Societal Collapse

This Global Depression Will Be Brutal – Tens Of Millions Of Americans Can’t Pay Their Bills And Are In Danger Of Eviction

August 10, 2020August 10, 2020 by Michael

Most of us have never experienced anything like this in our entire lifetimes. Fear of COVID-19, endless civil unrest in major U.S. cities and a whole host of other factors have combined to plunge us into the worst economic downturn since the Great Depression of the 1930s. On Friday, the Labor Department announced that the unemployment rate in the U.S. fell to just 10.2 percent last month, and if that number was actually accurate that would be pretty good news. Unfortunately, it simply does not square with all of the other numbers that we have been seeing. According to John Williams of shadowstats.com, if honest numbers were being used the unemployment rate would actually be 30 percent right now, and I believe that figure is much closer to the reality that we are facing. In February, 152 million Americans were working, and since that time more than 55 million have filed new claims for unemployment benefits. Unless tens of millions of those people have been filing fraudulent claims, there is no way in the world that the unemployment rate should be about 10 percent right now.

Other numbers tell a similar story. According to one recent study, 24 percent of all Americans have missed at least one bill payment since the start of the COVID-19 pandemic…

Indeed, paying off bills are an unavoidable part of life, even during a pandemic. Unfortunately, a new survey of 2,000 Americans finds that one in four (24%) have already missed at least one payment since the pandemic began.

Among that group, 26% say they haven’t paid their cell phone or cable bills. Another 25% failed to pay for streaming services, and perhaps more worryingly, some of their electricity or utilities bills.

That doesn’t sound like a recovery.

What that sounds like is an economic depression.

Americans are also missing their rent and mortgage payments at a staggering rate as well. In fact, more than one-fourth of the entire country did not pay their rent or mortgage payment during the month of July…

An estimated 27% of adults in the U.S. missed their rent or mortgage payment for July, according to a nationwide survey conducted by the U.S. Census Bureau weekly over the last three months. Among renters alone, just over one-third (34%) said during the waning days of July that they had little to no confidence that they could make their August rent payment, a stark measure of the ongoing economic devastation for households stretched to the brink by coronavirus pandemic.

But we are supposed to believe that the unemployment rate is only about 10 percent right now.

Right…

In some states, the looming eviction crisis threatens to be absolutely catastrophic.

For example, we are being told that in South Carolina a whopping 52 percent of all renters “are at risk of eviction”…

In South Carolina alone, 52 percent of renter households can’t pay their rent and are at risk of eviction, according to an analysis of census data by the consulting firm Stout Risius Ross. About 185,000 evictions could be filed in the state over the next four months.

That doesn’t sound like a recovery.

What that sounds like is an economic depression.

And we see similar numbers when we look at businesses owners around the country. If you can believe it, 83 percent of all New York City restaurant owners did not pay all of their rent in July…

The state of the New York City restaurant industry is in dire straits. July proved to be another disastrous month for restaurants, bars, and nightlife establishments across the city with a majority unable to pay rent in July, a new survey found.

NYC Hospitality Alliance surveyed about 500 owners and operators of eateries in the city, with 83% of respondents indicating they couldn’t pay the entire rent in July while 37% paid no rent at all.

83 percent.

Let that number sink in for a moment.

That doesn’t sound like a recovery.

What that sounds like is an economic depression.

And I am certainly not the only one using the “d-word”. The following originally comes from a Time Magazine article entitled “The Next Global Depression Is Coming and Optimism Won’t Slow It Down”…

First, the current slowdown is without doubt global. Most postwar U.S. recessions have limited their worst effects to the domestic economy. But most were the result of domestic inflation or a tightening of national credit markets. That is not the case with COVID-19 and the current global slowdown. This is a synchronized crisis, and just as the relentless rise of China over the past four decades has lifted many boats in richer and poorer countries alike, so slowdowns in China, the U.S. and Europe will have global impact on our globalized world. This coronavirus has ravaged every major economy in the world. Its impact is felt everywhere.

You have probably noticed that things are really starting to get crazy out there.

People are getting very desperate, and very desperate people do very desperate things.

In one community in Texas, it is being reported that someone is actually killing horses and eating them…

At least five horses have been killed around Pearland, Texas since late May — but it’s the way they’re being killed and what’s being done to their carcasses that’s particularly disturbing to locals.

Pearland police made their first discovery June 10. Responding to an animal cruelty call along the 14000 block of Kirby Drive, they found a horse, dead and butchered.

You would have to be incredibly twisted to do such a thing, but as I have been warning for a very long time, we are going to see much crazier things in the years ahead.

Of course countless other Americans can also see that society is starting to come apart at the seams, and this has helped to fuel an unprecedented spike in gun sales…

Gun sales surged 135% year-over-year in July to about 2 million and have already matched all of last year, according to a report released earlier this week by research consultancy Small Arms Analytics and Forecasting. Sales were up 145% in June, 80% in May and 71% in April.

We live at a time when rioting, looting and violence are becoming commonplace, and crime rates are absolutely skyrocketing in our major cities.

And the worse economic conditions become, the worse the chaos is going to get.

So I would very much encourage you to set your affairs in order and to get prepared for what is ahead, because the time remaining to do such things is very limited.

