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(The Economic Collapse Blog)—For a long time, there was a lot of denial about the direction that the U.S. economy was heading. The Biden administration and the mainstream media just kept insisting that everything was just fine even though everyone could clearly see that it wasn’t. But now reality is setting in. Last week we got some numbers that Wall Street really didn’t like, and a massive temper tantrum ensued.
The panic that we witnessed on Friday was quite breathtaking, and many are concerned that it could bleed over into the new week. Investors are desperate for the Federal Reserve to cut interest rates, but so far the Fed has not moved.
On Friday, many were surprised when the employment numbers were much worse than anticipated…
U.S. job growth cooled sharply in July while the unemployment rate unexpectedly rose to the highest level in nearly three years.
The Labor Department on Friday reported that employers added 114,000 jobs in July, missing the 175,000 gain forecast by LSEG economists. The unemployment rate also unexpectedly inched higher to 4.3% against expectations that it would hold steady at 4.1%.
It marked the highest level for the jobless rate since October 2021.
Please keep in mind that the U.S. economy must produce at least 150,000 new jobs each month just to keep up with population growth. So even if we did add 114,000 jobs last month, we would still be losing ground.
But the only reason why the official figure showed an addition of 114,000 jobs last month is because the birth/death model added 246,000 jobs to the final number…
Of course, we can’t possibly forget that every jobs number is highly manipulated and rigged, and July was no difference with the Birth/Death model adding a ridiculous 246K “statistical” jobs to the unadjusted print. Which it does not translate apples to apples, one can confidently say that the actual adjusted payrolls number would be far, far smaller had it not been for this ongoing fabrication.
It isn’t difficult to get a positive employment report every month when you are “adjusting” the final number by about a quarter of a million jobs that you just “assume” are being created somehow.
In any event, even if we take the government’s report at face value, the Sahm Rule has still been officially triggered…
That’s because the rise in unemployment triggered the so-called Sahm Rule, an indicator that is used to provide an early recession signal. The rule stipulates that a recession is likely when the three-month moving average of the jobless rate is at least a half-percentage point higher than the 12-month low.
Over the past three months, the unemployment rate has averaged 4.13%, which is 0.63 percentage points higher than the 3.5% rate recorded in July 2023. The Sahm Rule has successfully predicted every recession since 1970.
Even though this indicator has successfully predicted every single recession since 1970, Fed Chair Jerome Powell insists that it may not be correct this time around…
Fed Chair Jerome Powell responded to a question about the rule at a news conference Wednesday following the Fed’s decision to keep the key interest rate unchanged. “It’s not like an economic rule where it’s telling you something must happen.” He continued, “what we think we’re seeing is a normalizing labor market and we’re watching carefully to see if it turns out to be more.”
Unfortunately, it appears to be inevitable that the unemployment rate will go even higher because large companies all over America continue to shed workers. In fact, last week Intel announced that it will be “cutting 15% of its workforce”…
Months after the federal government gave Intel $8.5 billion in grants to help bring back chipmaking to the U.S., the company said it is cutting 15% of its workforce, which translates to around 17,000 jobs.
The tech company announced the job cuts as part of a massive cost-cutting and restructuring plan.
Of course Intel is far from alone.
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Businesses from coast to coast have fallen on hard times, and business bankruptcy filings have risen by more than 40 percent during the past 12 months…
Over the past year, business bankruptcy filings are up 40.3 percent, and have now reached a number not seen since the second quarter of 2020, at the peak of lockdowns. American households are following along, with total bankruptcy filings up 16.2 percent in the past year, including 132,710 new filings in the second quarter of 2024 alone.
The last time business bankruptcy filings were this high was during the lockdowns in the early days of the COVID pandemic.
But we don’t have any lockdowns to blame the current wave of bankruptcies on.
What we are witnessing now is really quite scary.
Hordes of businesses are failing, and commercial real estate values have been crashing hard…
Brookfield owned Gas Company Tower in Downtown LA has plummeted over $400M in value
The skyscraper was recently valued at $214.5M
It was appraised at $632M just 3 years ago
This is a commercial real estate apocalypse
Right now, our banks are sitting on gigantic mountains of commercial real estate loans that have gone bad. For many of those banks, it is just a matter of time before they go belly up.
But don’t just take my word for it. Recently, a number of prominent experts have been warning that a tsunami of bank failures is on the way…
The echoes began in May.
