Why Trump's Economy Is About To Crash



if you watch mainstream media you'd be under the impression that the economy is doing incredibly well Americans are super prosperous they have a ton of money look at the stock market the numbers speak for themselves stock prices are up but the reality is people are dealing with more debt today than they did at the height of the economic crash in 2008 and wages remain stagnant so the Fed has been looking into these numbers because there they are considering increasing interest rates and interest rates have been low since the recession and when they raise interest rates it's done in an effort to respond to an overheated market ok so inflation for instance they want to make sure that inflation doesn't get out of hand but if they do increase the interest rate a lot of Americans who have a lot of debt will suffer so a Fed survey released this week showed four in ten adults couldn't cover an unexpected expense of four hundred dollars and would have to sell something or borrow to cover it that's down from half of adults back in 2013 but if a person needs a loan the rate will be higher today than it would be in 2013 so the Fed is considering increasing the interest rate even further so Americans now have more credit card debt than at the height of the financial crisis at more than one trillion dollars that is insane okay so there's that and remember wages haven't gone up significantly they have remained stagnant for the most part overall consumer debt excluding mortgages is on track to reach four billion dollars this year okay so consumers are also skipping more auto loan payments particularly those borrowers with less than pristine credit known as subprime than during the financial crisis so subprime loans in the auto industry are huge there's a bubble there that is expected to burst so keep an eye on that also auto loan balances rose by eight billion dollars in the first quarter of 2018 late payment rates also rose with four point three percent of auto loan balances ninety or more days delinquent on March 31st of this year so at the end of the first so this is part of why Trump won and ironically why his presidency I believe could collapse and so let me explain both of those he won because Washington has no sense of the anger in the country because to them the idea that you'd be wiped out by a four hundred dollar expenses it's laughable right the folks in power in Washington in New York and San Francisco and LA to be honest right $400 nothing nothing but for 40% of the country its devastation so that is an enormous disconnect it's not just that the they that one side is so disparate than the other side it's that they don't know each other and they don't understand each other and so all the people in power they don't know anybody who can't survive a $400 emergency and so they go on blithely thinking that somebody like Hillary Clinton who was a enormous Lee Pro establishment candidate who ran a campaign basically saying the status quo is pretty good let's stick with the status quo that produced a rage in the country and so that's why Trump won now ironically of course as you know the Trump didn't make it any better so what did he do he poured a ton of money into rich people even more Tyson's the average tax cut for the guys in the 1% from Trump was 61 thousand dollars sixty one thousand dollars every year in their tax cuts on average okay so the bubble keeps growing and growing and growing and at some point it will pop and when it does there'll be even more devastation in the country because all of you will have $400 emergency expenses four thousand dollars because of all the disasters that will unfold from that and you won't have jobs even though very low paying jobs etc and when they go to bail out the bankers again oh we're gonna have a whole different animal on this in this country all right so you know buckle up brace for impact and by the way in regard to the stock market Jake and I have talked about this before but just to reiterate it's artificially inflated by cheap money that the Fed is printing out and giving to banks for instance they're supposed to loan that money out to small businesses but they haven't done that they just use that to buy their own stocks and then you know you don't have Americans going out and buying their products so when you see the prices go up remember it's these you know corporate CEOs executives taking money from their tax cuts and cheap money from the Fed and just buying their own stock that's the reason why you're seeing the stock prices go up and and yes an unemployment rate is low but you have to look at the quality of jobs these are not quality jobs the wages matter quite a bit and they remain stagnant and final piece of this puzzle student loans outstanding student loan debt rose twenty nine billion to one point four one trillion as of March 31st loans do more than 90 days declined in the first quarter and by the way Education Department just announced that they will be increasing the the interest rate for federal student loans they will increase it to five point zero five percent from four point four five percent for the 2018 2019 academic year that's huge I know it doesn't seem like a huge increase but it is huge when you're taking out tens of thousands sometimes hundreds of thousands of dollars in student loans so there's a theory that student loans are the next subprime mortgage crisis and so I covered this for years on The Young Turks about why that the collapse happened in 2008 and so everybody thinks it was a housing market no it was the gambling on top of the housing market it's called derivatives and what they would do is they would do bet is that a package of housing mortgages going to collapse or not collapse and so when those bets went sideways it created a domino effect they couldn't recover from now there are people making those kind of derivative bets on other things and and some is on local state solvency and some is on the education loans right and 1.41 trillion is already a giant amount let alone the bets they have on top of that money and this has created a whole new class of indentured servants and in unlike a desert servants which you you know write about in history class that lasted seven years and then you were free to go this lasts a lifetime I talked to congressional candidates grown-ass people running for United States Congress who are still paying their student loans this is an albatross around our neck and and it's done on purpose so then who do you have to serve you have to serve corporations otherwise you won't be able to pay your debts and then they got you exactly where they want and these are people who have you know this huge debt burden just so they can have an opportunity to get a decent job in this country right and when they're paying it back it's such a huge portion of their income that they can't save they can't be part of the economy in in ways that the generations before could they can't buy homes cars all that but also they can't save for retirement less than 40 percent of non retired adults think they have enough money to be on track for retirement so people are suffering don't let anyone lie to you about how the economy is booming under Trump two easy ways folio interests want us hit the subscribe button down below then you're a TYT subscriber and second is ring the bell and when you do that on youtube you're notified of our videos




Comments
  1. I went to Walmart today and I couldn't believe the amount of white people homeless I saw. Trump is really hurting his own people

  2. This is NOW the END TIMES. This is all layer out already. It doesn't surprise Real Born again Christians. The Rapture of the Church is not going to experience this. This is the effect of the Fall of Mankind since Adam and Eve. Be ready

  3. When we crash, maybe we will be able to get our "hands" or "boots" on them. $1300 monthly with $525 monthly mortgage; utilities, insurance and food and no reserve funds for emergencies…goddamn the government, you f-ing bastards, all of you.