***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.

A List Of 50 Things You Should Get Right Now To Prepare For The Chaotic Events Of The Next 12 Months

July 20, 2020 by Michael

People have been asking me to do an article like this for quite some time. In all the years that I have been writing, I have never seen so many of my readers so alarmed about our immediate future. Over and over again, I have been getting emails from people asking for advice about how to prepare for what is ahead, and so many of them are using the word “urgency” to describe what they are feeling. And I can definitely identify with that, because around the middle of last year that is a word that I started using constantly. I felt an urgency about 2020 that I had never felt about any other upcoming year, and there were certain things that I knew that I had to get done. One of those things that I had to get done was my new book, and it is now finished. The plan is to release it this month, and after reading it there will be no doubt about why I have been feeling such a sense of urgency in recent months.

I want to warn you in advance that the list below is not an exhaustive list.

Instead, it is meant to be a very basic starting guide. There are many other things that could (and probably should) be added to this list, and I very much encourage readers to leave comments after this article with their own suggestions and recommendations. We should always be willing to learn from one another, because nobody is an expert on everything.

To me, the four primary priorities for preparing for an emergency scenario are food, water, energy and shelter. Once you have got those four basic areas covered, you can certainly build on that foundation by addressing other considerations.

In the title of this article I use the phrase “the next 12 months”, but I do not mean to imply that everything will be fine after those 12 months are over. In fact, I am convinced that our problems are only going to intensify as time rolls along.

And I certainly hope that you will not need everything on this list during the next 12 months. Hopefully, you will not need to use some of these items for a few years. But this is definitely a great opportunity to purchase many of these things, because a lot of them are only going to become more expensive and more difficult to acquire the worse conditions get.

In putting this list together, I was envisioning a scenario in which most of you will be sheltering at home rather than “bugging out” to an alternative location. In a “bugging out” scenario, this list would look quite a bit different.

Also, I didn’t address self-defense in this list, but without a doubt it is very important. In fact, if you live in or near a major city, it is imperative to have a plan for defending yourself and your family. For years, I have been encouraging readers to move away from the major cities, but for a lot of people that simply isn’t possible at this moment. More than 51 million Americans have filed new claims for unemployment so far this year, and so a good stable job is an extremely valuable thing to have at this moment. If your job is keeping you in a potentially dangerous area right now, you will also want to have a plan for “bugging out” to a more remote location if the need arises.

With all of that being said, the following are 50 things that I am encouraging everyone to stock up on in order to prepare for the chaotic times that are coming…

#1 A Generator

#2 A Berkey Water Filter

#3 A Rainwater Collection System If You Do Not Have A Natural Supply Of Water Near Your Home

#4 An Emergency Medical Kit

#5 Rice

#6 Pasta

#7 Canned Soup

#8 Canned Vegetables

#9 Canned Fruit

#10 Canned Chicken

#11 Jars Of Peanut Butter

#12 Salt

#13 Sugar

#14 Powdered Milk

#15 Bags Of Flour

#16 Yeast

#17 Lots Of Extra Coffee (If You Drink It)

#18 Buckets Of Long-Term Storable Food

#19 Extra Vitamins

#20 Lighters Or Matches

#21 Candles

#22 Flashlights Or Lanterns

#23 Plenty Of Wood To Burn

#24 Extra Blankets

#25 Extra Sleeping Bags

#26 A Sun Oven

#27 An Extra Fan If You Live In A Hot Climate

#28 Hand Sanitizer

#29 Toilet Paper

#30 Extra Soap And Shampoo

#31 Extra Toothpaste

#32 Extra Razors

#33 Bottles Of Bleach

#34 A Battery-Powered Radio

#35 Extra Batteries

#36 Solar Chargers

#37 Trash Bags

#38 Tarps

#39 A Pocket Knife

#40 A Hammer

#41 An Axe

#42 A Shovel

#43 Work Gloves

#44 N95 Masks

#45 Seeds For A Garden

#46 Canning Jars

#47 Extra Supplies For Your Pets

#48 An Emergency Supply Of Cash

#49 Bibles For Every Member Of Your Family

#50 A “Bug Out Bag” For Every Member Of Your Family

Are there certain key items that you would add to this list? If so, please feel free to leave a comment with your thoughts below.

I understand that there are a lot of people out there that are feeling extreme financial stress during this severe economic downturn, and acquiring all of the items on this list may not be possible.

And that is okay. Our job is to do the very best that we can with what we have, and we shall trust God with the rest.

I know that a lot of people out there don’t like it when I write such “negative” articles. But I wouldn’t be doing my duty if I didn’t warn people about what was coming, and I actually believe that articles like this give people a lot of hope.

There is hope in understanding what is coming, there is hope in getting prepared, and there is hope in connecting with others that are also preparing.

Just like we witnessed during the early stages of this COVID-19 pandemic, the people that will be freaking out when things get really crazy will be those that do not understand what is happening and haven’t made any preparations in advance.

Millions upon millions of Americans will not be able to handle the times that are coming, but we prepare because we believe that with God’s help we can make it through all of the storms that are ahead.

If you wish to mock us for being preppers, please feel free to do so, but you also need to be prepared to issue one whopper of an apology when you are forced to turn to one of us for help one day.

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 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 have written four books 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 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 as many people as we possibly can.

