MASSIVE LAYOFFS! – The Auto Bubble Is BURSTING



hey everybody Josh Eriksson world alternative media here and of course we're joined by author and economic analysts here WAM Johnson Ison and you know there has been a lot of talk in recent years especially under Trump that the economy was doing great and everyone's moving to the United States all these companies and they're stopping building plants in other countries I still see those articles rehashed a lot and it might be true to a smaller scale with a few companies but most of the articles I see are from like January 2017 things have changed a bit as the peak of the bubble hit which isn't trump's fault it isn't any one particulars fault its massive amounts of investor speculation banks and government in general so I'm a placing any blame on him that it was gonna happen one way or another Democrat or Republican Pepsi or coke you know but anyway there is this article out of Zero Hedge which I wanted to mention because we've gone into GM as well as General Electric in recent days and it's pretty shocking what's happening to these once great behemoths as this article says Black Monday at GM four thousand layoffs expected this week and as the article goes into you just days after we reported of the dismal start to 2019 for the US auto industry General Motors will begin involuntary layoffs that will leave at least 4,000 workers without a job according to the Detroit Free Press the Detroit auto manufacturer is planning to begin layoffs just days before its fourth-quarter earnings report these layoffs are one of the first pieces of a larger restructuring that CEO Mary Barra announced in November five plants in North America are planned to half production and 14,000 total jobs are slated to be cut part of the restructuring is to realign the company's infrastructure to produce more electric vehicles people familiar with the matter stated that the company was actively trying to compete as many layoffs as possible before earnings GM hasn't confirmed this stating we are not confirming timing our employees are our priorities and we will communicate with them first we've indicated that involuntary reductions would happen in the first quarter a GM spokesperson said I wanted to also mention another article John that you sent me here out of Reuters because look there's a lot of people really concerned about this and yes this has been an ongoing issue we were talking about it quite a few months ago and unfortunately we've seen all this happen before Detroit is a big red flag when most people hear Detroit these days it's synonymous with the horrible downturn over ten years ago now but anyway as this article out of Reuters says weak demand for US consumer loans fuel spending outlook worries and the article just goes into issues in the auto industry etc but one point I want to take out of this article is this now though a Federal Reserve survey of banks released on Monday shows that the net share of banks reporting weakening demand for auto and credit cards rose sharply in late 2018 and net 18.2% of banks surveyed by the Federal Reserve reported weaker demand for auto loans and 17.4% on net reported lower demand for credit card debt both were the largest shares in records that go back to 2011 and I quote this provides evidence for the view that confidence will hurt spending said Lewis Alexander an economist at nomer so John I wanted to go further into this because this is course bonding with the sales in the US of Kohl's dropping about 10 percent year-over-year at at some point in this year it's it's people are predicting it's gonna happen this year this is a huge issue because we've talked about the auto loans bubble years ago and of course another one that we were early to the draw on I wouldn't say early to the draw as much as I'd say we were predicting something that was inevitably going to happen and we said we wouldn't know when it was gonna happen but we knew it was going to happen just looking at market fundamentals that have completely been wiped off the table John can you go into this massive massive story because people aren't giving it enough attention considering the impact that it's gonna have going forward well I don't know how many times I gotta yell debt debt debt you know it's it's unbelievable how the mainstream media and everybody is ignoring this massive debt problem that we built up for ourselves it's ridiculous how gigantic it has become and now you've seen all these things that are happening as we're talking about in his articles all of them are because of that debt is hitting like its peak and nobody is able to get into any more debt people are squeezed you got inflation you got taxation and then you got all these debt on top of it people don't have very much money left to do anything anymore and they're basically wage slaves working 24/7 two or three or four jobs in order to survive a lot of people and the middle class is really dying out we're fast in the United States the middle class is the debt class as we can also call it because there are the ones that actually are created out of that or else we're having a hard time picking them out in a crowd these days I don't see a lot of them walking around much no hon but this is how it is Josh you had the car title loans common al we blew the whistle and warned about how bad that is like when you basically take out a a loan like a line of credit on your car that it's a massively devaluing asset that was really bad and then of course there's several places now in Canada even that I was popping up that says no credit you know no problem we'll we'll get you alone and I get loans on lands on loans on loans that's sustainable yeah and then we actually did an article I think you kind of mentioning about it but what we were talking about was actually subprime auto lenders that were really struggling and starting to go bust I don't know what what's happening there right now if there was a whole bunch of bailouts I haven't really looked into that and then of course we talked about the auto backed