When the NY Post Starts Talking About Economic Collapse, You’d Better Pay Attention

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Author of Be Ready for Anything and Bloom Where You’re Planted online course

I was skimming the headlines in my newsfeed when I came across something that made me do a doubletake. Not because of what it said, but because of where it was from.

Next crash will be ‘worse than the Great Depression’

That sure sounds like something written by my friends over at The Economic Collapse Blog or SHTFplan, but it wasn’t. It was published on the NY Post, a tabloid website owned by Rupert Murdoch that tends to focus more on celebrity gossip and headlines like “Sex assault eyed after turtle is discovered in woman’s vagina.

But there it was, 600 or so words citing economic doomsday experts like Peter Schiff.

They warned that debt will be what leads to the next crash.

The article began by discussing the banker-fueled crash of 2008 when easy credit led to a financial bloodbath from which many families never recovered. Then they cited the astronomical global debt of $247 trillion as the crux of our pending economic disaster.

“We think the major economies are on the cusp of this turning into the worst recession we have seen in 10 years,” said Murray Gunn, head of global research at Elliott Wave International.

And in a note, he added: “Should the [US] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue.” (source)

Indeed, preparedness bloggers and current events commentators have been warning of this for years. As store after store closes its doors for good in America and nearly half of the families in the country can’t afford necessities like food and rent, this pre-collapse era has been well-documented.

But student loans, sub-prime mortgages, and easy-to-acquire credit cards just keep on adding insult to injury. Not a day goes by when I don’t receive at least two offers and “pre-approvals” in my mailbox for credit I don’t want or need.

The NY Post cites a lot of the same stats.

  • US household debt of $13.3 trillion now exceeds the 2008 peak. That’s due in part to mortgage lending, which is hovering near its decade-ago level of $9 trillion-plus.
  • Student loans outstanding have skyrocketed from $611 billion in 2008 to around $1.5 trillion today.
  • Auto loans, at nearly $1.25 trillion, have exceeded the 2008 total, while credit card balances are just as high now as before the Great Recession.
  • Meanwhile, global debt — a result of central bankers flooding economies with cheap money to lift them out of a funk — is now $247 trillion, up from $177 trillion in 2008. That is close to 2 ¹/₂ times the size of the global economy. (source)

As much as I’d like to be optimistic, I don’t see any way for us to overcome debt like that.

What goes up must come down.

It’s a simple law of nature that anything which goes up must eventually come down and so too will our economy. If you’ve been reading for a while, you know I’ve followed the crash in Greece and the collapse of Venezuela closely, documenting what happened when the governments could no longer fund the running of those countries.

In Greece, it all began to crumble when they declared a “bank holiday.” Since then, the crushing poverty was initially well-documented after which it just became old news. No one talked about it anymore.

Venezuela has been in trouble for many years. I remember writing about food rationing years ago and people saying I was being melodramatic when I warned it was a sign of looming collapse. But as it turns out, that was only the beginning of a waking nightmare that has caused many Venezuelans to become refugees, seeking respite from their homeland because there is no food, no water, no electricity, and no opportunity.

I assure you that at some point, this unsecured debt will all come tumbling down on our heads. Even if you, personally, are not in debt, the collapse that is coming will affect us all.

Economic theorists say insurmountable debt is the big kahuna. The huge sums today certainly fed the boom times. But since it must eventually be repaid, the tipping point will come when a wave of defaults by overwhelmed borrowers — potentially squeezed by rising interest rates — leads to a widespread reduction in spending and incomes, economists explain. (source)

There won’t be any help from the central banks. There won’t be anything left to lend. This can has been kicked for at least a decade with things like quantitative easing and the printing of unbacked currency. I can’t even believe we’ve lasted this long, to be honest. Although everyone will want to blame this on the President, it’s been coming ever since the last event, from which we never truly recovered.

“It’s going to be worse than the Great Depression.”

Peter Schiff is oft-quoted in the preparedness and alternative news world. Love him or hate him, what he told the NY Post sounds pretty darned accurate to me.

