The stock market crash caused by the pandemic was the largest transfer of wealth in the history of the world. That wealth went exactly the oppossite of how most people (99.99%) should want it. It went directly from the bottom to the top.
As I write, Trump and the talking heads on economic television are crowing about the amazing economic recovery. The stock market has pumped back up to levels where it was prior to the crash, the May jobs report just came out and blew everyone away by adding 2.5 million jobs instead of losing another 8 million.
I don’t know how to break it to you, so I’m just going to tell it like it is. This is all fuckery – or more accurately – trumpery. Websters Dictionary defined trumpery as 1) deceipt, fraud or 2) worthless stuff. That’s exactly what this is.
The 2.5 million jobs that came back were mostly leisure and hospitality – jobs in restaurants and hotels and bars – and they come back while a real unemployment rate of close to 20% still exists (the trumpery rate is 13% which is still an alarming rate). The jobs that ‘came back’ were almost completely temporary layoffs that were brought back from a near total lockdown mode to a gradual opening of the economy.
Those stock market gains? Who can afford to invest during a pandemic and economic collapse? The point-one-percenters, that’s who. Who gains from the pandemic going away and the stock market rising? Trump. His campaign has been in tatters as people see the economy erode. This is trumpery in more than one way.
Covid-19 cases have been steadily rising since Memorial Day and the increase from the George Floyd protests aren’t even showing themselves yet. The moratoriums on mortgage and rent haven’t yet expired – that will be the end of July. And, do we even need to talk about the largest mass protests in U.S. history?
This ‘economic recovery’ is one of the biggest lies that has ever been told and here is what is going to happen – people are going to flood into the stock market trying to recover their losses (because most people suffered huge losses and couldn’t afford to speculate when society might be collapsing) and then – it’s going to happen again.
The political protests are going to hit critical masss.
Covid-19 cases are going to explode upwards and death tolls will begin rising again..
Evictions, foreclosures, and defaults are going to light up the night sky.
The markets are going to crash again as the smart money takes their insane profits and exits amidst the chaos.
This whole thing is an economic mass shooting. Not to mention, a deadly pandemic is about to hit us harder than ever – again. Get ready for the biggest transfer of wealth in history – part 2.
A major American city is on fire – pandemic is raging still – and the fiddler on the roof is fanning the flames instead of soothing frayed nerves.
We’ve always said that Trump doesn’t plan on stepping aside regardless of outcome in November’s election. First, we saw Jared Kushner’s trial balloon of putting off the election and now, we are seeing something else:
The Insurrection Act of 1807 is a United States federal law (10 U.S.C. §§ 251–255) (until 2016, found at 10 US Code, Chapter 15, §§ 331–335, renumbered to 10 USC, Chapter 13, §§ 251–255) that governs the ability of the President of the United States to deploy military troops within the United States to put down lawlessness, insurrection, and rebellion.
Under this act, the President may deploy troops as a police force during a natural disaster, epidemic, serious public health emergency, terrorist attack, or other condition, when the President determines that the authorities of the state are incapable of maintaining public order. Interestingly, action taken under the Insurrection Act, allows the President to bypass the Posse Comitatus Act – which limit’s the President’s ability to use Federal troops on U.S. soil.
The Posse Comitatus Act allows governors to deploy National Guard and keeps them under State control. The Insurrection Act is a very different story.
Be prepared to be occupied by the armed forces of the United States – in the United States.
Here are a couple of other articles that might be of interest to you:
Christopher Damitio has completed his 50,000 word pandemic novel. It’s free and worth a read even though it was written in just 25 days. It’s a strange mixture of reality that we are all living and dark fantasy. If you want to escape from Coronavirus (and Trump) this is both the answer and not the answer.
I’m going to tell you now – what you are seeing is confirmation bias. People are seeing what they want to see, just like I saw that the economy would drop twice as hard as it did (so far).
I’m not sure what people are smoking, but it’s definitely some kind of hopium. Unemployment is as bad as during the Great Depression. There is no cure or vaccine for the virus yet. Life as we know it has changed forever.
Still, I have to give people credit for being so adaptable. I hope that I’m wrong and new waves of the virus don’t start murdering new masses of people. But even if we avoid that nightmare – we still have to deal with the fact that tourism and hospitality is on it’s knees and being kicked.
I’m not sure what would happen if the President or VP had the virus, but judging by Britain, as long as they survived it would be no big deal at this point.
As soon as governments allow it, there are going to be mass waves of evictions and foreclosures – not to mention bankruptcies by the basketful.