Record Temperatures, Long Lines And Increasing Scarcity Will Greatly Test The Patience Of Americans This Summer

July 12, 2020July 12, 2020 by Michael

This is going to be a long, hot summer that none of us is likely to forget any time soon. Coming into this year, we knew that societal tensions would be running high because 2020 is an election year. Many are convinced that this is the most important election in modern American history, and I expect for there to be some extremely shocking surprises as we draw closer to November. Meanwhile, the number of confirmed cases of COVID-19 continues to surge to new heights, and the restrictions that authorities have instituted to fight this pandemic have created a huge backlash. So many people have such extreme emotions about COVID-19, and unfortunately it appears that this crisis is not going away any time soon. Of course the civil unrest that erupted in the aftermath of the tragic death of George Floyd took societal tensions to an entirely new level that we have never seen before. There was rioting, looting and violence all over the nation, and more chaos could literally break out at any moment.

So to say that our national mood is “fragile” right now would be a major understatement. I have never seen so much anger and frustration in this country in my entire lifetime, tens of millions of Americans have already lost their jobs, and a lot of people are not even able to pay their most basic bills at this point. In fact, one recent survey found that nearly a third of all Americans have not even made “their full housing payments for July”…

As the economic fallout from the coronavirus pandemic continues, almost one-third of U.S. households, 32%, have not made their full housing payments for July yet, according to a survey by Apartment List, an online rental platform.

And now, on top of everything else, here comes the heat.

On Sunday, high temperatures were above 100 degrees all over the western half of the country…

Heat alerts are in effect from California to Alabama as high temperatures will be 10-15 degrees above average on Sunday.

Las Vegas, Phoenix, and Tucson will all see high temperatures of at least 110 degrees, and all three are likely to tie or break their daily record high temperatures. In Texas, cities including Dallas, San Antonio, and Lubbock will all exceed 100 degrees.

Unfortunately, Sunday is just the beginning. A “heat dome” has formed over the middle of the country, and that is likely to mean high temperatures of 90 degrees or greater for approximately 80 percent of the nation “for the next few weeks”…

A PERFECT STORM of crises is forming across the United States. Above our heads, a “heat dome” of high pressure could blast 80 percent of the continental US with temperatures over 90 degrees for the next few weeks. This coming in a summer when the Covid-19 lockdown has trapped people indoors, many without air-conditioning—and mass unemployment may mean that residents with AC units can’t afford to run them.

Needless to say, this is not coming at a good time. Crime rates are absolutely soaring and the streets of many of our major cities already resemble war zones.

And during these very hot summer months, many Americans will have to wait in exceedingly long lines for one reason or another. I have written numerous articles about the massive lines that we have seen at food banks around the country, and lines at COVID-19 testing sites have gotten extremely long as well…

Food banks in Vermont and Arizona have miles-long queues of cars. At testing sites in Florida, motorists show up with full gas tanks to keep air conditioning pumping all day. Travel to Europe is off, with America waiting behind other nations to re-enter someday. Even the electronic realm is tied up: Amid 11% unemployment, people applying for benefits report frozen computer screens and abrupt phone disconnections. Sometimes, the reward waiting at the end is simply a chance to try again tomorrow.

I couldn’t imagine waiting “all day” to get tested for COVID-19, but apparently there are a lot of people that are so desperate to get tested that they are willing to do this.

On top of everything else, a wide variety of products are becoming increasingly scarce at our local grocery stores.

This isn’t a major national crisis yet, but you may have noticed that your local grocery store is having a much more difficult time keeping certain products in stock than usual. This is happening because COVID-19 and the accompanying economic slowdown have created serious problems for many key supply chains.

Tony Koretz is the host of “A Minute To Midnite”, and he is also a really good guy that I know personally. Just a few days ago he received an email from “a supply chain analyst for a large grocery chain”, and what this supply chain analyst had to share was extremely chilling. The following is a short excerpt from that email…

— the meeting of store demand — which is a proxy for actual consumer demand — from company-owned central warehouses has steadily declined over the last 4 months; from a 98% pre-COVID fulfillment rate to 58% as of yesterday. Key point: STEADY decline; yes some blips upward from time to time, but overall steady decline to be sure

— what this impacts is the presentation on the shelves; for example: do we have some or no toilet paper, tomato paste, rice and noodles, etc., etc.; you will also see new and unknown brands coming in to substitute for a product, but that is only going to be a temporary stop-gap as these are from 2nd and 3rd tier vendors who may not carry as much clout in getting their own raw-material supply chains filled…these too will dry up and go away over the next 3-6 months (not to mention the effect of absenteeism in their own ranks, leading to an inability to produce said 2nd/3rd tier products)…

— there is also a trend to see less variations on products; for example, we only have 3 variations on tomato paste to put on shelves as-opposed to the 15 we had pre-COVID

— to the folks in the industry, this is known as the presentation and the service level at the shelf in the store; service levels on some harder-hit commodities are near 10% at-best, averaging in the 70% level on an aggregate across all stores/commodities when you carve-out bath tissue, paper towels, baby wipes, disinfectant wipes; comparatively during pre-COVID service levels were in the very high 90’s for all products (sans SEASONAL)…

— Additional contributing factors: in addition to waning vendor fulfilment, we are also seeing more-and-more absenteeism in our warehouses due to COVID cases, fear, exhaustion.

You can read the rest of the email right here. Of course none of this information should surprise us, because it is obvious that grocery stores are having a very difficult time keeping their shelves stocked. But getting this sort of inside information does help us to understand exactly why it is happening.

If you are anticipating that the end of this year and the beginning of next year will be chaotic, the next couple of months will be your best chance to get stocked up.