“We won’t be able to call it a recession, it’s going to be worse than the Great Depression,” said economic commentator Peter Schiff, forecasting a major economic downturn as early as the tail end of the Trump presidency’s first term. “The US economy is in so much worse shape than it was a decade ago…”

“…I think we are going to have a dollar crisis — you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the US,” he told The Post. “The US government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.” (source)

Dark days are coming and Brandon Smith of Alt-Market.com believes it will be blamed on the trade war instead of on the sabotage of the Central Bank.

Almost every aspect of the global economic downturn, which started ostensibly in 2007-2008 and is still ongoing to this day, can be traced back to the actions and policies of central banks. The Federal Reserve, for example, used artificially low interest rates and easy money to create a supposedly no-risk loan environment. This translated into a vast amount of toxic mortgage debt along with a web of derivatives (Mortgage Backed Securities) attached to that debt.

The Fed ignored all the signs and all the alternative analyst warnings. Agencies like S&P backed the Fed narrative that all was well as they gave AAA ratings to endless toxic market products. The mainstream media backed the Fed by attacking anyone that argued the notion that the U.S. economy was unstable and ready to falter. In that era of economics, the truth was effectively hidden from the public by the system through relatively standard means. Today, things have changed slightly…

…I believe that the next economic disaster will be more substantial than all the bubbles of the past 100 years combined, and the intent on the part of the banking elites is to obtain complete global centralization of all assets and resources. This time, though, the general public has finally learned to be more suspicious of the central banks and their motives during such events. Because of greater exposure after the 2008 crash, central banks and their related institutions cannot rely merely on the mainstream media or government entities like the Bureau of Labor Statistics to cover for them. They need a smokescreen.

The trade war is so perfect in this regard, I believe that it could not be anything other than planned. (source)

The timing sure is “coincidental,” don’t you think?

What do we do to survive?

I agree with the opinions of the experts above that this collapse will be different and worse than previous financial catastrophes. Of course, their reasons are very accurate but I’d like to add one more to the pot.

We are a nation of consumers. We are not a nation of producers.

I’ve shared this opinion many times, but it bears repeating. So many of the jobs in our current economy are service based. They produce nothing of value. Gone are the factories and the farms. Gone is skilled labor. Gone are the days when we sewed our clothing, grew our food, and built our homes.

People these days go out to work. Maybe they answer a phone all day and provide customer service to people who bought their product (that was actually produced in another country.) Perhaps they sell the products produced elsewhere in a retail environment.

Hardly anyone, though, actually produces anything.

Trades are a dying art. Young people go deeply into debt to study something utterly useless in college and then go out to seek a job with their degree in women’s studies or liberal arts or sociology. No one is being trained to produce.

They just want to make money in a non-productive job so they can consume. And almost everything we consume is produced elsewhere. Our cars. Our food. Our electronics. Our clothing.

That’s the problem in a nutshell.

So if you’re wondering how to survive the coming collapse, it’s simple and difficult all at the same time. Stop consuming. Start producing. Live in a world that is doing everything possible to make you feel like a loser if you don’t consume and be defiant. Grow a garden. Cook from scratch. Repair instead of replacing.

Stay away from things that make you feel lesser because you don’t have a box delivered to your house for $200 a month for clothes you’re only borrowing. Cut up your own freaking vegetables instead of ordering a box of “prepped” food for you to cook at 3 times the price you’d pay at the grocery store. Stop going to the mall for “fun.” Get rid of your debt and don’t look back.


Don’t consume.

You will be in a much better place when this collapse goes down if you already have the production skills to survive it. Being different now means you’ll be different later. While it might be frowned upon in these good times – and trust me, these are good times in comparison to what lies ahead – in bad times, it could mean the difference between hunger and plenty for your family.

