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The Growing Threat of ‘Zombie’ Companies

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(FamilySurvival.com) – A primary warning indicator of impending disaster is the emergence of “zombie” businesses. These firms, also called “zombie companies,” are failing to pay even the interest on their loans due to their overwhelming debt.

According to recent Associated Press research, there are now roughly 7,000 of these financially troubled businesses worldwide, with 2,000 of them based in the U.S.

This trend indicates that a severe crisis is coming, as it highlights the possibility of widespread economic disruption.

The Retail Apocalypse and the Rise of Zombie Companies!

Businesses that haven’t made enough money to pay their interest during the last three years are known as zombie corporations.

The ten years of low-cost debt combined with persistently high inflation have caused borrowing costs to soar to levels not seen in many years, which is the cause of this increase.

According to the data, these financially troubled businesses have risen by more than 30% in several significant economies, including the U.K., Australia, Canada, Japan, South Korea, and the United States.
The nation as a whole is losing retail locations at an alarming rate. Should we maintain our current trajectory, the total number of closed stores in 2024 will surpass that of 2023 by about forty percent.

You would refer to that as a crisis! Meanwhile, a “restaurant apocalypse” is occurring nationwide, and banks are closing hundreds of branches nationwide.

Signs reading “space available” appear on once-prime commercial real estate buildings around us. Present this story to anyone who attempts to convince you that the U.S. economy is doing well and ask them why so many once-thriving companies are closing.

After that, it goes without saying that they will lose the argument.

According to the Daily Mail, around 2,600 store closures were announced in the first four months of 2024. Prominent brands such as Macy’s, Walmart, Walgreens, Foot Locker, and 7-Eleven have all announced store closures.

However, pharmacies like CVS and Rite Aid and bargain retailers like Family Dollar and the defunct 99 Cents Only have taken the brunt of the damage.

If this rate holds steady for the remainder of the year, we might reach 7,800 shop closure notices by the end of 2024. This is a glaring sign that our economy is having significant problems, not simply a minor bump on the map.

An Impending Financial Reckoning?
Numerous of these zombie businesses are about to face financial consequences. These corporations might be unable to repay hundreds of billions of dollars in due loans.
The managing director of Valens Securities, Robert Spivey, issues a warning, stating that the most vulnerable of these businesses will probably be “crushed” by their debt.

The number of U.S. corporations declaring bankruptcy has reached a 14-year high, a spike usually associated with recessions rather than economic expansions.

Corporate bankruptcies in Canada, the United Kingdom, France, and Spain have reached near-decade highs, indicating that the situation in other nations is similarly grave.

The True Price for Me and You…

The possible demise of these zombie businesses would affect hardworking individuals in the real world and be a financial concern.

These companies employ almost 130 million people in twelve different nations. Massive layoffs brought on by a spate of bankruptcies might further burden already fragile economies.

It’s not only a money problem; an impending economic catastrophe may cause mass layoffs and civil turmoil.

Local businesses that rely on the employees of these enterprises will experience a decrease in consumers and revenue, causing communities to suffer as well.

These closures may have a knock-on impact, resulting in additional bankruptcies and a decrease in the number of vital public services paid for by local taxes.

The psychological toll that families and individuals take and the possibility of a rise in crime and societal unrest emphasize how critical it is to be prepared.

Here at Family Survival, we stress the importance of being aware of the impending financial catastrophe and acting quickly to safeguard your loved ones and yourself.

Wall Street’s Perilous Bet

Wall Street investors blindly invest in zombie companies, buying up their stocks and “junk bonds” as if there were no tomorrow despite the apparent warning signs.

“One stock market insider stated, “These motherf*@kers are playing with fire, gambling with massive risks, and turning a blind eye to the ticking time bombs they’re fueling.”

This capital infusion may provide these faltering companies with a short-term lifeline. Still, it’s really a band-aid solution for a deep wound.

An investment research firm source calls this unprecedented degree of gambling on the public markets insane.

