"Once Americans Get Desperately Hungry Is When
We Will See Absolutely Insane Economic Riots"
by Epic Economist
"The events we all witnessed throughout this year have changed our perception of what is considered normal. We have gotten so used to bad news, that many of us can already anticipate that what is coming ahead are even more hardships. Our optimism isn't based on future achievements anymore, but instead coming back to where we were before this whole meltdown has started. Since the burst of the crisis, in every month and every week that passes by we've seen some part of our economy collapsing, we've experienced the damages of this crisis in our lives, we have come to expect the unexpected.
At this point, it feels like another major disaster might happen at any moment, but as so many issues are being unfolded at once we can't tell for sure what's going to be the pivot of the next breakdown, but as we wait for “the other shoe to drop”, the state of economics in America continues to rapidly deteriorate. That's what we're going to discuss in this video.
It seems that as we reach the final stretch of 2020, the pace of economic deterioration has considerably intensified. Amid a spike in confirmed viral cases and a new round of lockdowns, U.S. business owners are getting increasingly desperate with the effects of the restrictions, and the lack of revenue and financial support. Consequently, massive waves of layoffs are being recorded during this holiday season. For instance, last week, the number of initial claims for unemployment benefits was the highest in four months.
At this stage of the crisis, this upward trend indicates that things are going to get even worse as winter gets closer. As a result, closures and bankruptcies will continue to impact the labor market. Last Wednesday, the Commerce Department reported that retail sales declined 1.1 percent in November, which used to be the start of the all-important holiday shopping season, but instead, in Black Friday month we registered the biggest drop in retail sales in seven months.
Currently, according to data published by a Daily News report, the number of unemployed people who are receiving aid from the federal extended-benefit program, which offers coverage to gig workers and others who don´t qualify for traditional benefits, surged to 9.2 million.
Additionally, the number of people receiving aid under a second program, which provides 13 weeks of federal benefits to those who have exhausted their assistance, also increased to 4.8 million. However, both of these programs and many others are scheduled to expire by year's end, leaving over 12 million jobless workers and their families without a financial safety net to afford their bills and expenses.
Some may argue that the biggest share of job losses was driven by the downfall of small businesses while large corporations are still thriving and leading our economy, which is partly true. However, major companies keep letting workers go at an astounding pace. Yesterday, Coca-cola announced plans to cut 2,200 jobs, which accounts for nearly 12 percent of their entire U.S. workforce, as it faces declining sales during the recession. What this highlights to us is that these big corporations are massively laying off their staff because they can predict what is about to happen, so they are trying to slim payrolls to survive the coming storm.
Meanwhile, the debate regarding another stimulus package is getting heated amongst representatives and policymakers in Congress. And considering authorities are being forced to choose between unemployment benefits and $600 weekly stimulus checks, apparently the new trillion-dollar relief bill is mostly going to support the financial markets while leaving people fighting for the crumbles. Dealing with the current crisis by launching unprecedented amounts of printed money instead of restrengthening our economy will only lead us to a different crisis.
As our money supply has been increasing at an almost vertical rate this year, hyperinflation is now on the horizon, and the effects of it can already be seen in food prices. According to Zero Hedge experts are panicking about surging food prices and we should all be worried about the coming food inflation.
On the same note, SocGen's Albert Edwards has outlined how even in the richest country in the world, food poverty has become a real problem during this crisis. And, in short, this means that we should all be carefully watching for mounting social agitation regarding access to food. As economic collapse expert Michael Snyder has perfectly summarized in his latest article: "once millions upon millions of Americans get desperately hungry, that is when we will see absolutely insane economic riots in this country. All of these things are coming, and we definitely will not have to wait very long at all for “the other shoe to drop.”
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