My suggestion would be to take advantage of this window of opportunity while we have it.

America has entered a time of great upheaval, and much of the country is simply not going to be able to handle the major national nightmares that are ahead of us.

Violent Crime Is Surging Dramatically In Major Cities All Over America

July 6, 2020July 5, 2020 by Michael

What we are witnessing all over the country right now is incredibly sad. In the aftermath of the tragic death of George Floyd, it would have been wonderful to see the entire nation unite behind an effort to make our society less violent, more just and more peaceful. But instead, we have seen a tremendous explosion of violence and lawlessness that doesn’t seem likely to end any time soon. Violent crime rates are surging in major city after major city, and the 4th of July weekend was particularly bad. At least 41 people were hit by gunfire in New York City during the holiday weekend, and this continues a trend that we have seen throughout the first half of 2020. Just check out these numbers…

According to figures released by the New York Police Department, for the first six months of this year, there were 176 murders, an increase of 23 percent on the 143 killed during the same period last year.

The number of shooting victims has gone up 51 percent to 616 this year. In June alone, there were 250 shootings compared to 97 in the same month last year. Month-on-month, burglaries are up 119 percent and car thefts up 48 percent.

I don’t know which one of those numbers is the worst, because they are all quite horrific.

A tremendous amount of money has been shifted away from the NYPD budget, and that certainly isn’t going to help matters. For years, the hard work of the NYPD had helped to make New York safer than many of our other major cities, but now that is changing at a pace that is absolutely breathtaking. In fact, one British news source is now referring to the city as “lawless New York”…

Two bullet-ridden bodies lay sprawled on bloodstained concrete steps. Alongside, relatives of the victims are wailing and collapse to the ground. In another part of the city, a gang of youths use spray paint to disable security cameras before robbing a corner store. Later, video footage captures police officers sitting helplessly in their patrol car as a baying crowd hurls glass bottles at them.

This is lawless New York – a city that was once America’s glittering crown jewel but which risks descending into mob rule.

Of course New York still has a long way to go if it wants to rival Chicago. According to authorities, there are more than 100,000 gang members living in Chicago at this point, and the violence never seems to stop.

Sadly, the last couple of days have been particularly bad. Over the 4th of July weekend, at least 67 people were hit by gunfire in the Windy City…

At least 67 people were shot, including 13 fatally, over the Independence Day weekend in Chicago, according to authorities.

Nine of the weekend’s victims were minors, and two children died, officials told Fox32. That includes 14-year-old boy who was among four people who were killed in the South Side neighborhood Englewood on Saturday evening.

But instead of blaming the criminals, the Chicago Sun-Times seem to think that “cutting funding for police could lead to a better and safer Chicago”.

Seriously?

Do people actually believe such nonsense?

Philadelphia is another major city that is seeing a massive increase in violent crime at the same time funding for the police is being cut back…

Shootings are up 67 percent. Victims of armed violence are up 29 percent. Homicides are up 25 percent. So of course it makes sense to defund the Philadelphia PD by $19 million.

Most Americans desperately want their neighborhoods to feel safe, and this could be the one issue that could rescue the Republicans from a potential disaster in the November election.

Right now, most Democrats are extremely hesitant to speak out against the violent protests that we have been witnessing all over the nation, and that is a huge mistake.

And we definitely witnessed more alarming violence during the political protests that were held over the past few days. For example, protesters in Portland were launching projectiles and shooting fireworks at police officers in Portland for hours. If Democrats want to win over independent voters, they cannot be seen as siding with such violence.

Law enforcement in downtown Portland have been under attack for hours at the federal courthouse by antifa extremists. They hurl projectile weapons at police & when officers respond, go on social media tagging politicians & lawyers claiming police brutality pic.twitter.com/K6I3sxw7jS

— Andy Ngô (@MrAndyNgo) July 3, 2020

By engaging in such utter lawlessness, these radical protesters are actually hurting their own cause, because it is only going to help President Trump.

The more violence that we see, the more the American people are going to want it to stop. If tens of millions of voters believe that “Joe Biden’s America” is an America filled with rioting, looting and violence, that could potentially be enough to push Trump over the top in November.

So Joe Biden’s unwillingness to strongly call for law and order may turn out to be his Achilles heel.

The way national elections are won in America is by winning over the millions of confused people in the middle, and right now the images of these protests that those confused people are viewing on their television screens are definitely not helping Democrats. For example, over the weekend protesters in New York were burning American flags as they chanted “America was never great”…

FAR left protesters have burned American flags outside Trump Tower and the White House.

Video shows the Stars and Stripes being burned just outside the White House as the demonstrators chanted “America was never great”.

Does anyone out there actually think that such stunts will make the confused people in the middle more likely to vote for Democrats?

Right now, Trump is way behind in the polls, but if he makes these protesters the central issue of the campaign over the next several months he may still have a chance of winning.

But no matter who wins in November, it appears that we have now entered a new era of violence and rioting in this country.

Many of our major cities already resemble war zones, and what we have experienced so far is just the beginning.

This Is Why We Are Facing A 6 Week Countdown To Immense Economic Despair…

June 15, 2020June 14, 2020 by Michael

Many of the emergency economic measures that were put into place to support the American people financially throughout this pandemic are about to disappear, and that means that big trouble is on the horizon. Right now, we are in the midst of the deepest economic downturn since the Great Depression of the 1930s. Economic activity has fallen dramatically, more than 100,000 businesses have permanently closed, and more than 44 million Americans have lost a job so far in 2020. But up to this point most Americans are not feeling too much economic pain thanks to unprecedented intervention by the federal government. Unfortunately, that short-term boost of artificial relief is about to wear off, and that is going to cause some major problems as we approach the end of this calendar year.

