There Will Be A Lot More Rioting, Looting And Civil Unrest As The U.S. Economy Continues To Crumble

What we have been witnessing on the streets of Minneapolis is just the beginning.  Our nation is so deeply divided, and a large portion of the population is losing faith in the basic institutions that govern our society.  Personally, I don’t know how anyone can watch the video of what happened to George Floyd without having an emotional reaction.  Police brutality has been a massive problem in the United States for many years, and it has gotten to the point where most of the country no longer has faith in the police.  Of course the rioters are not helping their cause by burning down the communities that they are supposedly defending.  And after causing so much chaos on Wednesday night, protesters were back in the streets of Minneapolis on Thursday

Protests and, in some cases, violence, continued Thursday in the aftermath of the death of George Floyd, a black man who died in police custody after a white officer pinned him to the ground under his knee.

Hundreds of protesters flooded Minneapolis streets Thursday evening for a march through downtown. Traffic was halted as a crowd of people stretched for up to four blocks. Protesters shouted “I can’t breathe” and “no justice, no peace; prosecute the police” as volunteer marshals in highlighter-colored vests directed traffic.

Sadly, this is just a small preview of what is coming to major cities all over America.

If you think that these riots about police brutality are intense, just wait until the economic riots start.

We are moving into a time when millions upon millions of Americans will become increasingly desperate as we plunge even deeper into a new economic depression.  On Thursday, we learned that another 2.1 million Americans filed initial claims for unemployment benefits last week…

First-time claims for unemployment benefits totaled 2.1 million last week, the lowest total since the coronavirus crisis began though indicative that a historically high number of Americans remain separated from their jobs.

Economists surveyed by Dow Jones had been looking for 2.05 million. The total represented a decrease of 323,000 from the previous week’s upwardly revised 2.438 million.

This was the 10th week in a row when the number of new claims for unemployment benefits has been above 2 million.

As I keep reminding my readers, prior to this year the highest that number had ever been for a single week was 695,000 in 1982.

So even after so many catastrophic weeks in a row, we are still at a level that is approximately three times higher than that old record.

Overall, 40.8 million Americans have filed new claims for unemployment benefits over the past 10 weeks.  That is the greatest spike in unemployment in all of U.S. history by a very wide margin, and it means that more than one-fourth of all the jobs in the United States have already been wiped out.

But for now, the impact of those job losses has been cushioned by the extremely generous $600 a week unemployment bonuses that the federal government has been handing out, but those benefits are set to expire at the end of July

Right now, many are able to take advantage of an additional $600 a week in unemployment benefits provided by the federal government on top of each state’s standard jobless benefit. But that benefit is set to expire at the end of July if Congress does not pass another stimulus bill to extend benefits.

If those benefits are not extended we will see a massive national temper tantrum, and right now President Trump and Republican leaders in the Senate do not plan to extend them.

We shall see what happens, but we may soon have tens of millions of very angry unemployed Americans that are unable to pay their bills anymore.

And with each passing day, more bad economic news just keeps rolling in.  We just learned that orders for durable goods were down 19.4 percent on a year over year basis last month, and we also just learned that pending home sales were down 34.6 percent in April compared to the same month a year ago.

As I discussed yesterday, we are watching a full-blown economic collapse begin to unfold, and the fact that many U.S. states are starting to “reopen for business” is not going to stop the momentum that has now been created.

During the first few weeks of the pandemic, there was just a trickle of major bankruptcies, but now that trickle has become a flood

In the first few weeks of the pandemic, it was just a trickle: companies like Alaskan airline Ravn Air pushed into bankruptcy as travel came to a halt and markets collapsed. But the financial distress wrought by the shutdowns only deepened, producing what is now a wave of insolvencies washing through America’s corporations.

In May alone, some 27 companies reporting at least $50 million in liabilities sought court protection from creditors — the highest number since the Great Recession. They range from well-known U.S. mainstays such as J.C. Penney Co. and J. Crew Group Inc. to air carriers Latam Airlines Group SA and Avianca Holdings, their business decimated as travelers stayed put.

And we are watching store closings occur at a rate that we have never seen before in our entire history.

At this point, Coresight Research is projecting that about 25,000 stores will permanently close by the end of this calendar year

Coresight Research, which tracks retail openings and closings, has upped its projected store closures for 2020 from 8,000 at the beginning of the year to 15,000 at the beginning of March to about 25,000 now.

