Based on this week’s Alignable Q4 Revenue Poll of 9,201 small business owners, 48% could shut down permanently before year’s end.

In fact, this number jumped from 42% just two months ago, demonstrating how several factors have converged to devastate small businesses: COVID resurgences, forced government reclosures, elevated customer fears, and a surge in online shopping at Amazon and other national ecommerce giants.

When a small business with only a few employees closes down forever, it never makes any national headlines.

But the truth is that small businesses are the heart and soul of our economy, and we are losing more of them with each passing day.

Here are some quotes from actual small business owners that took part in the Alignable survey…

• “COVID has raised its ugly head again. I’m a caterer and I’ve had no work in November and my clients are cancelling for Dec. This is so sad. I have worked so hard to build my business the last 14 years. My business has gone from half a million to not even 200,000. This is devastating for any business.”
• “COVID closings are killing this country! My business is on hold — no art walks or gallery openings, and I can’t even open my studio. Everything’s online.”
• “Because therapeutic massage is so ‘up close and personal,’ I have only come back to about 40% of my previous clientele. I am afraid that the governor will shut us down again, which will be the end of my business. I also believe the ‘ruling elite’ does not care about small businesses.”

How would you feel if you spent years putting everything you had into a small business in order to make it successful, only to have the politicians come along and completely destroy it?

And every time a small business has to let workers go, it just makes the unemployment crisis in this country even worse.

On Thursday, we learned that another 853,000 Americans filed new claims for unemployment benefits last week…

First-time claims for unemployment insurance totaled 853,000, an increase from the upwardly revised 716,000 total a week before, the Labor Department reported Thursday. Economists surveyed by Dow Jones had been expecting 730,000.

I have been warning that the new lockdowns would make the numbers worse, and that is precisely what is happening.

And one expert that was interviewed by CNBC says that this is just the beginning…

“It looks like the unemployment losses are starting to stack up for the economy. It’s not going to be a good month,” said Chris Rupkey, chief financial economist at MUFG Union Bank. “You’re starting the first week of the month on a bad note, and it’s probably going to be all downhill from here. It feels like the lockdowns are intensifying. It’s closer to reality for those forecasts that look for the economy to go negative in the first quarter.”

It is also important to remember that there are many Americans that have been unemployed for so long that they are no longer eligible to receive benefits.

One of those long-term unemployed workers is 35-year-old Sarah Groome…

For six months, she received unemployment benefits from the government – but those payments shrank as the programmes wound down this summer. Since October, she’s received nothing.

“I don’t know what I’m going to do financially,” she says. “I’m applying to jobs and I’ve probably applied to over 100 at this point and I’ve had one interview.”

“It’s scary,” she says. “I don’t know what’s going to happen.”

What do you say to someone in her position?

It’s heartbreaking to hear stories like that, and more people are being laid off with each passing day.

And as our new economic depression gets progressively deeper, an increasing number of Americans are becoming very desperate.

In fact, many have already become so desperate that they are turning to shoplifting…

Shoplifting is up markedly since the pandemic began in the spring and at higher levels than in past economic downturns, according to interviews with more than a dozen retailers, security experts and police departments across the country. But what’s distinctive about this trend, experts say, is what’s being taken – more staples like bread, pasta and baby formula.

“We’re seeing an increase in low-impact crimes,” said Jeff Zisner, chief executive of workplace security firm Aegis. “It’s not a whole lot of people going in, grabbing TVs and running out the front door. It’s a very different kind of crime – it’s people stealing consumables and items associated with children and babies.”

Everywhere we look, our society is starting to break down all around us.  Americans have filed new claims for unemployment benefits more than 70 million times this year, the number of homeless in New York City has reached an all-time record high, and civil unrest continues to erupt all over America.

No matter what happens politically, conditions are going to continue to deteriorate as we head into 2021.

Of course the mainstream media is boldly proclaiming that the new vaccines will pull us out of this tailspin and that life in America will soon return to normal.

You can believe the mainstream media if you want, but in the end the “hope” that they are promising will turn out to be a complete mirage.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  I encourage you to follow me on social media on Facebook, Twitter and Parler, 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 as many people as we possibly can.

The post 48% Of U.S. Small Businesses Fear That They May Be Forced To “Shut Down Permanently” Soon appeared first on The Economic Collapse.

Of the 3,011 surveyed adults, over 38% said they will spend the year in “survival mode,” meaning they’ll focus on the day-to-day rather than long-term goals to try to get themselves and their families through 2021.

The biggest reason why so many anticipate being in “survival mode” is because of the financial problems that they experienced this year.  According to that same survey, a whopping 68 percent of all Americans say that they experienced some sort of “financial setback” in 2020…

Although some respondents maintained their usual income over the past year, 68% had setbacks. Of those, 23% lost a job or household income; 20% had an unexpected non-health emergency; 18% had to provide unexpected financial aid to family or friends; and 16% had a health emergency in their family.

As I keep reminding my readers, Americans have filed more than 70 million new claims for unemployment benefits this year, but even many of those that have been able to keep their jobs have fallen on very hard times.

Another new survey found that approximately one-third of all full-time workers in the U.S. “have experienced a pay cut” in 2020…

Roughly 1 in 3 full-time workers have experienced a pay cut due to the coronavirus pandemic this year, according to a recent MagnifyMoney survey of 984 professionals surveyed Nov. 6 to 11.

If you were employed throughout all of 2020 and you are still able to pay all of your bills on time, you should be very thankful for your blessings, because you are now in the minority.

For most Americans, the past 12 months have been exceedingly painful, and this new round of lockdowns promises to extend the economic suffering long into 2021.