Earlier today, two sentences from a Buzzfeed article about the extreme economic despair that is ahead of us really got my attention…

The US economy right now is like a jumbo jet that’s in a steady glide after both its engines flamed out. In about six weeks, it will likely crash into the side of a mountain.

I think that is a perfect description of what we are facing, except that I would replace “U.S. economy” with “U.S. consumers”.

The truth is that the economy has already crashed, but consumers have been shielded from the effects of that crash by trillions of dollars in emergency government spending and other unprecedented measures…

What’s kept us in the air so far is an extraordinary government relief effort. In most states, evictions have been temporarily banned, preventing a mass homelessness crisis. Most federal student loan payments have been put on hold, removing one of the largest recurring monthly expenses that millions of people face. Banks were ordered to give their customers a six-month break on mortgage payments if requested.

Most importantly, and counterintuitively, household income sharply increased in April as hundreds of billions of dollars in lost wages were replaced by trillions in government spending. The government sent out more than 159 million stimulus payments of up to $1,200 per adult (more if you have kids), and more than 20 million unemployed people became eligible for an extra $600 a week in federal unemployment benefits. The result, according to Bloomberg, was the largest monthly increase in household income ever recorded.

What we have witnessed has been a sudden transfer of wealth that is unlike anything we have ever seen in all of U.S. history, and this has allowed most Americans to get through the past few months without too much of a problem. In fact, many unemployed workers have been bringing home more money than they did when they were actually working.

But on July 31st (about 6 weeks from now) that is all going to change.

The $600 unemployment bonuses are scheduled to end on that date, and President Trump and Republican leaders in Congress have made it clear that they have no intention of extending them.

In addition, it looks like there will be no more direct checks from the government for ordinary Americans even if another “stimulus bill” is passed.

So tens of millions of Americans will soon be facing a future in which they are bringing in very little income.

In addition, the various bans on evictions around the country will soon be coming to an end, as will the grace periods for mortgage payments.

Without enough income coming in, a lot of Americans will soon be losing their homes, and this will likely really start ramping up as we head into the holiday season.

On top of everything else, the grace period on federal student loans will come to an end at the beginning of October.

Ouch.

Basically, all of the economic pain that had been deferred will come rushing back with a vengeance over the next several months.

Of course Congress could delay things a bit more by borrowing and spending trillions of more dollars that we simply do not have, but all of the reckless spending that they have done already has put us in very perilous territory…

Trillions are now whooshing by at a breath-taking pace. The US gross national debt – the total of all Treasury securities outstanding – jumped by $1 trillion over the past five weeks, from May 4 through June 8, and by $2.5 trillion for the 11 weeks since March 23.

The total US national debt outstanding has reached $26 trillion, according to the Treasury Department.

It took from the founding of the United States until 1981 for the U.S. national debt to reach one trillion dollars, and now we have added that same amount to the debt in just five weeks.

Wow.

Our elected officials are absolutely destroying our future, but most Americans don’t seem too alarmed by this.

Instead, many are clamoring for even more “free money”, because they say that what they have gotten so far is not nearly enough.

Of course the federal spending that has already taken place has not exactly had the desired effect.

Americans were supposed to take the money they were receiving and spend it.

But instead, one recent survey found that most Americans are actually cutting back on their spending right now…

Saving more money: 34% of survey respondents indicate they’ve upped their savings rate because of the novel coronavirus.
Reducing spending: During these turbulent times, 59% of Americans have cut their budgets so they aren’t spending as much money as they did pre-pandemic.
Re-evaluating their priorities: 48% of those surveyed indicate they are prioritizing living expenses, while 30% of respondents indicate their top priority is consumables, including food and drink.

No matter how much money Congress showers on the American people, they aren’t going to be able to eliminate the overwhelming fear that COVID-19 has created.

For the foreseeable future, a large portion of the population is simply not going to resume their normal economic patterns because they are scared of the virus.

And in many of our large cities, rioting, looting and violence has depressed economic activity even further.

A major economic downturn is here, and it looks like it is going to be very, very deep.

Congress was able to minimize the discomfort for a while, but those emergency measures were only intended to help for a short period of time, and in about six weeks the entire country is going to start feeling a tremendous amount of pain.

As The Stock Market Soars, The Numbers Say That The Real Economy Is In The Midst Of A Historic Crash

June 8, 2020June 8, 2020 by Michael

Have you been watching the madness that has been unfolding on Wall Street? Even though we are in the middle of the worst global pandemic in 100 years, and even though rioters and looters have been turning our major cities into war zones, stock prices have been going up day after day. In fact, the Nasdaq closed at an all-time record high on Monday. Sometimes people ask me to explain this rationally, and I can’t, because the Federal Reserve has transformed our “financial markets” into a total mockery at this point. The real economy is literally collapsing all around us, but thanks to Fed intervention stock investors are doing just fine. It has been absolutely disgusting to watch, and if Adam Smith could see what was happening he would be rolling over in his grave. Unfortunately, thanks to our rapidly declining system of education most Americans don’t even know who Adam Smith is anymore.