“That’s unlike anything the industry has ever seen,” Coresight CEO and founder Deborah Weinswig said. “It’s the speed with which it’s all happening which has been a little surprising.”

So much anger was building up all over America during the “good years”, and now this new economic depression is going to make things much, much worse.

When there are no jobs available and people can’t even provide the basics for their families, we are going to see frustration on a scale that is unlike anything we have ever witnessed before.

So please take careful note of what is happening in the streets of Minneapolis right now, because that is what the future is going to look like in all of our major cities.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

Nobody Ever Imagined That The Job Losses Would Get This Bad So Quickly

If you tried to warn people in late 2019 that about 40 million Americans would lose their jobs by the middle of 2020, nobody would have believed you.  Personally, I operate a website called “The Economic Collapse Blog”, and I wouldn’t have believed you either.  Even though I have been loudly warning that this sort of an economic crisis was coming, I never imagined that we would lose so many jobs in such a short period of time.  As I discussed the other day, more than a quarter of all jobs in the United States have already been wiped out, and the job losses just keep on coming.  In fact, Boeing is currently in the process of laying off thousands of highly skilled workers

Nearly 13,000 Boeing workers, mostly in the US, are set to lose their jobs in the coming weeks, as cuts at the American aerospace giant take effect.

More layoffs are expected, some of which may affect the UK.

The reductions had been expected since Boeing revealed plans last month to slash its global workforce by 10% – or roughly 16,000 jobs.

A lot of those are very high paying jobs with good benefits, and they will not be easy to replace.

Meanwhile, major retailers all over America keep going down one after another.  On Wednesday, we learned that Tuesday Morning has decided to file for bankruptcy

Off-price retailer Tuesday Morning filed for Chapter 11 bankruptcy protection Wednesday with plans to close more than a third of its stores.

Tuesday Morning had been struggling when the coronavirus pandemic began and went into a free fall when it was forced to temporarily close its locations due to the crisis.

Just like the Boeing jobs, these are jobs that are never going to come back.

At this point, there is no way that I can write about all of the companies that are laying off workers, but one more example that I found to be quite notable is the fact that even CBS News is letting people go

“I’m really sorry,” network president Susan Zirinsky said Wednesday on an all-staff Zoom meeting about the cuts. “There is not a person who won’t be missed.”

CBS News was hit hard by a round of corporate cost-cutting that saw “a single-digit percentage” of the network’s news staffers laid off, according to an estimate given by network president Susan Zirinsky during a Wednesday afternoon all-hands conference.

The corporate elite that own CBS News have very deep pockets, and Americans are watching more news than ever right now, and so it is definitely not a good sign for the economy that even CBS News feels forced to lay off workers.

Of course many unemployed workers are not exactly “deeply suffering” yet because of the huge weekly bonuses that they are getting from the federal government right now.

Earlier today, I was directed to a post on a popular Internet forum where a newly unemployed worker was describing how great his life has become now that he is unemployed

Before COVID I was miserable.

I had a job working $14.75/hr and hated waking up most days. I’ve since been laid off (obviously) but am one of those who is making much more by NOT working.

I used to make $550-600 per week depending on my hours but since COVID began, I’m clearing just over $1000/week. My gf is in the same situation and she’s also clearing just over $1000.

Without any job to go to, he can now spend his days endlessly hanging out with his newly unemployed girlfriend, and he claims that he can’t even imagine ever going back to his old life

Today we plan to do some hiking since it’s going to be so nice out and I’ll be using my new grill to cook up some steak tonight. The gf is kind of a wine snob so she likes to splurge on really nice reds (which I’ll definitely be having later as well).

I really don’t understand people who say they’re more stressed or are fighting with their gf/wife more than before. It makes absolutely no sense to me. These have been the best 2 months I’ve had in a while. I can’t imagine going back to my old life and way of doing things. NOT HAPPENING!

The only thing that isn’t ideal right now is not being able to travel normally but I only vacationed once or twice a year before due to work/money issues. Now I’m able to save $800-1000/month with COVID stimulus and bonus so we’ll definitely be taking a nice vacation at some point this summer.

The bad news for this young couple and for tens of millions of other unemployed Americans is that President Trump and the Republicans in the U.S. Senate do not plan to extend the unemployment bonuses once they expire in July.

So from that point forward, there will be millions upon millions of Americans that are not able to pay their monthly bills.

In fact, the New York Times is already warning that we will soon be facing “a wave of evictions as government relief payments and legal protections run out for millions of out-of-work Americans”…

The United States, already wrestling with an economic collapse not seen in a generation, is facing a wave of evictions as government relief payments and legal protections run out for millions of out-of-work Americans who have little financial cushion and few choices when looking for new housing.