By ignoring the ingrained financial instability of zombie organizations, these careless behaviors are preparing us all for the inevitable and disastrous collapse.

The Part Central Banks Play in Breeding Zombies

The origins of this zombie plague are the acts of central banks during the 2009 financial crisis and the 2020–21 pandemic.

Central banks reduced interest rates to almost zero to avert an economic catastrophe, encouraging an excessive borrowing spree. This tactic may have prevented a worldwide depression.

Still, it also gave rise to a credit bubble that is much more widespread than zombie businesses. Governments, consumers, and even healthier enterprises have piled up debt.

Increasing Interest Rates: A Lethal Strike

Rising loan rates are the leading issue zombie companies are currently facing. In contrast to more stable businesses, zombies frequently have shallow financial reserves, and many of their loans have changeable interest rates.

Their financial difficulties are made worse by the fact that interest payments rise along with interest rates. Zombies’ debt was mainly utilized for stock buybacks, which have depleted their cash reserves and made them susceptible, rather than for expansion or innovation.

Bed Bath & Beyond: A Word of Warning

Bed Bath & Beyond is one such instance. The retail firm, which had 1,500 locations and was once a booming enterprise, struggled to shift to digital sales and spent $7 billion on stock buybacks during a decade-long debt accumulation.

This tactic and the large executive compensation packages that accompanied it ultimately caused its demise and the loss of tens of thousands of jobs.

The More Wide-ranging Economic Effect

Wide-ranging consequences could result from a zombie company collapse, particularly if several companies fail simultaneously.

This situation might create a chain reaction that would bring down more stable companies and cause general economic turmoil.

Widespread financial collapse is possible because severely indebted households, governments, and even healthier firms are all involved.

The emergence of zombie businesses is a glaring indicator of the underlying financial instability in the economy.

As these corporations prepare for their day of reckoning, widespread economic disruption becomes more likely.

Copyright 2024. FamilySurvival.com

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Why You Need A Generator TODAY

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In any survival scenario, having a reliable source of electrical power can significantly enhance your ability to weather emergencies and sustain your family’s well-being. While there are various ways to generate and store electricity, one of the most critical components for survivalists is a generator. Here, we’ll explore different methods of generating power and emphasize the importance of having a generator as part of your survival strategy.

The Importance of Electrical Power in Survival Situations

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Electricity is often taken for granted until it’s no longer available. In a survival situation, power outages can disrupt essential services, including communication, refrigeration, heating, and medical equipment. Having a reliable power source can mean the difference between a manageable situation and a crisis. Here’s why electrical power is crucial:

Communication

Maintaining communication with the outside world during an emergency is vital. Powering radios, cell phones, and other communication devices allows you to stay informed and reach out for help if needed.

Food Preservation

Electricity is essential for running refrigerators and freezers, which keep your food supplies from spoiling. This is particularly important when you’ve stockpiled perishable items or rely on a homegrown food supply.

Heating and Cooling

In extreme weather conditions, having the ability to heat or cool your living space is crucial for comfort and safety. Powering fans, heaters, or air conditioning units can help maintain a livable environment.

Medical Equipment

For those with medical needs, having a reliable power source to run medical equipment such as oxygen concentrators, CPAP machines, and other devices is non-negotiable.

Different Ways to Generate Electrical Power

Several methods can be employed to generate electrical power, each with its advantages and limitations. Here’s an overview of some common options:

Solar Power

Solar power is a popular choice among survivalists due to its sustainability and low environmental impact. Solar panels convert sunlight into electricity, which can be stored in batteries for later use. While solar power is an excellent long-term solution, it’s dependent on sunlight availability and requires a significant initial investment.

Wind Power

Wind turbines generate electricity by harnessing wind energy. This method can be effective in areas with consistent wind patterns. However, like solar power, wind energy is weather-dependent and requires specific conditions to be viable.

Hydropower

If you have access to a flowing water source, a micro-hydro system can generate electricity by utilizing the kinetic energy of flowing water. This method is highly reliable but limited to locations with suitable water sources.

