Authored by John Mauldin via MauldinEconomics.com,
Disney is laying off 28,000 workers. American Airlines and United Airlines plan to cut 31,000 workers. Last week’s disappointing unemployment report shows that we have a long way to go. Perhaps a lot longer than we think.
I’m going to quote at length from my friend David Rosenberg, who I believe is absolutely spot on:
“You tally up these sectors and before the crisis, they supported 32 million jobs, or about a third of the private sector workforce, and it looks to me as though half of them are not going back to their old jobs.
“And I’m not sure many people understand that amusement parks, airlines, hoteliers and restaurants cannot stay in business at 50% capacity (or even 75% in the case of restaurants).
“… As it stands, the US Chamber of Commerce said that 25% of small businesses have already shut down. Another survey by Ipsos concluded that two-thirds are still nervous about leaving their homes; 59% say they intend to remain locked down on their own until signs emerge that the virus is ‘fully contained.’ A YouGov/CBS poll concludes that 85% of American households say they wouldn’t get on an airplane even if they could. That’s why the industry needs a bailout!
“A Washington Post/University of Maryland poll shows that only 56% of consumers across the nation intend to shop at the supermarket, which I suppose is a continuous bullish data point for delivery services but that’s about it. Just 33% say they are comfortable entering a retail store. And a mere 22% say they are willing to dine in a sit-in restaurant.
“All these polls say basically the same thing – it will not be ‘business as usual,’ as the bulls will try and convince you, and the best we can hope for is a partial recovery. I mean, at best. What we had on our hands was a vertical down economic decline with job losses an order of magnitude higher than anything we have witnessed since the Great Depression. So, even as the stock market is telling you it has it all figured out, I can assure you that what we face at this very moment is a very uncertain economic future. And unfortunately, most of the longer-term risks are to the downside.
“We are in a depression – not a recession, but a depression. And I think the dynamics of a depression are different than they are in a recession because depressions invoke a secular change in behavior. Classic business cycle recessions are forgotten about within a year after they end – the scars from this one will take years to heal.”
Even though the unemployment rate went down to 7.9%, that was largely due to a drop of almost 700,000 in the labor force. We have regained just over half the jobs lost between February and April. The pace of gains, both total and private, slowed for the third-consecutive month and looks to get slower.
There will be a recovery. Those hundreds of thousands of entrepreneurs who have closed their businesses? They’ll open new ones.
But not in six months. Where will they get capital?
It’s one thing to bail out airlines with multiple billions of dollars. What about the local bakery with 15 employees? Where do they get the capital to reopen when the time is right?
You can repeat that story a million (or more) times.
Know this: That which can’t go on, won’t. We can’t keep piling on debt at this rate forever, and we can’t repay what we have.
* * *
I predict an unprecedented crisis that will lead to the biggest wipeout of wealth in history. And most investors are completely unaware of the pressure building right now. Learn more here.
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A government forced depression. Now who ever would have thought that locking down the whole damn country for a flu virus would kill so many businesses and jobs? Duh.
People willing to trade freedom for security deserve neither.
People suck at threat identification.
Good news – my tiny business has never been busier, now I just want to throw everybody out to get back to normal. It’s hunting season for god’s sake, leave me alone……
The world was already suffering from a global debt binge and unpayable debt as the US dollar is being “printed” into oblivion to mask it’s worthlessness and transfer assets to the “elite” few.
To initiate a global reset it was decided in some place of rarified air to introduce chaos so that a new world order could arise from the ashes like the mythological phoenix.
The sheeple easily fooled by a coordinated full court press by and large bought it hook, line and sinker.
So here we are, at the precipice of a global reset never seen or attempted before in history. With blinders on the masses trudge forth unknowing what fate is before them. Relatively calm we follow, on the path to a largely unknown destination. Most are confident in leaders who deserve no respect nor should we have any faith in. Our leaders are dimwits who sold their souls and are sealing our fate in exchange for power, money and fame. People be dammed.
Horrible outcomes are all but assured with such a toxic blend of ignorant masses, fools for leaders and a small cohort of psychopaths atop the pyramid of wealth and power.
Tough times are on the other side of the door in front of us that is now slightly ajar, with a never so dependant and helpless population.
Make way for the pain and evil ahead. Godspeed to us all.
“To initiate a global reset it was decided in some place of rarified air to introduce chaos so that a new world order could arise from the ashes like the mythological phoenix.”
