20 Early Warning Signs That We Are Approaching A Global Economic Meltdown

Have you been paying attention to what has been happening in Argentina, Venezuela, Brazil, Ukraine, Turkey and China?  If you are like most Americans, you have not been.  Most Americans don’t seem to really care too much about what is happening in the rest of the world, but they should.  In major cities all over the globe right now, there is looting, violence, shortages of basic supplies, and runs on the banks.  We are not at a “global crisis” stage yet, but things are getting worse with each passing day.  For a while, I have felt that 2014 would turn out to be a major “turning point” for the global economy, and so far that is exactly what it is turning out to be.  The following are 20 early warning signs that we are rapidly approaching a global economic meltdown…

#1 The looting, violence and economic chaos that is happening in Argentina right now is a perfect example of what can happen when you print too much money

For Dominga Kanaza, it wasn’t just the soaring inflation or the weeklong blackouts or even the looting that frayed her nerves.

It was all of them combined.

At one point last month, the 37-year-old shop owner refused to open the metal shutters protecting her corner grocery in downtown Buenos Aires more than a few inches — just enough to sell soda to passersby on a sweltering summer day.

#2 The value of the Argentine Peso is absolutely collapsing.

#3 Widespread shortages, looting and accelerating inflation are also causing huge problems in Venezuela

Economic mismanagement in Venezuela has reached such a level that it risks inciting a violent popular reaction. Venezuela is experiencing declining export revenues, accelerating inflation and widespread shortages of basic consumer goods. At the same time, the Maduro administration has foreclosed peaceful options for Venezuelans to bring about a change in its current policies.

President Maduro, who came to power in a highly-contested election last April, has reacted to the economic crisis with interventionist and increasingly authoritarian measures. His recent orders to slash prices of goods sold in private businesses resulted in episodes of looting, which suggests a latent potential for violence. He has put the armed forces on the street to enforce his economic decrees, exposing them to popular discontent.

#4 In a stunning decision, the Venezuelan government has just announced that it has devalued the Bolivar by more than 40 percent.

#5 Brazilian stocks declined sharply on Thursday.  There is a tremendous amount of concern that the economic meltdown that is happening in Argentina is going to spill over into Brazil.

#6 Ukraine is rapidly coming apart at the seams

A tense ceasefire was announced in Kiev on the fifth day of violence, with radical protesters and riot police holding their position. Opposition leaders are negotiating with the government, but doubts remain that they will be able to stop the rioters.

#7 It appears that a bank run has begun in China

As China’s CNR reports, depositors in some of Yancheng City’s largest farmers’ co-operative mutual fund societies (“banks”) have been unable to withdraw “hundreds of millions” in deposits in the last few weeks. “Everyone wants to borrow and no one wants to save,” warned one ‘salesperson’, “and loan repayments are difficult to recover.” There is “no money” and the doors are locked.

#8 Art Cashin of UBS is warning that credit markets in China “may be broken“.  For much more on this, please see my recent article entitled “The $23 Trillion Credit Bubble In China Is Starting To Collapse – Global Financial Crisis Next?

#9 News that China’s manufacturing sector is contracting shook up financial markets on Thursday…

Wall Street was rattled by a key reading on China’s manufacturing which dropped below the key 50 level in January, according to HSBC. A reading below 50 on the HSBC flash manufacturing PMI suggests economic contraction.

#10 Japanese stocks experienced their biggest drop in 7 months on Thursday.

#11 The value of the Turkish Lira is absolutely collapsing.

#12 The unemployment rate in France has risen for 9 quarters in a row and recently soared to a new 16 year high.

#13 In Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.

#14 The unemployment rate in Spain is sitting at an all-time record high of 26.7 percent.

#15 This year, the Baltic Dry Index experienced the largest two week post-holiday decline that we have ever seen.

#16 Chipmaker Intel recently announced that it plans to eliminate5,000 jobs over the coming year.

#17 CNBC is reporting that U.S. retailers just experienced “the worst holiday season since 2008“.

#18 A recent CNBC article stated that U.S. consumers should expect a “tsunami” of store closings in the retail industry…

Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.

On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It’s the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy’s.

Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.

#19 The U.S. Congress is facing another deadline to raise the debt ceiling in February.

#20 The Dow fell by more than 170 points on Thursday.  It is becoming increasingly likely that “the peak of the market” is now in the rear view mirror.

And I have not even mentioned the extreme drought that has caused the U.S. cattle herd to drop to a 61 year low or the nuclear radiation from Fukushima that is washing up on the west coast.

In light of everything above, is there anyone out there that still wants to claim that “everything is going to be okay” for the global economy?

Sadly, most Americans are not even aware of most of these things.

All over the country today, the number one news headline is about Justin Bieber.  The mainstream media is absolutely obsessed with celebrity scandals, and so is a very large percentage of the U.S. population.

A great economic storm is rapidly approaching, and most people don’t even seem to notice the storm clouds that are gathering on the horizon.

In the end, perhaps we will get what we deserve as a nation.

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  1. I don’t know if the libs would even claim him. The guy is his own political entity. Call it the CapsLock Party. He is driven by fear. Fear of republicans, conservatives, right wingers, and undoubtedly any lefties, democrats, and liberals that are not as far left as he is. Fear of climate change and global warming. Fear of peak oil and rumors of any natural resource shortages. Fear of bitcoin. Fear of rational conversation. The party logo? Maybe some unknown entity lurking in the shadows.

  2. I decided that there is no use conversing with our dear friend John so I’m just going to have a little fun with him. My goal is to turn his liberal white noise into something vaguely entertaining.

