Pawn shop inventory is growing as the unstable U.S. economy hits those at the bottom of the economic chain.

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How long will the Biden administration and the mainstream media continue to deny that we are in the worst economic recession ever? Debt levels have never been this high, delinquency rates are skyrocketing, the commercial real estate market is collapsing, the banking industry is drowning in turbulence, and major companies are laying people off en masse across the country. Anyone who claims that the American economy is in good shape is simply deluded.

Unfortunately, it's those at the bottom of the economic hierarchy who suffer the most. If you want to find out what's really going on with the economy, pawn shops are a great place to do it. When the economy is booming, pawn shop inventories tend to go down because people are pawning things less and there is more shopping. But when the economy is going bad, pawn shop inventories, on the other hand, increase because people are pawning a lot of stuff to get quick money and there are fewer buyers than in good times.

What do we see in the early stages of 2024? One pawn shop owner, who was recently interviewed by USA Today, admitted that he is "overstocked" right now. He said: "That tells me that our clientele is short of money." The build-up of pawn shop inventory means there are more sellers than buyers, a sign that times remain tough for low-income Americans. The same piece notes that inventory levels are also rising rapidly at the largest pawn store chains across the country. Two large retail public companies, which together have about 1,700 pawn store locations nationwide, also have growing inventory levels and demand for short-term loans.

If someone comes to you and tries to convince you that the economy is booming, show them these numbers. It will put an end to any argument.

One of the reasons why many Americans need fast money is that debt loads have risen to unprecedented levels. Here's just one example - for Denise and Paul Nierzwikki, credit cards are the only way to make ends meet. The couple, who are 69 and 72 years old respectively, have more than $20,000 in debt on several cards with interest rates above 20 percent. The problems began during the pandemic when Denise lost her job and a deal for a bar they owned in Lexington, Kentucky, fell through. They applied for an old-age pension, which helped them, and Denise now works 50 hours a week at the restaurant. Still, they struggle to collect the minimum monthly credit card payments. Can you imagine the stress they experience every day? Unfortunately, hundreds of millions of other people are in similar situations.

The combination of high levels of debt and high interest rates has created a "perfect storm" of hardship for consumers in the U.S., so it's no surprise that the rate of delinquencies is increasing.

When a large number of people start falling behind on their mortgage payments, it's only a matter of time before evictions begin to rise sharply. And that's what we're seeing now - evictions from homes continue to increase. In February, there were 32,938 properties with default notices, scheduled auctions, and bank repossessions. Unfortunately, the situation is only going to worsen in the coming months, as the labor market is becoming very strained.

A 26-year-old woman with multiple degrees is unable to find a job, despite having applied for around a thousand different positions. As she says, companies claim they want recent graduates who are eager to learn and can quickly adapt, but then they reject her applications, stating that there are more qualified candidates. Wait a minute. Joe Biden said that finding a good job is easy right now. So why can't Cheyenne Barton even get an interview invitation? Something doesn't add up.

Of course, the truth is that there have been significant changes in the labor market in recent months. According to Challenger, Gray & Christmas, the number of layoffs in February was record high for that month. Companies planned to lay off 84,638 people, which is 3% more than the previous month and 9% more than the same time last year. This is the highest number of layoffs in February since 2009. The outlook for the rest of the year is absolutely bleak.

Even more Americans will find themselves in poverty. Even more Americans will face hunger. Even more Americans will become homeless. Over the weekend, a story about a homeless man from Vasco, California, who reportedly ate a "severed human leg," went viral. It's quite shocking, but it also serves as a harbinger of where our country is headed. The economic suffering of the past few years has been very painful, but the truth is that it cannot be compared to what awaits us.