The Critical Role of Generators

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While renewable energy sources like solar and wind are excellent for long-term sustainability, having a generator is crucial for immediate and reliable power during emergencies. Here’s why a generator is essential for survivalists:

Reliability and Immediate Power Supply

Generators provide a reliable and immediate source of power regardless of weather conditions. Unlike solar panels or wind turbines, generators can produce electricity on demand, ensuring that you have power when you need it most.

Versatility

Generators are highly versatile and can power a wide range of devices, from small electronics to larger appliances like refrigerators, heaters, and medical equipment. This versatility makes them invaluable during power outages or emergencies.

Ease of Use

Modern generators are designed for ease of use, with straightforward setup and operation. Portable generators, in particular, are easy to transport and can be used in various locations, making them a flexible solution for survivalists.

Choosing the Right Generator

Selecting the right generator for your needs is crucial. Here are some factors to consider:

Power Output

Determine the power output you need by calculating the wattage of the devices you plan to run simultaneously. Generators come in different sizes, so choose one that can handle your power requirements without overloading.

Fuel Type

Generators can run on several different fuels, including gasoline, diesel, propane, and natural gas. Consider the availability and storage requirements of the fuel type you choose. Propane and natural gas are often preferred for their longer shelf life and cleaner burning.

Portability

If you anticipate needing to move your generator frequently, a portable model is a good choice. Portable generators are easier to transport and store.

Maintaining Your Generator

Proper maintenance of your generator ensures it will be ready to perform when you need it. Regularly check and change the oil, keep the fuel tank clean, and test-run the generator periodically to ensure it’s in good working order. Store your generator in a dry, accessible location and keep extra fuel and necessary parts on hand.

Conclusion

For survivalists, having a reliable source of electrical power is not just a convenience—it’s a necessity. While renewable energy sources like solar and wind power are excellent long-term solutions, the importance of having a generator cannot be overstated. Generators provide immediate, reliable power in any situation, ensuring you can maintain communication, preserve food, regulate temperature, and power essential medical equipment. By selecting the right generator and maintaining it properly, you can enhance your preparedness and ensure your family’s safety and comfort during any emergency.

 

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Is Your Family Ready For Urban Unrest and Political Instability in the Wake of the 2024 Election?

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As the 2024 election approaches, the atmosphere is thick with tension and uncertainty. Regardless of who wins, the potential for urban unrest and political instability is high. Here’s what you need to know to prepare your family for the possible fallout.

The Days Leading Up to the Election

Even before the results are announced, the country is on edge. Campaigns are intensifying, and supporters on both sides are becoming more vocal and, at times, aggressive.

  • Increased Protests: Large demonstrations become common, with supporters from all sides taking to the streets. These protests can quickly turn violent, particularly in densely populated urban areas.
  • Polarizing Rhetoric: Media coverage and social media amplify divisive rhetoric, increasing the potential for clashes between opposing groups.
  • Heightened Security: Law enforcement presence increases, but their ability to maintain order is often stretched thin, especially if unrest breaks out in multiple locations simultaneously.

Election Day and Immediate Aftermath

The day of the election is fraught with tension, and as the results start to come in, the nation holds its breath.

  • Polling Place Conflicts: Disputes at polling stations can lead to altercations. Long lines and alleged irregularities may spark anger and confrontations.
  • Delayed Results: If the results are not immediately clear, uncertainty fuels speculation and paranoia. Both sides may claim fraud, leading to heightened distrust and potential violence.
  • Immediate Reactions: As the winner is declared, celebrations and protests erupt simultaneously. What starts as peaceful gatherings can quickly devolve into chaos.

The First 24 Hours Post-Election

Once the results are in, the real test begins. Regardless of the outcome, not everyone will be satisfied, and this discontent can manifest in dangerous ways.

