🚨 Dire PANIC_ Germany DECLARES Economic CRISIS!

What if the unbreakable German economic machine, I'm talking the powerhouse has fueled Europe for decades, isn't just cracking under pressure being pushed into a recession by none other than China. That's right, China. Right now, their auto sales are crashing. It's taking the factory sector and the entire German economy with it. Construction, it's in a recession. The PMIs are printing at 46.2. The services sector, it's rapidly slowing and falling right alongside it. Right now, printing at 51.5 and decelerating, facing the steepest job cuts since 2020. And right now, policymakers are panicking. And for the Eurozone, the problem is where Germany goes, the rest will soon follow. This isn't an isolated incident, my friends. It's a warning to the global economy of what's about to hit us all. Plus, tonight's show is brought to you by MindWalk Holdings. Now, their stock has recently surged 14.45% just last week alone after a blockbuster Q1 report. They reported 7.61 million in earnings, up 45% year over year. Now, their AI-driven GLP-1 breakthroughs and a fresh rebound are fueling the fire. And don't miss this biotech rocket. You can find them on the NASDAQ and symbol HYFT. Stay tuned to the show or check out the pinned comment for more information. Because right now, the German industrial slump has deepened on the basis of auto production. And my friends, this is only going to get worse. Now, if you think about the situation that's impacting Germany's economy, well, it's really impacting every major economy. And right now, tariffs are having an impact. But the biggest one for Germany isn't tariffs. It's China. Take a look at this. Output decreased 4.3% in August from the previous month that's been driven by an 18.5% drop in auto manufacturer. My friends, that is a staggering decline. Now, this marked decrease may be explained, at least in part, by the combination of annual plant closures for holidays and production changeovers in the car industry. This is according to statistics office in a statement. And that's because they don't have an answer for what's going on. And if you look at the PMIs, what is clearly telling us this isn't a seasonal issue. This is a major issue. And that's why you're seeing the political elites panic. And the problem is they already know if this trend continues, it's highly likely it will, that there's going to be a lot more layoffs. And again, the problem is they have no answers. Meanwhile, Karsten Brzezinski, he's ING's global head of macro. Well, he was even more downbeat. He said, this remains the clearest illustration of the structural challenges facing the German industry. Available monthly data so far suggested the risk of another quarter of contraction. And that's an outright technical recession is very real. So as we look at this, who is the silent force behind the slump in the German economy? Well, let's turn to China because right now Chinese consumers, they're ditching German imports in a big way. They're buying local brands like a BYD. And what are they citing? Better build quality, more features. And here's a big one, lower prices. In fact, Germany's car deficit, check this out. It jumped with China by 143% in 2025 alone with Europe importing 400% more Chinese hybrids. So you can see China is really a driving force behind this decline. But it's not just China. Think about baby boomers. 2025, this is peak retirement year. And guess what? They're not buying nearly as many cars as they used to. And how about the work from home or remote work movement? That's just projected to impact 22 to 32.6 million Americans this year alone. That's 22% globally if you factor all remote workers. And this is cutting commutes by two to three times per week per year. That's saving anywhere from like two to $7,000 on transportation. But here's the big one. It's slashing mileage, slashing wear and tear, and thus it leads to fewer car replacements. So you can see this issue in Germany's automobile industry is not isolated. It's one that's going to impact auto manufacturers all over the world because what's happening in Germany is slowly happening in factories all around the world. And again, it's not just the automobile industry. This isn't a sign of an economic rebound, but another leg down and a lot more layoffs to come. Let's take a quick look at the stock chart for our sponsor to show my walk holdings. I want you to see this bullish setup. That red line going across your screen, that's the 10-day volume profile. And what you've seen is buyers step in underneath here. Earnings came out, the stock took off, and the bullish setup here is when you see a stock hold its 10-day volume profile, it's setting up for a big move higher. Again, you can find them on the Nasdaq under the symbol HYFT. Stay tuned to the end of the show for more information. Let's take a deeper look because Mercedes sales in China, well, they slid 27% as demand crisis weakens. And this is the worst quarterly sales performance since 2016. But they're not alone. BMW shares post the sharpest drop in a year after profit warning. Citibank flags China troubles as potentially irreversible. So again, is this coming back to not only as a global economy slowing, but China's having a huge impact here. And right now, Germany's automakers are losing ground to China's homegrown rivals, such as BYD and Xiaomi, whose feature-packed EVs are undercutting them in price and in a big way. We're talking 20 to 30% cheaper. And BYD sales, well, they surged 37% in China, and that just crushed German market share overnight. Now, there's fierce competition in the world's biggest auto market right now. It's eroding sticker prices and squeezing profit margins. And I want you to think we've been talking about profits margins because when you squeeze profit margins enough, what happens next is layoffs. Let's take a look at this chart of corporate profits versus the unemployment rate. And you can clearly see as corporate profits. Now, again, this is U.S. data as they decelerate and cross over that horizontal black line and enter contraction. What happens? You see in red that unemployment rate rises. Now, what is the risk? Because we've seen this happen going into every recession. And look what just happened. We saw here in the U.S. corporate profits entering a contraction. So as we see demand drop from consumers worldwide, competition continue to increase. What's going to happen is profits are going to fall and layoffs, well, they're unfortunately going to become permanent. But there's other issues inside the German economic machine. Let's take a look at their manufacturing PMI. Now, this is a gauge of overall business conditions. Now, it came in at 49.5 in September. Under 50 again is a contraction. And what this showed was a slight decline from August 38 month high of 49.8. So what Germany has been facing is a three year contraction in their manufacturing sector. So this isn't a seasonal issue. It's not a dip. It's de-industrialization in slow motion. And you're seeing it here in real time. The problem is it's not just Germany. Again, this is going to spread all over the world. Because new orders, they created a 47.2. That's the sharpest drop in four