Maybe the USA will pull out of this tailspin, maybe the insanely resurgent economy will save us all – but I doubt it. I’ve been wrong before – and maybe I’ll be wrong on this. Still – it doesn’t feel like I’m wrong (but it wouldn’t would it? All the ‘plandemic’ nuts feel sure they are right and you probably feel like you are right too, regardless of your position on things).
Here’s what I see coming –
economy re-opens in May and June and people can’t help but start behaving as if the pandemic has been beaten – people can’t resist the summer travel season – everything feels like a comeback
waves of evictions and foreclosures in July begin – also people start wondering why their jobs haven’t come back and the prices of groceries are 4x what they were in January
August schools re-open – pandemic resurges bigger than before
stock markets and equities finally catch up with the real economic data and crash hard
bitcoin, gold, and silver all spike to levels that seem stupid to consider at the moment
Trump will try to postpone the election (if he survives getting virus which he either already has or will get soon)
Biden will hum-deedle-dee and haa-doodle-doo through the most muddled election in U.S. history
Today more than ever, the workers of the world need to unite. As billionaires like Jeff Bezos and Elon Musk try to force their workers to return to factories despite the COVID-19 risks (and without additional pay or benefits) and as Donald Trump and Republican governors try to re-open their states and ‘send people back to work’ without understanding the risks, and as Wall Street bails itself out using money for small business and the US Congress chooses to bail out billionaires over working moms – all of these things should be revitalizing the labor movement. Today, we should be looking at the gross inequities that have made ‘essential workers’ some of the lowest paid with the least benefits while ‘non-essential workers’ have the cushion to sit out this crisis with no risk.
The capitalist USA political machine has always been scared of organized labor, they’ve always been scared of workers organizing, and they’ve always been scared of the workers controlling the means of production. They’ve labored such things as red, communist, socialist, or anti-American. The reason is capitalist class have always depended on the slave labor of the workers to make themselves rich. There has been a war against organized labor in this country for a long while and the capitalists are winning it even as 30 million US workers suddenly find themselves unemployed due to COVID-19..
Gone are the days when unions were controlled by the workers, gone are the days when there were calls for shorter work days, shorter work weeks, higher pay, better benefits, or lifetime security for loyal workers – instead we live in a country where companies are immortal and workers are hired as ‘contractors’ which is a fancy way of saying they have no job security and no benefits they don’t provide for themselves. Those contract workers, by the way, have been sidelined and for the most part have not received any sort of bailout or unemployment yet – although the government (to it’s credit) has set about creating a bailout for them – but most regular unemployed workers are either still waiting for unemployment or haven’t been able to log in to overwhelmed state systems.
In 1886, on May 4th, following organized labor activities and protests (on May 1st – the real labor day) which followed demands for an 8 hour workday – police killed several protestors and riots ensued – culminating in protestors bombing the police with dynamite and the police killing four more and then seven being sentenced to death for conspiracy. This, many say, is the origin of the world’s labor day on May 1st ( though actually, MayDay goes further back than that) – in a sense – one could argue that communism has it’s militant roots in this American event – thus is an American institution which has been villified and made to appear foreign and anti-American.
President Grover Cleveland feared that MayDay celebrations would be used to commemorate the Haymarket Massacre and celebrations were banned. After the Pullman Strike where Federal Marshalls and U.S. military killed workers demanding safer conditions, the government rushed to create a National ‘Labor’ Day – but designated it be in September to avoid remembrance of government brutality towards workers demanding better conditions and safer work environments. The choice of September 1st was blatantly political and championed by President Grover Cleveland to disempower nascent Communist, Anarchist, and Syndicalist movements which used MayDay as a rallying point to bring workers to a more empowered system.
The United States has defeated organized labor. They have villainized labor as mobsters, communists, and criminals. They have created a holiday that disempowers workers from solidarity with workers in other countries, and they have impovershed workers to the point where we are working longer hours, getting less benefits, and earning less money or we are not working at all. There is no need to outlaw labor organizations because they are already frequently working against labor.
You (and everyone) need to look at this and scroll through the whole thing – it will take you 10-15 minutes, but it may be the best chance to ever understand just how obscene the inequality of wealth really is.
Update 6/14/2020 – American deaths from Covid-19 now exceed the number of American dead from World War I. I’m grateful that took longer than expected – a month and two weeks for the number of American dead from this disease to double. Four months of Covid-19 has killed as many Americans as four years of global war. Thankfully we are nowhere near the total number of dead globally from WWI – which is right around 40 million – Covid has killed slightly less than a half million people world-wide. A huge and heartbreaking number, but nothing like 40 million. Thank God.