Some industries that were absolutely devastated by the first round of lockdowns are officially in panic mode at this point.  For example, we have already permanently lost approximately 17 percent of all of the restaurants in the entire country, and the National Restaurant Association is warning that 10,000 more could permanently shut down “in the next three weeks”…

About 17% of America’s restaurants have already permanently closed this year, with thousands more on the brink according to a new report.

The National Restaurant Association is publicly pleading with Congress to pass new stimulus to help the industry that has been damaged by the pandemic. The group said Monday that 10,000 restaurants could close in the next three weeks, in addition to the 110,000 that have already shuttered in 2020.

Even during the best of times, running a successful restaurant is exceedingly difficult.  The margins are razor thin, new competition is always popping up, and employees are constantly coming and going.

When you add a global pandemic on top of all of that, it has become almost impossible for many eateries to keep going, and we are being told that the future for the industry looks quite “bleak”…

• 87% of full-service restaurants (independent, chain, and franchise) report an average 36% drop in sales revenue. For an industry with an average profit margin of 5%-6%, this is simply unsustainable. 83% of full-service operators expect sales to be even worse over the next three months.
• Although sales are significantly lower for most independent and franchise owners, their costs have not fallen by a proportional level. 59% of operators say their total labor costs (as a percentage of sales) are higher than they were pre-pandemic. 
• The future remains bleak. 58% of chain and independent full-service operators expect continued furloughs and layoffs for at least the next three months.

Of course it isn’t just the restaurant industry that is laying off workers in large numbers.

Just about every day there are more major layoff announcements in the news, and many experts are expecting the job loss numbers to accelerate as we make the transition into 2021.

Without paychecks coming in, millions of unemployed Americans are unable to pay the bills, and we are being warned that we could be facing a historic tsunami of evictions starting just after the holiday season…

The day after Christmas, the extended unemployment benefits that have kept 12 million people and their families afloat are scheduled to expire. Then, mere days after that cliff, on New Year’s Day, a national ban on renter evictions from the Centers for Disease Control and Prevention is also set to lapse.

Overnight, an unprecedented bill of $70 billion in unpaid back rent and utilities will come due, according to estimates by Moody’s Analytics Chief Economist Mark Zandi. In all, up to 40 million people could be threatened with eviction over the coming months, research from the Aspen Institute says.

The politicians insist that they are keeping us caged up for our own good, but the truth is that they are absolutely destroying millions upon millions of lives in the process.

There is a lot of debate about whether or not the lockdowns have helped to prevent the spread of the virus, but what we do know is that thousands of businesses have been permanently destroyed, millions of jobs have been lost, more people are committing suicide, and Americans are increasingly engaging in self-destructive behaviors…

Overall, one in three Americans report binge drinking during the coronavirus pandemic. The average person also reports spending about four weeks in lockdown this year; spending 21 hours a day at home. More than seven in 10 people in the survey did not even leave their home for work.

If we cannot even handle the COVID pandemic, how in the world is our society going to be able to handle what else is coming?

As things continue to unravel all around us, people are going to be in great need of hope.

Millions of Americans are already in “survival mode”, and the road ahead is certainly not going to get any easier.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  I encourage you to follow me on social media on Facebook, Twitter and Parler, 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 as many people as we possibly can.

The post Bracing For A Very Painful Year: 38% Of Americans Say That They Will Spend 2021 In “Survival Mode” appeared first on The Economic Collapse.

Normally, Federal Reserve officials try very hard to be relentlessly optimistic.  But during a European Central Bank panel discussion on Thursday, Federal Reserve Chair Jerome Powell openly admitted that “we’re not going back to the same economy”…

“We’re not going back to the same economy,” Powell said. “We’re recovering, but to a different economy and it will be one that is more leveraged to technology, and I worry that it’s going to make it even more difficult than it was for many workers.”

The central bank leader said he was referring specifically to “relatively low-paid public-facing workers who are bearing this brunt,” many of whom are women and minorities.

His use of the phrase “a different economy” really got my attention.

When I am trying to break some really bad news to someone in a gentle way, I will often use the word “different” to describe what things will be like moving forward, and I think that Powell is doing the same thing here.  He knows that there is no way that things will “return to normal” any time soon, and he is quite correct to be particularly concerned about how this will affect low paid workers.

Low paid workers have been losing their jobs at a much higher rate than anyone else, and the job losses just keep rolling in.

On Thursday, we learned that another 709,000 Americans filed new claims for unemployment benefits last week, and that number is more than three times higher than what we witnessed during a typical week in 2019…

The Labor Department report showed an eleventh straight week that new jobless claims totaled below 1 million. But new claims have not yet broken back below 700,000 since the start of the pandemic and have held sharply above levels from before the outbreak. Throughout 2019, new initial unemployment claims were coming in at an average of just over 200,000 per week.

As of October 24th, a total of 21.16 million Americans were bringing home some type of unemployment assistance.

One year ago, that number was just 1.45 million.

In other words, we are in the midst of a national unemployment nightmare.

And many analysts are deeply concerned that the new wave of lockdowns that is now starting to happen around the nation will cause a renewed surge in layoffs…

As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barber shops and retailers. Companies in many sectors could cut jobs or workers’ hours. In recent days, the virus’ resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland, and Oregon.

“The risk may be for more layoffs as coronavirus cases surge and some states impose restrictions on activity,” said Nancy Vanden Houten, an economist at the forecasting firm Oxford Economics.

Yesterday, I discussed the fact that one of the experts on Joe Biden’s new COVID-19 advisory board wants a full national lockdown for at least a month once Biden is in the White House.