securities which is just another form of mortgage-backed securities which blew up massive derivatives that blew up you know tranching of taking a whole bunch of auto loan debt creating a credit derivative out of it and putting it and selling it as triple-a most likely to stupid pension fund managers yeah so that is another thing that's underlying to all these auto problems as well so there is a lot of issues here that they're not even mentioning in these articles that are have been you know laying on her to surface bubbling and showing itself every now and then and then kind of talk about all now we're worried about this but problem today josh is that we're so focused on day to day basis when it comes to investing and and money and everything in life we don't really look at like the longest patent even like 3-4 months down the road is even very very long time today and long term thinking today and maybe we should look at the sustainability of our system as a whole and actually see that we're hitting that peak of the the system and that it might be yeah I might not be very sustainable all this death I gets created all these Keynesian economics and it might actually be a complete devastation to the economy over the long term over you know like the the 20 to 40 or 50 well now it's almost 50 years span that they had a full fiat currency and Anna Keynesian practioners a banking system and you seen all the destruction that are starting to just pop up I don't know where people think it is but we've taken a look I've been talking about for a long time John and I got the article the original article we did I wrote this article back in June 1st 2017 we did this video at the time it was called crisis in the auto industry the bubble has become unsustainable and as the article I wrote kind of goes into we talked about the massive bubble burst creeping closer and closer in the auto industry following the biggest subprime auto lender Santander being dubbed the new century of auto finance skipping income verification on 92% of auto loans and that was in June 2017 and people said oh no worries everything's good yeah don't tell anyone about that just and and you know John let's talk a bit about just overall the financialization of into the industry today because it's just is seems like it's it's obviously a terrible idea but everyone seems to want to get into it we saw that with General Electric as well and not doing so well I might add so what do you what do you think well that's the problem josh is the financialization of the economy we talk about that a lot and and what has happen with others like they actually get into lending business because having a fractional reserve bank printing monitors thin air is pretty darn good compared to actually just for having to make a car and using resources to actually make it there's so much more leverage to be made and so much more money to made I don't nothing if you actually just create all this debt data out of nowhere and that's why you see Home Depot today the entire best but almost everybody you can buy stuff on credit all the furniture stores like everywhere you you can actually buy stuff on credit because people actually have the money it's become so expensive you know the the amount of inflation that has happened over at the time span versus the actual wages that have been kind of stagnant there's so much less money and that's why you see in constant terms of loans like auto loans and everything is going up there's always longer and longer terms on these mortgages on the loans that we get into because it's becoming more and more unsustainable high inflation that we're not really seeing but we were getting like most people are getting stuck in is massive corporations getting paid like very little races over time and and you see now the big issues that are coming up because they didn't get the races but the problem if when they get the races you would see even way more inflation right then that's why like Trump bringing the auto industry and everything back that they're saying that would actually go makes a cars and everything costs a lot more and never just making things go even faster and way higher inflation so you're just seeing how vicious the cycle gets over time with you get more salary because you can't afford anything because of inflation but then the salary then increases all the prices down the line and then you buy product at the other end which is more way more expensive than it was before so now like now we've got to go a vicious higher salary gun so yeah it's just a vicious cycle of Keynesian economics Josh well John Keynesian economics has been proven to be well not sustainable and actually horrible for over a hundred years now I think it's about time we learned from the past mistakes I understand way back when people didn't understand money they didn't understand the history of it because there wasn't enough of a history of certain tactics to actually build upon but now we have so many examples of Keynesian going bust Keynesianism and this is like Keynesianism on crack or steroids or something because it's not even true to the original idea of Keynesianism and some crystal meth and some crystal meth Josh it's just as Extreme as it gets so going forward people need to be responsible people need to understand money people need to decentralize and figure out the fact that these banks and these governments want them in servitude want them in debt servitude debt equals well prevalence for them they win we lose people need to stop getting loan on top a loan on top of loan and then loans for those loans and just piling it up forever perpetually this is very unhealthy very unsustainable always comes down and this is just part of a bigger bubble that everything bubble we've been talking about world wide everything from pension bubbles real estate bubbles well we're talking today about the auto bubble and what's actually the inevitable circumstances of it we see the student loan bubbles we see you know at the same time the derivatives bubble multi quadrillion