The End

Is this the start of the next major financial crisis?   The nightmarish collapse of the price of oil is creating panic in financial markets all over the planet.
On June 16th, U.S. oil was trading at a price of $107.52.  Since then, it has fallen by almost 50 dollars in less than 6 months.  This has only happened one other time in our history…

storm

The 8th largest economy on the entire planet is in a state of turmoil right now.  The shocking collapse of the price of oil has hit a lot of countries really hard, but very few nations are as dependent on energy production as Russia is.
Sales of oil and natural gas account for approximately two-thirds of all Russian exports and approximately 50 percent of all government revenue.
So it should be no surprise that the fact that the price of oil has declined by almost 50 percent since June is absolutely catastrophic for the Russian economy.
When you throw in international sanctions, wild money printing by the Central Bank of Russia and unprecedented capital flight, you get the ingredients for the perfect storm. 

But those of us living in the western world should not be too smug about what is happening in Russia, because the nightmare that is unfolding over there is just a preview of the economic chaos that will soon envelop the whole world.

If the United States and Russia fought a nuclear war, who would win?  You might be surprised by the answer.  Under the Obama administration, the rapidly aging U.S. strategic nuclear arsenal has been shrinking.
Meanwhile, the Russians have been developing an entirely new generation of bombers, submarines and missiles that have the capability of delivering an absolutely crippling first strike.
At this point, most Americans consider a full-scale nuclear war to be inconceivable.  But in Russia attitudes are completely different. 

To the Russians, the United States is enemy number one these days and the Russians are feverishly preparing for a potential military showdown. 

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Are we about to see U.S. stocks take a significant tumble? 
If you are looking for a “canary in the coal mine” for the U.S. stock market, just look at high yield bonds: 

nuclear bomb

Could rapidly falling oil prices trigger a nightmare scenario for the commodity derivatives market?
The big Wall Street banks did not expect plunging home prices to cause a mortgage-backed securities implosion back in 2008, and their models did not anticipate a decline in the price of oil by more than 40 dollars in less than six months this time either.
We are heading for a derivatives crisis unlike anything that we have ever seen.  It is going to make the financial meltdown of 2008 look like a walk in the park.

Our politicians promised that they would do something about the “too big to fail” banks and the out of control gambling on Wall Street, but they didn’t.
Now a day of reckoning is rapidly approaching, and it is going to horrify the entire planet.

Retail sales during the four day Thanksgiving weekend were down a whopping 11 percent from last year.
This is a “make or break” time of the year for many retailers, and if things don’t turn around during the coming weeks we could see a tsunami of store closings in January and February
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The golden age of retail is over, and now most retailers will have to work incredibly hard to survive the apocalypse that is unfolding right before our eyes.

If only George Orwell could see us today.  When he wrote “1984” back in 1948, he probably never imagined that the “totalitarian, bureaucratic world” that he imagined would ever actually become a reality.  But that is precisely what is happening.
And just like in “1984”, most of the population has come to accept the status quo as the new “normal”.

Are you in better shape financially than you were last Thanksgiving?  If so, you should consider yourself to be very fortunate because most Americans are not.  As you chow down on turkey, stuffing and cranberry sauce today, please remember that there are millions of Americans that simply cannot afford to eat such a meal.
According to a shocking new report that was just released by the National Center on Family Homelessness, the number of homeless children in the U.S. has reached a new all-time high of 2.5 million.  And right now one out of every seven Americans rely on food banks to put food on the table.  Yes, life is very good at the moment for Americans at the top end of the income spectrum.  The stock market has been soaring and sales of homes worth at last a million dollars are up 16 percent so far this year. 

But most Americans live in a very different world…

Are you waiting for the next major wave of the global economic collapse to strike?  Well, you might want to start paying attention again.  Three of the ten largest economies on the planet have already fallen into recession, and there are very serious warning signs coming from several other global economic powerhouses.
Things are already so bad that British Prime Minister David Cameron is comparing the current state of affairs to the horrific financial crisis of 2008…

economic dollar collapse

How do you fix a superpower with exploding levels of debt, that has a rapidly aging population, that consumes far more wealth than it produces, and that has scores of zombie banks that could collapse at any moment?
Big economic news is about to start coming out of Europe, and it won’t be good.
In 2014, we have been experiencing “the calm before the storm”.
But 2015 is right around the corner, and it promises to be extremely “interesting”.

collapse

The parallels between the false prosperity of 2007 and the false prosperity of 2014 are rather striking.
If we go back and look at the numbers in the fall of 2007, we find that the Dow set an all-time high in October, margin debt on Wall Street had spiked to record levels, the unemployment rate was below 5 percent and Americans were getting ready to spend a record amount of money that Christmas season.

But then the very next year the worst economic crisis since the Great Depression shook the entire planet and everyone wondered why most people never saw it coming.  Well, now a similar pattern is unfolding right before our eyes.
Once this false bubble of hope runs out, all of our lives are going to dramatically change.

Real-Median-Household-Income

The Social Security Administration has just released wage statistics for 2013, and the numbers are startling.
Last year, 50 percent of all American workers made less than $28,031, and 39 percent of all American workers made less than $20,000.
Every avenue of prosperity for the middle class is under assault, and there does not appear to be much hope that this will change any time soon.
And the truly frightening thing is that this is about as good as things are going to get for the middle class
As if things weren’t already bad enough for the average American worker, we are rapidly approaching the next major wave of our long-term economic decline.

solar storm

A storm 14 times larger than the Earth is happening on the sun right now.  Earlier this week, it unleashed a flare which was a million times more powerful than all of the nuclear weapons in existence combined.
Fortunately, that flare was not directed at us.   But now the area of the sun where this solar storm is located is rotating toward Earth.
An eruption on the sun at just the right time and at just the right angle could result in a society-crippling electromagnetic pulse blasting this planet.
So if your computers, cell phones and electronic equipment get fried at some point over the next few weeks, you will know what is probably to blame.
Such an electromagnetic pulse has hit our planet before, and as you will read about below, some very prominent voices are warning that it WILL happen again.   It is just a matter of time.