If you thought the economy was recovering, then the sad fact is you either have no idea what is going on or you’re actually stupid.
The economy is not and will not recover. There will be ups and downs, as the government prints money and manipulates numbers otherwise, but the graph will trend straight down.
One million people filed for unemployment benefits last week in the US as the coronavirus pandemic continued to take a historic toll on the job market.
It was the second week in a row that claims passed the million mark after briefly dipping below that figure in early August.
While the US has gained jobs over the last three months, millions more still remain out of work and the ongoing economic impact of the pandemic is spreading. Initially the job losses fell most heavily on the service, leisure and hospitality industries as restaurants, bars and hotels closed down.
The impact of the recession is now spreading. This week American Airlines announced it would cut 19,000 jobs by 1 October and Delta said it furlough more than 1,900 pilots unless it can reach a cost-cutting deal with unions. United Airlines announced earlier this summer that it could cut 36,000 positions later this year.
“Though we are seeing a meaningful decline in new Covid-19 cases, the trends in economic indicators have not changed significantly. There continue to be signs that the recovery is slowing at best and at worst is reversing somewhat,” BofA Global Research said in an investors note. “We likely need to see daily Covid-19 cases decline much more significantly in order for gains in economic activity to accelerate meaningfully.”
This is all being propped up by printing money. You can’t print money forever.
There is no possibility of avoiding something that is not at least as bad as the Great Depression. Obviously, it will be much worse than that, but there isn’t even a single expert on the subject who is claiming it will somehow not be as bad as the Great Depression.
You can’t do what these people did to the economy and have it snap back. If we ever have another economy, it’s going to have to be built from scratch. Everyone should understand that intuitively, to be honest, even if they don’t have any information.
The Great Depression was, up until this point, the worst thing we’d ever experienced. So that is the goto comparison to communicate “this is worse than any economic collapse in all of history.”
It’s possible that some people thought I was indicating this would happen more immediately?
I am certain that I never gave any 2020 dates for my doom predictions. Ultimate doom will not come upon us this year. Probably, it will next year. I don’t see how it can be avoided for much longer than that.
This is going to be different than the Great Depression in a lot of very bad ways. Specifically, the concept of a small business is being eliminated, as all wealth is being directly transferred to mega corporations through various mechanisms.
You need to prepare for this.
If you follow my advice to move outside of the big cities, you’re going to be better off when the bottom falls out. You want to be around people you know and trust.