Needless to say, that would make the economic depression that we are currently suffering through a whole lot worse.

But of course there are a lot of Americans out there that simply are not going to put up with any more lockdowns.  In fact, one new survey has found that only 49 percent of all Americans “would be very likely to stay home for a month if health officials recommend it”…

Fewer than half of Americans say are very likely to comply with another lockdown, despite growing concerns over the coronavirus pandemic, the latest Gallup polling shows.

About 49% of Americans polled between October 19 and November 1 said they would be very likely to stay home for a month if health officials recommend it following a coronavirus outbreak in their community, down from 67% in the spring.

Millions upon millions of lives were turned upside down by the lockdowns that were previously instituted, and the economic damage caused by another round of lockdowns would be incalculable.

But it appears that more lockdowns are coming anyway, and that means a lot more economic suffering is ahead.

Prior to the pandemic, 38-year-old Victoria Perez was working two jobs, but she quickly lost both of them once COVID came along.  Now she and her children are living in city housing in Oakland, California, and they are just one step away from being homeless…

Among them is Victoria Perez, who was working two delivery jobs before the pandemic struck. Having lost both jobs in the spring, she is now living with her children in city-subsidized housing near Oakland, California, and hoping to avoid homelessness.

The city housing, provided to people at heightened risk of the coronavirus, lasts only through December. Perez, 38, is a cancer survivor.

After the holiday season, what is she supposed to do if she can’t find a new job?

Being homeless is bad enough.  When you add children to the equation, we are talking about the sort of nightmare scenario that nobody should ever have to go through.

Unfortunately, the ranks of the homeless are absolutely exploding all over the country as the U.S. economy crumbles right in front of our eyes.

In 2021, I am anticipating the biggest wave of traffic in the history of The Economic Collapse Blog as our ongoing economic implosion accelerates even more.  I have been hearing from so many people out there that are deeply hurting right now, and I wish that I had better news for everyone.

Sadly, the consequences for decades of exceedingly foolish decisions are catching up with us, and saying that we are heading into a “different economy” is definitely a major understatement.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  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 as many people as we possibly can.

The post Federal Reserve Chair Jerome Powell Admits The Truth: “We’re Not Going Back To The Same Economy” appeared first on The Economic Collapse.

And more layoff announcements keep rolling in with each passing day.  For instance, we just learned that ESPN will be laying off hundreds of workers…

ESPN could lay off hundreds of employees in the coming weeks, sources told Front Office Sports.

One source pegged the potential number of job losses between 300 and 700 employees. Another estimated 400 possible lost jobs.

The cuts are expected to hit hardest among ESPN employees who work behind the camera.

For many, working in sports television is a dream job, and it hurts me to think that many of those employees will soon lose jobs that they truly love.

Elsewhere, Amtrak has just announced that they could soon be eliminating 2,400 more jobs…

Amtrak will need to cut 2,400 more jobs and could see “drastic impacts” on its rail service if Congress does not intervene and provide emergency funding for the passenger rail provider, the company announced Thursday.

In a letter to lawmakers, Amtrak President and CEO William Flynn requested nearly $4.9 billion in fiscal year 2021 to help it close massive budget gaps it faces amid the pandemic.

I know that I am probably boring my readers by discussing layoff announcements day after day after day, but I am trying to make a very important point.

We are not in any sort of a “recovery”.  Instead, we have entered a horrifying economic downturn which isn’t going to end any time soon.

If they actually believed that it was going to end soon, all of these big corporations would not be laying off large numbers of workers.

And without jobs, a whole lot of people out there are deeply, deeply suffering.

Right now, millions upon millions of Americans haven’t been paying rent, haven’t been paying their mortgages, haven’t been making their vehicle payments and haven’t been making their credit card payments.

And I was absolutely stunned to learn that payments are being made on only 11 percent of federal student loans right now…

Less than 11% of people with federal student loans are repaying them during the pandemic, according to data analyzed by higher education expert Mark Kantrowitz. That means about 4.6 million out of 42 million borrowers are continuing to pay down their debt.

Eventually the federal government will be requiring everyone to start making their payments again, but for now this break is helping a lot of people get through this very challenging time.

But when will this challenging time finally be over?

After the election?

In 2021?

So many Americans are looking forward to having economic conditions return to “normal”, but the truth is that our entire system is in the process of melting down and things are never going to be as good as they once were.

For decades, we enjoyed an unprecedented bubble of debt-fueled prosperity that allowed us to have a massively inflated standard of living, but now that bubble is bursting.

But for the moment, there is still one bubble that has stubbornly refused to end.  Thanks to the Federal Reserve, stock prices continue to go up even in the midst of this economic depression, and this has made the gap between the ultra-wealthy and the rest of us wider than ever before…

The poorest 50 percent of Americans, or roughly 165 million people, collectively owned about $2.08 trillion in wealth in the second quarter of 2020, according to Federal Reserve data released last week.

That’s less than the net worth of the nation’s 59 richest billionaires, who have a combined fortune of about $2.09 trillion, Bloomberg’s Billionaires Index shows — a number that’s grown this year despite the COVID-19 crisis kneecapping the global economy.

Just think about that.

59 Americans have as much wealth as the 165,000,000 poorest Americans combined.

And overall, billionaires around the world are now worth more than 10 trillion dollars…

Billionaire wealth reached record high levels amid the COVID-19 pandemic, a report by UBS and PwC found, as a rally in stock prices and gains in technology and healthcare helped the wealth of the world’s richest break the $10 trillion mark.

The report, covering over 2,000 billionaires representing some 98% of the cohort’s total wealth, found billionaire wealth grew by more than a quarter during the early months of the pandemic to reach $10.2 trillion in July, breaking the previous record of $8.9 trillion at the end of 2019.

