It feels like someone has pulled a plug, because the U.S. economy is suddenly caught in an extremely alarming downward spiral. As I discussed at the end of last week, investors are flocking to gold and silver because they can see that a storm is coming. We have reached a point where most of the country is experiencing significant economic pain, and as a result people are starting to get really careful with how they spend their money. The cost of living crisis has caused most of us to tighten our belts, defaults are absolutely soaring, and food bank lines are getting even longer. If conditions continue to deteriorate like this, what will 2026 look like?
Our economic momentum has been causing us to slide in the wrong direction for years, but now that slide threatens to become an avalanche. The following are 14 signs that the condition of the U.S. economy is worse than you think…
#1 According to a brand new survey that was just released, Americans plan to spend far less during this holiday season than they did last year…
The survey showed that consumers intended to spend an average of $1,595 this holiday season, which is over 10% less than the $1,778 they had planned to spend last year. The lower expected spending holds across all household income groups and most generations, but was particularly acute among younger shoppers.
Gen Z consumers, who were represented in the survey by individuals between the ages of 18 and 28, revealed that they plan to spend 34% less this holiday season compared to 2024. Millennials, respondents between the ages of 29 and 44 in the poll, said they plan to spend 13% less, on average.
#2 As the holiday season approaches, we are starting to get reports of “empty shelves” in some parts of the nation…
Several people echoed Michele’s feelings about availability, describing the situation as “empty shelves, higher prices”. Natalie, who lives in New Hampshire, said she hasn’t seen certain pantry staples “for months”. She said: “The store shelves have become more and more bare … instead of multiple choices there may only be one or two, and name brands are being replaced by store brands.”
#3 Household debt has reached an all-time record high of 18.4 trillion dollars, and debt collectors are becoming a lot more aggressive…
U.S. households now owe a record $18.4 trillion in debt, and federal data shows complaints about aggressive debt collection have surged over the past year.
The Federal Trade Commission logged over 140,000 consumer complaints about debt collection in the second quarter — a 220% jump from the same period a year earlier. Georgia, Texas and Florida recorded the highest rates.