Guest Post by Martin Armstrong
Hertz has now joined the ranks of filing for bankruptcy as this lockdown has cause car rentals to crash to virtually zero. Of course, Climate Change activists are celebrating. They cheer every bankruptcy they have managed to create with the absurd lockdowns were the first time in history you quarantine the entire population rather than just those who are sick.
The total economic destruction we have said is about $30 trillion in businesses. If we add real estate which cannot be sold, that is most likely $35-$45 trillion. Then add on top of that the coming wave of sovereign bond defaults which will include emerging markets that have witnesses their exports collapse. Global GDP is about $90 trillion. The global bond market is about $100 trillion.
Commercial Real Estate is worth about $32 trillion and Agricultural Real Estate about $27 trillion. Total residential Real Estate is about $170 trillion at the end of 2019. If we have to put a number of that we reach about $230 trillion.
The total world equity market at the end of 2019 was nearly $90 trillion.
Therefore, if we add up what I call Capital Formation, this is the combination of real estate, equities, and bonds. This number works out to be about $420 trillion.
Consequently, the economic contraction in just the current GDP of $90 trillion, and Capital Formation is about $420 trillion. Anyone who thinks that governments can possibly stimulate their way out of this or create hyperinflation by spending even $10 trillion are not taking into consideration the full scope of this economic collapse.
There is NO POSSIBLE way to restore the economy. We are NOT putting Humpty Dumpty back together again. Life has changed and the stores all have their Social Distancing signs and plexiglass shield with employees all in masks despite the fact that the CDC at the outset said masks will not prevent you from getting any virus. They are used in Asia by people who were sick, not the other way around. You touch things and that is good enough with any virus. As one reader said, they wear masks when driving alone which is like wearing a condom while sleeping alone. That is the average mentality of people who just believe whatever they say on TV.
Even just a 10% correction of this magnitude across all sectors amounts to $42 trillion. There is NO AMOUNT of stimulus that will prevent an economic contraction into 2022. This will be a STAGFLATIONARY trend because this insane lockdown has also seriously reduced the world’s capacity to produce food. Food prices overall are rising faster than anyone realized. The increase last year was only 1% whereas this year the increase is touching 3% in just 8 weeks. This is the direct result of the destruction of the capacity to produce food which will threaten a rising famine over the next two years as well.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
I’ve seen the pictures of Hertz rental vehicles filling the parking lots around the Flyers/Eagles stadiums. Auto Trader even has ads for the high-end Corvettes Hertz bought, and they’re on sale for a reduced price of about $60k.
A good channel on bitchute with many deleted youtube videos..
The latest being yet another medical expert with non-covid compliant views..
https://www.shtfplan.com/headline-news/epidemiologist-coronavirus-could-be-exterminated-if-lockdowns-are-lifted_04092020
https://www.bitchute.com/channel/nFFMVsxRYcEt/
If it saves one life…
Do it for the children.
You me and Farmer are the first three to begin discussing the mental ramifications of the lockdown over the Scami-Cold. Now the headlines are discussing the huge jump in suicides and mental crisis lines being flooded and we have only begun to see the results.
The talk of economic recovery is just sad. There can’t be a recovery if business are going bankrupt, landlords don’t collect rent, people aren’t hired, product isn’t produced, and so on. The domino effect is happening as we speak, and…..taxes of all types are STILL going to be demanded, government isn’t cutting corners even though the golden goose cranked out it’s last egg last month and now all the government entities both federal and local, can do is pick the carcass clean.
Commercial real estate was already wobbly before the virus, and, like the debt and financial impending crisis, all that was needed was a catalyst to set things rolling downhill. The fools who created this will think that they have a victory for achieving their globalist goals but, guess what? The blowback is going to be Biblical. Anyone who thinks they’re going to be unscathed is nuts.
Perhaps you can explain to this nut how they are going to be made to pay. Just who is going to do it and how are they going to arrest them with a pitchfork army.
Let me guess. We’re going to get Raptured out of here and then God is going to kick their butts because we are nice people here in America.
Will you do it with the courts? Do we own any bombers or missiles? How about lasers or an army of hackers or some supercomputers. Do we have any communications satalites or servers or cell towers. Or is it so top secret even God doesn’t know the plan? Did Q tell you?
I know, and army of guys in black PJ’s in white pickups are going to swoop in from nowhere and arrest them all with the 4 million sealed indictments.
How about sarin Gas sprayed from our fleet of apache helicopters?
Of course, all the democrats and their socialist/environmental friends are loving the demand destruction and the “negative” price of oil. Meanwhile millions of people are suffering but “The Plan” to disrupt the economy for the Earth comes first. Bezos is billions richer but still hasn’t given his employees a pay raise.
https://www.nydailynews.com/news/politics/ny-aoc-deletes-tweet-oil-crash-20200420-helhhdwtujautnonglujcggbfq-story.html
I am not a Bezos fan, but that said, how much employees get paid is a function of te supply and demand of labor. Currently, there is a huge supply – tens of millions of unemployed workers – and little demand.
Hence, no pay increases. That is how the system works.
You betcha. My organization stopped the merit increases, froze positions and will stop the pension match in our 403b plan. Next will be furloughs and layoffs.
I drive a school bus part-time for the local township. The rate is $19.54/hr.
Not bad for a part-time job for 181 days a year but the turn-over rate is high and the mechanical reliability of the vehicles is poor – and it’s a Teamster-run local. I’ll never see a pension … I wrote that one off long ago. One of our older drivers retired from JB Hunt with a pension. At age 73, his plan ran out of money and he couldn’t afford to live in NJ so he sold his house and moved to PA.