Daisy Luther

Daisy Luther

Daisy Luther is a coffee-swigging, globe-trotting blogger. She is the founder and publisher of three websites.  1) The Organic Prepper, which is about current events, preparedness, self-reliance, and the pursuit of liberty on her website, 2)  The Frugalite, a website with thrifty tips and solutions to help people get a handle on their personal finances without feeling deprived, and 3) PreppersDailyNews.com, an aggregate site where you can find links to all the most important news for those who wish to be prepared. She is widely republished across alternative media and  Daisy is the best-selling author of 5 traditionally published books and runs a small digital publishing company with PDF guides, printables, and courses. You can find her on FacebookPinterest, Gab, MeWe, Parler, Instagram, and Twitter.

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  • Notice today also that China is moving to create their Gold-back Petro Yuan, and going off of our worthless FIAT dollar. This will sting, mark my words!

  • Throughout history great civilizations have failed when the family unit was destroyed and small communities razed. This government will also fail because over the years the people have chosen corrupt leaders and installed corrupt judges. The founding fathers tried to protect this country through the U.S. Constitution but the people have become so dependent that the government now controls their very thoughts through social media.

    When you look around notice the extreme division of the people and their hatred for one another. It is fast becoming the second American Civil War where hatred of neighbor against neighbor, children against parents, brother against brother and sister against sister will destroy this country.

    The greed of organizations and hatred of people will produce a failed nation; but when I do not know.

    • Very welll said. However, when you see politicians slipping out the back door, we’ll have to stop them. Because they’ll b leaving with what’s left of the money. If yer not angry you haven’t been paying attention!

  • Hi Daisy,

    Peter Schiff gets it wrong when he says, “The US government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.” Way wrong. The central banks are not owned by the government, they are owned by the member banks, which are owned through a bunch of trusts and corporations by some very old banking families. They are not going to allow either runaway inflation or defaults. Inflation makes the bankers’ money worth less, why would they allow that when depression makes it worth more? What will happen is simple, government debts will be repaid in land. Easy, we will owe something like $30 trillion, we won’t be able to cover the interest payments, and our politicians will tell us there is no choice, we have to sell our land to pay “our” debt. The bankers will have loaned us worthless paper and gotten back our most precious commodity, our land, pretty clever… and there is not a damn thing the American people can do short of a revolt to keep our politicians from selling us out. I personally think the bankers will ask for everything west of the Mississippi, and then turn around and lease the west coast to people, and everything else will be off limits. American citizens will be forcibly relocated off the bankers’ land. You don’t own your land, you own a title to it, that is going to be real important in the future.

    I hate to be the one to break the news, but our future does not look good. One thing you can bet on is the elites will not feel the pain, we will. I live in a small rural town out west and I am dreading the day when they knock on my door. It is coming and I honestly have no idea how we stop it.

    God Bless and hang in there,


      • lst Marine: The UN gestapo will knock on doors of the resisters, patriots, talk show hosts and other bloggers who stand up for constitutional gov. Gov. tracts everyone online. The NSA keeps all this info. This is why prepper sites tell people to get out of cities and off grid, off radar.

  • Daisy, I hear ya!
    Unfortunately we have become a nation of consumers but a nation of useless eaters without the wherewithal to know where our food comes from.
    The grocery store, while technically correct, is not the correct answer.
    As I type this, there are half a dozen tomatoes from 4 different plants I have collected to save the seeds from for next year.
    I got beans, squash, peppers and half a dozen herb seeds in various conditions of drying.
    If Schiff and others are correct, and it really will be worse than the Great Depression, better be ready to feed yourself.
    Flip side, be wary of those who would seek to maximize power, control, and or profit during such a time of calamity.

  • Watch the bond market, this is where it’s likely to start. Since the central banks bought up everything courtesy of we the people (via our elected representatives) agreeing to trillions in new debt to bail their friends out with, they now own everything ie US corporations and trillions in US real estate and are starting to sell off what’s sitting on their books as well as US bonds. Not only is the fed selling their US bonds the Russians, Chinese, and Japanese are too. This current economic condition has never existed before, thus there’s no model for it to predict outcomes from but you can guess what’s going to be the endgame scenario.