months. In factory employment, well, levels decreased further at the end of the third quarter, continuing a protracted sequence of staff retrenchment, stretching all the way back to mid 2023. Moreover, the pace of job shedding accelerated for the second month running and was the quickest since June. So you can see the situation is getting worse. So while everybody's hoping the global economy is plateauing and about to head higher, all indicators say we're about to take another leg down. It's going to take the global labor market with it. But if there's any hope that the U.S. consumer is going to come out and spend and buy automobiles, well, based on the latest consumer credit data, it says not a chance. As U.S. consumer borrowing rises at the slowest pace in six months, credit card, other evolving debt now outstanding, fell roughly $6 billion, partially unwinding a surge in July. Non-revolving credit, such as loans for vehicle purchase and school tuition, increased a mere $6.3 billion. So when U.S. consumers start paying down debt, it means their spending is going to decline. And this is exactly what the surveys have been telling us about holiday spending. All projections say it's going to be worse. And according to a separate New York Fed survey, well, back in September, they said consumers said there was almost a 15 percent probability of losing their current job in the next 12 months. That's now the highest in four months. So consumers are getting increasingly worried that they're going to lose their job. And when you're worried about losing your job, you know what? The one thing you don't go out and buy is a new car. And this is why you're seeing the political elites in Germany panic. German lawmakers now back a 7 billion euro and big ticket defense project, because in the face of a recession, the political elites are panicking so much that they're looking to borrow as much money as they can get their hands on and spend it in the economy and hope it turns things around. Chancellor Friedrich Merck's ruling coalition has effectively removed budget constraints for defense outlays. And guess what he's saying? If it's not enough, we're going to borrow and spend some more. And if that doesn't work, we'll do even more, because right now they don't have any answers. What the German elites are trying to do is borrow their way out of economic doom. And if it doesn't work, well, the stakes are pretty high. It pushes Germany into a full recession. And when Germany goes in recession, it means the entire eurozone is going to follow. And that's going to have a major impact on every major economy. So as you think about the automobile tariffs that Trump administration put on, it starts to make a lot of sense. There's this real fear that there's going to be a flood of cheap Chinese imports that's taking over Europe and crushing their automobile industry and taking their economy right along with it. The problem we're facing is the global economy is continuing to slow. And while tariffs may slow down the inevitable a little bit, what we're still facing is a globally synchronized recession. So there you have it. The unbreakable German machine isn't cracking, it's shattering. And this is happening all under China's relentless push with auto sales and free fall because China desperately needs to take all their excess production and dump it somewhere on the world. What we're facing is PMIs locked in at three plus years of contraction. U.S. consumers saying, look, we're closing our wallets. We're not going to buy any more. We got to pay down our debt because we're worried about our jobs. And what you're facing now, elites borrowing billions for jets while factories are bleeding over 50,000 jobs. The situation, my friends, doesn't look like it's going to get any better. So this 4.3% industrial plunge, it's the biggest since 2022 and far worse than the minus 1% that Wall Street thought was going to happen. And right now, economists are pegging Eurozone growth at a pathetic 0.2% for 2025. And get this, they've got a fantasy number of 1.3% for 2026. But what we're facing is a reality that industrial rot is dragging the entire block into stagnation. And that's the best case scenario because stimulus didn't save China's housing market. And it's not going to save Germany's factory woes. There's absolutely no chance that this is going to work. So right now, everything's about China's overproduction and a slowing global economy because they've got a cost advantage over everybody else. But that's not going to last because tomorrow's story is going to be about plunging demand in a global recession that's coming in a matter of months. But if you don't think there's opportunity here, I want you to think about automobile industrial stocks. It's time to diversify out of them, hedge inflation with hard assets, and cut your debt. Because what's happening in Germany right now is a warning for the global economy and what's about to hit us all. But something I am bullish on is a stock for our sponsor today's show, MindWalk Holdings. You can find it on the Nasdaq under the symbol HYFT. Everything you need to know in the pinned comment and description below. Because last week, their stock surged 14.45% after blockbuster Q1 earnings. They reported a record $7.6 million in revenue that was up 45% year-over-year. And that was on the back of their AI-driven GOP1 breakthroughs and a fresh rebrand that's fueling the fire. Now, this is one biotech rocket you don't want to miss out on. Because MindWalk's lens AI platform just uncovered a smart connection between blockbuster GOP1 drugs, think Ozempic for weight control, and a pathway to fight aging. They're crafting a first-of-its-kind dual treatment, a GOP1 agonist teamed with a GIP booster. This combo aims to amp up fat burning while dialing down inflammation and boosting cell repair for real longevity gains. And imagine weight loss meant not just helping you drop pounds, but also keeping your energy high and your body strong as you age. 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And unlike AI players, MindWalk blends their tech with in-house labs and a ready antibody pipeline. This gives them an edge in turning discoveries like this GOP1-GIP combo into real therapies quicker than competitors. No one else has this exact anti-aging angle locked in yet, and that's why we're seeing their stock take off. Now, we see on our reports three buy signals from our Trend Pullback, Momentum Timer Pro, and our CTA Fast algorithm. But what I want you to see here is this red line across your screen, that's the 10-day volume profile. And what happened? Buyers stepped in and their earnings hit, and next thing you know, their stock is taking off. Because when you see a security close above its volume profile line, it's a bullish indicator the stock is about to head a whole lot higher. Again, you can find them on the Nasdaq and the symbol HYFT on the web at mindwalkai.com. And as always, with any company we feature on the show, you're under no obligation to purchase their stock. Be sure to do your own research before placing any trades, and use risk control levels when you do. And with that, I'm Steve Van Meter. Thanks for watching. Thanks for being fans. Bye now.