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19 Signs Of Very Serious Economic Trouble On The Horizon

by The Economic Collapse

Most Americans have no idea how much economic trouble is heading our way.  Most of them just assume that everything will eventually “return to normal” just like it always has before and that those running our economy “know what they are doing” and that we should trust them to do their jobs.  Unfortunately, these beliefs are being reinforced by the bubble of false hope that we are experiencing right now.  For example, it is being reported that weekly unemployment claims in the United States have fallen to a four-year low.  That is a very good thing.  Let us hope that unemployment claims go even lower and that the current period of stability lasts for as long as possible.  We should enjoy these last fleeing moments of tremendous prosperity for as long as we can, because when they are gone they won’t be coming back.  As I noted the other day, all of this false prosperity in the United States has been financed by the 15 trillion dollar partythat we have been enjoying.  We are adding about 150 million dollars to our debt every single hour so that we can continue to enjoy an inflated standard of living.  Unfortunately, nobody in the history of the world has ever been able to keep a debt spiral going indefinitely, and our debt bubble will burst eventually as well.

Sadly, when you attempt to end (or even slow down) a debt spiral the consequences can be extremely painful.  Just look at what is happening in Greece.  Several waves of austerity measures have been implemented, the Greek economy has been plunged into a full-blown depression and Greek debt is still going up.

The rest of the nations of the eurozone are also now implementing austerity measures, and most of them are also starting to fall into recession.  The economic pain in Europe is just beginning and it will go on for quite a long time.

And eventually the United States is going to join the pain.  Right now the U.S. government can still borrow trillions of dollars at super low interest rates thanks to games being played by the Federal Reserve.  But it is simply not possible for this Ponzi scheme to last too much longer.  When it ends, the pain will be extremely great.

And even in the short-term there are some extremely troubling signs for the U.S. economy.

The following are 19 signs of very serious economic trouble on the horizon….

#1 According to one new survey, approximately one-third of all Americans are not paying their bills on time at this point.

#2 The U.S. housing industry is bracing for another huge wave of foreclosures in 2012.  The following is from a recent Reuters article….

“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.

#3 The Citigroup Economic Surprise Index, a key indicator watched by many economists, is on the verge of heading into negative territory.

#4 We are supposed to be in the middle of an economic recovery in the United States, but bad news just keeps pouring in from major companies.  For example, Yahoo is firing thousands of workers and Best Buy is closing dozens of stores.

#5 Richard Russell says that the “big money” is starting to quietly exit from the financial markets….

“My guess is that this is the big money that has been holding off as long as it decently can — and then dumping their goods just before the close. I don’t think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can.”

#6 Goldman Sachs is projecting that the S&P 500 will fall by about 11 percent by the end of 2012.

#7 All over the country, local governments are going into default and we have not even entered the next recession yet.

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