Since 17 September 2019 — months before the first case of Covid-19 was reported in the United States — the New York Fed embarked on a massive emergency repo loan operation, which had reached $6 trillion cumulatively in loans by 06 January 2020, according to Wall Street on Parade. And that was just the beginning. To bring this more into focus, the United States printed more money in June (2020) than in the first two centuries after its founding. Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979. What that means is that with that first trillion we defeated British imperialists, bought Alaska and the Louisiana Purchase (13 states’ worth of territory), defeated fascism, ended the Great Depression, built the Interstate Highway System, went to the Moon, and some other stuff. Problem is that way before COVID hit, we spent SIX TIMES THE AMOUNT it took the US to become a world power and walk on the moon! And according to President Donald Trump, absolutely zero dollars need to be allocated to any US citizen whom is not a member of the 1% even though they finance the debt to Trump’s cronies.
More than 26 million Americans are collecting unemployment benefits, according to the Labor Department. Nearly seven months into the economic crisis caused by the coronavirus pandemic, more than 1 million are filing new applications for benefits each week.
Yesterday, the Pretender in Chief whom was hopped up on a drug cocktail, paraded around and declared that there will be no stimulus negotiations unless and until he is re-elected. Fed Chairman, Jay Powell, only hours previous, stated the economy needed immediate stimulus. Powell has repeatedly urged Congress to provide additional aid, saying the Fed can’t prop up the economy by itself, even with interest rates at record lows. “The expansion is still far from complete,” Powell said in a speech to the National Association for Business Economics, group of corporate and academic economists.
Instead of having any concern for small businesses or the common man, here is what the President had to say,
I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.
That triggered a 600 point drop on the NY Stock Exchange. To understand that, people lost nearly half a billion dollars because our Chief Fucktard couldn’t keep his fingers off of women — and Twitter. Moreover, though, nearly 98K businesses have permanently shut down as of 17 September 2020. While this asshole has laid around, rent free at the US taxpayer expense, our Nation has been destroyed. I am not sure that even with a full scale invasion by enemy occupiers could the destruction wrought by Trump & Company, thus far, been worse. Fact of the matter is our President is in such debt to foreign powers that national security implications are seen at every corner. For a man whom only paid $750 in tax, the reality is this election is more about remaining out of prison than anything else.
This year has seen the most acreage ever burned in wildfires — a rare gigafire designation — in California. We have nearly a quarter of a million people dead, many of whom could still be alive, and the potential for that number to double by the end of the year due to Trump’s mismanagement of COVID. We have 26 Million unemployed — when counting those whom received Pandemic Unemployment Assistance (PUA) — and the airlines just laid off tens of thousands more. And in the key battleground state of Florida, a Census Bureau survey late last month showed one in every 20 small businesses in Florida expects to permanently close within the next six months.
Out of the roughly $1.2 Trillion of leveraged loans, a growing number of companies in the U.S. are going broke as the pandemic saps their revenues. Fitch Ratings projects 7% to 8% of leveraged loans will default by the end of 2021, compared with 1.8% in 2019. And the very people whom provide the essential services to the remaining firms — janitorial, food service, waste removal, etc. — are being leveraged into taking even less in pay under threat of being laid off. And for those whom say unemployment is not a bad thing, have you seen what Hawaii pays? FIVE DOLLARS A WEEK. That is not a typo.
When the floodgates open come inauguration day — regardless of whom is elected — that Administration will oversee nearly 40 million mortgage defaults and renter evictions. And while Wall Street has fattened up like a sow at the tit of Federal Reserve funding, there will be no stopping the train wreck going off the cliff.