America’s New Breadlines Are Growing…

Via ZeroHedge

Over the past month, the American economy has collapsed into a depression, with the most significant unemployment spike in history. Millions of people have just lost their jobs, and as we’ve been documenting, food bank networks across the country are becoming overwhelmed.

We recently said that some food banks had seen an eightfold increase in the number of people asking for food. The National Guard has been deployed to food banks in Cleveland, Pittsburgh, and Phoenix, to make sure supply chains do not breakdown, which if food shortages did materialize, it could lead to a “social bomb,” triggering civil unrest.

“I’ve been in this business over 30 years, and nothing compares to what we’re seeing now. Not even when the steel mills closed down did we see increased demand like this,” said Sheila Christopher, director of Hunger-Free Pennsylvania, which represents 18 food banks across 67 counties.

Today’s food bank lines resemble ‘breadlines’ from the 1930s. However, this time around, Americans are not standing around city blocks waiting for soup, they’re sitting in mile-long traffic jams outside donation centers waiting for a care package.

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Welcome to the Greater Depression

Guest Post by Doug Casey

There are a lot of questions people are asking themselves today. Among them: How serious is this economic downturn likely to be? How long will it last? How can it be ended? Whose fault is it?

The answers to these questions being given by pundits, economists, money honeys, and politicians are, almost without exception, totally incorrect. This is most unfortunate because it means the actions taken by the US (and, it appears, every other government in the world) are not only going to be ineffective but counterproductive.

For years, I’ve predicted something I’ve called the Greater Depression. I’ve seen its arrival as being completely inevitable. Only its exact timing was in doubt. So let me be as clear as I can be about what’s going on in the world right now.

I believe this is it.

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The Biggest Thing Since 1776 is Happening NOW… How the Coronavirus Will Spark the Greater Depression

Via International Man

coronavirus economic depression

International Man: Panicked people are emptying supermarket shelves and stockpiling toilet paper. Hand sanitizer is impossible to find anywhere.

Is the impact of the fear and hysteria greater than the risk of the virus itself?

Doug Casey: Yes, very much so. The virus itself is what we can call a first-order effect. I don’t want to spend much time talking about the flu itself because, even though worst-case numbers like a million deaths in the US are tossed around, it’s not the biggest problem.

The second-order effects—like the economy shutting down from hysteria—are actually much more serious.

The third-order effects—new laws and state action—will have the longest-lasting consequences. We can talk about them in a minute.

As far as the virus itself is concerned, I’m sure everybody has read lots of articles and listened to podcasts from experts. So knowledge—such as it is—about the virus is fairly widespread. Except very little is certain, even now. FWIW, I say that as a lifetime science aficionado, reading in many areas of science for years.

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NOTHING TO FEAR BUT FEAR ITSELF

Customers waited in line at a Costco in Burbank last week to buy water and other supplies for fear that COVID-19 would spread and force people to stay indoors. Image result for nothing to fear but fear itself coronavirus

“So, first of all, let me assert my firm belief that the only thing we have to fear is…fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and of vigor has met with that understanding and support of the people themselves which is essential to victory. And I am convinced that you will again give that support to leadership in these critical days.”- Franklin D. RooseveltMarch 4, 1933

Franklin D. Roosevelt spoke these words during his first inauguration at the depths of the Great Depression in 1933. The narrative taught in government schools is how FDR’s words invigorated the nation and inspired the people to show courage in the face of adversity. His terminology was that of a general leading his troops into battle.

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Doug Casey: The “Greater Depression” Is Coming

Guest Post by Doug Casey

Just because society experiences turmoil doesn’t mean your personal life has to. And a depression doesn’t have to be depressing. Most of the real wealth in the world will still exist – it will just change ownership.

What is a depression?

We’re now at the tail end of a very long, but in many ways a very weak and artificial, economic expansion. At the same time, we’ve had one of the strongest securities bull markets in history. Both are the result of trillions of new dollars created over the last decade. Right now, very few people are willing to consider the possibility of tough times – let alone The Greater Depression.

Continue reading “Doug Casey: The “Greater Depression” Is Coming”

Doug Casey: “This is Going to be One for the Record Books”

Guest Post by Doug Casey via International Man

economic depression

Just because society experiences turmoil doesn’t mean your personal life has to. And a depression doesn’t have to be depressing. Most of the real wealth in the world will still exist—it will just change ownership.

What is a depression?

We’re now at the tail end of a very long, but in many ways a very weak and artificial, economic expansion. At the same time we’ve had one of the strongest securities bull markets in history. Both are the result of trillions of new dollars created over the last decade. Right now very few people are willing to consider the possibility of tough times—let alone The Greater Depression.

