Eleven Red Flag Events That Just Happened

By Michael Snyder at The Economic Collapse:

Red Flags - Public Domain

Are you ready for what is coming in August? Things are unfolding in textbook fashion for another major global financial crisis in the months ahead, and yet most people refuse to see what is happening.  In their blind optimism, they want to believe that things will somehow be different this time.  Well, the coming months will definitely reveal who was right and who was wrong.  The following are 11 red flag events that just happened as we enter the pivotal month of August 2015…

#1 Puerto Rico is going to default on a 58 million dollar debt payment that is due on Saturday.  Even though this has serious implications for the U.S. financial system, Barack Obama has said that there will be no bailout for “America’s Greece”.

#2 As James Bailey has pointed out, the most important trend-line for the S&P 500 has finally been broken after holding up for six years.  This is a critical technical signal that will likely motivate a significant number of investors to sell off their holdings in the weeks ahead.

#3 The IMF is indicating that it will not take part in the new Greek debt deal.  As a result, the whole thing may completely fall apart

Leaked minutes of the fund’s latest board meeting, which took place on Wednesday, showed staff “cannot reach agreement at this stage” on whether to take part in the new €86bn (£60bn) bailout for Greece. The document said there were doubts over the capacity of the Athens Government to implement economic reforms, as well as the over the sustainability of the country’s sovereign debt pile, which is now projected to hit 200 percent of GDP.

The German Chancellor, Angela Merkel, only sanctioned a new Greek deal earlier this month on the condition that the IMF takes part.

#4 Italy is going down the exact same path as Greece, but Italy is going to be a much larger problem for Europe because it has a far, far larger economy.  This week, we learned that youth unemployment in Italy has reached a 38-year high of 44 percent, and Italy’s debt to GDP ratio has now hit 135 percent.

#5 The Canadian economy has officially entered a new recession.  This is something that was not supposed to happen.

#6 The price of oil plummeted close to 20 percent during the month of July.  It was the worst month for the price of oil that we have seen since October 2008, which just happened to be during the height of the last financial crisis.

#7 Commodities just had their worst month in almost four years.  As I have written about previously, we witnessed a collapse in commodity prices just before the stock market crash of 2008 too.

#8 Thanks to Barack Obama, the U.S. coal industry is imploding, and some of the largest coal producers in the entire country have just announced that they are declaring bankruptcy

On Thursday, Bloomberg reported that the biggest American producer of coking coal, Alpha Natural Resources, could file for bankruptcy as soon as Monday.

Competitor Walter Energy filed for bankruptcy earlier this month, and several others have done the same this year.

#9 For the month of July, the Shanghai Composite Index was down 13.4 percent.  Despite unprecedented government intervention to prop up the market, it was the worst month for Chinese stocks since October 2009.

#10 A major red flag that a recession in the United States is fast approaching is the fact that Exxon Mobile just announced their worst earnings for a single quarter since 2009.  Compared to the same time period one year ago, Exxon Mobile’s earnings were down 51 percent.

#11 Chevron is another oil giant that has seen earnings plunge.  In the second quarter of this year, Chevron’s earnings were down an eye-popping 90 percent from a year ago.

And in this list I didn’t even mention the economic chaos that is happening down in South America.  For full coverage of that, please see my previous article entitled “The South American Financial Crisis Of 2015“.

To a certain extent, I can understand why most Americans are not alarmed about the months ahead.  The relative stability of the past several years has lulled most of us into a false sense of security, and the mainstream media is assuring everyone that everything is going to be just fine and that brighter days are ahead.  At this point, many believe that it is patently absurd to suggest that we could see an economic collapse in 2015.  But of course even though the signs were glaringly apparent, very few of us anticipated the financial crisis of 2008 either.

A few weeks ago, I authored a piece entitled “The Last Days Of ‘Normal Life’ In America“, and I stand by every single word of that article.  I truly believe that the era of debt-fueled prosperity that we have been enjoying for so long is coming to an end, and our standard of living will never again get back to this level.

So enjoy this summer for as long as it lasts.  Even though August threatens to be pivotal, it is going to be nothing compared to what will follow.

~~~~~~~~~

It’s easy to get distracted by lions, footballs and females who used to be male athletes and not see the bigger picture. Anyone who can do basic math can look at our economy and our way of life and see that it cannot continue indefinitely.  Given our current leadership and their spending habits, it’s safe to say it could be just around the corner.

~Kathy

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7 Responses to Eleven Red Flag Events That Just Happened

  1. Bob Stubbs says:

    I agree with you, Kathy. This administration doesn’t care about the USA!

    • Kathy says:

      Hi Bob, thanks for the visit. This admin is doing everything in their power to destroy this country and what the morons don’t realize is that if we go down they go with us. Then who’s left to pay for those all too frequent vacations?!

    • upaces88 says:

      He is doing absolutely everything right to destroy the USA through spending.
      “There are two ways to destroy a nation. One is by the sword. The other is by debt.”
      John Adams.

  2. Uriel says:

    Don’t forget
    1) TPP is still in works though shaky. It’s main goal was to unite all of Pacific Rim areas economy into one half of world governance .
    2) U.S. Federal government has unrestricted access to all US business and citizen info (like never before) and with many European companies doing business with us.
    3) Banking summit in September
    4) Germany and Switzerland both strong financially compared to other top tier countries are strapped and holding lots of loans for European sector, as is China for eastern.

    • Kathy says:

      Those are good points you added Uriel and it makes one realize the situation in Europe is even shakier than we thought.

      If ever we needed a Congress with backbone it is now. Just the Iran deal and the TPP could ruin us if they don’t take preventive measures.

  3. vonmesser says:

    Note on #6, while oil prices may have plummetted, gasoline went up in many parts of the country.

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