US leaders have lost control of the economy
Hunger and civil unrest are expected around the world
Moods in the United States will become increasingly pessimistic
If you think the economic news has gone crazy in the first half of 2022, then just wait until the second half of the year. There are so many problems we face now, and they will continue to escalate, and sentiment among Americans will become more pessimistic about economic conditions every day.
In fact, as you will see below, the vast 85% of us think it is “very likely” or “likely” that the economy will fall into recession at some point next year.
Of course, the truth is that if all we had to go through was a “recession,” then we would be very lucky. Our leaders have lost control of the economy, and many of us are extremely worried about what will happen next. Below are 12 nightmarish economic trends that we expect to see in the second half of 2022.
№ 1: Gasoline prices will continue to rise and many Americans will be shocked at how high they will rise. If you can believe it, at least one gas station in Washington State has already reprogrammed its gas stations, “to make room for double-digit prices per gallon (one gallon equals 3.79 liters).”
At gas station 76 in Auburn, Washington, located at 1725 Auburn Way North, gas stations have been reprogrammed to make room for double-digit prices. She still had a reprogramming in March.
A spokesman for service station 76 confirmed to the Post Millennial that petrol stations have been reprogrammed for double-digit prices. Although he does not confirm that he expects prices to rise to $ 10 or more, the current trend suggests that this possibility will happen.
Fuel supplies will continue to decline in the coming months. This morning I heard from a reader from the East Coast and a reader from the middle of the country, and they both told me that where they live, diesel is distributed in quantitative terms. So far, I have not been able to confirm that this is happening on a broader basis.
№ 2: We have been warned that there may be prolonged power outages in some parts of the United States during the summer months. It is reported that the center of the country will be particularly threatened.
Approximately 100 million Americans will face power outages this summer, as hot weather, congested power plants and unreliable sources of environmental energy in their combination will create the perfect storm of problems.
The United States, which stretches from the Great Lakes to the Pacific Ocean, home to tens of millions of Americans, may find it difficult to generate enough electricity for its residents this summer.
Part of the US energy grid, the MISO (Midcontinent Independent System Operator), is most threatened by a major disruption.
№ 3: Everyone almost agrees that food prices will continue to rise. Of course, they have already reached their absolutely insane levels.
Take the case of Jeff Good, co-founder of three restaurants in Jackson, Mississippi. About 18 months ago, a box of 40 pounds (just over 18 kg) of chicken wings cost him about $ 85. Now the price of this box can reach around $ 150. According to him, in the last 5 months the costs for oil and flour have almost doubled. But it’s not just rising food prices. In addition, he will have to pay more for labor and services. Even the company that maintains its air conditioners will charge $ 40 for fuel per visit. To deal with this, he will have to raise prices on the menu.
An order of 15 chicken wings, a specialty at his Sal and Mookie’s pizzeria, cost $ 13.95 before the Kovid epidemic struck. Wings can now vary in price so much that they are labeled as a “market price”, as some lobster restaurants do. At its peak, the price of a menu can be around $ 27.95, but this margin is insignificant, and a good estimate of the “real price” is close to about $ 34. He is trying to decide whether to continue to raise his prices or remove the wings from his menu.
I don’t know about you, but I never imagined paying $ 34 for an order for chicken wings.
№ 4. As our supply chains become even more strained, the deficit will continue to widen.
The extreme shortage of baby food that we are seeing right now is just a preview of what lies ahead.
Two children in Memphis were hospitalized after needing intravenous fluids and nutritional support for lack of baby food.
A preschooler and a young child, both from different families, were rushed to Le Bonner Children’s Hospital after their parents were unable to get baby food because store shelves in America were empty.
№ 5. The UN tells us that we are approaching the worst global food crisis since World War II. In some parts of Africa, the number of people suffering from “extreme hunger” has already more than doubled.
More than 23 million people are experiencing extreme hunger in Ethiopia, Somalia and Kenya, according to a new report by Oxfam and Save the Children. That’s over 10 million last year.
The worst drought in the region in 40 years has been exacerbated by the conflict with the pandemic. And the war in Ukraine has brought food prices to record highs.