I can’t recall another time in modern U.S. history when stock prices skyrocketed as the U.S. economy plunged into a recession. What we have been witnessing has truly been extremely bizarre, and it will be fascinating to see how long it can last.

Meanwhile, the real economy is a giant mess. On Monday, the National Bureau of Economic Research finally got around to letting us know that a recession has officially begun…

It’s official: The United States is in a recession.

The National Bureau of Economic Research said Monday the U.S. economy peaked in February, ending the longest expansion in U.S. history at 128 months, or about 10½ years.

In truth, the announcement codifies the painfully obvious. States began shutting down nonessential businesses in mid-March to contain the spread of the coronavirus, halting about 30% of economic activity and putting tens of millions of Americans out of work.

And in other news, the sky is blue and the moon is not made out of cheese.

Anyone with half a brain can see that the economy is falling apart. For example, we just learned that U.S. factory orders were down 22.3 percent in April compared to a year earlier…

Having collapsed by a record 10.4% MoM in March, April factory orders were expected to accelerate even lower and it did. However, the 13.0% plunge in April was modestly better than the 13.4% MoM drop expected… but is still the worst in American history.

Year-over-year, factory orders collapsed 22.3% – the worst since the peak of the financial crisis.

Of course it is not that difficult to find a number that is even worse than that.

Just look at heavy truck sales. Last month they were down a whopping 37 percent from the same month in 2019…

The last three months have been catastrophic for segments of the trucking business, after an already tough period that started in late 2018. In May, orders for Class 8 trucks – the heavy trucks that haul much of the goods-based economy across the US – plunged 37% from the low levels in May a year earlier, and by 81% from May two years ago, to 6,600 orders, according to estimates by FTR Transportation Intelligence today.

Not to be outdone, the number of corporate bankruptcies shot up 48 percent last month compared to the same period a year ago…

Corporate bankruptcies spiked during May as the coronavirus pandemic slammed the U.S. economy, pushing the number of filings to levels recorded in the wake of the 2007-09 recession.

U.S. courts recorded 722 businesses nationwide filing for chapter 11 protection last month, a yearly increase of 48%, according to figures from legal-services firm Epiq Global.

But every time we get another horrific economic figure, the stock market goes even higher.

The worse the news gets, the more investors seem to like it. Week after week, we have seen unprecedented numbers of Americans file for unemployment benefits, and at this point a grand total of more than 42 million Americans have lost a job since this pandemic began.

And yet investors keep taking these job losses as signs that they should buy even more stocks.

Perhaps someone should spread a rumor that a planet-killing asteroid is about to hit us, because that would probably really get investors salivating.

Of course most ordinary Americans don’t get to live in a Fed-fueled fantasy world, and this new economic downturn is hitting most of them extremely hard.

In fact, it is being reported that approximately a third of all Americans “are now showing signs of clinical anxiety and depression”…

In the wake of the COVID-19 pandemic and resulting economic crash, which triggered depression-like unemployment with 40 million initial claims filed in ten weeks, a third of Americans are now showing signs of clinical anxiety and depression, according to new data collected by the Census Bureau. This, by far, is the most comprehensive and troubling sign yet of the psychological toll inflicted on Americans due to months of lockdowns.

The Census Bureau contacted one million households between May 7 and 12, and about 42,000 responded, said The Washington Post. The survey was about 20 minutes long and buried deep within, several questions asked respondents about depression and anxiety. Those who answered provided a laggard but clearest snapshot into people’s mental state at the tail end of the lockdown, where many folks were subjected to isolationism, virus fears, and widespread unemployment.

That is the most alarming number that I have shared with you so far in this article, but I am about to share with you some numbers that are even more alarming.

In recent days, we have watched rioters destroy large sections of our major cities all across America. But when asked about “violent protests”, a surprising percentage of Americans actually support them…

A broad majority of Americans say the peaceful protests happening all across the country after police violence against African Americans are justified (84% say so), and roughly a quarter (27%) say violent protests in response to police harming or killing African Americans are justified. Both figures are higher than they were when similar protests rose in the fall of 2016. Then, 67% saw peaceful protests as justified while 14% felt violent protests were.

There isn’t much of a racial or partisan difference over whether peaceful protests are justified now, but the gaps are larger over violent protests. Among Democrats, 42% consider violent protests justified in response to police violence against African Americans, while just 9% of Republicans agree.

Yes, you read that last sentence correctly.

42 percent.

Unfortunately, a lot more economic pain is on the way, and that is just going to fuel even more rioting, looting and violence.

These are definitely not “the best of times” no matter what stock market investors seem to think.

We have entered a deeply disturbing new chapter in American history, and life in this country will never be the same again.

Most U.S. States Have ‘Reopened’ Their Economies, So Why Does Unemployment Continue To Spiral Out Of Control?

June 4, 2020June 4, 2020 by Michael

This wasn’t supposed to happen. Once states started to “reopen” their economies, the tsunami of unemployment was supposed to end. But instead, we continue to see Americans lose jobs at a pace that is far beyond anything we have ever seen before in all of U.S. history. All the way back in 1982, there was a week when 695,000 Americans filed initial claims for unemployment benefits, and that all-time record was never broken until this year. Of course we have seen monster number after monster number here in 2020, and we just learned that last week another 1.877 million Americans filed new claims for unemployment benefits…

Filings for unemployment insurance claims totaled 1.877 million last week in a sign that the worst is over for the coronavirus-related jobs crisis but that the level of unemployment remains stubbornly high.