  • Widespread Protests: Major cities see a surge in protests. While many start peacefully, the presence of agitators can turn them violent.
  • Civil Disobedience: Acts of civil disobedience, such as road blockages and sit-ins, disrupt daily life. These actions often provoke strong reactions from authorities and counter-protesters.
  • Property Damage: Businesses and public properties become targets. Looting and vandalism are common, particularly in areas already experiencing high tensions.

The Next 48 Hours: Escalation

As the dust settles, the situation can either begin to stabilize or spiral further out of control.

  • Law Enforcement Strain: Police and emergency services are overwhelmed, struggling to respond to multiple incidents. Their presence is critical, but they are often outnumbered and outmaneuvered.
  • Community Fractures: The divide between opposing groups deepens. Neighborhoods and communities that once coexisted peacefully are now battlegrounds.
  • Media and Misinformation: The media landscape becomes a battlefield of its own, with misinformation spreading rapidly. This fuels fear and anger, exacerbating the unrest.

Preparing for the Worst

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In these uncertain times, being prepared is crucial. Ensure your family has a plan in place to stay safe amidst potential chaos. Stock up on essential supplies, secure your home, and have a communication plan.

How are you preparing your family for the potential unrest? Share your thoughts and strategies in the comments below!

 

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Will Your Family Survive The First 72 Hours After a Nationwide Power Grid Collapse?

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The unthinkable has happened: the entire power grid of the United States has collapsed. As darkness descends, chaos begins to unfold. Here’s what the first 72 hours would look like, focusing on the most frightening aspects you need to be prepared for.

Hour 1-12: Panic and Confusion

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As the lights go out, the initial reaction is confusion. People wonder if it’s a temporary outage or something more serious. Within hours, the reality sets in – this is not a typical power cut.

  • Communication Breakdown: Cell towers and internet services start failing. Without electricity, batteries for devices will only last a short while, cutting off communication channels.
  • Transportation Halted: Traffic lights go dark, causing accidents and gridlock. Gas stations can’t pump fuel without power, stranding vehicles.
  • Shelter in Place: Those at work or school may find themselves stuck, unable to navigate the chaotic streets.

Hour 12-24: Water and Food Concerns

As night falls, the lack of power becomes more than an inconvenience. It quickly turns into a survival issue.

  • Water Shortages: Most urban and suburban water systems rely on electric pumps. Without power, water pressure drops, and taps run dry. People scramble to collect what little water they have.
  • Food Spoilage: Refrigerators and freezers start to thaw. Perishable foods spoil, forcing families to consume whatever they can salvage quickly.
  • Supermarket Rush: Stores with backup generators become overwhelmed with desperate shoppers. Panic buying clears shelves within hours, leading to potential violence as supplies dwindle.

Hour 24-48: Urban Unrest

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As resources become scarce, tensions rise.

  • Looting and Violence: With no lights and no police communication, looting begins. Stores are broken into, and people fight over dwindling supplies. The thin veneer of civilization starts to crack.
  • Medical Emergencies: Hospitals struggle as backup generators fail or fuel runs out. Medical supplies and services become critically limited, and emergency rooms are overwhelmed.
  • Sanitation Issues: Without running water, sanitation deteriorates rapidly. Toilets can’t flush, leading to unsanitary conditions and the potential for disease outbreaks.

Hour 48-72: Breakdown of Order

The situation grows increasingly dire as basic services collapse.

  • Waste Accumulation: Trash piles up, attracting pests and creating health hazards. Without waste collection, the streets become hazardous.
  • Desperation Sets In: People become increasingly desperate. Those without supplies look for any means to survive, often turning to theft and violence.
  • Community Breakdown: Neighborly trust erodes as fear and survival instincts take over. Families barricade themselves in their homes, fearing for their safety.

Preparing for the Worst

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In these critical first 72 hours, the urban and suburban landscape transforms into a dangerous environment where only the prepared can hope to thrive. It is essential to have a comprehensive survival plan in place, including water purification methods, non-perishable food supplies, and self-defense measures.

Are you ready to protect your family in the face of such a crisis? Share your thoughts and preparations in the comments below!

 

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