Meanwhile, Americans are lining up for miles to get handouts at food banks all over the nation, and it is being projected that more than 50 million Americans will soon not have enough food to eat on a regular basis.

But the mainstream media is going to continue to try to put a happy face on things.  In fact, they are telling us that “stocks will probably rise no matter who wins the presidential election”, and that has to be music to the ears of most wealthy investors.

Of course it is just a matter of time before a day of reckoning comes for those wealthy investors too.

I believe that the months ahead are going to represent a major turning point for our country.  Millions of Americans will have their hopes brutally crushed by the outcome of this upcoming election, and millions of others will be plunged into despair as our nation continues to be rocked by one major crisis after another.

If your life is defined by the system that the elite have created, the times that are approaching are going to be exceedingly difficult for you because that system is failing.

But if you choose to live for the things that really matter, you won’t be overwhelmed no matter how bad things get.

And as bad as things are right now, the truth is that all of this is nothing compared to what is eventually coming.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  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 as many people as we possibly can.

The post The number of Americans that have filed for unemployment benefits in 2020 exceeds the number that voted for Trump in 2016 appeared first on The Economic Collapse.

Retail store closings in the U.S. reached a record in the first half of 2020 and the year is on pace for record bankruptcies and liquidations as the Covid-19 pandemic accelerates industry changes, particularly the shift to online shopping, according to a report on the downturn’s severity.

Apparel retailers have been hit particularly hard during this pandemic, and it has been extremely sad to see some of the most iconic brands in the entire industry reach the end of the line…

Among the notable companies that went belly-up over the summer are Lord & Taylor and its subsidiary, Le Tote; Tailored Brands, which is the parent company of Men’s Wearhouse and Jos. A. Bank; and Ann Taylor’s corporate parent Ascena Retail Group.

But it isn’t just the retail industry that is being utterly devastated.

According to Zero Hedge, there has been a “40% eruption in bankruptcy filings” in New York City so far in 2020, and one bankruptcy lawyer is warning that “there will be an avalanche of bankruptcies” as we approach the end of the year…

While Wall Street panic buys stocks again, on hopes Washington can pass the next round of much-needed economic stimulus, the broader commercial real estate market continues to implode and nowhere more so than the epicenter in New York City, where nearly 6,000 business closures, has resulted in a 40% eruption in bankruptcy filings across business districts of all five boroughs this year, reported Bloomberg.

Al Togut, a bankruptcy lawyer who has handled insolvencies for small firms to mega-corporations, said, “by late fall, there will be an avalanche of bankruptcies … When the cold weather comes, that’s when we’ll start to see a surge in bankruptcies in New York City.”

So does that sound like things will be getting better or does that sound like things will be getting worse?

I know that the answer is obvious.  I am just trying to make things crystal clear for those that have been deluded into thinking that we are headed for some sort of a “recovery”.

As more businesses collapse, more workers will lose their jobs.  So even though we have already seen more than 60 million American workers file new claims for unemployment benefits in 2020, more waves of unemployment are still on the way.

For example, we just learned that KPMG will be eliminating 1,400 jobs.  Those are good paying jobs and they will not be easy to replace.

Not to be outdone, Disney has announced that they will be laying off 20 times as many workers…

Disney is set to lay off around 28,000 employees in the United States as prolonged closures and limited attendance have decimated its theme park business.

The announcement was made in a letter to employees Tuesday from Josh D’Amaro, Disney’s head of parks, who detailed several ‘difficult decisions’ the company has been forced to make amid the ongoing pandemic.

Personally, I think that it is very cruel for Disney to do this.

They have made countless billions of dollars off of all of us over the past several decades, and they are in absolutely no danger of going bankrupt.

So can’t they come up with a little bit of cash to pay those workers during these tough months?

On the other hand, the airline industry is actually on the verge of a historic implosion, and we are being told that 100,000 workers could soon lose their jobs if they don’t get a massive bailout from the federal government.  The following comes from Wolf Richter…

October 1 is the day US airlines that accepted their portion of the $25-billion bailout under the CARES Act can start involuntary layoffs of their employees. They’ve been shedding large numbers of employees since March but through voluntary buyouts, early retirements, and other programs that induced employees to temporarily or permanently leave. Now the airlines are engaged in a desperate lobbying effort to get legislation signed into law that would provide the next $25-billion bailout package. Threats have been flying, so to speak, to motivate Congress to get this done.

American Airlines CEO Doug Parker told CBS News on Sunday that if there isn’t a new bailout program, “there are going to be 100,000 aviation professionals who are out of work, who wouldn’t be otherwise.” This would include the 18,000 employees American Airlines has threatened to lay off.

With everything that is going on, I don’t have any idea how so many Americans can still feel so confident about the economy right now.

It just doesn’t make any sense.

Perhaps this is another sign of how self-involved we have all become.  If you haven’t lost your job and nobody you know personally has lost a job, perhaps things still seem okay in your little world.

But for many Americans, this economic downturn has quickly become a horror show.  In Philadelphia, a housekeeper named Kat Payne was “furloughed” from her hotel job back in March, and now trying to figure out how to survive has become part of her daily routine…

Most mornings, Kat Payne calls a family meeting and talks with her children about how — or if — they are going to be able to pay their bills each month. It’s a routine she began after she was furloughed from her job as a housekeeper at the Philadelphia Marriott Downtown in March.

Payne, along with her 27-year-old daughter Kipati and 28-year-old son Atrayu, gather in their North Philadelphia living room, with the household bills in hand. She reviews the mortgage payments and her retirement and savings accounts with her children.