Economists surveyed by Dow Jones had been looking for 1.775 million new claims. The Labor Department’s total nevertheless represented a decline from the previous week’s upwardly revised total of 2.126 million.

So even though more than 40 million Americans had already lost their jobs in 2020, there were still enough people losing their jobs last week to surpass the old record from 1982 by more than a million.

Just think about that.

Overall, a grand total of 42.6 million Americans have now lost their jobs since the pandemic began, and that makes this the largest spike in unemployment in all of U.S. history by a very wide margin.

And when the monthly employment report comes out on Friday, the official U.S. unemployment rate is expected to surpass 20 percent…

The numbers came the day before the Labor Department releases its nonfarm payrolls report for May. Economists surveyed by Dow Jones are expecting a decline of 8.3 million and a 20.5% unemployment rate, more than double the highest previous level since the Great Depression.

By now, everyone pretty much understands that the official unemployment rate greatly understates the true level of unemployment in this country.

But even if we take it at face value, the unemployment rate is now far higher than it has been at any point since the Great Depression of the 1930s.

With tens of millions of Americans now out of work, a lot of people are now finding it extremely difficult to pay the bills. The following comes from an NPR article entitled “Millions Of Americans Skip Payments As Tidal Wave Of Defaults And Evictions Looms”…

Americans are skipping payments on mortgages, auto loans and other bills. Normally, that could mean massive foreclosures, evictions, cars repossessions and people’s credit getting destroyed.

But much of that has been put on pause. Help from Congress and leniency from lenders have kept impending financial disaster at bay for millions of people. But that may not last for long.

An “economic recovery” was supposed to have started by now, but that isn’t happening.

And now the horrifying riots that have erupted all over the nation are going to make things even worse.

Our urban areas contain countless numbers of small businesses, and economists are warning that all of this civil unrest will be “a death blow” for many of them…

Some economists are predicting a death blow to small businesses that were already under unprecedented financial strain. If they weren’t ransacked, looted, and destroyed by hooligans, they will feel the macro effects of urban decline and flight, plummeting consumer confidence, falling property values, and worsening budgetary crises for state and local governments.

Sadly, a lot of the businesses that the rioters are destroying are actually minority-owned businesses.

What we are watching unfold is truly a great national tragedy, and it isn’t going to end any time soon.

Needless to say, there are some big companies that are going to be severely tempted to give up on our core urban areas completely. If there is a constant threat that your stores are going to be smashed, looted or set on fire, that doesn’t make for a profitable business environment.

For example, it is being reported that Walmart may consider leaving the city of Chicago, and Mayor Lori Lightfoot is pleading with them to stay…

Mayor Lightfoot said she was on a conference call with Walmart and other major retailers that had stores looted or heavily damaged during the unrest in Chicago. She said she pleaded with them to not abandon Chicago.

“I think in the case of Walmart, what they were focused on was assessing the damage. They are doing an effort to donate fresh produce, to the extent of what’s left so it doesn’t perish, and other perishables, and they are talking their time, as I would expect.”

More violence is expected around the nation this weekend, and without a doubt all of this rioting is going to have a massive impact on the U.S. economy.

Meanwhile, more than 129,000 newly confirmed cases of COVID-19 were reported around the globe during the 24 hour period that just ended, and that is the largest one day total that I have seen so far.

In other words, the coronavirus pandemic is a long, long way from over.

Despite what the talking heads in the mainstream media are telling you, the truth is that the U.S. economy is going to continue to crumble. We have already plunged into a new economic depression, and bankers are now warning companies that the flow of credit is about to get a lot tighter…

Bankers have a message for America’s debt-laden companies: raise money now, because things could get a lot worse.

The gradual reopening of businesses after months-long shutdowns and a pick up in manufacturing activity have given investors reason for optimism in recent weeks. But underwriters who cater to heavily indebted corporations are offering their clients a bleak preview of what may lie ahead.

There is so much fear in the air, and in such an environment financial institutions get very stingy with their money.

In the days ahead, it is going to become much more difficult for just about everyone to borrow money, and that is going to have very serious implications for our economic outlook.

Of course things are changing so rapidly that it has become virtually impossible to predict what U.S. economic numbers will look like in the months ahead.

So far in 2020, we have already been hit by a major global pandemic, an economic depression, and the worst civil unrest in decades.

It has been “one thing after another”, and the truth is that this “perfect storm” is just getting started…

“Extreme Looting”: We Are Seeing Looters Use Absolutely Crazy Tactics That Have Never Been Seen Before

June 3, 2020 by Michael

Do you have to go to “looting school” to learn this stuff? It is not that difficult to smash a few store windows and grab a few things, but some of the incidents that we have witnessed over the last several days have been so bizarre that it is hard to believe that they are actually real. In fact, if they were put into a big Hollywood disaster movie at lot of people would probably dismiss them as “unrealistic”. But it is very important to understand what is going on out there, because these looters are giving us a preview of coming attractions. If they will sink to such depths now, what will they be willing to do once things get really, really bad in this country?

There are so many examples that I could share with you, but I think that I will start with the looters in Fairfield, California that decided to use a telescopic forklift to break down the doors of a Best Buy store…

A particularly brazen attempt by looters to storm a store in Fairfield, California, has been caught on video, showing them commandeering what appears to be a telescopic forklift to force their way in.

