Impending Financial Crisis: “Great Rotation” Is Over, Citizens Now Desperately Raiding 401(K) Plans To Pay Bills, Gasoline Prices Hit Record And Still Climbing, And Global Recovery Rapidly Fading
Jim Sinclair sent an email alert to subscribers Saturday, and stated that the recent decline in sales at Walmart exposes the fact that contrary to MSM MOPE, the US economy has flat-lined and expired.
…as Reuters notes, it was all into international funds as domestic funds saw outflows and domestic bond funds once again saw inflows. As Goldman Sachs’ funds flow and positioning monitor shows – Rotation, Over.
Is chronic, slow economic growth and rising poverty the new normal for America and Americans? Unfortunately, for an increasing number of people, the answer is yes.
According to recent reports, a large and growing portion of American workers who are having trouble making ends meet because of rising costs are being forced to raid their retirement accounts for non-retirement needs, “raising broad questions about the effectiveness of one of the most important savings vehicles for old age,” The Boston Globe said.
In fact, more than one in four – a staggering 25 percent of workers – with 401(k) and similar retirement savings accounts are now using them to pay current bills, new data indicates.
The monetary figure is alarming: A quarter of the $293 billion deposited in such accounts each year is now being drained via loans, withdrawals and out-right cash-outs, “undermining already shaky retirement security for millions of Americans,” the paper said.
The new normal – Faltering finances
What’s worse is that the federal government is broke, too; the country is already trillions of dollars in debt and tens of trillions in the hole for unfunded promises made over the years by pandering politicians who have mortgaged the future of generations of Americans to buy votes today.
PHOENIX — The summer travel season is still months off, but gas prices are on the rise and, according to some experts, are expected to be near record levels this year.
According to Monday’s gas and diesel fuel update from the Energy Information Administration, U.S. gas prices are up a little more than 7 cents over a week ago, and more than 8 cents over a year ago. At about 12 cents each, the week-over-week and year-over-year differences in the Rocky Mountain region, which includes Arizona, are slightly higher than the national average….
With the disappointing initial GDP releases for Q42012 from Europe out, the “world” as defined by 41 OECD countries across the globe, has plunged into recession. We define “recession” through two alternative definitions for our comparison, either the presence of a single negative quarter-on-quarter growth or the more traditional two consecutive negative quarterly growths. Whichever way you look at it, the number of countries in expansion plunged dramatically between 3Q2013 and 4Q2012.
Now this is a diffusion index, with each country receiving equal weightings, and so it appears that 60% seems to be a viable threshold for the definition of “global recession” using the single-quarter definition (black) and 70% is probably the appropriate threshold for the 2-quarter definition (blue).
The International Monetary Fund (IMF) has warned again of a weakening global economic recovery despite government efforts to stimulate growth.
The global economy is likely to grow at a slower rate than previously forecast over the next two years, the organisation said in its latest report.
“There are at least six unfavorable changing market dynamics.
More Layoffs Inevitable
I would say that all firms probably need to cut staff by at least 1/3 over the next two years, with current and trending market dynamics in the industry over the last five years, these positions are just not needed today. Frankly, these jobs are dead weight on firms’ balance sheets, and it is amazing how long it has taken firms to reduce staff given the evolution in financial markets.”
Global Economic Collapse In Process: Billionaires Continue To Dump Stocks, Traders Are Betting Against The Economy, Hedge Funds Preparing For Market Sell-Off, And Now They Start Betting Against Currencies As World Plunges Into Recession