Global Financial Meltdown: U.S. Stocks Tanking, Worldwide Financial Problems Grow

For the third day, U.S. Stocks are taking beating as the market fell over 1,000 points in the first minutes after the opening bell. Stocks rallied a bit early in the day, but closed the day down over 585 points. Many are fearful that this could be the straw that breaks the camel’s back.

Last week the U.S. Stock Market plummeted by over 1,000 points, causing even the idiots in the media to admit that we may be in for some major trouble. Then this morning, in the opening minutes of trading, traders panicked and the markets dropped over 1,000 points in a matter of minutes.

1,000 point+ Collapse in Market

Hundreds of billions wiped off world’s financial markets today, as Chinese crisis sends stocks tumbling in Europe, Asia and the US

Signs of a major slowdown in the world’s second-largest economy have sent shockwaves throughout the world’s markets. Financial markets in the U.S., Asia and Europe have all taken a major hit as investors increasingly raise alarm bells about declining Chinese demand.

Markets began falling last week after China announced they were devaluing their currency, the Yuan. The Chinese Government made the move after Chinese markets fell over 30% in the last month and a half. But in overnight trading, Asian markets took a beating as the Shanghai Composite in China closed down 8.5%.

This caused even more panic, causing the pan-European Stoxx 600 index to trade down 6.7 percent after opening around 3.3 percent lower. London’s FTSE 100 index dropped 4.1 percent, the German DAX was off by around 4 percent, and the French CAC slipped over 4.7 percent.

“The dismal manufacturing figures from China leaves the door open for more devaluing of the yuan. Throughout the past year, China has been very aggressive in its stimulus schemes, but they still aren’t enough to sustain high levels of growth,” David Madden, IG market analyst, said in a note. “The only option for Beijing will be additional monetary easing which will effectively put the brakes on the U.S. recovery.”

Damian McBride, a former adviser to British Prime Minister Gordon Brown, is warning that the current crisis could lead to widespread civil disorder. He warned that what’s coming will be 20 times the scale of the 2008 crisis, and advised people to “’Stock up on canned goods and bottled water” and have “a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.”

How much more can the economy take?

market chart

While today’s selloff should set off alarm bells, the fact is, the U.S. economy has been in trouble for quite some time. The problems that lead to the 2008 financial crisis we’re never adequately addressed, and I would argue that today’s economy is in even worse shape than in was in the lead up to the 08 crisis.

This current crisis may be just a warning sign of what’s to come; but make no mistake, trouble is coming.

The U.S. now sits at roughly 18.2 Trillion in debt, with unfunded liabilities that push that number closer to $220 Trillion. Between the crash of the global markets, the student loan debt bubble that’s about to burst, and one of the lowest labor force participation rates in our history there really is no denying what’s coming; we are heading towards a major financial crisis.

The Continuing Collapse of the U.S. Economy

Since 2008, the mainstream media has gone into overdrive trying to convince the public that the economy was recovering. But when you look at the real numbers, we are in some serious trouble.

Since the economic crisis in 2008, President Obama has almost doubled the national debt. On the day Obama was sworn into office, the National Debt hit a staggering $10.626 trillion; since that time it has since ballooned to over $18.2 trillion.

  • According to the latest census numbers, one in five U.S. adults – 18 to 34 years old – lives in poverty.
  • Almost two-thirds (65 percent) of children in the U.S. now live in a home that receives assistance from at least one government welfare program.
  • 52% of Americans can’t afford their current house payments, and 1 in 4 Americans Have No Emergency Savings.
  • Average family income, adjusted for inflation, has fallen from about $55,600 in 2007 to $51,000 in 2015.

If you haven’t started taking steps to prepare yourself for the coming chaos, you need to take a serious look at what’s really going on in this country and throughout the world. From an economy that never really recovered, to governments and international banks calling for a ban on paper currency, the signs are everywhere; you need to start preparing.

How to prepare for the coming Global Economic Meltdown

Because I think it’s one of the most pressing threats we face, I devoted an entire section to financial preparedness in my book, The Ultimate Situational Survival Guide. Some of the suggestions I outline include:

Start Immediately Cutting Expenses: If you can live without it, now is the time to start cutting all inessential items out of your budget. The money you save by cutting things like cable, $5 lattes, and useless consumer crap can be poured into reducing your debt and stockpiling emergency supplies and long-term consumables.