Update 4/28/20 – American deaths from Covid-19 surpassed American casualties in the Vietnam War today. Over 1 million cases in the USA – Trump continues to treat it like it’s no big deal and the stock market follows suit. Trump and his followers want people back to work, no matter the cost in lives and heartache. It took longer to reach this milestone than I would have expected – 22,000 in 11 days. That 2000 per day average is a troublesome number – it really should be going up or down – not hovering. Hopefully it will start to drop dramatically soon – but that seems as unlikely as the Stockmarket continuing to go up.
Update 4/17/20 – American deaths from Covid-19 now outnumber American deaths in the Korean War. Covid-19 is now the second leading cause of death in the USA and will probably pass cancer before the weekend is over.
Update 4/15/20 – We have now passed the death tolls for the War of 1812 and the American Revolutionary War. These are not happy numbers. My estimate is that we will achieve parity with casualities from WWI by May 5th.
April 6, 2020: We’ve exceeded September 11th and all the wars since Vietnam including Iraq, Afghanistan, Gulf War, Bosnia, Somalia and everything else. Next stop is the War of 1812 followed by the American Revolution. Let’s hope we don’t start reaching the Korean War and Vietnam because WWI levels are right around the corner. God help us all if we get to the levels of WWII and the American Civil War.
For those saying that the number of deaths in America from COVID-19 aren’t staggering – a bit of history on American casualties:
* 2977 deaths in the September 11th attacks
* 7702 casualties for every war or military action since Vietnam combined.
* 10,986 is the death toll in the US for COVID-19 deaths (4/6 at 6pm HST)
* War of 1812 ~15,000 Casualties
* American Revolution ~25,000 Casualties
* 36,516 Korean War casualties
* 58,209 Vietnam War Casualties
* 116,516 WWI Casualties
* 405,399 WWII Casualties
* ~650,000 American Civil War (both sides)
Don’t believe anyone who says this isn’t serious. It’s deadly serious.
I’m going to go ahead and coin the name for the coming crisis the Pan-Depression short for Pandemic Depression. It’s coming and it’s going to be ugly. #pandepression
Capitalism is eating itself and the result isn’t the creation of a giant uniform middle class. The middle class is what capitalism is feeding on.
The rich are sheltering in place. They are not worried about surviving this – though they will certainly lose the most in an absolute sense. These are billionaires.
The wealthy are scrambling to save their wealth – they are maneuvering for bailouts, looking for safe-havens, and cutting expenses – mostly this means cutting workers and worker benefits.
The top of the middle-class who thought they were wealthy are quickly heading towards losing it all. They are not going to get bailouts and they are not going to be collecting rents. They are not going to be getting paychecks but they will still have to cover their bills. They are freaking the fuck out. They are wondering when their wealthy and rich friends with power are going to look out for them. They are quickly learning that they are not as important as they thought.
The middle of the middle class is getting a bit of a lifeline – they think they will get three months of paychecks while unemployed, they think they will get a break on rents, they think they will get a stimulus check. They think they can make it for a couple of months and then this should all be over.
The bottom of the middle class has lost their jobs, they are unable to apply for unemployment, they don’t know how they will pay rent, they are hoping that they are not forgotten by their government. They no longer have health care (if they ever did) and they are torn between looking for work, hustling, or just saying fuck it.
The working poor are ready to stop paying rent, stop paying bills, stop paying anything. Their work is gone, they don’t have enough money to last the month, they fully expect to get sick, they don’t have health insurance and they will just have to deal with it as they always have. Many of them hope that this will create an opportunity for them to improve their place in life.
The poor are wandering the streets, looking for easy shit to steal, making soup from whatever the fuck they have. It’s easier for them – there are more hand-outs being given, more people looking out for them, more helping hands being offered. Like the homeless guys who moved into Occupy camps – they are seeing some benefit from this.
So, what’s going to happen when the shit ‘really’ hits the fan? Here it is – laid out for you.
The rich will be fine. The most mercenary and heartless of the wealthy will be fine. The other half will realize they are fucked – along with nearly all of the upper middle class – these are the people that will be killing themselves as they move progressively faster down the ladder towards the great equalizing station – the working poor. The middle and bottom of the middle class will also fall – but the drop isn’t as far or as painful and it is my opinion that many of them will manage to hold on – they are essential – grocery store workers, retail workers, restaurant workers, small farmers, civil servants – but the majority of the population are heading straight to the working poor and a large number of them will fall to the actual poor. You will have former millionaires living in tents next to former (and still) homeless. Bankers next to bartenders. People in America and Europe are about to learn (in the next six months) that what actually divides you isn’t your intelligence, your skill, or your hard work – it’s the luck of being born where you were and to who your parents were. That’s it.
There will only be two classes that survive – we can call them the haves and the have nots. That is it.