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11 Facts That Prove That The U.S. Economy In 2017 Is In Far Worse Shape Than It Was In 2016

By Michael Snyder

There is much debate about where the U.S. economy is ultimately heading, but what everybody should be able to agree on is that economic conditions are significantly worse this year than they were last year.  It is being projected that U.S. economic growth for the first quarter will be close to zero, thousands of retail stores are closing, factory output is falling, and restaurants and automakers have both fallen on very hard times.  As economic activity has slowed down, commercial and consumer bankruptcies are both rising at rates that we have not seen since the last financial crisis.  Everywhere you look there are echoes of 2008, and yet most people still seem to be in denial about what is happening.  The following are 11 facts that prove that the U.S. economy in 2017 is in far worse shape than it was in 2016…

#1 It is being projected that there will be more than 8,000 retail store closings in the United States in 2017, and that will far surpass the former peak of 6,163 store closings that we witnessed in 2008.

#2 The number of retailers that have filed for bankruptcy so far in 2017 has already surpassed the total for the entire year of 2016.

#3 So far in 2017, an astounding 49 million square feet of retail space has closed down in the United States.  At this pace, approximately 147 million square feet will be shut down by the end of the year, and that would absolutely shatter the all-time record of 115 million square feet that was shut down in 2001.

#4 The Atlanta Fed’s GDP Now model is projecting that U.S. economic growth for the first quarter of 2017 will come in at just 0.5 percent.  If that pace continues for the rest of the year, it will be the worst year for U.S. economic growth since the last recession.

#5 Restaurants are experiencing their toughest stretch since the last recession, and in March things continued to get even worse

Foot traffic at chain restaurants in March dropped 3.4% from a year ago. Menu prices couldn’t be increased enough to make up for it, and same-store sales fell 1.1%. The least bad region was the Western US, where sales inched up 1.2% year-over-year and traffic fell only 1.7%, according to TDn2K’s Restaurant Industry Snapshot. The worst was the NY-NJ Region, where sales plunged 4.6% and foot traffic 6.3%.

This comes after a dismal February, when foot traffic had dropped 5% year-over-year, and same-store sales 3.7%.

#6 In March, U.S. factory output declined at the fastest pace in more than two years.

#7 According to the Bureau of Labor Statistics, not a single person is employed in nearly one out of every five U.S. families.

#8 U.S. government revenues just suffered their biggest drop since the last recession.

#9 Nearly all of the big automakers reported disappointing sales in March, and dealer inventories have now risen to the highest level that we have seen since the last recession.

#10 Used vehicle prices are absolutely crashing, and subprime auto loan losses have shot up to the highest level that we have seen since the last recession.

#11 At this point, most U.S. consumers are completely tapped out.  According to CNN, almost six out of every ten Americans do not have enough money saved to even cover a $500 emergency expense.

Just like in 2008, debts are going bad at a very alarming pace.  In fact, things have already gotten so bad that the IMF has issued a major warning about it

In America alone, bad debt held by companies could reach $4 trillion, “or almost a quarter of corporate assets considered,” according to the IMF. That debt “could undermine financial stability” if mishandled, the IMF says.

The percentage of “weak,” “vulnerable” or “challenged” debt held as assets by US firms has almost arrived at the same level it was right before the 2008 crisis.

We are seeing so many parallels to the last financial crisis, and many are hoping that our politicians in Washington can fix things before it is too late.

On Monday, the most critical week of Trump’s young presidency begins.  The administration will continue working on tax reform and a replacement for Obamacare, but of even greater importance is the fact that if a spending agreement is not passed by Friday a government shutdown will begin at the end of the week

Trump has indicated that he wants to tackle the repeal and replacement of Obamacare and introduce his “massive” tax plan in the next week, all while a shutdown of parts of federal government looms Friday.

By attempting three massive political undertakings in one week, investors will have a sense of whether or not Trump will be able to deliver on pro-growth policies that would be beneficial for markets.

If Trump can pull off the trifecta, it could restore faith that policy proposals like tax cuts and infrastructure spending are on the way. If not, look out.

Members of Congress are returning from their extended two week spring vacation, and now they will only have four working days to get something done.

And I don’t believe that they will be able to rush something through in just four days.  The Republicans in Congress, the Democrats in Congress, and the Trump administration all want different things, and ironing out all of those differences is not going to be easy.

For example, the Trump administration is insisting on funding for a border wall, and the Democrats are saying no way.  The following comes from the Washington Post

President Trump and his top aides applied new pressure Sunday on lawmakers to include money for a wall on the U.S.-Mexico border in a must-pass government funding bill, raising the possibility of a federal government shutdown this week.

In a pair of tweets, Trump attacked Democrats for opposing the wall and insisted that Mexico would pay for it “at a later date,” despite his repeated campaign promises not including that qualifier. And top administration officials appeared on Sunday morning news shows to press for wall funding, including White House budget director Mick Mulvaney, who said Trump might refuse to sign a spending bill that does not include any.

And of course the border wall is just one of a whole host of controversial issues that are standing in the way of an agreement.  Those that are suggesting that all of these issues will be resolved in less than 100 hours are being completely unrealistic.  And even though the Trump administration is putting on a brave face, the truth is that quiet preparations for a government shutdown have already begun.