Recently the same township listed an outsourced contract job for $81k annual salary driving and managing stops for a septic truck. The school super has a six figure salary.
Spot the pay differential.
Illinois is moving ahead with automatic annual pay raises and increases in everything else. Do you think the Feds would interfere if a state had a violent revolution against the governor and legislature?
https://www.businessinsider.com/how-to-apply-contact-tracer-work-remotely-with-benefits-2020-5?op=1
Plenty of opportunities as a highly compensated contact tracer (aka ICKS).
I agree.
One of my boys is working temporarily at an Amazon warehouse. He got a couple days paid training.
He has a bachelor’s degree and works his ass off. It took him two weeks to move up one rung on the ladder and it pissed off the dreck who’d been there longer.
His pay? $17/hr. Many of his co-workers are worth half pay because they can’t follow simple directions, pack and stack, or read a fricking label.
Jersey’s rate of unemployment compensation pays better than that.
amazon may have great computer systems but their delivery system is inefficient as hell–it’s not uncommon to see 3-4 different amazon vans around here in just a few hours time,along w/delivering to the wrong house on a regular basis–
that kind of waste/inefficiency can’t be subsidized forever so what is the end game?
drive the competition out of biz? hang in there long enough until drones are completely legalized 4 delivery?
A lot of his wealth is in stock. Were he to try to unload it all he would crash the price. One of those conundrums where yes he has X amount in stock, but no easy way to get it all out without crashing it.
Thank God for the Federal Reserve.
Seriously.
The “economy” needed to die. Good Riddance. It was fake and fraudulent and gasping for air while sucking the breath of human chattel. It’s the birth of a stable, honest, life-affirming, purposeful, productive economy required for civilization to move-forward. Otherwise, hold onto your ankles and grit your teeth.
1st sentence gets you another upvote; sadly, 2nd sentence will never happen.
Get out of debt and grow your own food. You will be way ahead of millions living the debt lie.
I became aware of the Collapse of Western Civilization after reading some of RJR’s stuff [ https://robertringer.com] a few decades ago.
What has been going around and coming around, is now picking up speed.
This obviously means the Wall Street Bankster crowd will be getting a nice healthy slice of all that filthy lucre as they make their cut either way when the markets go up, or in this case, when the markets go down; even all the way down.
It’s like a deer that’s been double lunged with a twelve gauge. He’s dead but might run forward for 4o or so yards before he drops. We are in that final 40 yards. Our economy is spewing bright red frothy lung blood. Millions of idiots are continuing the program as we speak driving spikes into the heart of this nation in the name of Karen. Many of them are actually cheering the decline as they are that fcking stupid. They think somehow “they” will be immune to this reckoning.
Trust me when I say “No one is coming to save you”. Embrace the suck and get resilient, it’s gonna be a rough ride. I think there’s going to be some blowback from this op shortly. Anyone paying attention can see how this went down. Bunch of demonrat bought and paid for by CCP ran an op to get a twofer. They killed their older population and achieved total control of their populace in one swoop. Their achilles is the dead older folks. They murdered them. Cuomo murdered them. Murphy murdered them. Lamont murdered them. Hospital admins murdered them. Two bit tyrants everywhere fapped to the authoritah porn daily in stupid press breifings while in the nursing homes grannies were snuffed by the dozen. These commie fucks have it coming now.
I truly believe state governors are in a contest amongst themselves as to who can be the most tyrannical asshole. The winner probably gets a big Soros payoff and a promise of more power.
Clown World is ending? I can’t wait to wear some Mad Max gear.
my daughter went to the mall today–she said lots of the stores are closing or are already closed–
on the way home she stopped by target–they are still enforcing the six foot rule while in the checkout line–with only a couple of registers open on a fairly busy sat afternoon the line snaked way out into the store from the cash registers–
I managed to mess up my large cooking pot, the one I can cook mass quantities in. So, I’m looking for a large, quality, heavy duty cooking pot. Reasonably priced. Not going to pay a hundred dollars for a freaking pot. The stores are currently open, with the usual six feet, etc. guidelines. The ones I went to were half stocked, lots of shelf gaps and merchandise not exactly abundant. I did find the pot I was looking for, bought the only one in the store.
Back when the China crisis was unfolding I stated that there were going to be many, many items that would become harder and harder to find, that replacements would become scarce and I now state that soon hyperinflation will be gracing our doorstep. You can’t print money out of thin air without destroying value, soon our cash won’t be nothing but trash…..
Here’s one that will overjoy all the resident Jew lovers. Senate approved a 38 billion aid package to israel. Allison Weir at Mint Press reports that it was passed without debate after being approved in the house. It now goes to Trumpty Dumpty.
That’s over $100,000.00 per American citizen they could have just given us, considering we are the ones liable for it anyway. The American Jewish lobby was lobying for it behind the scenes.
That’s 5 million buck fors every Jew bastard in Israel. Meanwhile we are cowering in our houses thanking Big Brother for letting us go to Walmart.
All you Jew loving fuks can just kiss my bony Irish ass. No Jewish conspiracy huh.
http://www.therealistreport.com/policy-over-partisanship/
Aaipac Conference.
Off a few zeros; run your numbers again.
You’re right, it was late at night. That’s 5 thousand bucks for every Jew bastard in Israel because they are the “Chosen” 6 million Jew bastards in Israel. There, fixed it for you.
$38B to Israel / 330M Americans = $115.15 stolen from every American. Money that should stay in America, not anywhere else. And your $5K for every Jew is close enough for government work.
As we both would agree-regardless the time of day or night-it is money that should stay here and who gives a ff what Jared thinks?