    The US debt could be refuted by a government that has any decency since fed notes are backed by nothing and cost the fed nothing to create, they create debt notes out of bits in a database or ink on paper. Ie, the fed is a fraud and has perpetrated the greatest fraud in history with the complicity of those in government service. Kennedy tried to replace fed notes with US notes that bore debt to no one and they killed him for it. Why should the US pay interest to anyone on its own money? Why should each dollar represent a debt? None of this is constitutional.

    In a crash expect them to try to force bail-ins where bank account holders will lose a portion or all of their deposits to the winners of each respective banks gambles. This took place first in Cyprus not too long ago, a test bed to see if westerners would sit still while their banks raped them.

    There’s also the possibility of a default or a refute of the debt, what can’t be paid won’t be paid, very simple.
    That being said, everything would come to a screeching halt as debt notes disappeared from circulation, inflation soared, and chaos would ensue as different people tried to foist new fiat iou notes in place of the fed iou notes.

    I’m sure all of this is calculated to bring in the mark of the beast. They will crash everything, bring the world to its knees, then offer the solution. All you have to do is take their mark. If you don’t, you won’t be able to buy or sell anything, kinda like it says in the bible.

    Here we see Bill Hicks interview Aron Russo regarding the mark;

    • Wow! Ty so much for sharing this link! Now I feel like I am finally starting to understand this info enough to begin to wrap my head around it!

  • “The worst recession we’ve seen in the last 10 years.”

    I would hope so as it would be the ONLY recession we’ve seen in the last then years.

    I predict the next recession will be mild.

  • Or a collapse could be triggered by the trading system betting on itself;

    “Look, there has been so much talk about volatility and VIX exchange traded products lately… but that is yesterday’s news and is irrelevant. Everyone is missing the forest from the trees… the pond from the ripples … In April, the commissioner of a major regulatory agency visited Artemis to discuss my research on short-volatility from last year. He asked whether I thought the VIX eco-system represented a systemic risk. I told him, “Forget VIX, that’s over. Done. But you should be VERY worried about how the bigger implicit short volatility trade affects liquidity in the overall market… THAT is the systemic risk.””

  • Maybe you should accept all those credit card offers you reject. Peak them out at 80 – 90% of the limit with gold purchases. Pay the monthly minimum until the big load hits the fan at which point gold shoots the moon. Then you can sell a little of it and pay off all the balances if such exchange mechanisms to pay them off still exist.

  • Certainly getting out of debt is priority one, but you can start training your mind also. I play a game at the grocery store: I determine a budget, then take the calculator and my list and add up as I go. It is amazing, that when you look at the figures adding up as you fill the basket, the things you can do without. I figure that this is good training for when things are sparse, unavailable, or I will need to substitute. Get your mind ready, your provisions ready, and be really prepared!

  • I like all of the comments. I’ve been telling my brother and sister to prepare but , crickets. Thank God the witch didn’t get elected. We would lose the first and second amendment and if Trump is impeached or something worse, there will be riot’s in the streets. Maybe that is what we need anyway.

  • The “art” of growing our own food, has been lost over the decades…..your article is spot on Daisy….this people seriously need to relearn to grown their own food and learn to be self-sufficient, learning to “save” money, rather than spending it on stupid frivolous stuff, depending on a corrupt government to take care of them (which will never happen and is evident they can’t take care of anything, nor do they care your well-being), instead, most of everyone has the capability to take care of themselves, they just don’t want to. Governments agenda is to divide everyone against each other, instead of culminating close-knit communities, where everyone comes together and is willing to help each other…as it once was when this country was first founded…

  • The problem with Peter Schiff is that he has been crying “WOLF” for so many years that it is difficult to put much faith in what he says. Even though all that what is said about the debt is true, we still seem to keep plugging along and when the shoe does drop it will be so much more drastic.

    The one thing I have found about being a pessimist is that I am am so seldom disappointed and often pleasantly surprised!

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