Start an Emergency Fund: You need to have cash on hand. While cash will quickly become worthless during a complete collapse of the global economic system, in the lead up to the crash it’s going to be essential to your survival. Starting an emergency fund is one of the best ways to ensure you can protect yourself and your family once things start to go bad.

Invest in Long-term Consumables: During a complete collapse, the only thing that will be worth anything is long-term consumables. Start stockpiling things that you know you’ll need and use in the future. Emergency supplies, long-term food, land, and everyday household goods are all things that will continue to hold their value long after the collapse.

Invest in your Defense: When things start to turn ugly, one of the biggest dangers you’re going to face is criminals who are looking to take advantage of the situation. The social unrest and violence that we witnessed in both Baltimore and Ferguson are going to pale in comparison to what we’ll see during a full-scale economic collapse.

Have a Bugout Plan: If things go South, you need to have a backup plan. During extreme times of social unrest, there may be a time when the only way to survive the chaos is to evcuate from your immediate area. Remember the chaos in Ferguson and Baltimore? Now imagine what will happen if the entire system crashes. It’s not going to be pretty.

9 Comments

  1. Hunkerdown
    August 24, 2015 at 11:14 am

    It is sad to see people lose their money, but for every dollar lost, others make two. Up and down it goes, but the economy will not collapse. It is not biblical. The scenario is ATTACK-COLLAPSE, NOT COLLAPSE-ATTACK. America will bite the dust via an emp and/or cyber attack upon the grid. That is the danger as outlined in scripture and it is engraved in stone. Thanks and God bless.

    • Moman
      August 24, 2015 at 7:28 pm

      You do realize the phrase, and the sky was if on fire, could be from widespread, chaotic rioting, and from the light of the large fires from the cities burning to the ground reflecting in the sky, or as a nuclear attack in the aftermath of global market meltdown.

      • Hunkerdown
        August 24, 2015 at 8:10 pm

        @Moman: Yes, I do realize these things and thanks for pointing that out. But the problem, respectfully, with this is that will only come about because of the emp/cyber attack and people will riot and burn the cities. China wants the country, but without you and I alive in it. The bible clearly states that a fire will be kindled in the cities that will devour the countryside. It also says we will burn and eat each other’s flesh. And frankly, because of my belief in the God ordained Shemitah, we could be less than on month away from this scenario. I am no prophet, but we shall see. I sincerely hope that in October, you can say, I told you so, and we are all here safe and sound. Thanks for your patience and God bless always.

  2. CM
    August 24, 2015 at 8:40 pm

    Something to point out, though I’m sure you have already considered it, the Treasury Department hasn’t added one dime to the deficit for months. They keep doing ” internal borrowing “, which they claim doesn’t really add to the 18.2 TRILLION dollar debt, UNTIL they have to pay back the money they have borrowed.

    Just a technicality, but at this point we are much nearer to 19 trillion in the hole than they are admitting at this point. ( not counting unfunded liabilities, of course ).

    Not that it matters, since the government will keep piling on more debt even as they fly off the edge of the cliff.

    • Off Grid Survival
      August 25, 2015 at 10:48 am

      You’re spot on…. We have well surpassed the 18.2 Trillion point and once they stop fudging the numbers it will definitely spike.

  3. B from CA
    August 24, 2015 at 10:29 pm

    This is not good news but we have been expecting it for sometime. Maybe now we can get more people to see the wisdom of setting aside some food be it canned, dried or grown from our own trees and bushes.

    • Off Grid Survival
      August 25, 2015 at 10:49 am

      Sadly most will probably ignore what happened… The fact that people are already throwing money back into the markets today suggests that most think yesterday and last week was a weird anomaly.

  4. SNIPER
    August 29, 2015 at 6:48 am

    Just sitting, sipping and waiting on the big one.

    • SNIPER
      August 29, 2015 at 6:50 am

      Got my money invested in seeds, supplies and ammo,,can’t trust the gov. don’t trust the banks.

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