Holy Sh*t! We Haven’t Seen This Since The GREAT DEPRESSION
The Ghost of the Great Depression Reawakens
Hold onto your seats, America, and brace for impact! If you’ve relegated the Great Depression to the dusty shelves of history, prepare for a seismic jolt. The latest indicators—M2 money supply, labor force participation, and more—are not just a haunting reminder of the 2008 Global Financial Crisis; they’re a chilling echo of the 1930s Great Depression. This is not a drill; it’s a five-alarm fire.
The M2 Money Supply: A Siren You Can’t Ignore
The M2 money supply growth rate is plummeting at a staggering -4.07%, a nadir not witnessed since the Great Depression. This isn’t a mere hiccup or a statistical anomaly; it’s a blaring siren demanding your undivided attention.
In the darkest days of the 2008 Global Financial Crisis, the M2 money supply growth rate was a paltry 1.86%. Even then, we were grappling with a quarter of outright deflation. The current situation is not just worse; it’s a financial abyss that makes the 2008 crisis look like child’s play. For more insight on money supply data, check Milton Friedman’s book “A Monetary History of the United States”
You can’t conclude that purchasing power is going down merely based on this chart. But, if you take into consideration bank credit decline over the last months, you can conclude that purchasing power is declining aswell. Like we saw in the 1930’s.
Labor Market Mirage: The Illusion of Low Unemployment
Don’t be fooled by the seemingly rosy unemployment rate of 3.8%. The labor force participation rate, particularly among those aged 65 and older, is increasing again. This isn’t a mere demographic shift; it’s a full-blown crisis.
Before the pandemic even hit, the labor force participation rate for this age group was already on the rise. This indicates a grim reality: people are re-entering the workforce not out of choice, but out of dire financial necessity. The implications are clear: a growing segment of the population can’t afford the luxury of retirement.
If you think the labor market is tight now, you’re in for a rude awakening. The Wall Street Journal suggests that labor force participation will remain low due to demographic shifts. But what happens when the baby boomers, who dream of retirement, find it to be just that—a dream?
The labor force participation rate is already on an upward trajectory. Combine that with declining purchasing power and stagnant wages, and you’ve got a recipe for disaster.
The Savings Crisis: America’s Financial Time Bomb
Feeling financially secure? Wipe that smile off your face. Recent data reveals that the only demographic with savings still above pandemic levels are the top 20% earners. The middle class and even the upper-middle class are teetering on the edge of financial ruin. Households in the 0-40% income range have plunged into negative savings territory. This isn’t the American Dream; it’s an American Nightmare unfolding in real-time.
The Immigration Factor: A Double-Edged Sword
Brace yourselves; a tidal wave of people is surging towards the U.S. border. This isn’t a political debate; it’s an economic red alert. An influx of labor could exert downward pressure on wages, further exacerbating an already precarious situation. Check this report for more insight on the recent influx of migrants.
The Clock Is Ticking
The data isn’t just bad; it’s apocalyptic. We’re not staring down another recession; we’re on the precipice of an economic catastrophe that could rival the Great Depression. The alarm bells are not just ringing; they’re deafening.
So, what’s it going to be, America? Will we heed these dire warning signs, or will we whistle past the graveyard, blissfully ignorant until the ground crumbles beneath us? The time for action is now. Don’t just sit there; get educated, get involved, and for heaven’s sake, get prepared. The clock is ticking, and time is a luxury we can no longer afford.
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