The hardest hit are tenants who had low incomes and little savings even before the pandemic, and whose housing costs ate up more of their paychecks. They were also more likely to work in industries where job losses have been particularly severe.

Initially, the generous unemployment bonuses that Congress passed were supposed to help tide unemployed workers over until this pandemic went away.

But what if it sticks around for multiple years like the Spanish Flu did?

And the Washington Post is now trying to convince us that there is “a good chance” that COVID-19 “will never go away”…

There’s a good chance the coronavirus will never go away.

Even after a vaccine is discovered and deployed, the coronavirus will likely remain for decades to come, circulating among the world’s population.

Yes, this virus could become a “permanent crisis”, and without a doubt the elite are already trying to use it to fundamentally reshape our society.

And as long as a certain percentage of the population is deeply afraid of this virus, economic activity will continue to be depressed at levels that are way below what we would consider to be “normal”.

As the New York Times has admitted, “an economic collapse” is already here, and it is going to be incredibly painful.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

The Worst Unemployment Spike In U.S. History – 1 Out Of Every 4 Workers Has Filed For Unemployment Benefits In 2020

Even though most U.S. states have begun the process of “reopening” their economies, the unprecedented tsunami of job losses that we have been experiencing just continues to roll on.  On Thursday, we learned that another 2.4 million Americans filed initial claims for unemployment benefits during the previous week, and that brings the grand total for this pandemic to a whopping 38.6 million.  To get an idea of just how badly this swamps what we witnessed during the last recession, take a look at this chart.  This is the biggest spike in unemployment in all of U.S. history by a very wide margin, and analysts are expecting another huge number once again next week.

After my father got out of the U.S. Navy, he worked as a math teacher for many years, and throughout my life I have always had a deep appreciation for numbers.

And in this case, the numbers are telling us that we are facing something truly horrific.

During the month of February, the number of Americans that were currently employed peaked at 152,463,000.

If you take the 38.6 million workers that have filed for unemployment benefits during this crisis and divide it by 152,463,000, you will find that it gives you a figure of more than 25 percent.

In other words, more than one out of every four jobs in the United States is already gone, and more job losses will be coming week after week.

And of course not everyone that loses a job actually files a claim for unemployment benefits.  So the true percentage of Americans that have lost a job would be even higher.

It had been hoped that the unemployment numbers would begin to normalize once states began “reopening” their economies, but so far that is not really materializing.

For example, Georgia was one of the first states to begin lifting restrictions, but that state also “now leads the country in terms of the proportion of its workforce applying for unemployment assistance”

Georgia’s early move to start easing stay-at-home restrictions nearly a month ago has done little to stem the state’s flood of unemployment claims — illustrating how hard it is to bring jobs back while consumers are still afraid to go outside.

Weekly applications for jobless benefits have remained so elevated that Georgia now leads the country in terms of the proportion of its workforce applying for unemployment assistance. A staggering 40.3 percent of the state’s workers — two out of every five — has filed for unemployment insurance payments since the coronavirus pandemic led to widespread shutdowns in mid-March, a POLITICO review of Labor Department data shows.

Our politicians really didn’t understand what they were doing when they started locking down state after state.  Coming into 2020, the U.S. economy was in an extremely fragile state and was already moving rapidly toward recession territory, and now fear of COVID-19 has burst all of our economic bubbles.

The U.S. economy is now in a death spiral, and a survey that was just conducted by the Census Bureau came up with some numbers that are simply eye-popping

Nearly half of Americans say that either their incomes have declined or they live with another adult who has lost pay through a job loss or reduced hours, the Census Bureau said in survey data released Wednesday.

More than one-fifth of Americans said they had little or no confidence in their ability to pay the next month´s rent or mortgage on time, the survey found.

Already, we are beginning to see mortgage delinquencies rise to very alarming levels.

In fact, in April we witnessed the largest single month jump that has ever been recorded

Mortgage delinquencies surged by 1.6 million in April, the largest single-month jump in history, according to a report from Black Knight, a mortgage technology and data provider. The data includes both homeowners past due on mortgage payments who aren’t in forbearance, along with those in forbearance plans and who didn’t make a mortgage payment in April.

At 6.45%, the national delinquency rate nearly doubled from 3.06% in March, the largest single-month increase recorded, and nearly three times the prior record for a single month during the height of the financial crisis in late 2008, Black Knight said.

