Investors are once again concerned that the economy of the United States could dip far enough into a recession as recent jobs data shows a slowdown in new job creation and an increase in jobless claims.
According to the Department of Labor‘s report, job openings slipped to 9.9 million in February, the lowest since May 2021. This is also down from a revised 10.6 million new jobs created in the prior month.
Economic analysts note that they expected job creation to slow down drastically this year after 2021 became the best year for job creation on record and 2022 saw the Federal Reserve continuously raise its benchmark interest rate in a bid to corral inflation. This has resulted in a massive slowdown of the economy that the Fed believes is necessary to stop inflation. (Related: American banks are sitting on a TIME BOMB of $1.7 trillion in unrealized losses.)
To add to the concerns of investors, recent reports show stronger-than-expected jobless claims. In the seven days preceding April 1, initial jobless claims totaled 228,000.
This is down from a revised 246,000 from the prior week. However, two weeks ago, the federal government predicted that initial jobless claims would drop to around 198,000.
The massive 48,000 upward revision for the week of March 25 reflects the government’s attempt to change the formula for seasonal adjustments. This change now shows jobless claims to be significantly higher in early 2023 than previously reported, which could reflect the massive wave of corporate layoffs that government reports had not shown in their data previously.
Stocks seeing declines as recession fears rise
Two of America’s main stock indexes, the S&P 500 and the Nasdaq, dropped sharply on Wednesday, April 5, after a growing wave of weak economic data deepened the concerns of the stock market that the U.S. economy might tip into a recession.
The S&P 500 declined by 0.25 percent, ending the session at 4,090.38 points. The Nasdaq fell by 1.07 percent, down to 11,996.86 points.
Of the 11 main sector indexes in the S&P 500, seven declined – Information Technology, Financials, Industrials, Consumer Discretionary, Communication Services, Materials and Real Estate.
“It looks pretty clear that we are going to see parts of the economy break and we are heading for a recession,” warned Edward Moya, a senior market analyst for the Americas at foreign exchange company Oanda Corporation in New York. “We forget that there’s also a banking crisis going on, so there’s going to be some pain that’s really going to cripple small and medium businesses. We are going to see some tough times and are probably going to see this play out in markets.”
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“We may have transitioned from the notion that ‘bad news is good news’ to ‘bad news is bad news,’” said Jay Hatfield, chief executive officer and portfolio manager at investment firm InfraCap in New York. “Fear about a recession is the dominant theme.”
Reflecting concerns about the deteriorating state of the economy and the recent turmoil in the banking industry, interest rate futures predict a 61 percent chance that the Fed will cut interest rates from current levels by the end of its meeting in July, implying a desire to jumpstart the economy following over a year of interest rate increases to avoid a recession.
Learn more about the deteriorating state of the American economy at MarketCrash.news.
Watch this clip from “Barron’s Roundtable” on Fox Business as Bank of America Securities Head of U.S. Economics Michael Gapen discusses his predictions for a recession in the United States.
- Concerned about your life’s savings as the multiple challenges decimate retirement accounts? You’re not alone. Find out how Genesis Precious Metals can help you secure your wealth with a proper self-directed IRA backed by physical precious metals.
This video is from the News Clips channel on Brighteon.com.
More related stories:
- PULLING THE PLUG: Another $126 billion pulled by depositors from US banks, Federal Reserve data shows.
- Inflation remains a problem for middle- and lower-income Americans as Biden’s Federal Reserve keeps raising interest rates.
- Jobless claims soar to five-month high as recession signals blare.
- Dr. Doom warns: Perfect storm of recession, debt crisis and inflation to hit markets.
- Biden’s economy: Major companies continue to lay off thousands of workers as recession worsens.
Sources include:
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