Continue reading “Doug Casey: “This is Going to be One for the Record Books””

Mauldin: We’re On The Brink Of The Second “Great Depression”

Authored by John Mauldin via RealInvestmentAdvice.com,

You really need to watch this video of a recent conversation between Ray Dalio and Paul Tudor Jones. Their part is about the first 40 minutes.

In this video, Ray highlights some problematic similarities between our times and the 1930s. Both feature:

  1. a large wealth gap
  2. the absence of effective monetary policy
  3. a change in the world order, in this case the rise of China and the potential for trade wars/technology wars/capital wars.

Continue reading “Mauldin: We’re On The Brink Of The Second “Great Depression””

Following the Greater Depression on eBay

Guest Post by Jeff Thomas via International Man

great depression

I’m often asked how I see the warning signs that allow me to gauge the timing of the coming economic crisis.

Although careful research into an economy can result in a relatively accurate prognostication, the timing is always the most difficult aspect to pinpoint.

However, a good indicator is to track how others within the economy are surviving the situation. This tells us much more than their questionable claims that they’re doing just fine.

One very telling way to do this is to follow their extravagances. In prosperous times, they’re likely to buy expensive toys. Then, as they increasingly feel the pinch, they’ll sell off those toys first, before resorting to selling their more essential possessions. For example, someone will sell off his beloved sports car before he sells the more essential family SUV. Or he’ll get rid of the vacation house before he puts his primary home on the market.

Continue reading “Following the Greater Depression on eBay”

Doug Casey: The Next Depression Will Be One for the Record Books

Guest Post by Doug Casey

Just because society experiences turmoil doesn’t mean your personal life has to. And a depression doesn’t have to be depressing. Most of the real wealth in the world will still exist – it will just change ownership.

What is a depression?

Continue reading “Doug Casey: The Next Depression Will Be One for the Record Books”

Doug Casey: “This is Going to be One for the Record Books”

Guest Post by Doug Casey via International Man

Just because society experiences turmoil doesn’t mean your personal life has to. And a depression doesn’t have to be depressing. Most of the real wealth in the world will still exist—it will just change ownership.

What is a depression?

We’re now at the tail end of a very long, but in many ways a very weak and artificial, economic expansion. At the same time we’ve had one of the strongest securities bull markets in history. Both are the result of trillions of new dollars created over the last decade. Right now very few people are willing to consider the possibility of tough times—let alone The Greater Depression.

Continue reading “Doug Casey: “This is Going to be One for the Record Books””

The Depression Of 2019-2021?

Submitted by Brendan Brown, the Head of Economic Research at Mitsubishi UFJ Securities International via Mises.org

The profound question which transcends all this day-to-day market drama over the holidays is the nature of the economic slowdown now occurring globally. This slowdown can be seen both inside and outside the US. In reviewing the laboratory of history — especially those experiments featuring severe asset inflation, unaccompanied by high official estimates of consumer price inflation — three possible “echoes” deserve attention in coming weeks and months. (History echoes rather than repeats!)

Will We Learn from History — And What Will Soon Be History?

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The Depression Playbook

Authored by Jeff Thomas via InternationalMan.com,

A crash is coming, and it may be terrific… The vicious circle will get in full swing and the result will be a serious business depression. There may be a stampede for selling which will exceed anything that the Stock Exchange has ever witnessed…Wise are those investors who now get out of debt.

— Roger Babson, September, 1929

In the run-up to the 1929 crash, which heralded in the Great Depression, many pundits claimed that the new highs in the market signified that the business cycle had been “repealed.”

Stocks had never enjoyed such a bull market before, and this led many to believe that “the sky’s the limit.” All over the US, people put all the money they could find into stocks. Then, wanting to buy more, they bought on margin. Then, wanting still more, they borrowed privately to buy on margin – a double-dip into debt.

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Comparing the 1930s and Today

Guest Post by Doug Casey

You’ve heard the axiom “History repeats itself.” It does, but never in exactly the same way. To apply the lessons of the past, we must understand the differences of the present.

During the American Revolution, the British came prepared to fight a successful war—but against a European army. Their formations, which gave them devastating firepower, and their red coats, which emphasized their numbers, proved the exact opposite of the tactics needed to fight a guerrilla war.

Before World War I, generals still saw the cavalry as the flower of their armies. Of course, the horse soldiers proved worse than useless in the trenches.