At this point, Payne has not been able to pay her mortgage for four months in a row, and she just received a letter with some more devastating news…

Payne, 51, a single parent, recently received a letter from Marriott, which she reads out loud to her children: “We’re extending your layoff until December 31, 2020.”

Could you imagine being in her shoes?

What would you do?

Unfortunately, there are tens of millions of other Americans just like her that are deeply hurting right now, and economic conditions are only going to get worse in 2021 and beyond.

With each passing month, more businesses are going to crumble, more workers are going to lose their jobs, and more financial stress is going to be put on the system.

All of the dominoes are starting to fall, and every day there are more headlines that tell us that our society is coming apart at the seams.

I have been warning my readers for a very long time that this was coming, and now that it is here there will be no escape.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

The post This Explosion Of Bankruptcies And Layoffs In The United States Is Unlike Anything We Have Ever Seen Before appeared first on The Economic Collapse.

When economic numbers start getting really bad, the government often decides to “modify” how they are calculated, and on Thursday the Labor Department announced that it will be “changing how it adjusts weekly jobless-claims figures for seasonal swings”.

Presumably, that should help the numbers look a bit better starting next week.

But no matter how much they massage the numbers, they can’t erase the fact that tens of millions of people are deeply hurting right now.  According to one new survey, 61 percent of Americans need “another relief bill”, and about two-thirds of Americans from the age of 24 to the age of 54 say that they are currently in financial distress…

The latest survey by MagnifyMoney reveals 61 percent of the country needs another relief bill to pay for expenses. Over 80 percent of workers who have been laid off or furloughed due to COVID-19 are counting on more assistance. The poll of 1,010 Americans adds 71 percent of Generation X (ages 40 to 54) and 65 percent of millennials (ages 24 to 39) say they are currently in financial distress.

If you are not in financial distress at this moment, you should be very thankful for your blessings, because you are definitely in the minority.

And more layoff announcements just keep on coming with each passing day.  On Thursday, we learned that Lord & Taylor will be laying off all their workers and closing every single store…

Lord & Taylor, the first department store established in the United States, is officially going out of business, ending a nearly 200-year run.

The bankrupt company announced Thursday that all of its 38 remaining stores and website have begun liquidation sales — a reversal from last week’s decision to keep 14 locations open.

When I was a kid, I was always so intimidated by Lord & Taylor when my mother would take me to the mall.

I always thought that was where the rich people shopped.

I never imagined that someday I would see it go out of business forever.

Of course countless other retailers are going belly up as the worst “retail apocalypse” in U.S. history rolls on.  According to Coresight Research, approximately 25 percent of all malls in the United States “will close over the next three to five years”…

Another new report out this week from Coresight Research estimates 25% of America’s roughly 1,000 malls will close over the next three to five years, with the pandemic accelerating a demise that was already underway before the new virus emerged.

Can you imagine what our country is going to look like if that actually happens?

Already, communities all over America are being blighted by one boarded up property after another, and this is especially true in many impoverished areas.

Of course our economic problems have been accelerated by a series of very unusual events that have been beyond our control.  It has been one thing after another here in 2020, and the latest major disaster to hit us was Hurricane Laura.  We were extremely fortunate that neither New Orleans or Houston took a direct hit from this storm, because it was enormously destructive.  Just consider what one survivor told the press about the devastation in his community…

“It looks like 1,000 tornadoes went through here. It’s just destruction everywhere,” said Brett Geymann, who rode out the storm with three family members in Moss Bluff, near Lake Charles, Louisiana. He described Laura passing over his house with the roar of a jet engine around 2 a.m.

Let us hope that we will have at least a little bit of time before the next major crisis comes along.  Many had been hoping that August would be a quiet month, but that didn’t turn out to be the case, and now September is just a few days away.

And as we approach the fall season, it is being reported that wealthy investors have been “hoarding cash”…

A group of multimillionaire investors in the U.S. are hoarding cash at unprecedented levels.

Tiger 21, a club of more than 800 investors, reported Thursday that its members have raised their cash holdings to 19% of their total assets on concerns over the economic consequences of the covid pandemic in the U.S. That’s up from about 12% since the start of the outbreak. About a quarter now expect the crisis to continue until the end of next June, the group said.

Is this a sign that many of them believe that trouble is ahead for the financial markets?

Of course it isn’t just the wealthy that are deeply concerned about the months ahead.  Our nation has been gripped by endless turmoil for most of this year, and now a very hotly contested presidential election is just over two months away.  Meanwhile, economic conditions will continue to deteriorate, and that means that tens of millions of Americans will become even more angry and even more frustrated.  If you believe that the U.S. is just going to snap out of all of this somehow and everything will turn out just fine in the end, then you simply do not understand the times in which we are living.

For so long we were warned that a “perfect storm” was coming, and now it is here.

And if you think that 2020 has been bad, just wait until you see what else is ahead.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

The post Things Have Gotten So Bad That A Million New Claims For Unemployment Benefits In One Week Is Considered “Good News” appeared first on The Economic Collapse.

Another group of people that I feel really badly for are all the business owners that have had their dreams absolutely shattered.  Starting a small business from nothing and building it into a success takes a massive amount of work, and I have a tremendous amount of respect for anyone that is able to do that.

Unfortunately, so many once thriving small businesses have now been destroyed by the events of 2020.  For a lot of those small business owners, it isn’t just time and energy that have been lost.  When you make your small business your passion, it becomes a part of who you are, and a lot of small business owners will never be the same again after this.