Sadly, the truth is that this is only going to get worse.

The “enhanced unemployment benefits” that Congress recently passed have been helping many unemployed Americans to pay their mortgages, but now it appears that President Trump and Senate Majority Leader Mitch McConnell do not intend to extend those benefits past the July deadline.  They are concerned that those benefits have been so generous that they have been discouraging many Americans from going back to work, and they are quite right about that.

Unfortunately, it isn’t just homeowners that have been missing payments.

At this point, the entire commercial real estate industry is on the precipice of a meltdown as rent payments and mortgage payments are being “skipped” all over the nation on a widespread basis.  On Thursday, we learned that even the owners of The Mall of America have been skipping their mortgage payments

The biggest shopping center in the country, The Mall of America, has missed two months of payments on its $1.4 billion mortgage, a sign of just how much retail real estate owners are reeling during the coronavirus pandemic.

The mall, operated by private developers Triple Five Group, skipped mortgage payments in April and May, according to Trepp, a New York-based research firm that tracks the commercial mortgage-backed securities, or CMBS, market.

Unless Congress steps in and showers the entire commercial real estate industry with giant mountains of cash, I don’t see how an unprecedented meltdown can be averted.

It is going to be horrifying to watch, and it is going to absolutely dwarf anything that we witnessed in 2008.

Of course similar things can be said about the economy as a whole.  At this point, Bank of America is projecting that U.S. GDP will fall 40 percent on an annualized basis during the second quarter of this year…

Now that banks have had a chance to evaluate the collapse in the economy in the post-covid world, a new round of GDP forecast revisions is coming, and it’s a doozy, with Bank of America spearheading the latest effort by slashing its Q2 GDP forecast from -30% to -40%.

Not without a trace of irony, BofA’s chief economist Michelle Meyer writes that “words cannot describe” the loss in economic output, which is “unlike anything we have seen in modern history.”

When Bank of America starts sounding like The Economic Collapse Blog, that is a clear sign that things are really starting to fall apart in a major way.

Now that restrictions are being lifted all over the nation, the number of confirmed COVID-19 cases is starting to rise again, and fear of this virus is going to paralyze economic activity for the foreseeable future.

And what most Americans still don’t understand is that what we have experienced so far is just the beginning…

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

68% Of Unemployed Workers In The U.S. “Are Eligible For Payments That Are Greater Than Their Lost Earnings”

Can anyone explain how we are going to motivate unemployed workers to go back to work when most of them can actually make more money camped on their sofas watching Netflix?  Over the past couple of months, 36.5 million Americans have filed new claims for unemployment benefits, and Congress understandably wanted to do something to address this unprecedented spike in unemployment.  But by giving all of these unemployed workers a repeating 600 dollar bonus on top of existing unemployment benefits, Congress has actually created a very powerful incentive for Americans to be unemployed and to stay unemployed for as long as the bonuses last.  According to a group of prominent economists at the University of Chicago, 68 percent of those that are currently unemployed can now bring home more money than when they were actually employed…

A new analysis by Peter GanongPascal Noel and Joseph Vavra, economists at the University of Chicago,1 uses government data from 2019 to estimate that 68 percent of unemployed workers who can receive benefits are eligible for payments that are greater than their lost earnings. They also found that the estimated median replacement rate — the share of a worker’s original weekly salary that is being replaced by unemployment benefits — is 134 percent, or more than one-third above their original wage.

Of course you don’t have to be bringing home 100 percent of your former income for there to be an incentive to stay unemployed.

For example, if you had a job that you really hated, you would almost certainly jump at the chance to stay home every day and still make 90 percent of what you formerly earned.

So yes, those that had very high paying jobs will be motivated to get back to work, but everyone else will be highly tempted to ride the gravy train for as long as it lasts.

And the less you made when you were actually working, the more intense that temptation will be.

Just consider what restaurant and hotel workers must be thinking about now.  According to CNBC, the average unemployed worker in that industry is now eligible to collect “182% of their previous wages”…

The average worker in this industry, which employs 14 million people, makes $13.45 an hour — the lowest compared with other industries.

These workers would benefit most under the unemployment system when compared to others — collecting 182% of their previous wages, according to a CNBC analysis of Bureau of Labor Statistics and Labor Department data.

Do you think that those workers are going to be eager to get back to their former jobs?

I don’t think so.