A video has emerged showing vandals using heavy equipment on the doors of the Best Buy store in Fairfield, a city in Solano County, located between San Francisco and Sacramento.

Looters Use Telescopic Forklift To Break Into Best Buy In Fairfield, California pic.twitter.com/PKIkjAeKU6

— GrantB911 (@GrantB911) June 2, 2020

I suppose that the moral of this story is that you should never leave a telescopic forklift sitting around where looters might find it.

Now that criminals have seen how much they can get away with, they are going to become more emboldened than ever, and the entire west coast is going to be a major danger zone for the foreseeable future.

In the East Bay area, police say that “caravans of cars full of looters” have been roaming around systematically searching for targets. Authorities have been trying to crack down on these caravans of looters, but that has proven to be quite difficult because many of them are heavily armed.

Elsewhere in northern California, one group of looters just pulled off an absolutely stunning heist that is like something out of a “Fast and Furious” film…

Police in Northern California are searching for suspects after rioters reportedly stole more than 70 premium cars from a dealership near San Francisco Sunday night.

San Leandro Chrysler Dodge Jeep dealership owner Carlos Hidalgo said that although he blocked the exits as a precaution, the thieves “started ramming, ramming until they could get out. They took out chains and fence posts. It was a very malicious act,” FOX 2 in Oakland reported.

This means that at least 70 looters must have descended upon that dealership simultaneously, because each of those vehicles would have required a driver.

If you stop and try to envision what that must have looked like, it will send a chill up your spine.

Of course it isn’t just the west coast that is dealing with such over the top criminality. The following is how Rachel Olding described the crazy looting that we just witnessed in Midtown Manhattan…

Hard to describe how rampant the looting was tonight in Midtown Manhattan and how lawless it was. Complete anarchy. Literally hundreds of stores up and down Broadway, Fifth Ave, Sixth Ave. Kids ruling the streets like it was a party.

These are the stores where the Wall Street elite shop.

If law enforcement authorities can’t even keep that area secure, do you think that any city in the entire country is truly safe at this point?

And some of these looters are not exactly “impoverished”. In fact, the New York Post is reporting that some of the looters were pulling up to the stores “in luxury SUVs”…

New York City looters were caught on camera pulling up in luxury SUVs — including what was claimed to be a pricey Rolls-Royce — before apparently looting an upscale retail store in Manhattan, according to footage shared on social media.

The video, filmed by Justine Miller and Keith Feldman, shows a group of men in masks hopping out of two cars and charging through a smashed door in Soho before running back outside carrying boxes of goods on Monday night.

I honestly don’t know what the police in New York City were doing.

They had to know that the luxury retail outlets in Midtown Manhattan would be prime targets, and yet this was allowed to happen anyway.

Down in Philadelphia, the looting has been absolutely insane. Just yesterday, I discussed the fact that looters were allowed to loot one drugstore for 15 hours straight. Elsewhere in the city, one very ambitious looter ended up dying in a botched attempt to blow up an ATM machine…

A looter has been killed in a botched ATM explosion in Philadelphia, that police believe was part of a ‘coordinated’ effort to raid 30 machines across the city over a series of two nights.

Police said the 24-year-old man died early Tuesday, several hours after attempting to break into an ATM with explosives in the north of the city.

Needless to say, bank robbery has nothing to do with justice for George Floyd.

All over America, thousands upon thousands of criminals are using the George Floyd protests as an opportunity to commit crimes, and the fact that it is happening on such a widespread basis is extremely sobering.

At this point, things have gotten so crazy that looters are even looting from other looters. The U.S. is descending into madness, and many people believe that this is just the beginning.

Of course all of this rampant lawlessness is deeply alarming millions upon millions of ordinary citizens, and a lot of people are deeply concerned that this sort of behavior could start spreading into the suburbs and beyond. In fact, Polk County Sheriff Judd Grady has publicly acknowledged that in his county “some folks were threatening to take their criminal conduct into the neighborhoods”…

Grady said the department “had received information on social media that some folks were threatening to take their criminal conduct into the neighborhoods.”

“I would tell them, if you value your life, they probably shouldn’t do that in Polk County,” Grady said. “Because the people of Polk County like guns, they have guns, I encourage them to own guns, and they’re going to be in their homes tonight with their guns loaded, and if you try to break into their homes to steal, to set fires, I’m highly recommending they blow you back out of the house with their guns. So, leave the community alone.”

Hopefully things will start to cool down at least for a while.

But many Americans understand that it is just a matter of time before more violence erupts, and so they are preparing to defend themselves and their families. Gun sales are absolutely soaring, and one shop owner in New York says that he has been so busy that he is literally running out of stuff to sell…

Phones have been ringing off the hook and the line has been wrapped around the building at Coliseum Gun Traders in Uniondale, Nassau County, ever since the coronavirus pandemic began. And now with protests and rioting after the killing of George Floyd, the store has seen another enormous spike in sales. Keeping the shelves stocked has been hard, store owner Andy Chernoff said.

“We started out this week with a fair amount of merchandise. We’re running out. Literally running out,” Chernoff said. “Never thought I’d say that.”

Just six months ago, life in America seemed so “normal”, but now everything has changed.

All of the anger that has been building up for years is now starting to boil over, and the upcoming election in November is just going to increase tensions even more.

So please be very careful out there, because our society really is starting to fall apart right in front of our eyes.

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