Barry Sternlicht of Starwood Capital Group predicted a regional bank failure “every day or every week.”
Days later, Newmark Chair Howard Lutnick warned, “Every single weekend a regional bank is going to go bye-bye,” and predicted 500 to 1,000 failures in 2025 and 2026 — as did alternative lenders speaking at the same event. In June, PIMCO’s head of global private commercial real estate joined the chorus.
Yes, this is really happening.
A tremendous amount of financial chaos is in our future, and most people are going to be completely blindsided by it.
There is one thing that the Federal Reserve could do to mitigate the damage.
If the Fed started cutting interest rates immediately, that would certainly help.
But so far, the Fed has refused to budge.
We are being told that the Fed “might” give us a rate cut in September. That isn’t going to do the job.
We need help now, because major problems are already starting to erupt all around us.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Smoke And Mirrors: What Happens After Biden’s Economic Manipulations Disappear?
by Brandon Smith
There is a popular school of thought that believes most economic stability is purely psychological; that the health of the economy relies on the population NOT knowing the true state of things. In other words, “ignorance is bliss.” I partially agree with the premise but only under certain conditions. If…
Kamala Harris Has a ‘Conversation’ With the National Association of Black Journalists
by Red State
Vice President and selected Democrat nominee Kamala Harris did not have to wait like former President and GOP nominee Donald Trump for the National Association of Black Journalists (NABJ) to get their technology together on Tuesday. They were right on time for this “Conversation with Vice President Kamala Harris” in…
Vaccine-Injured Americans Fight to Hold Biden-Harris Admin Accountable Over Censorship Campaign
by The Blaze
Novel COVID-19 vaccines advertised as “safe and effective” left multitudes of Americans injured or worse during the pandemic. Some of those individuals still physically capable went online to express their concerns, share their life-changing experiences, and engage with others medically compromised by government mandates and experimental science. However, in many…
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ABC News Hits the Panic Button After Sworn Statement Proving the Debate Was Rigged, David Muir Does Damage Control
by Joe Kovacs, WND
(WND News Center)—ABC News is apparently pressing the panic button in the wake of fierce criticism of its Sept. 10 presidential debate between former President Trump and Vice President Kamala Harris. A sworn statement by an ABC News whistleblower exposing network bias favoring Harris continues to be in focus regarding…
The FBI Should Visit the New York Times About Instigating More Anti-Trump Violence
by The Federalist
If the price to pay as a Republican running for president is the media blaming you for being nearly assassinated, they are culpable. The FBI should consider stopping by the homes of New York Times reporters Michael Barbaro and Peter Baker after their slew of public remarks about Donald Trump…
IT NEVER ENDS! Soros-Funded Group Doubling Down on Censorship Efforts Ahead of 2024 Election
by Newsbusters
A radical censorship-obsessed group financed by leftist billionaire George Soros is doubling down on efforts to interfere in the 2024 election by turning the screws on Big Tech to censor speech and by manipulating journalists. Free Press, fueled with at least $2 million by Soros between 2017 and 2021, announced…
NYPD: 81-Year-Old Woman Knocked Unconscious in Random Attack, Suspect on the Loose
by Breitbart
An elderly New York City woman was injured in an unprovoked attack when a random man sucker punched her in the head while she was walking her dog, surveillance footage shows. The victim, 81, was out with her dog on Friday just after 7:00 p.m. near W. 66th St. and…
Wi-Fi Routers Are ‘Significant EMF Emitters’ and ‘Should Be Away From Livingrooms/Bedrooms’ — Study
by Infowars
A recent scientific study on the specific absorption rate (SAR) values in the brain and body from electromagnetic frequencies (EMF) emitted by modern electronic devices indicate that certain tech devices, such as Wi-Fi routers, should not be in the same rooms that people spend much of their time in, such…
America First Legal Investigates Biden Admin’s Potential Knowledge of Second Trump Shooter
by Daily Caller
The conservative group America First Legal (AFL) is investigating whether the Biden-Harris administration was monitoring Ryan Wesley Routh, the suspect who allegedly attempted to assassinate former President Donald Trump on Sunday. AFL announced Tuesday it was launching a “multi-front” investigation into any records the Biden-Harris administration may possess on Routh….