Before World War II, in anticipation of a German attack, the French built the “impenetrable” Maginot Line. History repeated itself and the attack came, but not in the way they expected. Their preparations were useless because the Germans didn’t attempt to penetrate it; they simply went around it, and France was defeated.

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Are “Invisible Americans” The Key Players In This Election?

Submitted by Charles Hugh-Smith via OfTwoMinds blog,

Memo to the D.C. Beltway/mainstream media apologists and propagandists: the 25 million Invisible Americans are no longer buying your shuck-and-jive con job.

For the bottom 90% of American households, the “prosperity” of the “recovery” since 2009 is a bright shining lie. The phrase is from a history of the Vietnam War, A Bright Shining Lie: John Paul Vann and America in Vietnam.

Just as the Vietnam War was built on lies, propaganda, PR and rigged statistics (the infamous body counts–civilians killed as “collateral damage” counted as “enemy combatants”), so too is the “recovery” nothing but a pathetic tissue of PR, propaganda and lies. I have demolished the bogus 5.3% “increase” in median household income, the equally bogus “official inflation” body counts, oops I mean statistics, and the bogus unemployment rate:

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THE ANTI-CINDERELLA MAN (PART TWO)

In Part One of this article I made a fact based case that most Americans are experiencing an economic depression on par with the Great Depression of the 1930’s. In Part Two I will compare and contrast two very different men who raised the spirits of the common man during difficult economic times. As we approach the perilous portion of this Fourth Turning, it will take more than hope to get us through to the other side.

http://cdn.history.com/sites/2/2014/01/IH012802-P.jpeg http://www.parishoftraprain.org.uk/wp-content/uploads/2014/06/D-Day.jpg

Cinderella Man

Likening Braddock to Trump might seem far-fetched, until you think about parallels between the economic conditions during the 1930’s and today, along with the deepening mood of crisis, despair and anger at the establishment. Braddock’s career coincided with the last Fourth Turning. James J. Braddock was born in 1905, to Irish immigrant parents Joseph Braddock and Elizabeth O’Toole Braddock in a tiny apartment on West 48th Street in New York City. His life personified that of a GI Generation hero. One of seven children, Jimmy enjoyed playing marbles, baseball and hanging around the old swimming hole on the edge of the Hudson River as a youngster. He discovered his passion for boxing as a teenager.

Braddock refined his skills as an amateur fighter and in 1926 entered the professional boxing circuit in the light heavyweight division. Braddock overwhelmed the competition, knocking out multiple opponents in the early rounds of most fights. As a top light heavyweight, he stood over six feet two inches, but seldom weighed over 180 pounds. But his powerful right hand was no match for opponents that weighed close to 220 pounds. His star was ascending. He earned a shot at the title in 1929. On the evening of July 18th 1929, Braddock entered the ring at Yankee Stadium to face Tommy Loughran for the coveted light heavyweight championship. Loghran avoided Braddock’s deadly right hand for 15 rounds and won by decision. Less than two months later the stock market crashed and the country plunged into the Great Depression.

Continue reading “THE ANTI-CINDERELLA MAN (PART TWO)”

THE ANTI-CINDERELLA MAN (PART ONE)

There are several movies I will watch every time they are aired on one of my generally useless 600 cable channels. They all have the same thing in common – a compelling character portrayal which keeps you riveted and mesmerized by how the protagonist deals with adversity and circumstances beyond their control. The movies I can’t resist include: The Godfather I & II, The Green Mile, Shawshank Redemption, Apocalypse Now, and Patton. Another captivating movie, which didn’t do well at the box office, is Cinderella Man. The portrayal of Depression era heavyweight boxing champion James J. Braddock by Russell Crowe is inspirational, with a rousing and improbable victory by the champion of the common man. While watching this great movie a few weeks ago I found myself equating the themes to the current presidential campaign.

http://www.freemovieposters.net/posters/cinderella_man_2005_1974_medium.jpg

The Greater Depression

Braddock was an inspiration to all downtrodden demoralized Americans during the Great Depression. The parallels between the 1930’s Great Depression and today’s Greater Depression are uncanny, despite the propaganda emitted by the establishment politicians, media and banking cabal that all is well. The corporate mainstream media faux journalists scorn and ridicule anyone who makes the case we are currently in the midst of another Great Depression. They are paid to peddle a recovery narrative to keep the masses ignorant, sedated, and distracted by latest adventures of Caitlyn Jenner and the Kardashians. An impartial assessment of the facts reveals today’s Depression to be every bit as dreadful for the average American as it was in the 1930’s.

Continue reading “THE ANTI-CINDERELLA MAN (PART ONE)”