The U.S. economy is showing signs of serious trouble, despite claims by the mainstream media that everything is fine. In recent months, we have witnessed several significant bank failures, including the second, third, and fourth largest in history. The Federal Reserve has made desperate attempts to prop up the system, but it continues to deteriorate.
One such failure occurred last Friday when Heartland Tri-State Bank of Elkhart, Kansas collapsed, leading to the Federal Deposit Insurance Corporation (FDIC) taking control and arranging a sale. Dream First Bank of Syracuse, Kansas has agreed to acquire all the deposits of Heartland Tri-State Bank, effectively absorbing it. This pattern of consolidation is expected to continue, leading to a wave of consolidation within the banking industry.
Another industry experiencing significant hardships is the trucking industry. This year alone, various trucking companies, including Flagship Transport in Florida and FreightWorks Transport in North Carolina, have gone out of business. Yellow Corp., a once-dominant trucking company, has now halted operations, leaving over 30,000 of its workers searching for new jobs. The company had been in a dispute with the Teamsters union over pension and health insurance payments, and when the union canceled a threatened strike, the company failed to pick up freight from its customers. Yellow Corp. owed the federal government billions of dollars, and their collapse poses a significant risk to taxpayers.
The manufacturing industry is also under pressure, as indicated by the declining ISM Purchasing Managers Index (PMI). Since President Joe Biden took office, the PMI has dropped significantly, reaching levels not seen since the 2008 financial crisis. With multiple industries struggling, the hope would be that U.S. consumers are in good financial shape. However, this is far from reality. In June, 61 percent of U.S. adults were living paycheck to paycheck, with those on lower incomes facing even greater difficulties.
As a result, many Americans are increasingly relying on credit cards to make ends meet, often incurring high-interest rates that trap them in debt for years. The reliance on credit cards highlights the financial vulnerability of many households and the limited options available to them.
Unfortunately, the economic outlook for U.S. consumers is set to worsen. With trillions of dollars injected into the system in recent years, the economic foundations are showing cracks that cannot be ignored. The inevitable collapse of the economy is imminent, and the consequences will be severe.
It is clear that the mainstream media’s narrative of a thriving economy is far from the truth. The failures in the banking, trucking, and manufacturing industries, combined with the financial struggles of U.S. consumers, paint a gloomy picture. The temporary measures, such as bailouts, may delay the inevitable, but they cannot fix the underlying problems. The U.S. economy is on the brink of collapse, and it’s only a matter of time before the entire system crumbles.