Based Underground is now a conservative news aggregator AND curated newsletter.
(The Economic Collapse Blog)—Are the financial markets headed for trouble? There was quite a bit of panic on Wall Street on Thursday after more bad economic numbers were released. But honestly I simply do not understand why the financial markets responded with such surprise. By now it should be apparent to everyone that we have a “Weekend at Bernie’s economy” that is being propped up by unprecedented levels of government spending. If we actually tried to live within our means, we would immediately plunge into a depression. Our politicians definitely do not want that, and so about every one hundred days they are adding another trillion dollars to the national debt, and the vast majority of that borrowed money goes directly into the veins of the corpse that we call the U.S. economy.
But even though we are absolutely flooding the system with cash stolen from future generations of Americans, economic performance has been extremely anemic.
- Preserve your retirement with physical precious metals. Receive your free gold guide from Genesis Precious Metals to learn how.
On Thursday, the government reported that the U.S. economy grew at a 1.6 percent annualized rate during the first quarter of this year…
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 1.6% on an annualized basis in the three-month period from January through March, the Commerce Department said in its first reading of the data on Thursday.
That is much lower than the 2.4% increase forecast by LSEG economists and marks a sharp slowdown from the 3.4% pace seen during the fourth quarter. It is the slowest pace of growth in two years.
“This was a worst of both worlds report — slower than expected growth, higher than expected inflation,” said David Donabedian, chief investment officer of CIBC Private Wealth US. “The biggest setback is the acceleration in core inflation, and in particular, the services sector rising above a 5% annual rate.”
Even if the GDP numbers were accurate, and I don’t believe that they are, that would still be absolutely terrible.
At this point, some pundits are using the term “slowdown” to describe what is happening to the economy…
Some analysts believe Thursday’s weaker-than-expected report signals the start of a broader slowdown in the economy.
Personally, I am entirely convinced that if honest numbers were being used they would indicate that GDP growth is negative.
But in any event, pretty much everyone agrees that we are heading in the wrong direction.
In response to this bad economic news, stock prices plummeted.
At one point on Thursday, the Dow Jones Industrial Average was down more than 600 points, and it closed the day down 375 points…
Stocks tumbled Thursday after the latest U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation.
The Dow Jones Industrial Average slid 375.12 points, or 0.98%, to close at 38,085.80, weighed down by steep declines in Caterpillar and IBM. The S&P 500 dropped 0.46% to finish the session at 5,048.42, and the Nasdaq Composite lost 0.64% to 15,611.76.
Not too long ago, the Dow was flirting with 40,000.
Since that time, it has lost nearly 2,000 points.
Will this “slide” eventually turn into an avalanche? What is happening in the bond market is of even greater concern.
The release of the GDP numbers caused U.S. Treasury yields to go completely nuts…
U.S. Treasury yields rose on Thursday after the first-quarter GDP report showed slowing growth and rising consumer prices.
The benchmark 10-year Treasury yield climbed 4.8 basis points to 4.702%, while the rate on the 2-year Treasury gained 6.1 basis points to 4.998%. At their session highs, the yields on both notes hit their highest levels since November.
Let’s keep a close eye on this.
If Treasury yields start swinging too wildly, that is going to have enormous implications for those that trade derivatives.
Shifting gears, we have also just learned that the median price of a home in the U.S. has just hit another brand new record high…
It is more expensive than ever to buy a home in the U.S., according to a new report from the real estate company Redfin.
The median home price hit a record $383,725 during the four-week period ending April 21. That’s up 5.2 percent from a year ago, Redfin found, one of the largest leaps in home prices since October 2022.
Sadly, home ownership is now out of reach for a very large chunk of the population. If you can believe it, Redfin says that the median monthly housing payment has risen “to a record $2,843”…
The median monthly housing payment also jumped to a record $2,843, up 13 percent from the same period last year.
Chen Zhao, the economic research lead at Redfin, said prospective buyers should “accept that this year is probably not the time to find a dream deal.”
Who can afford a mortgage payment of $2,843 a month? That is insane.