dollars by the way and then on top of that you got the dollars being swapped out of throughout the world you've got a completely unstable economy as all fiat currencies revert to zero and everything is starting to wobble and get shaky and get worse and worse and as we've been talking about it for all these years we've been vindicated again and again and again because it's just what the endpoint the inevitable climax of these massive centralized cartel you know moves are that it's always going to end this way so folks people you need to be independent and responsible and focus on how to preserve your wealth protect your purchasing power and John what's your bottom line as we wrap this up regarding the auto industry and what we're gonna see down the line from places like GM and I mean so many other car manufacturers as we've seen in the past go under no they're gonna struggle the at one point you know people are not gonna take 15-year loans on their cars so I think we're gonna see it's gonna be a bubble that has to burst like they can't put money forever but what's interesting is I just want to mention one last thing that's a bottom line and that's these zombie corporations and and asami corporation is basically corporation that can pay down instead it has to pay the just interest on the loans Josh and that's what it does it just pays the interest and that's what the government's does today that's what most big financial institutions does today everybody is just paying down the interest because they can't afford on to pay and pay down the principal are all and you just having these zombies that are never gonna get out of debt they're just getting into more and more debt than and it's completely unsustainable it's just a mass amounts of like debt that I don't know how many times I gotta say it Josh but that's what it's all about there's just this unsustainable debt bubble that we created that there's nobody else to lend to anymore and we've seen just a downfall of that it's a credit cycle but it's more than that now like it's it's the failure of the monetary system there's nobody like to massively in debt anymore and and people are getting fed up with it because you get so much for inflation there's just so many bad symptoms of this fiat currency system Josh that we're just seeing the complete destruction of anything that we try to create because we financialized it and then we're seen and now there there's no way out of it and but again you know you just gotta get and protect yourself that's that's the thing and that's the way out of this is to probably if you can if you're out of that you're in a good position get back to a lot of other people there's so many people in the world today that are massively indebted and we're just gonna have a I think a complete monetary crisis there's no way out of it and now at this point and it's not going to be too nice throughout that time because people are gonna suffer people are gonna really really suffer and it's all because of banksters that have you know pushed assistive form together with the government's everybody's been in on it and it's a crime racket it's a cartel that have enslaved and our people are dying because of this on the worldwide scale jobs it's not just a joke about yeah you look it doesn't matter how much debt you have if you control the economy but creating a whole bunch of fake paper money and you just feel like all the GDP is higher because they printed so much more money no that actually kills people look at Venezuela and other places idiots out there you Keynesian bozos like Krugman and everybody else are promoting death and destruction around the world that is not very good if you're good human being you would actually look at yourself as a Keynesian economist and say like hey I'm promoting the death and destruction around the world people dying everywhere maybe I should stop promoting them yeah well anyway I mean you mentioned earlier how many times you have to say debt and apparently enough times to fill eleven hundred videos so anyway as always folks it comes down to individual responsibility you guys it all depends on what you do do not depend on others do not depend on banks or governments to fix the problems of banks or governments come on it's pretty obvious at this point we've been through a thousand plus years of fiat we've been through a thousand plus years of well democracy and government coercion and use of force and destruction of free will etc etc comes down to responsibility so as always food water shelter self-defense or not gathering things for the toughest guy on the block gold and silver as wealth insurance this is our opinion on investment advice but it's not meant as an investment anyway so take it as it stands historically and anyway we've got an affiliate with Mike Maloney which is pin to the top of the comments which I hope you guys check out at goldsilver.com guys awesome really a big fan of Mike Maloney as and his his his understanding of more money history monetary history and the prevalence of gold and silver and now crypto currencies as well decentralized properly fundamentally useful as well as blockchain infrastructure do your own due diligence folks as always but again there are more solutions than there are problems now John I could hear paul krugman off and on barking at you in the background so I'll let you go and until next time this is Josh certain and John Stice and signing out from World alternative media find the truth be the change like what do you see here om don't forget to check the links below GoFundMe patreon we can't do without you any donation is very much appreciated especially as we are so vastly demonetised and censored on YouTube as these guys come in and flag all of our content as 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updated so until next time thanks for watching everyone this is Josh Sears and signing out from World alternative media find the truth be the change I'm sure you have already changed people's minds in your young age because you're involved and I like that

