#8 After an initial bump after Donald Trump’s surprise election victory, U.S. consumer confidence is starting to fall.
#9 Since Memorial Day, Radio Shack has officially shut down more than 1,000 stores.
#10 Payless has just increased the number of stores that it plans to close to about 800.
#11 According to the Los Angeles Times, it is being projected that 25 percent of all shopping malls in the United States may close within the next five years.
#12 Over the past 12 months, the number of homeless people living in Los Angeles County has risen by a staggering 23 percent.
These aren’t guarantees that the recession has arrived. But in anticipation of the inevitable, now would be a good time to get your financial house in order. Pay down debt. Get rid of car payments and credit card payments. Shore up your emergency savings.
Cutting expenses is difficult. It is better to start now instead of going cold turkey. Like a smart business, you’ll be running a leaner and trimmer household. You’ll be better positioned to survive the recession, and you’ll come out in better shape on the other side.