Part four of our series illustrates forty US economic indicators that clearly demonstrate that the US is in free fall. Set against the backdrop of QE and ZIRP central bank policy, the conditions for a crash which will dwarf the 2008 crisis remains a distinct probability, The underlying reality suggests that the much vaunted “reset” has never been more likely and is now very much on the horizon.
- Zero interest policy has to remain in place, as interest rates will further damage an already very fragile economy
- Expansion of QE is a certainty, with a recent Federal Reserve publication admitting as much
- Bond market yields falling to record lows
- Serious dislocations in the derivative markets are now occurring. 75% of US derivatives are interest rate swaps.
- Labour force participation rate at 62.5%
- 95m people economically inactive
- 45m people on food stamps
- Heavy dumping of US treasuries continues
- Student loans standing at $1 trillion
- Motor vehicle loans standing at $1 trillion
- Russell 2000 currently stands at around 80x reported earnings.
- S&P 500 stands at around 25 x reported earnings
- Corporate debt to GDP ratio at highs consistent with an imminent recession
- $6 trillion dollar corporate bond market has doubled since 2009 due to ZIRP policy. Their average credit rating is JUNK
- Delinquency rate on commercial and industrial loans has increased 40% in 2 years
- Market Indicators suggest another housing crisis is looming fuelled by rising house prices, mortgages and corresponding divergence in household income
- Central Banks are running out government bonds to purchase
- US debt is fast approaching $20 trillion dollars
- US government pension funds have a $7 trillion shortfall
- US unfunded liabilities stands at $200 trillion
- Personal healthcare expenditure has soared 45% since 2009
- All Sectors debt securities and loans stands at $62 trillion, an increase since 2009 of 20%
- Industrial production recently declined for nine months in a row, usually only seen during economic downturns
- Total Business Sales have been in decline for two years
- For the first half of 2016 and year on year, layoff announcements at major organisations are 24% than last year
- The fall in temporary workers in the US has fallen to levels last seen prior to the 2008 crash
- Federal Tax and State Tax receipts have fallen to levels, last seen prior to 2008 crash
- US coal production is at 35 year lows
- Since Obama took office, approximately 14m Americans have left the workforce
- US factory orders recently declined for 18 months in a row
- Depressed Oil prices are damaging US shale oil companies, the latter aggravated by the threat of JUNK bond impairments
- Stresses within US banks are becoming more common and with decreasing intervals between each event.
- Large scale Technology company layoffs already seen in 2016
- Bank of America is cutting 3500 jobs in an announcement today, the latest in a long list of layoffs announced in this sector
- Significant layoffs in the retail sectors announced in 2016, including Walmart and Macys
- The pace of layoffs announced by U.S.-based oil companies rose for a second-straight month in July announcing 45,346 job cuts , a 19% increase in planned payroll reductions from June
- Total layoffs in the US oil sector now stands at 95k jobs in 2016
- IT sector has announced 50k layoffs so far in 2016
- US commercial bankruptcies have risen, year on year for the last seven years. Up 51% in the 9 months to June 2016
- The July report for the Cass Freight Index shows shipments down 2.6%, year on year and expenditure down 5.1%, year on year
You as an individual can and will notice US Corporation has held your Sovereign Right's at bay with the passage of the "New Deal" instituted by Franklin D Roosevelt on March 9, 1933. US citizens = slavery. Your Freedom is in the Passport application Affidavit, located at your local Post Office. Affidavit information is with Roger Sayles book FromSovereigntoSerf.com and in auspassport4ed.com . Freedom of the country starts with you!
***You as an individual can and will notice US Corporation has held your Sovereign Right's at bay with the passage of the "New Deal" instituted by Franklin D Roosevelt on March 9, 1933. US citizens = slavery. Your Freedom is in the Passport application Affidavit, located at your local Post Office. Affidavit information is with Roger Sayles book FromSovereigntoSerf.com and in auspassport4ed.com . Freedom of the country starts with you!***