(The Economic Collapse Blog)—Okay, so they want us to believe that the U.S. economy grew at a very brisk pace during the fourth quarter of 2023 even though mass layoffs are happening all over America, sales of previously owned homes are at the lowest level in 28 years, homelessness is rising at the fastest pace ever recorded, and survey after survey is showing that most Americans are just barely scraping by from month to month. Needless to say, something does not add up. The American people are deeply frustrated with how the economy is performing, but the government keeps giving us numbers that indicate that everything is just great. On Thursday, we were told that the U.S. economy grew at a 3.3 percent annualized rate during the fourth quarter of 2023…
The economy grew at a much more rapid pace than expected while inflation eased in the final three months of 2023, as the U.S. easily skirted a recession that many forecasters had thought was inevitable, the Commerce Department reported Thursday.
Gross domestic product, a measure of all the goods and services produced, increased at a 3.3% annualized rate in the fourth quarter of 2023, according to data adjusted seasonally and for inflation.
That compared with the Wall Street consensus estimate for a gain of 2% in the final three months of the year.
If that number actually reflected reality, it would be very good news.
But how is it possible that layoffs were up 98 percent in 2023 while the U.S. economy was supposedly “growing” all year long?
To me, it appears that something fishy is going on.
And that is precisely what we see when we take a deeper look at the numbers. According to Zero Hedge, “GDP-boosting gimmicks” are being employed to make things look better than they actually are…
Turning to the all important consumption, we can’t help but smile when noticing that the BEA is again resorting to such favorite GDP-boosting gimmicks of the old Obama administration as spending on healthcare and… RVs! The two contributed to roughly half the growth in consumer spending in the fourth quarter.
Other numbers that don’t come from the Biden administration tell a much different story.
For example, the Chicago Fed’s National Activity Index was negative in December, and it has been negative for 8 of the past 12 months…
Against expectations of a small rise from 0.03 to 0.06, The Chicago Fed’s National Activity Index (which draws on 85 economic indicators) tumbled to -0.15 in December. 2023 ends with 8 of the 12 months in negative territory…
So how in the world can the economy be “growing” if national economic activity was in negative territory for two-thirds of last year?
It doesn’t make any sense at all.
And if the outlook for the future is positive, why are so many mass layoffs happening?
Business Insider had already conducted one round of mass layoffs, but they just decided that another round has become necessary…
In the latest wave of layoffs to hit the digital media biz, Business Insider said it will cut 8% of its staff in a restructuring aimed at positioning the company for growth.
Business Insider CEO Barbara Peng announced the job cuts in a memo to staffers Thursday. “We have already begun to refocus teams and invest in areas that drive outsize value for our core audience. Unfortunately, this also means we need to scale back in some areas of our organization,” she wrote.
Back when it first started, Business Insider was actually quite good. But those days are long gone. Microsoft is another big name that is putting large numbers of workers on the chopping block…
Microsoft will lay off 1,900 employees at Activision Blizzard and Xbox, the latest tech company to announce cuts so far in 2024.
The layoffs represent about an 8% cut of its video gaming staff of 22,000 workers and come months after Microsoft acquired Activision in a blockbuster deal. The $69 billion transaction in October represented one of the largest tech deals in history as Microsoft took over the studios behind bestselling games like Call of Duty, Diablo and Overwatch for its Xbox console.
And even though things are looking up for IBM these days, they are planning job cuts too…
IBM also said it will also cut a percentage of positions in the low single digits in 2024.
The planned job cuts follow similar announcements in January by major tech companies, including Alphabet’s Google and Amazon.com.
Chief financial officer James Kavanaugh said IBM will likely spend the same amount on restructuring as it did in 2023 – US$400 million – when it reduced its workforce by about 3,900 jobs.
Day after day, I share examples of very large companies that are conducting mass layoffs.
Why would they be doing this if tremendous prosperity is ahead of us? It wouldn’t make any sense at all.
Of course the truth is that an economic downturn has already begun and it is going to get even deeper in 2024.
Those on the bottom of the economic food chain are being hit the hardest. Earlier today, I was saddened to read about homeless people in California that are being evicted from caves that they had dug into the banks of a river…
Rough sleepers in California were found living inside furnished caves dug into the banks of a river 20 feet below street level.
The groups were removed from the eight caves – along the Tuolumne River in Modesto – over the weekend, and they were emptied of belongings, furniture and 7,600 lbs of rubbish, filling two trucks and a trailer.
Some of the caves were decorated with murals, had broken floor tiles and one even had a makeshift fireplace with a chimney.
There are countless others just like them all over the country.
The Wall Street Journal has reported that homelessness was rising at the fastest pace ever recorded in 2023. But don’t worry about any of that.
According to Joe Biden and his minions, the U.S. economy is growing steadily and everything is just great. You believe them, don’t you?
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.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