Home ownership has never been more unaffordable than it is right now, and young adults that are just starting out are being hit the hardest. Earlier today, I just had to laugh when I came across an article entitled “So you may never own a home. Here’s why maybe that’s … a good thing?”
To me, that sounds eerily similar to “you will own nothing and be happy”. That particular article is directed at young adults in Canada, but millions of young adults in the U.S. are also wondering if they will be renting for life.
Yes, there are some advantages to renting, but you aren’t building any equity. And I think that is what the wizards on Wall Street would like to see.
I think that they envision a future in which they own almost all of the homes and the vast majority of us are renters. The good news, if you want to call it that, is that I don’t think that things will ever get that far.
Take control of your family’s food security with a Harvest Right freeze dryer. There’s a big sale happening right now….
Our entire system has started to come apart at the seams, and it won’t be too long before it completely crashes. A lot of the “wealth” that we see on Wall Street is just a mirage.
For the moment, stock prices are absurdly high because there are people out there that are willing to pay those prices. But when conditions take a dramatic turn for the worse, the buyers will all disappear and so will the absurdly high stock prices.
So enjoy the last days of the bubble while you still can, because the clock is ticking…
Sound off about this article on the Economic Collapse Substack.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
TRENDING ARTICLES
OMG: O’Keefe Media Group Exposes Disney’s “Gender Expression Transitioning” Program
by Liberty One News
On Thursday, O’Keefe Media Group disclosed internal documents that uncover Disney’s Gender Expression and Transitioning programs. The G.E.T. program advocates for modifying one’s natural body, and the documents further expose Disney’s health insurance plans covering genital mutilation surgeries. Per James O’Keefe: REVEALED: O’Keefe Media reveals internal videos and documents exposing…
Track Coach Sues After Allegedly Being Fired For Opposing Policy Allowing Male Athletes In Female Sports
by Daily Caller
An Oregon high school track and field coach filed a lawsuit Thursday claiming he was improperly fired after stating that biological males had an unfair advantage against female athletes. John Parks was fired in June after sending a letter to the Oregon School Activities Association (OSAA) suggesting the regulatory agency…
“They’re Starting Brutal Attacks”: James Carville Says Cackling Kamala’s “Best Day” of the Campaign Is Already Behind Her
by The Liberty Daily
Democratic strategist James Carville on Wednesday declared the “best day” of Vice President Kamala Harris’ presidential run is already behind her. Biden abruptly withdrew from the presidential race on Sunday and endorsed Harris, who is running based on a Democratic Party insider vote with almost no primary voter approval, after…
5 Ways Kamala Harris’s Democrat and Media Enablers Are Gaslighting America
by Breitbart
Vice President Kamala Harris’s Democrat and mainstream media allies are gaslighting American voters in five ways as her presidential campaign gets underway with just over 100 days to election day. The manipulation is being carried out in various forms: the covering up of President Joe Biden’s apparent cognitive decline, claims…
Major Study of 9 Million Confirms COVID Shots Cause VAIDS
by Slay News
An explosive new study, which analyzed the data of nine million people, has sent shockwaves through the scientific community after proving that Covid mRNA shots are responsible for the global surge in cases of AIDS-like vaccine-acquired immunodeficiency syndrome (VAIDS). The peer-reviewed study was conducted by a team of world-renowned South…
The Secret Service Was Obviously Going to Be the Next Vehicle of the Deep State
by The Federalist
Was the assassination attempt a failure because Trump survived? Or was it a failure because he was shot in the first place? The since-resigned Secret Service director conceded before House lawmakers Monday that this month’s shooting of former President Donald Trump was the worst agency security failure since President Ronald…
Emhoff’s Ex Opens up About Kamala Parenting Her Kids
by Headline USA