  3. Leftist gibberish. You left out the power of crystals and how the government should force everyone to wear a copper bracelet.

  4. Then I am going to have to seek another pastime, which is disappointing since I really to enjoy bitching about the liars, thieves, con-men, con-women, self-proclaimed constitutional scholars, sanctimonious blowhards, economic dolts, pocket liners, money grubbers, hypocrites, and all around good folks that infest politics at all levels.

  5. Have never understood political parties. Group-think at its absolute worst. People who abhor republicans or democrats willingly falling for the lies of the co-workers of those evil republicans and democrats? A crazy concept at best, or a fine definition of insanity. I believe that a few of our founders also warned about the damage that parties will bestow upon a trusting public. That said, I have never believed in the adage that non-voters have no right to share their opinion. If I never hear someone advise me that I have to at least vote for “the lesser of two evils” it will be too soon. Never grasped the thought process of voting for an evil, even if it were the lesser one.

  6. had a friend who reminded me , “we agreed if you do not vote , u can not complain, matter of fact , you do not have the right to complain , bitch , or put down , or talk politics about any thing …” now we argue over the other parties , lol ..

  7. More of a political atheist (crediting that term to Gerald Celente). More of a non-voter. Living in California, so any vote that is not democrat is quickly erased. That said, no vote is a wasted vote. This idea that one must vote D or R is insanity, and has gotten us to this point. People are more worried about getting their ego massaged by casting a vote for a winning team than they are about actual results, cuz if they voted on performance none of the grifters would ever see a second term.

  8. r u a third [5th or 7th ] party voter also ? are u also tired of people telling u that it is a wasted vote ? then we agree, discussion works and [can be] instructional and informing ;-}

  9. Got it. We’re on the same page, and the dead giveaway was that you did not yell and scream at me for having the audacity to even slightly question your post. Thanks for that.

  10. LOL , [yes i am aware] a it was a dig at both parties ,[subtle , for that some ” one ” who seems to gloss over their own parties obvious faults and the prez who has about faced what he said as a senator ] who together have been failing their constitutional duties since 1913 .

  11. Maybe you are not aware of the voting process regarding approval of the Patriot Act and the re-authorization that took place in 2006, but the dems were not asleep. They were right there voting yea, along with their fellow criminals on the right. The two wings of the Big Government Party differ only in their public displays of lying. Their actions tend to be the same.

  12. The fed’s money printing experiment is a band-aid, and simple economic rules say that it cannot end well.

  13. Because that is what Comrade Dille does. While the lefties in this country love to pat themselves on the back for their mythical toleration and inclusiveness, he loves to yell and scream about the evil of anyone that does not agree with him.

  14. Anybody far left is nothing more than a serial killer,history proves that…
    People flee TO the US for a reason.

  15. the constitution was put on hold 9/11 by the republicans,, the democrats were asleep and/or stuff ing their own pockets

  16. nowadays everybody got something to say but when they move their mouth nothing come out except gibberish……eminem. Why all this reinventing of the wheel folks. We have the greatest Constitution in the world……Just follow it. There is nobody alive today that was philosophically smarter than our Founding Fathers.

  17. Rush Limbaugh insults people. The poster didn’t, so I don’t see why you equate his comments with Rush’s.

  18. Food stamps reduced for our poor. High grocery inflation ignored by congress. Cure for agriculture = toxic chemicals and GMOs to further medical decline. USDA & FDA sell out health and welfare to corporate profit. Food pyramid distorted by USDA creates disease in our population. Disease and genetic failings exploited by FDA for profit while ignoring causes. Cures that are natural are ignored or forbidden with Big Pharma racing to synthesize them. Many synthetic medicines produce side effects worse than the cures they claim. Republican congress didn’t pass infrastructure maintenance to stimulate economy. The reason was not allow Obama from getting any positive press for his programs. This continues with Obamacare even though it is working where it has been adopted.
    Rebublican obstructionism is class warfare: the exact thing they denounced in Obamas first election. They represent 2% of the population and others who believe they are the chosen ones. The gutting of the middle class will reach them soon enough but the rape of our resources, most importantly labor, continues with contractors allowed to compete in our country using virtual slave larbor, even in our highest tech fields.

  19. NO… BUT OBVIOUSLY YOU DO!!! Or maybe you just copy and paste what Rush Limbaugh has to say! Same thing I guess!

  20. blah blah blah republicans evil blah blah blah democrats good blah blah blah printing money good blah blah blah more government good blah blah blah.

    Do you use some sort of random sentence generator for you comments?

  21. Yes John because 120 million dead people killed by their far left atheist dictators is the answer right? right?…

  22. THANK GOD FOR THE GUARDIAN, ONE OF THE VERY FEW LIBERAL MEDIA ORGANIZATIONS IN THE WORLD! I have read about all this stuff and more on their internet system… I HIGHLY RECOMMEND IT!!! Very little of this stuff makes it into the right wing Corporate controlled American media… the same media that so effectively brain washes all the Republicans… and hood winks even real Democrats all over the country! BUT ONE THINK WE ALL NEED TO KEEP IN MIND HERE IS… JUST HOW BAD THINGS WOULD BE IF REPUBLICANS STILL CONTROLLED THE WHITE HOUSE AND BOTH HOUSES OF CONGRESS… AND IF THE FED WAS NOT AT LEAST TRYING TO KEEP THINGS FROM FALLING APART HERE IN AMERICA… then all of those foreign problems would be happening right here at home!!!

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