Of course the truth is that many of their jobs are never coming back.  According to the Atlantic, “hundreds of thousands of companies” have already collapsed during this economic downturn…

Small-business activity has plunged nationwide by nearly 50 percentHundreds of thousands of companies have already failed. Big retailers such as J.Crew and Neiman Marcus have filed for bankruptcy, while others, including Macy’s, are teetering. By some measures, scarcely one-third of Americans say they are working. Next month’s jobs report will likely show that, for the first time since World War II, a majority of Americans aren’t officially employed.

So the cold, hard reality of the matter is that there simply is not going to be enough jobs for everyone in the United States for the foreseeable future.

And moving forward, a lot more businesses are going to be failing.

Just recently, Facebook conducted a survey of “86,000 small and medium-sized business owners”, and the results of that survey were quite startling…

About a third of small businesses forced to close due to the coronavirus pandemic say they won’t be able to reopen due to an inability to pay bills or rent, a Facebook survery has found.

More than half of the business owners surveyed by Facebook have also said they don’t expect to be able to rehire the same amount of workers that they employed prior to the pandemic.

More specifically, the survey discovered that just 45 percent of all small and medium-sized business owners plan to rehire the same number of employees that they previously had.

So that means that millions upon millions of jobs are gone for good.

And of course the environment of fear that COVID-19 has created is going to paralyze new hiring for a long time to come.  If you are an existing business and you are concerned that you may not be able to keep the employees that you already have, that is going to make you extremely hesitant to add anyone new.

The bottom line is that it is going to be exceedingly difficult to find jobs in the months ahead, and the long-term outlook for the newly unemployed is not good at all.

For the moment, those newly unemployed workers are being taken care of by the federal government, but the $600 bonuses are set to expire in July.

If we get to July and those benefits are not extended, we could have a massive national temper tantrum on our hands.

Of course there are many in Congress that are quite eager to extend those benefits, but that would also mean borrowing and spending billions upon billions more dollars that we do not have.

And what happens when an even bigger crisis than COVID-19 comes along?  We are just experiencing the early winds of “the perfect storm” that I portrayed in “The Beginning Of The End”, and most Americans are completely and utterly unprepared for what is coming.

So let’s not be mad at those that have lost their jobs just because they are getting a windfall for a few months.  Instead, let us hold our national leaders accountable for getting us into this mess in the first place.

For decades, our national leaders have been leading us down a road that leads to national oblivion, and now it appears that we are rapidly approaching the end of that road.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

10 Numbers That Show The U.S. Has Fallen Into A Horrifying Economic Depression

The last recession was really, really bad, but it was never like this.  It is time for us to face reality, and that means admitting that the U.S. economy has plunged into a depression.  This is already the worst economic downturn that America has experienced since the Great Depression of the 1930s, and we are right in the middle of the largest spike in unemployment in all of U.S. history by a very wide margin.  Of course it was fear of COVID-19 that burst our economic bubble, and fear of this virus is going to be with us for a very long time to come.  So we need to brace ourselves for an extended economic crisis, and at this point even Time Magazine is openly referring to this new downturn as an “economic depression”.  Needless to say, there will be a tremendous amount of debate about how deep it will eventually become, but everyone should be able to agree that our nation hasn’t seen anything like this since before World War II.

In order to prove my point, let me share the following 10 numbers with you…

#1 According to a study that was just released by the National Bureau of Economic Research, more than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back.

#2 The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter…

A new GDP forecast from the Federal Reserve Bank of Atlanta for the three months through June estimates an unprecedented drop of 42.8 percent. The bank describes the data as a “nowcast” or real-time, compared with the official government report of GDP, which is dated. The first-quarter preliminary data, which showed a 4.8 percent dip, included a limited period of impact from COVID-19.

#3 On Friday we learned that U.S. retail sales were down 16.4 percent during the month of April, and that is a new all-time record.

#4 U.S. factory output was down 13.7 percent last month, and that was the worst number ever recorded for that category.

#5 U.S. industrial production fell 11.2 percent last month, and that represented the worst number in 101 years.

#6 On Thursday, we learned that the number of Americans that have filed initial claims for unemployment benefits during this pandemic has risen by another 2.9 million, and that brings the grand total for this entire crisis to 36.5 million.  To put that number in perspective, at the lowest point of the Great Depression of the 1930s only about 15 million Americans were unemployed.

#7 According to the Federal Reserve Bank of Chicago, the real rate of unemployment in the U.S. is now 30.7 percent.

