Category Archives: Economics

More People Died Of Suicide Last Week In Tennessee Than Covid-19, by Mac Slavo

The medical consequences of the coming depression will outweigh those of the coronavirus. The depression will exacerbate the effects of the coronavirus itself, unemployed and depressed people are more susceptible to all diseases, and this time that will include the coronavirus. From Mac Slavo at shtfplan.com:

As we previously warned, this pandemic will bankrupt and kill more people from suicide than the virus will. When you sacrifice people’s livelihoods, you create a difficult situation of desperation for many who will see no other way out.

TRUMP: Suicides From The Coming Economic Depression Will FAR SURPASS Those From The Virus

Coronavirus Crisis: The Virus Will Bankrupt More People Than It Kills

We are about to have a mental health crisis during an economic depression that will be tough to live through.  The virus is no longer the problem.  The government’s reaction has been the problem and even some politicians have figured it out. Knox County Mayor Glenn Jacobs revealed in a weekly update that our solution to this pandemic has not been a good one. “Thus far, our reaction to COVID-19 has been to sacrifice the global economy,” said Jacobs. “The truth is: a sick economy produces sick people.”

Most people don’t want to hear the truth, unfortunately, and the longer state governments insist on businesses being closed and an economy shut down to combat what’s looking like a fairly insignificant virus for most of the population, the aftermath will worsen.  Each day that drags on will make the next few years more difficult.

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Day of Shame: US House Approves $2 Trillion Everything Bailout on a Voice Vote, by David Stockman

When historians look back, they may well pinpoint the $2 trillion bill and the Federal Reserve actions in response to the coronavirus outbreak as the inflection point when the US’s slide into bankruptcy accelerated. From David Stockman at davidstockmanscontracorner.com, via lewrockwell.com:

Did we say it’s getting stupid crazy down there in the Imperial City?

Well, we probably have….ad infinitum. And we are doing so again but not merely owing to today’s abomination in the once and former Peoples’ House, which thinks so little of its oath to defend the constitution and the rights of current and future taxpayers that it approved the $2 trillion Everything Bailout without even a roll call vote.

Then again, like the late night TV pitchman says – wait, there’s more!

Consider the chart below, which surely the Fed heads have not. To wit, it took the Fed 85 years after its doors opened in 1914 to print enough money to fund a $600 billion balance sheet.

It wasn’t exactly the Ohio State offense – three yards and a cloud of dust – which accomplished this. But it was pretty close – even including Greenspan’s first years at the helm. Between the famous Treasury Accord in 1951, under which the Fed was liberated from Treasury-ordered yield pegging, and 1999, its balance sheet grew at a modest 5.2% per annum.

And, by your way, the Fed’s relative stinginess with the printing press was a great big no nevermind. Real GDP grew at 3.4% per annum over that near half-century period, and real median family income more than doubled from $35,000 to $74,000.

We are pondering the number “$600 billion” today because its capsulizes the insanity loose in the Imperial City. What took 95 years to accomplish in the purportedly benighted 20th century, has now taken just five days!

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Trump, Putin Will Discuss The End Of U.S. Shale Oil, by Moon of Alabama

Trump is probably not going to be able to negotiate much of a cease fire with Vladimir Putin in Putin’s war on US shale oil. From Moon of Alabama at moonofalabama.org:

Three weeks ago, when the Russian and Saudi war on U.S. shale oil started, we wrote:

In the first week of January crude oil reached $69/bl but it has since dropped to $45/bl as the coronavirus crisis destroyed the global demand. The Saudis tried to make a deal with Russia, the second largest exporter after Saudi Arabia, to together cut oil production to keep the price up. But Russia rejected a new OPEC cut. It wants to keep its production up and it will use the crisis to further undermine U.S. oil fracking production. As the whole fracking boom in the U.S. is build on fraud the move might well be successful.

Russia does not have a budget deficit and is well positioned to survive lower crude oil prices without much damage. Saudi Arabia is not.

Only a week later oil was already at $30/barrel and we predicted that it would go down to $20/bl.

On Monday the U.S. WTI oil price index reached that mark. Oil prices in other places are falling even further:

Canadian heavy crude has become so cheap that the cost of shipping it to refineries exceeds the value of the oil itself, a situation that may result in even more oil-sands producers shutting operations.Western Canadian Select crude in Alberta dropped to a record-low close of $5.06 a barrel on Friday, according to Bloomberg data going back to 2008 …

The corona virus crisis has led to drop in global demand by some 20%. The world production and consumption in normal times was at about 100 million barrel per day. Consumption is now below 80 million bl/d. But after the OPEC+ agreement failed Saudi and Russia both started to pump as much as they could to regain market shares. Together they are increasing their production by some 3-4 million barrels per day. All that oil has to go somewhere.

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Doug Casey on the Dangers of Globalism

Globalism is just a cover for more government. From Doug Casey at caseyresearch.com:

Editor’s note: The mainstream media continues to stir up panic and fear surrounding the coronavirus pandemic – and it doesn’t look like the hysteria is slowing down any time soon. Some states have even taken extreme measures, ordering residents to stay indoors and threatening fines or detainment if they don’t comply.

