Three early warning signs of a US economic crisis

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This article briefly sums up three signs that the US economy is heading for serious trouble in early 2024:

In the US economy, almost every business needs cardboard boxes to pack and ship goods, especially retailers like Amazon and the big supermarket chains. That makes demand for cardboard boxes a useful gauge of the economy’s health.

Few people know that for retailers, 80% of a year’s revenue comes from the Black Friday season (late November) and Christmas. In other words, whether they make or lose money for the year comes down to this one short month at the end of it.

Demand for boxes usually jumps at this time of year. But in 2023, box purchases dropped by about 80% starting in September.

This means retailers expect to sell very little during the peak season.

That is the first sign. 

And it will set off a domino effect across the whole economy:

These losses will lead to a wave of mass layoffs in January 2024.

With so many businesses losing money, corporate tax revenue will fall.

When people lose their jobs, they cut back on spending. Add today’s high borrowing rates, and home sales will drop too. So tax revenue from real estate will also fall…

In the end, the government’s total tax revenue will shrink.

On top of that, from 2024 the BRICS bloc will gain six new members. Among them, Iran, the UAE and Saudi Arabia all hate Israel.

As the war escalates, the US will be forced to back Israel, and the BRICS bloc will stand united in punishing the US. 46% of the world’s population could start trading in currencies other than the dollar, cutting global demand for dollars. They could even impose an oil embargo on the US.

So, with revenue falling on one side and global demand for dollars falling on the other, the US government will face trouble on every front in 2024. In the end, Biden will pick an easy but hugely destructive fix: printing more dollars to pay off the debts.

Meanwhile, US interest rates are being held high and may keep rising. High public debt plus high interest rates is a deadly formula for the US economy.

That is the second sign.

Next, look at this chart. It shows how much Americans spend on their credit cards.

This spending fell sharply in September. What does that mean? In general, when the economy is struggling, people’s savings shrink and their credit card borrowing grows. That has already happened: US credit card debt has hit a record one trillion dollars. But it cannot keep growing forever. 

People have now maxed out their credit limits, which is why credit card spending is going down. At the same time, banks are under pressure too. To keep enough cash in reserve, they have to cut back on lending and tighten credit cards, even when a card still has credit left on paper. 

The banks that collapsed in 2023, such as First Republic, Silicon Valley Bank and Signature Bank, all ran into cash-flow problems. When customers came to withdraw their money, the banks could not pay, and so they went under.

And it is not only mid-sized banks like these. Even Citigroup (the group that owns Citibank and the third-largest financial institution in the US) has announced a restructuring because business is hard, and may lay off 10% of its staff.

People have used up their credit limits, and banks are cutting back the limits that remain. Together, these two effects push credit card spending down. It is a sign that many American families are at the end of their rope and have used up every source of money they had just to survive.

That is the third sign.

So, looking back at these three points:

• Retail is frozen
• Public debt is soaring, and so is the interest on that debt
• Many people have used up both their savings and borrowed money just to survive

When people are at the end of their rope, the economy will suffer badly. In past crises, the answer was to bring prices down to boost spending and rebuild the economy’s strength. The Biden administration did not choose that. It chose to print money so spending could go on. So inflation will keep rising and interest rates will keep rising, while the economy’s strength is already drained.

Every bad sign seems to be converging on 2024. 

Put simply, fewer people are working, but everything they buy costs more. That will be the collapse of the whole economy.

The Biden administration has carried out these measures on purpose. And when everything collapses, they will “help” by rolling out a central bank digital currency (CBDC) to take away all of their citizens’ freedoms.

So what can you do?

Right now, tangible assets like gold and silver are the top choice to protect the value of your savings against inflation. You can also profit as gold and silver prices rise on strong global demand.

What choices do we face for the future? The film ‘The Great Awakening’ will show you the full picture of communism, vaccines and the schemes of demonic forces to manipulate humanity, with the final war being fought in the United States. This cinematic masterpiece will give you the answers. Watch until the very last minute to discover many fascinating things.