  4. I agree that the Feds are screwing us over and we commonly refer to this Pres. economy or that Pres. economy. But Pres Trump is dealing with many years of past incredible overspending that no president at this point can do much other than to stall it for a while but the inevitable is going to happen no matter what.

  5. and just like with the gov shut down he backed himself into a corner with no way out for taking credit for obamas economy early on when his actions didn't effect the economy yet. He walked into his own trap. he cant blame Obama now.

  6. If you believe these dingbats you’re part of the problem

    I can’t wait to watch her on election night 2020 when Trump wins again in another landslide

  7. What this loser fails to realize, is that debt increased because of Obummer. The recovery is enabling people to survive with the debt load that they have been carrying all along. Keeping interest rates down, is what the Fed did in order to prop up Obummer's failing economy.

  8. Funny how Trumptard always call Democrats snowflakes, at the same time they get so defensive and sensitive when there are negative news about the orange monkey. Haha pathetic ass moron, simpleton Trumptard shouldn't be allowed to reproduce.

  9. This has nothing to do with trumps economy and all this other nonsense.the federal reserve system is what’s causing dept,because we don’t have real money,like gold and silver,in order to stabilize the economy we have too dismantle the federal reserve system,period!

  10. Okay let's take a break from the "hate Trump" narrative and look at what's behind the impending collapse. Over the decades the Fed has been pumping money into the economy through what is called qualitative easing in other words "fake economic growth" making it seem like the economy is doing fine. Companies and consumers were borrowing like crazy, well, the time of reckoning is here and it's time to pay the piper.

    Trump brought true economic growth therefore exposing how the feds were artificially propping up the economy with their "cheap money". Now there is too much of it out there and the fed is in a panic to pull back as much money as it can to a avoid inflation. High interest rates make it expensive to borrow money and even more expensive to pay it back. Eventually you have to pay back the money and that's when shit hits the fan when you can't. So many companies are now over their heads with debt that can't be paid and they are falling apart. Latest example is GE.

  11. The US an European markets will collapse unexpectedly or very sudden! Lots of folks in Europe an the US will go through trying times!

  12. Cenk and Ana. You are gonna sit here the next 6 years and being more negative. This will have a serious negative impact over your general health. You are literally going sick. Give up this job and get a life where you are taking care of your self. And tomorrow you are doing it again. I'm not gonna watch you. Ill take care of my self.

  13. IMPEACH CORRUPT TRUMP REGIME, YES CRIMINAL tRUMP, CLIMATE CHANGE IS REAL , DANGEROUS, & EXTREMELY EXPENSIVE. SEND THE COSTS TO THE OIL COMPANIES. REPEAL THE CRIMINAL REPUBLICONS PARTY WHO SUPPORTS CRIMINAL TRUMP & REGIME

  14. Well America is a corporation and so call each person is a slave in this Matrix. So when the fall Hits everything's going to go with it… and deletes will be scaved and untouched. Although evil will not succeed the last victory.

  15. All you Turds do is lie tell me is there anything in your life today that is honest? I will help you with that NO!

  16. It si not "Trump's economy". It is the growth by debt aloneand tricke down theory that does not work…

  17. The Republican formula: cut taxes, increase military spending, balloon the debt, blame the Democrats. And "entitlements".

  18. Poverty is like sex. Other people can explain it to you and you can even watch other people doing it. But in order to really understand and appreciate it you need to experience it for yourself.

  19. They didn't even bring up the tariffs, which are killing the farm economy. No big deal, you might think, only 1-2% of Americans are farmers. But the farm products we sell overseas makes up a huge amount of our national income. You cannot ruin the farm economy and not have it affect the rest of the economy. It happened in the 80's, it will happen again. We will be in another recession in a couple years.

  20. There is going to be a huge government shortfall soon, they are not going to have money accept for interest on the loan.

  21. In under 50 days America will be seeing what the GOP tax cut actually did for them! Most already know what's coming for the middle class (44k a year) our tax bill will go up so coupled with higher food, housing, healthcare….costs will prove that the middle class has much less then they did under Obama and that the top 10% of earners (CEO, stockbrokers…..) Get a huge tax cut that will be 5 to 7 times the total middle-class income !

  22. Trump won't be president for all that long…but you're going to feel the symptoms of his leadership for a couple generations at least. Buckle up folks. It's going to be a rocky ride.

  23. TRUMP IS DESTROYING AMERICA AND AMERICAN'S BUY THE ONES THAT VOTED FOR HIM ARE THE ONES THAT ARE CRYING THE MOST

  24. The housing market in 2008 was the trigger, all the derivatives was just the C-4 that blew up the market.

  25. For Washington/New York/LA/etc $400 is just lunch. Sad as that is. If that does not highlight the massive problems in the world, nothing will.

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