This is just one recent sign of a startling increase in government oversight.

And in today’s Conversations With Casey, our founder, Doug Casey, warns against the dangers of this kind of overregulation, especially on a global scale. Read on as Doug tackles the biggest problems with globalism… and explains why the US is no longer a capitalist society…


Daily Dispatch: Doug, we’d like to get your take on the question of “Globalist vs. Globalism.” Not so long ago, the right was in favor of embracing a global economy, in order to access cheaper labor, and other benefits of outsourcing. Whereas the left was against that whole idea, as they wanted to be more protectionist in their local economy.

But now, to the average man at least, that seems to have flipped. Now the right seems to be more protectionist, and the left wants to be more global. Is that an overly simplistic take on things? What’s your view?

Doug Casey: Well, to start with, these are just labels that don’t really mean anything – other than deciding what variety of statism you want.

The truth is that individuals and companies should be able to trade with each other with absolutely no restrictions, interference, or comment of any type from governments. No quotas, no duties, no incentives… nothing.

Governments bring absolutely nothing to the party. It’s a sham, a myth, and a delusion that government acts in the interest of the country it controls. Government (and the people who control it) act in their own interests, and those of their cronies. I’m sorry if that sounds harsh, and runs counter to what we were taught in grade school civics, or what sanctimonious Deep Staters like to repeat. But it’s the case with late-stage US “capitalism.”

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The Solvency Problem, by Doug Noland

Central banking—socialized credit—has blown up history’s biggest credit bubble, not capitalism. Now that the bubble is popping, its is crucial that the blame is correctly assigned. From Doug Noland at creditbubblebulletin.blogspot.com:

Being an analyst of Credit and Bubbles over the past few decades has come with its share of challenges. Greater challenges await. I expect to dedicate the rest of my life to defending Capitalism. One of the great tragedies from the failure of this multi-decade monetary experiment will be the loss of faith in free market Capitalism – along with our institutions more generally.

Somehow, we must convince younger generations that the culprit was unsound finance. And it’s absolutely fixable. Deeply flawed, experimental central banking was fundamental to dysfunctional markets and resulting deep financial and economic structural impairment. The Scourge of Inflationism. If we just start learning from mistakes, we can get this ship headed in the right direction.

Over the years, I’ve argued for “rules-based” central banking that would sharply limit the Federal Reserve’s role both in the markets and real economy. The flaw in “discretionary” central banking was identified generations ago: One mistake leads invariably to only bigger blunders.

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12 Experts Questioning the Coronavirus Panic, from off-guardian.org

Even some of the experts have their misgivings and reservations. From off-guardian.org:

Below is our list of twelve medical experts whose opinions on the Coronavirus outbreak contradict the official narratives of the MSM, and the memes so prevalent on social media.

* * *

Dr Sucharit Bhakdi is a specialist in microbiology. He was a professor at the Johannes Gutenberg University in Mainz and head of the Institute for Medical Microbiology and Hygiene and one of the most cited research scientists in German history.

What he says:

We are afraid that 1 million infections with the new virus will lead to 30 deaths per day over the next 100 days. But we do not realise that 20, 30, 40 or 100 patients positive for normal coronaviruses are already dying every day.

[The government’s anti-COVID19 measures] are grotesque, absurd and very dangerous […] The life expectancy of millions is being shortened. The horrifying impact on the world economy threatens the existence of countless people. The consequences on medical care are profound. Already services to patients in need are reduced, operations cancelled, practices empty, hospital personnel dwindling. All this will impact profoundly on our whole society.

All these measures are leading to self-destruction and collective suicide based on nothing but a spook.

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The Crash Of The “Everything Bubble” Is Here – And It’s Not Going Away Anytime Soon, by Brandon Smith

Long after the coronavirus recedes from the public’s attention we’ll be reeling from its damage to the US and global economy. From Brandon Smith at birchgold.com:

economy crash

Photo by Flickr.com | CC BY | Photoshopped

Last November, in an article titled ‘The Economic Crash So Far: A Look At The Real Numbers’, I outlined the reality of statistical fraud by governments and central banks to hide the ongoing economic downturn. The Everything Bubble, perhaps the biggest debt fueled bubble in history, has been propping up the global economy for several years, but began to waver dramatically at the end of 2018, as the Federal Reserve tightened liquidity conditions into economic weakness (just as they did in 1929 and in the early 1930’s as the Great Depression took hold).

In that article, I warned:

“If the global economy is not on the verge of collapse, then why did central banks keep propping it up for the past ten years? And if central banks have been propping up the system, how much longer do you think they can do this? How much longer do you think they want to do it? What if one day they decide to let the entire house of cards tumble? What if such an event actually benefits them?”

An important factor to this discussion is the idea that the central banks are “ignorant” to the damage they do. This claim is everywhere in the alternative media these days, and it is simply wrong. The banking elites are well aware of the damage they do, and often it benefits their bigger agenda of one world centralization. In fact, Jerome Powell openly admitted in the minutes of the October 2012 Fed meeting exactly what would happen if the Fed took actions to tighten cash flows while markets were addicted to stimulus. Then, as soon as he became the head of the central bank, he implemented that exact policy.

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