As millions upon millions of Americans lose their jobs in the greatest wave of unemployment in U.S. history, the Federal Reserve has decided that now is the time to spend trillions of newly created dollars in a desperate attempt to protect financial asset values. In other words, as much of the country suddenly plunges into poverty, the Federal Reserve is working exceedingly hard to protect the wealth of the elite.
Approximately fifty percent of all stock market wealth is owned by the wealthiest one percent of all Americans, and the amount of stock market wealth owned by the poorest 50 percent of all Americans is so small that it really doesn’t matter. And those running the Fed certainly understand that their reckless policies will create very painful inflation that will hit average American families extremely hard, but they don’t seem to care. At this point, they figure that asset values must be protected at all costs, and that is going to continue to expand the absolutely massive gap between the rich and the poor in this country.
Over the past 3 weeks, more than 16 million Americans have filed new claims for unemployment benefits.
Prior to this year, the highest number that we had ever seen in any 3 week span in all of American history was about 2 million.
It is a collapse of unprecedented magnitude, and things have already gotten so bad that even “the Happiest Place on Earth” is conducting mass layoffs…
Walt Disney World Resort will furlough 43,000 union workers while its theme parks remain closed as authorities restrict large gatherings due to the coronavirus pandemic, according to the Service Trades Council Union.
Because most U.S. workers live paycheck to paycheck, many of the newly unemployed have fallen on hard times very rapidly. Food banks all over the nation are seeing an alarming surge in demand, and in many cities people are literally lining up before the sun rises in order to ensure that they will get some food…
In many cities, lines outside food pantries have become glaring symbols of financial precarity, showing how quickly the pandemic has devastated working people’s finances.
In San Antonio, 10,000 families began arriving before dawn on Thursday at a now-shuttered swap meet hall to receive boxes of food. Normally, 200 to 400 families might show up during a normal food distribution.
For many other similar examples, please see my previous article entitled “America’s ‘Food Lines’ Are Being Measured In Miles As Desperation Sets In All Over The Country”. Yes, things got bad during the last recession, but they were never as bad as we are witnessing now. In fact, the CEO of Feeding America says that demand is already at the highest level that she has ever seen…
Unfortunately, this economic collapse is still in the very early chapters. If you can believe it, JPMorgan is actually projecting that U.S. GDP “will fall by 40 percent” on an annualized basis during the second quarter…
And even once the “shelter-in-place” orders are finally lifted, that will not mean that things will go back to normal. As Nobel-prize winning economist Robert Shiller has noted, fear of the coronavirus is going to cause many Americans to avoid restaurants, sporting events and other businesses where public interaction is required for a long time to come…
So the truth is that we are heading into a very deep economic depression, and the economic suffering in this country is going to be off the charts.
As events have begun to spiral out of control, the Federal Reserve has sprung into action on a scale unlike anything that we have ever seen before, and this has pushed the Fed’s balance sheet above 6 trillion dollars…
But don’t worry too much, because you will soon receive your $1,200 socialist handout from the federal government.
Try not to spend it all in one place.
Needless to say, $1,200 won’t last very long in the hands of most Americans, and one recent survey found that “63% of respondents said they will need another check within the next three months”.
Like I warned from the very beginning, these sorts of direct payments set a very dangerous precedent, and if a Democrat wins the presidency in November they may become permanent.
That may sound really good to you, but what are you going to do when it gets to the point where you have to spend 500 dollars a week just to feed your family?
At that point many of you will also be lining up at the crack of dawn to receive whatever the food banks have available to give you…
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