So please keep in mind that there are real people and real dreams behind each of the numbers that I am about to share with you.  The following are 17 facts that prove the U.S. economy is a complete and total disaster zone at this point…

#1 According to the San Francisco Chamber of Commerce, more than half of all the storefronts in the entire city of San Francisco are no longer in business.

#2 Just a few hours ago, New York City reported that it had an unemployment rate of almost 20 percent during the month of July.

#3 Speaking of New York, 83 percent of all restaurants in the city were unable to pay their full rent last month.

#4 In 2020, the state of Louisiana has lost twice as many jobs as it did after Hurricane Katrina.  By the way, many are concerned that Hurricane Laura could soon become a similar monster storm.

#5 In the state of South Carolina, an eye-popping 52 percent of all renters “are at risk of eviction”.

#6 Americans now owe more than 21 billion dollars in unpaid rent.

#7 Overall, 27 percent of all Americans did not make their rent or mortgage payment last month.

#8 According to the Mortgage Bankers Association, the delinquency rate on residential mortgages increased by 386 basis points last quarter.  That was the most rapid rise that we have ever seen by a very wide margin.

#9 U.S. bankruptcies are already at their highest level in 10 years and they are expected to surge dramatically as we approach the end of this calendar year.

#10 For companies with more than 1 billion dollars in assets, it is being projected that there will be a record number of bankruptcies in 2020.

#11 World trade plunged to the “lowest levels on record” during the month of June.

#12 The percentage of hotel mortgages that are 30 or more days delinquent soared to a whopping 23.4 percent last month.

#13 American Airlines just announced that they will be eliminating 19,000 jobs next month.

#14 31 percent of U.S. workers that were brought back to work after being laid off during the early stages of this pandemic have been laid off a second time, and another 26 percent have been told that layoffs may be coming soon.

#15 According to one recent survey, about half of all U.S. workers that have been laid off during this pandemic believe that their jobs losses are permanent.

#16 The IRS is projecting that it will receive 37 million fewer W-2 forms for this year than originally anticipated.

#17 Over the last 22 weeks, more than 57 million Americans have filed new claims for unemployment benefits.  In all of U.S. history, we have never seen anything that is even worth comparing to this.

Many of the numbers in that list are so catastrophic that it is difficult to believe that they are actually true.

What we experienced back in 2008 and 2009 was a “deep recession”, but what we are experiencing now is so much worse.

And at this point even the mainstream media is admitting that this new downturn will be with us for a long time.  For example, the following comes from a CNN article entitled “We’ll be stuck in this economic slump for years, economists say”…

America remains in a deep downturn and is running a serious risk of a worsening recession that will last at least another year, economists warned Monday.

About half of the National Association of Business Economics members expect US gross domestic product — the broadest measure of the economy — won’t return to its pre-pandemic level until 2022. A majority of those experts also say the US job market will be back to its February level in 2022 at the earliest.

Unfortunately, those projections are actually way too optimistic.  Industry after industry is in the process of unraveling, major economic bubbles are bursting all around us, and the economic pain that is on the horizon is going to dwarf what we are going through at this moment.

The mainstream media admits that a “collapse” has happened, but they still believe that eventually things will turn around and get back to where they were before.

And there are some people out there that actually believe that America’s greatest days of economic prosperity are still ahead of us.

You can go ahead and believe that if you want, and I definitely understand that many people would prefer to be optimistic about the future.

But sticking our heads in the sand won’t make the facts go away.  It has taken decades of catastrophic decisions to get us to this point, and anyone that thinks we can just snap our fingers and turn things around is just being delusional.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

The post 17 Facts That Prove The U.S. Economy Is A Complete And Total Disaster Zone At This Point appeared first on The Economic Collapse.

It would actually be wonderful if they were right.

But they aren’t.

At this point, everyone should be able to clearly see that we have entered a new economic depression.  And I wish that I could tell you that a “recovery” was right around the corner, but I can’t.

On Thursday, we got yet another sign that this downturn is here for the long haul.  According to the Labor Department, approximately 1.2 million Americans filed new claims for unemployment benefits last week…

Four months after the COVID-19 pandemic largely shut down the economy and left millions of Americans out of work, employers continue to lay off workers at a historic pace.

About 1.2 million people last week filed initial applications for unemployment insurance – a rough measure of layoffs – the Labor Department said Thursday, down substantially from 1.4 million the previous week and the lowest level since March.

Initially, I thought that this was good news.

1.2 million is still a catastrophic number, but at least it appeared to be an improvement over last week’s level of 1.4 million.

Unfortunately, there is more to the story.

As Wolf Richter has pointed out, when you look at the unadjusted numbers and you include all state and federal programs, the number of continuing unemployment claims increased by a whopping 1.3 million last week…

The total number of people who continued to claim unemployment insurance under all state and federal unemployment programs jumped by 1.3 million from the prior week to 32.12 million (not seasonally adjusted), the Department of Labor reported this morning. It was the second highest ever.

That would seem to indicate that unemployment is dramatically surging, and that is really bad news for an economy that is already deeply suffering.

Overall, more than 55 million Americans have now filed initial claims for unemployment benefits over the past 20 weeks.  That is a number that should be almost theoretically impossible, but this is actually happening.

Prior to this year, the all-time record for new unemployment claims in a single week was just 695,000, and now we have been above a million for 20 consecutive weeks.

Up until recently, a weekly $600 unemployment supplement from the federal government had been helping tens of millions of unemployed Americans pay their bills, but now that supplement has expired and Congress has not yet agreed to another one.

As a result, the economic suffering of countless American families just got a whole lot deeper…

An unemployed makeup artist with two toddlers and a disabled husband needs help with food and rent. A hotel manager says his unemployment has deepened his anxiety and kept him awake at night. A dental hygienist, pregnant with her second child, is struggling to afford diapers and formula.