The stage is being set for the kind of nightmare crisis that I portrayed in The Beginning Of The End.  The stock market bubble is showing signs of being ready to burst, and an extended government shutdown would be more than enough to push things over the edge.

Let us hope that this government shutdown is only for a limited period of time, because an extended shutdown could potentially be catastrophic.  In the end, either the Trump administration or the Democrats are going to have to give in on issues such as funding for Obamacare, the border wall, Planned Parenthood, defense spending increases, etc.

It will be a test of the wills, and it will be absolutely fascinating to see who buckles under the pressure first.

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Has He Become “Mentally Unstable”? Obama Provoking China With Warships

Editor’s Comment: With the United States already at fever pitch with Russia over the Syrian and Ukrainian crises, why not start some stuff with China too? It is clear that foreign policy – directed by our misleaders – is more and more intent on sowing chaos. Why do it? In a truly bad economy, as the U.S. had in the decade prior to WWII, it is last ditch Hail Mary! effort to turn a profit through the industry of suffering and death.

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Highly Respected Economist Warns: Hyperinflation Is On The Table… It Will Be Completely Uncontrollable

Thibaut Lepouttre is a highly educated and well respected economist from Belgium. But unlike many of his counterparts who often toe the line of mainstream politicians and financial pundits, he’s not one to sugarcoat the seriousness of the current global economic, financial and monetary environment.

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Top General Admitting Obama Knowingly Armed ISIS

 

A U.S. General has made a shocking revelation saying that early on President Obama knew that ISIS was growing but made a “willful decision” to let the radical terror group grow unmolested and even supplied arms that he knew would go to ISIS.

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Are Devastating Tsunamis Headed for American Cities? “There’s Enough of a Chance”

Last week, the coast of Chile was faced with a massive tsunami triggered by an 8.3 magnitude earthquake. Its capital and largest city, Santiago, was within the striking zone.

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Watch: These Are The Shocking Statistics The Government Doesn’t Want You To See

Author: Mac Slavo

It is time to start banning anything that could potentially be used as a weapon?

The latest micro-documentary from Crush The Street explores the reality of violence in America and the shocking statistics being used to justify complete disarmament of the American people.

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14 Things You Must Do TODAY to Survive the Coming Economic Collapse

Yesterday, The Common Sense Show issued a breaking news alert as to the possible use of multiple IED type of devices based upon the reports of a highly credible source(s). The Common Sense Show is pleased to announce that arrests have been made in conjunction with this event and eventually I will be able to provide more details.

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OBAMACARE: Patients Who Lost Their Doctor Miss Out on Walmart/Walgreens Prescription Drug Giveaway

Walgreens’ and Walmart’s pharmacies announced this month that they will help with the botched Obamacare rollout by providing free prescriptions to customers whose insurance coverage is pending. The move, while well-intentioned, only helps those possessing a prescription, leaving anyone still seeking a doctor’s assistance stranded. 

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Look At This Chart: 91.8 Million…That’s How Many People Are Not Working In America

This morning the Bureau of Labor and Statistics issued their latest non-farms payroll report.

The good news is that the unemployment rate dropped from 7.0% to 6.7%, the lowest it’s been since 2008.

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ObamaCare’s Latest Numbers Don’t Add Up. You Will Pay the Difference.

Preliminary figures suggest the Obama administration is falling far short of its goal of signing up the young, healthy and uninsured for ObamaCare.

It’s a problem that could undermine the rollout of the law even more than the glitch-ridden website.

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10 Obamacare Horror Stories That Are Almost Too Crazy To Believe

The more Americans learn about Obamacare, the less they like it.  They were promised that under Obamacare they would be able to keep their current health insurance plans, that health insurance premiums would be lower, and that millions more Americans would be able to get coverage.  But none of those promises are turning out to be true.  Right now, millions of Americans are receiving cancellation notices from their health insurance companies

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Isn’t He Pro-Choice?

U.S. President Barack Obama smiles as he is surrounded by U.S. Secret Service agents after arriving at Dallas Love Field in TexasBy Caroline May

Despite President Obama’s call for more competition among health insurance  companies, competition has decreased on the Obamacare exchanges, according to a  Heritage Foundation analysis.

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Misplaced Hope: The Futility in Picking Sides Politically

ReidBoehnerWhisperThis may be a short post but the news yesterday of collusion between the Speaker of the House, John Boehner and Senator Harry Reid’s office on Congress’ ability to dodge some of the pleasantries offered to the rest of us from Obamacare prompted me to try and reach out to those who may still hold out hope of saving the world politically. If you seriously still believe that either party is fighting for your best interests, you are delusional. This isn’t surprising to me really; actually I am more surprised that they leaked this news, but it is a small nugget of proof to those naysayers who steadfastly maintain the purity of their party.

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House votes to delay Obamacare, raising government shutdown threat

obama_siThe Republican-controlled US House of Representatives has voted to delay Obamacare by one year, raising the possibility of an Oct. 1 partial government shutdown. The vote plunges the US into fiscal crisis for the fourth time in last three years.

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