#8 According to a survey Fed officials just conducted, almost 40 percent of Americans with a household income of less than $40,000 a year say that they have lost a job during this crisis.

#9 One study has concluded that 42 percent of the job losses during this pandemic will end up being permanent.

#10 According to a professor of economics at Columbia University, the U.S. homeless population could rise by up to 45 percent by the end of this calendar year.

We have never seen economic numbers this horrifying, and more awful economic numbers are coming in the months ahead.

At this point, things are so bad that even Fed Chair Jerome Powell is openly admitting that he doesn’t really know how long this new economic downturn will last…

“This economy will recover…We’ll get through this. It may take a while. It may take a period of time. It could stretch through the end of next year,” Powell said during a rare televised interview that aired on “60 Minutes” Sunday night. “We really don’t know. We hope that it will be shorter than that, but no one really knows.”

In the months ahead, there are a few sectors that you will want to keep a particularly close eye on, and one of them is the commercial real estate market.  The following comes from Zero Hedge

Fast forward to today, coronavirus outbreak, and the ensuing lockdown, has essentially frozen the commercial real estate market. Buildings that were once used for restaurants, offices, hotels, spas, and or anything else that is classified non-essential have seen soaring vacancies.

This is single handily sending the commercial property market into chaos. As vacancies soar, tremendous downward pressure is being put on almost every asset class tied to commercial real estate.

The latest TREPP remittance data compiled by Morgan Stanley showed a quarter of all commercial mortgage-backed securities (CMBS) could be on the verge of default.

I am personally convinced that we are on the precipice of the greatest commercial real estate implosion in American history.

As the dominoes tumble, it is going to send wave after wave of devastation through the financial industry, and it is going to make the subprime mortgage meltdown of 2008 look like child’s play.

But at least bankruptcy lawyers will have plenty of work.  Last week we learned that J.C. Penney filed for Chapter 11 bankruptcy protection, and of course the bankruptcies that we have seen so far will just be the tip of the iceberg.

I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst.

Sadly, very few people understood how shaky our debt-fueled economic “boom” was, and ultimately it didn’t take that much to push us into a new economic depression.

And now every additional crisis that comes along is just going to escalate our economic troubles.  This is going to be one very long nightmare, and there will be no waking up from it any time soon.

Even before COVID-19 came along, homelessness had become a massive problem in many of our major cities, and now tent cities are rapidly multiplying in size.

There is going to be so much economic pain in the months ahead, and it could have all been avoided if we had made much different choices as a nation.

But we didn’t, and so now we all get to pay the price.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

The U.S. Is Caught In An Economic Death Spiral, And One Group Is Being Hit Particularly Hard…

Many have been warning for years that our economic bubble would eventually burst and that a collapse was inevitably coming, but the ferocity of this new economic crisis has caught just about everyone off guard.  And even though some states have been attempting to “reopen” their economies in recent days, the job loss tsunami just continues to roll on.  Prior to this year, the all-time record for the most new unemployment claims in a single week was 695,000.  That record was set all the way back in 1982, and it had survived all the way until 2020.  But now we have been absolutely dwarfing that number week after week.  On Thursday, we learned that another 2.9 million Americans filed initial claims for unemployment benefits last week, and that brings the grand total for this pandemic to more than 36 million

New filings for unemployment claims totaled just shy of 3 million for the most recent reporting period, a number that while still high declined for the sixth straight week, according to Labor Department figures Thursday.

The total 2.981 million new claims for unemployment insurance filed last week brought the coronavirus crisis total to nearly 36.5 million, by far the biggest loss in U.S. history. The count announced last week count was revised up by 7,000 to 3.176 million, putting the weekly decline at 195,000 between the two most recent reports.

To put that in perspective, at the lowest point of the Great Depression only 15 million Americans were unemployed.

Of course our population is quite a bit larger today, and so it isn’t a straightforward comparison.

But what everyone can agree on is the fact that we have never seen a two month spike in unemployment like this in all of U.S. history.

And according to the Federal Reserve, low income workers are getting hit harder than anyone else…

The Federal Reserve Bank on Thursday reported just how unequally the coronavirus-induced economic downturn is hitting Americans.

On one hand, lower-income people are getting slammed. Nearly 40% of those with a household income below $40,000 reported a job loss in March, according to the Economic Well-Being of US Households report.

Sadly, this is what seems to happen every time that there is an economic downturn.

The powerless people on the bottom of the food chain get hurt the most, but the fat cats with political influence are able to get the big bailouts.