38 thoughts on “MASSIVE LAYOFFS! – The Auto Bubble Is BURSTING”

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  2. The only thing that keeps me from labeling this fear porn is the fact that ford has dramatically DECREASED its lineup. This was so strange and it was so many cars. This was announced around the middle of last year. I thought what do they know that we don’t. Let’s not forget they were the only auto manufacturer that did NOT take the bailout last time. Kinda makes them the Canary in the coal mine

  3. Well, if it wasn't for 2+ income households, the middle-class in the U.S. would be pretty much extinct today. The average price of a new car today is $30-35K. Do the math. People are going into crazy debt just to keep trying to live that middle-class dream, and a reckoning is coming…

  4. you dont teach "how to handle money in school" then you saying "people need to understand money" keep dreaming.. 😉 Whatever you say.. if people see cheap credit card advert in your video. they most likely click "apply" 🙂 Your talk is like listening to two astrophysicists talking about black hole.. everything is exciting, everybody nodding, nobody understand it 😉

  5. Let us face it, what is happening is a failure of Corporate Leadership. In the world of US Corporate Leadership, they are compensated based on the return on investment the investment class receives in dividends in the current quarter of the business cycle. This short sided business approach, where investing in workers or new equipment is secondary to pay out in dividends. If the US Business model is so great with leadership, why do foreign-owned companies now dominate most industries? Look at transportation, we do not lead in cars, we do lead in trains, we do not lead in public transit, we do no lead in building ships, we lead in airplanes, as the military does most of the investment that commercial planes reap the benefit from. Today's capitalism in the USA is failing US citizens.

  6. Sell all assets. Down-size your car(s) investments – get a cheaper car and sell the second car. Get out of any debt – fast. Sell anything you do not need, even little things. Buy some gold. Pull money from banks now (bail-in coming, when is not known, but as soon as the banks strike serious trouble), pull your money from the share market. Secure your job or get a second income organized (every entrepreneur does this). Get the virtual 'lifeboat' organized which is a second income, something you can do from home. Get the family involved too. Save money hard on everything. Grow some food at home if you can. Or at least grow tomatoes on your balcony! Cut all your costs to the bare bone. Don't think it of as hardship, think of it as a game. A game of survival. Watch the US stockmarket, watch Vancouver house prices as a marker. Watch US house prices. Watch spot and long term copper prices for levels of industrial output globally.Watch your local house prices. Depressions start in one of 2 ways, either from the central economy and moving outwards to the peripheral economies or in the other direction. Depressions are either inflationary – prices move up massively wiping out savings or deflationary. No one will survive this upcoming depression. Expect global war. Where it will start is hard to know, but Israel will be one focus, the US and Russia the others. NATO will be involved and every other Western nation. Expect to see thieves and liars abound, numerous scams, riots, food riots, communist uprisings (local and international) and governments to fall. The best thing you can do for yourself is to turn your face to God, pray, help others where you can, look after your family and friends and others if you are able. May God go with you all.

  7. during the great depression the banks fore closed on the houses that were almost paid off—-very little owed buy owner had no money to make payment

  8. One thing about inflation.. Creating m1 supply in it's self, doesn't create inflation until velocity of that supply, hits a market… Now, if we had better paying jobs, and a higher key interest rate, more of that money would be locked in investments.. Granted, stocks are already over valued.. Although, with more investment capital, available to a wider base, should lead to more market spread, with more capital investments.. Just some thoughts.

  9. you know why this debt problem is NOT an issue?, … it is because the Earth is BURNING.
    NOBODY will EVER payoff trillions of dollars of debt. It is a computer number, NOT a real world HUMAN number.
    Those that KNOW what is coming do NOT care and they realize that things will radically change before anyone of THEM can be prosecuted for stealing as much as they can right now. The measure of success and the power of JUSTICE are both FUNCTIONS of MONEY.
    MORE for ME = LESS for YOU
    LESS of YOU = MORE for ME
    9-11 should have been a wakeup call for US
    and yes John's, …. the Earth is BURNING

  10. Trump's version of Pay – for – Influence.

    Payday Rules Relax on Trump’s Watch After Lobbying by Lenders

     In mid-April, hundreds of members of the payday lending industry will head to Florida for their annual retreat featuring golf and networking at a plush resort just outside Miami. The resort just happens to be the Trump National Doral Golf Club.

    https://www.nytimes.com/2018/02/02/us/politics/payday-lenders-lobbying-regulations.html

  11. As for the auto industry don't forget the state sales tax of 8-10% on top of the car price.
    The county here in st louis will charge over 1% per year decreasing gradually and the insurance companies get their cut.
    I will drive old vehicles until things change.

  12. Keynesian economics is about raising public spending in times of high unemployment. You haven't seen much of that in any of the OECD countries since the late 1970's. If the US raises debt to pay for tax cuts, we are quite far from the ideas of Keynes.

  13. Anyone notice the Freddie Mac advertisement? Haha they're getting desperate……Gold is currency of kings, silver is the currency of gentlemen, barter is the currency of peasants, DEBT IS THE CURRENCY OF SLAVES.

  14. The layoffs don't mean the bubble will burst its because car and sedan sales are down and pickups and suvs are rising its only natural they go this course

  15. Easy jobs are a the thing of the past. If people have too much disposable income they are harder to control.

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