Tipping Point: 25 Signs That The Coming
Financial Collapse Is Now Closer Than Ever
The Economic Collapse Blog (Link)
- Michael T. Snyder (December 17, 2010)
The financial collapse that so many of us have been
anticipating is seemingly closer then ever. Over the past several weeks, there
have been a host of ominous signs for the U.S. economy. Yields on U.S.
Treasuries have moved up rapidly and Moody�s is publicly warning that it may
have to cut the rating on U.S. government debt soon. Mortgage rates are also
moving up aggressively. The euro and the U.S. dollar both look incredibly
shaky. Jobs continue to be shipped out of the United States at a blistering
pace as our politicians stand by and do nothing.
Confidence in U.S. government
debt around the globe continues to decline. State and local governments that
are drowning in debt across the United States are savagely cutting back on even
essential social services and are coming up with increasingly �creative� ways of
getting more money out of all of us. Meanwhile, tremor after tremor continues
to strike the world financial system. So does this mean that we have almost
reached a tipping point? Is the world on the verge of a major financial
Let�s hope not, but with each passing week the financial news
just seems to get eve worse. Not only is U.S. government debt spinning wildly
toward a breaking point, but many U.S. states (such as California) are in such
horrific financial condition that they are beginning to resemble banana
But it is not just the United States that is in trouble. Nightmarish debt problems in Greece, Spain, Portugal, Ireland, Italy, Belgium
and several other European nations threaten to crash the euro at any time. In
fact, many economists are now openly debating which will collapse first - the
euro or the U.S. dollar.
Sadly, this is the inevitable result of constructing a global
financial system on debt. All debt bubbles eventually collapse. Currently we
are living in the biggest debt bubble in the history of the world, and when this
one bursts it is going to be a disaster of truly historic proportions.
So will we reach a tipping point soon? Well, the following
are 25 signs that the financial collapse is rapidly getting closer....
The official U.S. unemployment rate has
not been beneath 9 percent
since April 2009.
According to the U.S. Census Bureau,
there are currently
6.3 million vacant homes in the United States that are either for sale or
It is being projected that the U.S. trade
deficit with China could hit
270 billion dollars for the entire year of 2010.
Back in 2000, 7.2 percent of blue collar
workers were either unemployed or underemployed. Today that figure
is up to 19.5 percent.
The Chinese government has accumulated
$2.65 trillion in total foreign exchange reserves. They have drained this
wealth from the economies of other nations (such as the United States) and
instead of reinvesting all of it they are just sitting on much of it. This is
creating tremendous imbalances in the global economy.
Since the year 2000,
we have lost 10% of our middle class jobs. In the year 2000 there were
approximately 72 million middle class jobs in the United States but today there
are only about 65 million middle class jobs.
The United States now employs about the
same number of people in manufacturing
as it did back in 1940. Considering the fact that we had 132 million people
living in this country in 1940 and that we have well over 300 million people
living in this country today, that is a very sobering statistic.
According to CoreLogic, U.S. housing
prices have now declined
for three months in a row.
The average rate on a 30 year fixed rate
soared 11 basis points just this past week. As mortgage rates continue to
push higher it is going to make it even more difficult for American families to
22.5 percent of all residential
mortgages in the United States
were in negative equity as of the end of the third quarter of 2010.
The U.S. monetary base
has more than doubled since the beginning of the most recent recession.
U.S. Treasury yields have been rising
steadily during the 4th quarter of 2010
and recently hit a six-month high.
Incoming governor Jerry Brown is scrambling to find $29
billion more to cut from the California state budget.
The following quote from Brown
about the desperate condition of California state finances is not going to
do much to inspire confidence in California�s financial situation around the
�We�ve been living in fantasy land. It is much worse
than I thought. I�m shocked.�
24.3 percent of the residents of El Centro, California are currently
The average home in Merced, California
has declined in value
by 63 percent over the past four years.
Detroit Mayor Dave Bing has come up with
a new way to save money. He wants to cut
20 percent of Detroit off from essential social services such as road
repairs, police patrols, functioning street lights and garbage collection.
The second most dangerous city in the
United States - Camden, New Jersey - is about to lay off
about half its police in a desperate attempt to save money.
55 percent of Americans between the ages of 60 and 64 were in the labor
market. Ten years ago, that number was just 47 percent. More older Americans
than ever find that they have to keep working just to survive.
Back in 1998, the United States had 25
percent of the world�s high-tech export market and China had just 10 percent.
Ten years later, the United States had less than 15 percent and China�s share
soared to 20 percent.
The U.S. government budget deficit
increased to a whopping $150.4 billion last month, which represented
the biggest November budget deficit on record.
The U.S. government is somehow going to
have to roll over existing debt and finance new debt
that is equivalent to 27.8 percent of GDP in 2011.
The United States had been the leading
consumer of energy on the globe for about 100 years, but this past summer China
took over the number one spot.
According to an absolutely stunning new
40 percent of all U.S. doctors plan to bail out of the profession over the
next three years.
As 2007 began, there were just over 1
million Americans that had been unemployed for half a year or longer. Today,
over 6 million Americans that have been unemployed for half a year or
All over the United States, local
governments have begun instituting �police response fees.� For example, New
York Mayor Michael Bloomberg has come up with a plan under which
a fee of $365 would be charged if police are called to respond to an
automobile accident where no injuries are involved. If there are injuries as a
result of the crash that is going to cost extra.
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