Millions of newly unemployed low income workers used to be employed by the restaurant industry, but that industry has been absolutely decimated by this crisis…

The National Restaurant Association says some $30 billion was lost by its members in March, and $50 billion in April.

In the last week alone, several restaurants have announced that they won’t re-open, including the buffet chain Souplantation and Sweet Tomatoes, Jen’s Grill in Chicago and Ristorant Franchino, which has been serving patrons in the San Francisco area for over 32 years.

Of course most restaurant closings will never even make the news because they are small independent operations without corporate backing.

In the days ahead, we are going to see a “restaurant apocalypse” like we have never seen before in American history.  If you can believe it, one industry expert just told Bloomberg that about one-fourth of all U.S. restaurants will be closing down permanently…

Your favorite restaurant, now closed or only accepting take out orders due to the coronavirus, may never reopen, according to a top exec with reservation service OpenTable.

Steve Hafner, CEO of Booking Holdings’ OpenTable and travel site Kayak, told Bloomberg that one out of every four restaurants won’t come back.

This is truly a great tragedy, and it is going to be so depressing to see so many buildings sitting empty in communities all across the nation.

And things will be much, much different for the restaurants that are able to stay open.  For example, just check out the changes that are happening at McDonald’s

When McDonald’s restaurants reopen their dining rooms, customers should expect stickers on the floor encouraging social distancing and the closure of self-serve beverage bars. Workers wearing masks might check in with a thumbs up, or kindly ask you to move away from others.

If that is what a trip to McDonald’s is going to be like, I don’t think that I will be visiting one for a long time to come.

What we really need is for the country to try to return to normal, but in some of the more liberal areas of the U.S. that is not going to happen for the foreseeable future.

So the U.S. economy will continue to be caught in this death spiral, and Fed Chair Jay Powell is warning that we could soon see a “wave of bankruptcies” from coast to coast…

Federal Reserve Chief Jay Powell warned Wednesday of a potential “wave of bankruptcies” that could cause lasting harm to the world’s largest economy, and said more fiscal support may be needed to prevent the devastation, despite the massive cost.

Powell, who has launched a host of key programs to support credit markets and provide funds directly to companies, said there are limits to how far the Fed can go.

In particular, keep a close eye on the commercial real estate industry.

In order to service their loans, owners of commercial property need to successfully collect rent from their tenants, and right now many of those tenants are not able to pay.

For example, just look at the numbers that one New York City commercial landlord is reporting

A major New York City commercial landlord collected just 73 percent of its April office rent from tenants, with an increasing number defaulting on payments amid growing uncertainty over whether corporate buildings will become a thing of the past.

Empire State Realty Trust, owner of the Empire State Building, collected only 73 percent of its office rents and 46 percent of its retail rents due in April.

Unless there is some sort of a bailout, we are going to see commercial real estate carnage on a scale that is far greater than anything we have ever seen before.

Of course just about every industry needs a bailout at this point, and not everyone is going to get one.

Fear of COVID-19 did not create the conditions for this new economic crisis, but it did finally burst the debt-fueled economic bubble that was keeping conditions relatively stable the past few years.

Now that our economy has begun to spiral out of control, nobody is going to be able to put the pieces back together again, and the truth is that this is just the very beginning of our problems.

So many of the things that I have been warning about are starting to happen, and without a doubt our economy will continue to fall apart in the months ahead, but that does not mean that your life is over.

Yes, the days ahead will be exceedingly challenging, but heroes are born when things are at their darkest.

God has a plan for you, and I encourage you to be open to that no matter how radical that plan may turn out to be.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

Economic Catastrophe: Millions Upon Millions Of Jobs That Have Been Lost Are Never Coming Back

Do you personally know people that have lost jobs in 2020?  I do, and I am not sure what to tell them.  As is the case all over the U.S. right now, there is hope that some of the jobs will still be there when the lockdowns end, but in other cases it looks like the jobs are gone for good.  And since virtually nobody is hiring right now, finding new jobs is certainly not going to be easy, and there will be millions of others competing for the few jobs that open up.  Of course there will be some that will decide that being a government “contact tracer” is better than not being able to pay the bills, and the mainstream media is aggressively promoting those jobs right now.  But what most unemployed workers really want is to go back to their old jobs, but unfortunately many of them will never be able to do so.

According to a new study that was just released by the National Bureau of Economic Research, a whopping 42 percent of the jobs that have been lost during this crisis are likely to have been lost permanently…

Many of the coronavirus pandemic layoffs will become permanent job losses, according to a new study with alarming implications for the future of the economy.

