The Great Unraveling Has Begun

The comments below are an edited and abridged synopsis of an article by Michael Snyder

We were warned that a US economic collapse was coming, and here it is. Fear of Covid-19 and unprecedented civil unrest in America’s major cities have combined to plunge the US into a historic economic downturn, and nobody knows what will happen next.

The Great Unraveling Has Begun | BullionBuzz
A caucasian man holding on to a fraying rope themes of weakness adversity danger

Last week, US GDP was down 32.9% on an annualized basis last quarter, making it the worst quarter in US history. Many  believe that this new economic depression is just getting started. The economy was supposed to regenerate during the third quarter, but it seems to be slowing again.

Another 1.434 million Americans filed new claims for unemployment benefits last week. That was an increase over the previously revised number, and it represents the second week in a row that initial claims have risen. Overall, new claims for unemployment benefits have been above one million for 19 weeks in a row.

Prior to this year, the all-time record for a single week was just 695,000.

Unemployment benefits claims are up; 30 million Americans claim they did not have enough food during the week of July 21; and at least 15% of all restaurants in the US are likely to close.

As fear of Covid-19 lingers, and as civil unrest becomes even worse, it will become increasingly difficult for restaurants, bars, movie theaters and other establishments where the public gather to survive.

Walmart is eliminating hundreds of corporate jobs in order to cut costs. If it believed that the US economy was going to  return to normal, it would not have made such a move.

More big corporations will go bankrupt, more businesses will fail, more workers will be laid off, and the financial dominoes will start falling at a pace that is absolutely breathtaking.

A great unraveling has begun, and we must find a way to survive the economic pain that lies ahead.

Leave a Reply

Your email address will not be published.