Around the country, across industries and occupations, millions of Americans thrown out of work because of the coronavirus are straining to afford the basics now that an extra $600 a week in federal unemployment benefits has expired.

Over the past couple of months, I have been hearing from a lot of people that believe that all of those unemployed workers should just get off their couches and go get new jobs.

I wish that it was that easy.  Good jobs are becoming increasingly scarce, and the competition for those jobs is only going to get more fierce because a “second wave of layoffs” has now begun.  The following comes from Fox Business…

A second wave of layoffs is hitting American workers during a surge in coronavirus cases nationwide, and a Congressional stalemate over stimulus relief, according to a new survey by Cornell University and RIWI.

The researchers conducted the survey between July 23 and Aug. 1, and found that 31% of workers who had been placed back on payrolls after initially being laid off have now been laid off for a second time. Additionally, 26% of rehired workers say they’ve been told that they may be laid off again.

I know that I included that quote in yesterday’s article, but I wanted to share it again because it is so important for people to understand what is really going on out there.

Millions of jobs that were lost in the first wave of layoffs are never coming back, and now millions of jobs that actually came back are being lost again.

In other words, instead of witnessing a “recovery” we are witnessing an “unraveling”.

I know that a lot of people don’t like when I talk like this.

But I am not here to make you feel good.  I am here to tell you the truth.

We are in the midst of an economic nightmare, and even Bloomberg is admitting that conditions in the U.S. are becoming a lot more miserable…

The US is projected to undergo the biggest increase in economic misery across 60 countries as the nation grapples with heightened unemployment and fresh coronavirus hotspots.

Bloomberg’s Misery Index, which ranks major economies by inflation and unemployment expectations, shows the country sinking to rank 25 from rank 50 in 2020. Venezuela, Argentina, and South Africa held their spots as the world’s most miserable economies.

And every day more businesses are shutting down, more workers are being laid off and more dreams are being shattered.

The consequences of literally decades of incredibly foolish decisions are catching up with our nation, and this economic depression will ultimately get a whole lot worse.

So instead of sticking your head in the sand and hanging on to the delusion that everything is going to be just fine somehow, I would very much encourage you to work very hard to get prepared for the nightmarish years that are ahead of us.

***It is finally here! Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

The post The Economic Depression Of 2020 Is Becoming An Endless Nightmare For Millions Of Americans appeared first on The Economic Collapse.

According to data released last week by the Bureau of Economic Analysis, almost all kinds of food have seen an increase in its price since February. Beef and veal prices are up a staggering 20.2% since before the pandemic, while other staples like eggs (10.4%), poultry (8.6%) and pork (8.5%) have also seen significant increases.

If prices keep going up like this, a lot of American families are going to have to start cutting beef out of their diets simply because they cannot afford it anymore.

And of course these price increases are coming at a really bad time, because we are in the midst of a historic economic downturn.  When an Oregon woman named Bella Flores recently took her monthly trip to the grocery store, she was shocked by how much prices have gone up…

Medford resident Bella Flores says she felt the shock when she recently went to the store to pick up her monthly items.

“It kept going up, $50 and then $69, I’m like oh crap man it’s a lot,” she said.

Actually, if I could get out of the grocery store with a bill of only 69 dollars I would be jumping for joy.

These days, it seems like you can’t even get a full cart of groceries for under 200 dollars where I live.

Sadly, more price increases are on the way.  Demand is going to remain high, and many food companies will continue to operate at reduced levels.  For example, just consider what the CEO of Tyson Foods recently had to say…

During a recent call with analysts discussing third-quarter financial results, Tyson (TSN) CEO Noel White said that some of the company’s facilities “continue to operate at decreased production levels.”

With food prices already at such elevated levels, the Federal Reserve has decided that now is a perfect time to jack up inflation even more.  The following comes from a CNBC article entitled “The Fed is expected to make a major commitment to ramping up inflation soon”…

In the next few months, the Federal Reserve will be solidifying a policy outline that would commit it to low rates for years as it pursues an agenda of higher inflation and a return to the full employment picture that vanished as the coronavirus pandemic hit.

Recent statements from Fed officials and analysis from market veterans and economists point to a move to “average inflation” targeting in which inflation above the central bank’s usual 2% target would be tolerated and even desired.

Isn’t that wonderful?

You can almost always count on the Federal Reserve to do the wrong thing.

Meanwhile, Fox Business is reporting that a “second wave of layoffs” has now hit the economy…

A second wave of layoffs is hitting American workers during a surge in coronavirus cases nationwide, and a Congressional stalemate over stimulus relief, according to a new survey by Cornell University and RIWI.

The researchers conducted the survey between July 23 and Aug. 1, and found that 31% of workers who had been placed back on payrolls after initially being laid off have now been laid off for a second time. Additionally, 26% of rehired workers say they’ve been told that they may be laid off again.

Those numbers are absolutely staggering.

We already knew that millions upon millions of the jobs that were originally lost are never coming back, and now we are learning that millions of the jobs that were actually regained are being lost again.

So what this means is that at the exact same time that food prices are skyrocketing, countless Americans find themselves out of work and no longer have paychecks coming in.

What a nightmare.

And this may help to explain why the U.S. Census Bureau is finding that so many Americans are missing meals right now…

This week the US Census Bureau published results of a survey in which nearly 30 million out of 249 million respondents said they did not have enough to eat at some point in the week before July 21. It was the highest number of people reporting insufficient food since the Census started tracking that information in early May.