№ 6. Widespread famine will almost certainly lead to more civil unrest. Recent events in Sri Lanka give us a clear idea of what could happen.
Protesters in Sri Lanka set fire to the homes of 38 politicians as the crisis-stricken country plunged further into chaos and the government ordered its troops to “shoot meat”.
Police in the island’s state said on Tuesday that 75 more homes had been destroyed in addition to homes already burned after angry Sri Lankans continued to oppose curfews across the country, protesting what they said was the government’s poor attitude to the country’s worst economic crisis since 1948.
№ 7. The Federal Reserve (Fed) is likely to continue to aggressively raise its interest rates. In fact, Fed Chairman Jerome Powell has openly acknowledged that his agency’s fight against inflation in the coming months could cause “some pain.”
Fed Chairman Jerome Powell warned on Tuesday that the United States could feel “some pain” as the central bank raises interest rates to fight inflation, and said the Fed would do everything possible to curb price increases.
During a live interview with the Wall Street Journal’s “The Future is for Everything” summit, Powell said the Fed would continue to raise interest rates until inflation began to fall and price-driving forces did not. disappear, even at the risk of a deeper economic downturn.
№ 8. Higher interest rates will be devastating for the US housing market. And this is very disturbing news, because home sales have been falling for three months now.
Home sales fell in April for the third month in a row as rising mortgage interest rates and affordability problems forced many potential home buyers to leave the market.
№ 9. The number of bankruptcies is likely to continue to rise. Just as we saw before the last financial crisis, bankruptcies in low-quality mortgages are really starting to grow.
Consumers with a bad credit rating are lagging behind in their payments on car loans, personal loans and credit cards, and this is a sign that the healthiest consumer lending environment in the United States is coming to an end.
According to the company for credit reports Equifax, the share of low-quality credit cards and personal loans is overdue by at least 60 days, and this continues to grow faster than usual. In March, these arrears increased every month for the eighth time in a row, approaching pre-pandemic levels. Arrears on low-quality car loans and leases reached record highs in February, according to Equifax data from 2007.
№ 10. As the economy slows down, we should expect more redundancies and more unemployment applications, which will eventually start to grow. In fact, we have just learned that these phenomena have already reached their four-month high.
№ 11. Needless to say, all this bad economic news will be very bad for stock prices. The S&P 500 has almost entered the territory of the “bear market” and many believe that what we have seen so far is just the beginning.
№ 12. Many people warn that the recession is either here or will come soon. According to a study by the University of Quinnipiac, the vast majority of Americans expect a recession next year.
The survey found that 85% of Americans believe the country is likely to experience an economic downturn next year. Of those who responded, 45% said it was “very likely” and 40% said a recession was “somewhat likely”.
The kind of historical economic crisis I have been warning about for years is fast approaching, and the nation’s mood will change dramatically when conditions deteriorate significantly.
We are already beginning to see the vast amount of outward manifestations of anger. Earlier today I came across the following post in a very popular internet discussion forum.
“I just want to talk. I’m from middle Missouri, and I’m a single mother with two teenagers. My daily work was well paid and well covered, and a year ago my income would cover food, gas, etc. But now I have to work a second job just to feed us and refuel my car. Here, eggs rose from $ 0.99 per box to $ 1.99, beef from $ 2.89 per pound jumped to $ 4.99, and it goes on and on. Gasoline rose from $ 1.90 to $ 4.29 per gallon. I will go crazy for fear that it will only get worse. I have friends among Democrats who say, “That’s how the economy works.” No, because Biden distributed covid dollars to unemployed people who took advantage of the system, he gave our money to Ukraine, he stopped the gas pipelines to the United States, and so on.
I can understand her anger.
Most Americans work hard, but our standard of living is being systematically destroyed by the very stupid policies of our leaders.
Unfortunately, we are still at a very early stage of this crisis.
It seems that the second half of this year will be even more challenging than the first and will have huge consequences for all of us.
* Michael Snyder is a media personality and political activist. He is the author of four books, including Beginning Of The End and Living A Life That Really Matters.
(Translation for “Trud” – Pavel Pavlov)
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