With a Male Player, San Jose State University Women’s Volleyball Is Having Its Best Season Ever
by The Blaze
The women’s volleyball team at San Jose State University remained undefeated and is now 6-0 following its latest victory. The team is off to its best start in program history, according to OutKick, and continued its hot streak with a 3-2 win over fellow NCAA Division I Santa Clara. The…
Klaus Schwab Calls for “Global Collaboration” to Combat “Misinformation”
by Reclaim the Net
It will take serious research and serious access to information ever to figure out which came first, the WEF chicken, or the WEF egg. But this unelected, informal group of highly influential global elites has often been able to either seemingly predict, or seemingly help make happen – some major…
‘I Reached Out’: Chris Cuomo Reveals What He Told Trump After Second Assassination Attempt
by Daily Caller
NewsNation host Chris Cuomo on Monday said he expressed condolences to Donald Trump after the second attempt on his life on Sunday, saying the former president “doesn’t deserve” to face assassination attempts. Federal and local officials confirmed Sunday the arrest of 58-year-old Ryan Wesley Routh for allegedly attempting to assassinate…
ABC’s ‘World News Tonight’ Ratings Tank After Hosts’ ‘One-Sided’ Moderating of Trump-Harris Debate
by Harold Hutchison, Daily Caller News Foundation
(DCNF)—Ratings for ABC’s “World News Tonight” fell by over 10% since the Sept. 10 debate between former President Donald Trump and Vice President Kamala Harris hosted by ABC News hosts David Muir and Linsey Davis. The Disney-owned network’s broadcast news program hosted by Muir that airs at 6:30 p.m. EDT…
Federal Loopholes Allow China to Buy Land Near Sensitive Ports, Labs, and Coast Guard Facilities, Prompting Congressional Concern
by Free Beacon
China and other foreign adversaries are still permitted to purchase U.S. land near sensitive Coast Guard facilities, ports, and Energy Department labs, exposing national security gaps that lawmakers say enable hostile regimes to conduct espionage operations on American soil. The Treasury Department’s Committee of Foreign Investment in the United States…
Iran’s Ambassador to Lebanon Reportedly Injured by Exploding Pager
by Red State
I’m not sure who had exploding pagers on their Bingo cards for 2024, but why not? As Bonchie reported earlier: In one of the most unbelievable developments of 2024, Israel somehow hacked into the pagers and cell phones of Hezbollah fighters and caused them to explode. News of hundreds of…
Trump Issues a “Cease and Desist” to Election Cheaters, Promises Retribution for Those Who Don’t Heed the Warning
by Fred Lucas
(The Daily Signal)—As early voting begins this week in the battleground state of Pennsylvania, former President Donald Trump posted another warning to cheaters on Truth Social. “CEASE & DESIST,” the 45th president posted Tuesday. “I, together with many Attorneys and Legal Scholars, am watching the Sanctity of the 2024 Presidential…
Lawmaker Warns of Rising Trend of ‘Hostage Diplomacy’ After China Releases Us Citizen
by The Epoch Times
The top Republican on the Foreign Affairs Committee said “hostage diplomacy” is on the rise, a day after the Chinese regime released an American citizen and pastor who had been detained for nearly 20 years. The State Department announced on Sept. 15 that David Lin, who was on a missionary…
Hillary Clinton Calls for Americans Who Disagree With Democrat Narratives to Be Imprisoned
by Cindy Harper, Reclaim The Net
(Reclaim The Net)—Former US Secretary of State Hillary Clinton has has decided to ignore the First Amendment and has advocated for punitive measures aimed at Americans who contribute to the spread of what she calls “propaganda.” Speaking to MSNBC on Tuesday, Clinton suggested that holding American individuals accountable through civil…
CBS Ties 2nd Trump Assassination Attempt to Springfield, Buries Threat Hoaxes
by Newsbusters
With the aftermath of the second assassination attempt on former President Donald Trump drawing significant coverage, the Springfield “dogs and cats” story is beginning to recede from view- except on CBS, which chose to flog the story for at least one more night. Watch CBS Evening News anchor Norah O’Donnell’s…
Exposing the Lethal Fraud of Gender Ideology: Dr. Ann Gillies’ Documentary Unmasks the SOGI Agenda in Schools
by RAIR Foundation
Dr. Ann Gillies, who was featured in a RAIR Dr. Ann Gillies, who RAIR featured in an article on July 3rd, has created a 45-minute documentary exposing the dangerous and sometimes lethal fraud of SOGI (Sexual Orientation and Gender Ideology), which is being promoted in both Canadian public and Catholic…