Kerstin Emhoff, the first wife of Second Gentleman Doug Emhoff, has spoken up about the non-existent attacks aimed at Vice President Kamala Harris for having no biological children. In remarks to CNN on Thursday, Emhoff claimed that Harris has acted as a parent to her children, Ella and Cole Emhoff,…
Illegal Alien ‘Got-Away’ Accused of Killing Nashville Restaurateur Matt Carney
by Breitbart
An illegal alien “got-away” has been accused of killing 42-year-old Matthew Carney, the owner of the Smokin Thighs restaurant in Nashville, Tennessee, in a hit-and-run crash. Ulises Raigoz-Martinez, a 24-year-old illegal alien from Mexico, has been charged with criminal homicide, tampering with evidence, vehicle theft, criminal impersonation, and evading arrest…
Kamala Ran S.F. Program That Helped Illegals Who Were Arrested Avoid Deportation
by Headline USA
As San Francisco’s district attorney, Kamala Harris ran a program that helped illegal immigrants arrested for drug crimes avoid deportation, get jobs, and even have their records expunged. The “Back on Track” program was run by the San Francisco district attorney’s office while Harris was district attorney from 2004 to…
Hamas Lovers Hit New Low in D.C. Protest
by PJ Media
So you saw the latest batch of Hamas lovers burning American flags, releasing maggots, and vandalizing our monuments in Washington, D.C., recently since Israel’s Prime Minister Benjamin Netanyahu visited. My friend Stephen Kruiser discussed it a bit in his latest Morning Briefing, as did Athena Thorne, who went into more…
Congress Ordered Research into Military Covid Shot Injuries
by Infowars
Congress has included a provision in the National Defense Authorization Act (NDAA) for fiscal year 2024 directing the U.S. Department of Defense (DoD) to investigate the negative health outcomes on military personnel following administration of the Covid vaccination. “Study and report on health conditions of members of the Armed Forces…
FBI Director Debunks Biden’s Claim That J6 ‘Gallows’ Were Designed to Hang Mike Pence
by Headline USA
President Joe Biden said in a recent speech that the infamous gallows built on Capitol Hill on Jan. 6, 2021, were “erected to hang Vice President Mike Pence.” That’s a strong claim coming from the sitting—at least for now—leader of the free world. Rep. Thomas Massie, R-Ky., asked FBI Director…
Legal Group Launches Several Investigations Focusing On Kamala Harris’ Record, Use of Campaign Funds
by Trending Politics
“A lot of her tough on crime reputation goes to her prosecution when she was San Francisco DA, individuals who use marijuana and other sorts of things,” AFL President Dan Epstein said in a statement to Fox News. “Our investigation, however, makes it very clear that Kamala Harris does not…
Kamala Harris Once Mocked Trump’s Warning of Terrorists Crossing Through Border
by Daily Caller
Vice President Kamala Harris mocked the idea that a border wall was necessary to keep terrorists from entering the country during a February 2019 interview in New Hampshire. During the sit-down interview with WMUR-TV, then-Democratic California Sen. Harris mocked President Donald Trump’s assertion that a massive border wall between the…
Ultra-Processed Foods Are Harming Children: What’s Being Done About It?
by The Epoch Times
Ultra-processed foods have become a significant part of many children’s diets, and it may come as no surprise that such foods come with a cost. A cross-sectional study published in JAMA in May revealed that children who consumed high amounts of ultra-processed foods exhibited higher body mass index, waist circumference,…
Democrats Urge OpenAI to Allow Government Access to Models Before They Go Public
by Reclaim the Net
Five Democrat senators have penned a letter to OpenAI CEO Sam Altman, as a form of not-so-subtle pressure to commit “to making its next foundation model available to US Government agencies for pre-deployment testing, review, analysis, and assessment.” But, “pre-deployment testing by government agencies?” Are these guys sure this is…
These Important Election Integrity Initiatives Might Be On Your 2024 Ballot
by The Federalist
From voter ID to mail-in voting, these proposed ballot measures could significantly alter the way states administer their elections. While most political pundits are focused on the pending matchup between former President Donald Trump and (presumably) Vice President Kamala Harris, a major facet of the 2024 contest that’s not getting…
News from across the conservative media sphere! Subscribe for free to the brand new Based Underground Newsletter for a daily uncensored recap of the news and opinions that are most important to American patriots.