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– Steve
The Evil Fuckers appreciate you noticing.
What is the symbolic difference between the two headed eagle and the single headed eagle?
I have been seeing the two headed eagle on silver coinage coming out of the new Germania mint, gorgeous coins, but all with the two headed eagle.
Two heads are better than one.
Jeez, I thought everybody knew that.
Double eagle symbolizes empire, single eagle symbolizes support.
Thank you.
Steve
Exactly.
We can’t keep piling on debt at this rate forever, and we can’t repay what we have.- Repaying the debt was never their intent, which means that all of what we are enduring at the present time was diabolically planned and intended to cause the precise reaction that we are now experiencing.
Ponzi schemes, which is the fiat money system that has been in play for more than a century, have inherently always been an expand or die confidence game, in which those who initiated the scam reap the benefits, while those who are forced to play are eventually decimated when the inviolable laws of economics can no longer be skirted.
Most fiat money schemes last about a century, if there isn’t any extenuating circumstances to interfere with the historical timeline. Let me see now, that would put us, well, we’re actually overdue for a correction of cataclysmic proportions.
They knew it was time to fold their tent and slither out of town, before the townsfolk figured it out and started gathering pitchforks and torches. The virus is giving them not only cover, but plausible deniability that the gathering economic storm clouds on the horizon were none of their doing. Yes, these vile brood of vipers can actually claim this with a straight face, but that’s not an unusual trait for those who abide not in the truth, like their father, the devil.
We let them enter our gates because we ignored the warnings from other nations and now we will be forced to pay a dear price because of it. Heaven help us.
Panzer..
Our evil twins strike again.
It is possible for twins to have different fathers in a phenomenon called heteropaternal superfecundation, which occurs when two of a woman’s eggs are fertilized by sperm from two different men.
In this case, the woman released multiple eggs within a week of one another. Within that narrow time frame, two eggs appear to have been fertilized by sperm from two different men. The product: fraternal twins with different fathers.
There have only been seven cases of twins with different fathers reported worldwide since 2011, told CBS News that twins with two different fathers might even occur more regularly, but go unnoticed.
“Like Cain and Abel for instance.
It went unnoticed due to some clever mistranslating of the original Hebrew.
When I was stationed at Hq SAC, a local woman had twins, one White and one Black; her husband left her.
Absolutely 100% correct.
But, I don’t care … as long as the debt cart keeps rolling until my death cart.
You might say, “You selfish bastard! What about your grandkids!” Good point. Ummm … fuck ’em.
No surprise coming from you you coward.
You really are pathetic.
You do invoke a chuckle at times.
Digital money and UBI are coming. Backed the same way our money is now.
Isn’t all of the Fauci flu stimulus just digital money? Trillion$ of dollar$ created by entries of ones and zeroes — it’s not like they actually had the Bureau of Printing and Engraving printing out paper currency for all of this.
When ya gotta quote some dude (((David Rosenberg))) I’m calling bullshit on the rest of the article.
Trump says the economy is doing great … greater than ever before in American history. This is all I need to know.
(((David Rosenberg))) a joo perhaps?
I cant tell what is really going on, naturally, too far down the information ladder. It seems 1 of 2 possibilities is brewing:
1. The Fed, BIS, IMF and all the Central Banks on earth are about to own everything, and consequently, everyone.
Or.
2. The “Good Guys” and Trump are preparing the “Bad Bank” scenario, in which all of the bad debt, created out of thin air, used to enslave us, is loaded onto their balance sheet in preparation of The Great Flush.
“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
— Lord Acton
Stucky – You may want to get a copy of Human Action, by Ludwig von Mises, and read what happens when credit expansion is multiplied exponentially, as we are witnessing at the present time. Economic forces must yield to economic law eventually, no matter how clever the maestros running the eternal magic money making machine think they are. This won’t end well and you can take that to the bank – if it’s still in business.
In addition, taking a politicians’ declaration that things couldn’t be better at face value will always prove to be a fool’s game. Watch out below, we have a long way to fall.
FedCoin starts first of next year. Same shit different day (only this one is digital) and it is controlled by the same evil fuckers aka the usual suspects. Will we turn into a pathetic dystopia or a real utopia? Right now with the threat of “The Mark”, I’m going with dystopia.
Are people not going out due to a covid problem or a black problem?
People were changing their shopping behaviors before the lockdown.
Everyone enjoy your Fast Food spit sauce?