During the first half of this year we witnessed lines at food banks that were up to two miles long, and we are likely to see similar scenes throughout the rest of 2020.

But the good news is that the U.S. is still in better shape than much of the rest of the world.  As I have detailed previously, giant armies of locusts have been devastating crops in Africa, the Middle East and Asia, and now it is being reported that they have decided to invade Russia…

Locust swarms have invaded Russia’s southern regions causing colossal damage to the local agriculture.

According to regional authorities, the damage is estimated at over 13 million US dollars.

A state of emergency has been declared in seven parts of the republic of Kalmykia, according to the Emergency Ministry.

Meanwhile, “nearly one-third of China has been impacted by severe flooding”, and that is having a dramatic affect on crop production over there.

Even during the best of times, we struggle to feed everyone on the entire planet, and here in 2020 global food production has been hit by a whole host of major problems.

I fully expect that global food supplies will increasingly become tighter, and that has very serious implications for the years ahead of us.

Yes, food prices are already very high, but now is the time to stock up because they are only going to go higher.

Unfortunately, there are millions upon millions of Americans that can’t afford to stock up because they have already lost their jobs and no longer have any income coming in.

***It is finally here! Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

The post Food Prices Rise To Dangerous Levels As “A Second Wave Of Layoffs” Hits The U.S. Economy appeared first on The Economic Collapse.

In April, 78% of those in households experiencing job loss felt that that situation would be temporarily. But now, 47% think that job loss is likely to be permanent, according to The Associated Press-NORC Center for Public Affairs Research.

What that number tells us is that we are facing the worst employment crisis since the Great Depression of the 1930s.

All of those permanently unemployed workers are eventually going to need new jobs, but meanwhile the U.S. economy as a whole is in a free fall that is absolutely stunning.  On Thursday, we are scheduled to get the GDP number for the second quarter, and everyone is expecting that it will be really bad…

Data due Thursday are forecast to show U.S. gross domestic product plummeted an annualized 34.8% in the second quarter, the most in records dating back to the 1940s, after the spread of Covid-19 prompted Americans to stay home and states to order widespread lockdowns.

This downturn has been particularly hard on small businesses.  Just check out these numbers…

• Yelp reported 71,500 businesses that were listed on their site have closed for good since March 1.

• 80% of independent restaurants aren’t sure they’ll survive the COVID-19 pandemic.

• Nearly half of all small-business members of the San Francisco Chamber of Commerce lost 100% of their sales or closed down completely.

What a nightmare.

But the third quarter was when the U.S. economy was supposed to come roaring back to life.

We were told that it would be the greatest economic comeback in our history, but instead the numbers are telling us that the economy is actually starting to slow down once again.

In fact, U.S. consumer confidence in July is much lower than it was in June…

U.S. CONSUMER confidence fell in July to a reading of 92.6 as coronavirus cases surged around the country, shuttering some bars and other businesses and raising concerns about the future of the economy.

The Conference Board reported Tuesday that the index fell in July from a reading of 98.3 in June. The drop is more significant than economists predicted, and is due mainly to a decrease in consumers’ economic expectations for the short-term future.

In addition, we just witnessed the largest decline in wholesale inventories since the peak of the last financial crisis…

June was supposed to be the month of second-derivative beats in economic data, reaffirming the manic bid in stocks. For Wholesale Inventories it was not.

Against expectations of a rebound from a 1.2% drop in May to a 0.5% drop in June, wholesale inventories actually tumbled 2.0% MoM, the worst since the peak of the great financial crisis…

So it doesn’t look like any sort of a “recovery” is happening.

Instead, it appears that we are sliding into the next chapter of this new economic depression.

In June, 19 percent of all U.S. small businesses were closed, but now that number is up to 24.5 percent.

That certainly isn’t progress.

With each passing day, more companies are announcing layoffs.  And every worker that gets laid off is another American that doesn’t have a paycheck to spend.  During the last recession, millions of Americans slid out of the middle class, and we are watching it happen again.

Our elected leaders in Washington are desperate to do something about this, and almost all of them seem to agree that more socialist programs are the answer.  A fifth “stimulus bill” is being put together, and the Urban Institute is warning that if Congress does not hurry we could see the poverty rate in this country rise substantially…

Millions more Americans will be thrown into poverty if Congress fails to enact three policies meant to help families get through economic hardships related to the pandemic, according to a new study by the Urban Institute.

The report finds that the poverty rate for the last five months of 2020 will rise to 11.9% if expanded unemployment-insurance benefits, a second round of stimulus checks, and increased SNAP allotments are not approved, a significant increase over the projected annual rate of 8.9%.

If the Urban Institute thinks that an 11.9 percent poverty rate is bad, just wait until they see what things will be like in this country a few years from now.

Our entire system is in the process of melting down, but it will take some time for the drama that we are watching to fully play out.  Our leaders in Washington and the bureaucrats over at the Federal Reserve will keep flooding the system with money in a misguided attempt to fix things, and this will result in exceedingly painful inflation.

The cost of everything (including essentials such as food) will be going way up, and that means that your money will increasingly become less and less valuable.

If you could print your way to prosperity, Venezuela and Zimbabwe would be the wealthiest nations on the entire planet today.

At this point, almost everyone in Venezuela is a “millionaire”, but almost everyone is also living in extreme poverty.

History has shown that wildly printing money doesn’t work, but the U.S. is going down the exact same path, and it isn’t going to be pretty.

Even though things are quite crazy out there right now, this is our window of opportunity to get prepared for the troubled times that are ahead, because things are not going to be getting any easier from here on out.

*It is finally here! Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.*

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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 as many people as we possibly can.

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