Forty-two percent of workers experiencing recent layoffs will suffer permanent job losses, according to a paper circulated by the National Bureau of Economic Research.

Wow.

So let’s take a moment and do a little math.

Over the past 7 weeks, 33.5 million Americans have filed new claims for unemployment benefits.

42 percent of 33.5 million is just over 14 million, and that represents almost 10 percent of all the jobs in the entire economy before this pandemic began.

Of course more Americans continue to lose jobs with each passing week.

For example, last week thousands of Uber employees were abruptly terminated during a three minute Zoom call

Thousands of Uber employees learned that they were being laid off in a three-minute Zoom call last week.

The ride-sharing company informed 3,500 people who worked in customer service and recruitment around the country that it would be their last day working for Uber on the live call.

Could you imagine being one of those employees?

There is no loyalty in corporate America today.  When the time comes, they will ruthlessly cut ties with even their most hard working employees without even a moment of hesitation.

Uber’s Ruffin Chaveleau was given the task of letting these workers go, and there was no mincing of words

Chevaleau told staff: ‘Our rides business is down by more than half. There is not enough work for many frontline customer support employees. [As a result] we are eliminating 3,500 frontline customer support roles.

‘Your role is impacted and today will be your last working day with Uber. You will remain on payroll until the date noted in your severance package.’

Do you think those jobs are coming back?

Of course not.

They are gone for good, and the company as a whole is going to have a very tough time surviving in this new economic environment.

The economic carnage that we are witnessing is truly unprecedented, and some parts of the country are being hit harder than others.  I have some good friends in Hawaii, and needless to say this pandemic has caused tourism to Hawaii to absolutely implode.

As the tourist industry has collapsed, the unemployment rate in the state has gone from 3 percent to 34 percent

Unemployment in Hawaii has skyrocketed from three percent to 34 percent as tourism vanishes from the island – and it could get worse as lockdown measures to protect against coronavirus continue.

Since March the number of people flying into Hawaii has fallen dramatically from 30,000-a-day to just 756.

Eventually some of those jobs may start coming back as the pandemic fades.

But then again, they might not.

And just about everyone agrees that the U.S. economy is going to continue to bleed jobs.

In fact, at this point even U.S. Treasury Secretary Steven Mnuchin is admitting that the numbers “are probably going to get worse”

The staggering U.S. unemployment rate reported by the government on Friday amid coronavirus lockdowns may get even worse, Treasury Secretary Steven Mnuchin said on Sunday.

“The reported numbers are probably going to get worse before they get better,” Mnuchin told the Fox News Sunday program.

The good news is that millions of workers that have been temporarily laid off should start going back to work in the months ahead as the lockdowns are ended.

But the bad news is that there are millions of newly unemployed workers that have lost their jobs permanently and won’t be able to get new ones.

As a result, the ranks of the poor will greatly surge, and many more people will end up in the streets.

Already, it is being reported that the number of homeless tents in San Francisco’s Tenderloin District has grown by 300 percent…

The streets of San Francisco’s Tenderloin District have experienced a 300 percent increase in the number of homeless tents since the coronavirus outbreak began, according to a federal lawsuit filed by the community and a law school.

Residents, businesses and the University of California Hastings College of Law are suing to demand the city clean up drug needles and human waste which have littered the streets.

I have written about homelessness a lot over the years, and before this pandemic started there were more than half a million Americans that were homeless.

As this new economic depression drags on, that number is likely to multiply.

The economic crisis that I have been warning about is now here, and the American people are going to be looking to our politicians to “fix things”.

But as Egon von Greyerz has noted, there isn’t going to be any solution to this crisis…

This is what is so sad with the current economic crisis – there is no solution. Nobody should believe that it is the Coronavirus that has caused this catastrophe for the world. CV was the catalyst but the underlying problems have been there for a long time. The Great Financial Crisis in 2006-9 was temporarily patched up with trillions of dollars of money printing but it was never solved. The Great Financial Crisis was only a rehearsal and now the world is facing the inevitable collapse of the financial system.

As usual, he is right on target.

All of the economic dominoes are starting to tumble, and fear of this virus is going to be with us for a very long time to come.

Those that are still hoping for a “V-shaped recovery”, a “U-shaped recovery” or any sort of a major recovery at all are going to be deeply disappointed.

The beginning of the end has arrived for the U.S. economy, and we are all going to be absolutely horrified by the things that take place in the months ahead.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

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