On Thursday, we learned that U.S. GDP was down 32.9 percent on an annualized basis last quarter. That officially makes last quarter the worst quarter in all of U.S. history, and many people believe that this new economic depression is just getting started. Originally, the mainstream media was telling us that the U.S. economy would come surging back to life during the third quarter, but we continue to get more signs that indicate that the economy is starting to slow down again.
For example, the Labor Department just released some new numbers that were more than just a little bit startling. If you can believe it, another 1.434 million Americans filed new claims for unemployment benefits last week. That was an increase over last week’s revised number, and it represents the second week in a row that initial claims have risen.
Overall, new claims for unemployment benefits have now been above one million for 19 weeks in a row.
Personally, I don’t know how this is even possible. Prior to this year, the all-time record for a single week was just 695,000. The numbers that we have been getting week after week are so obscene that they are truly difficult to believe. Overall, a grand total of more than 54 million Americans have filed new claims for unemployment benefits during the last 19 weeks.
But there were only 152 million Americans working when employment peaked back in February. So how is it possible that 54 million workers have filed initial claims for unemployment benefits so far this year?
Have things really gotten that bad? Maybe they have. Bloomberg just reported on a recent Census Bureau survey that found that 30 million Americans claim that they did not have enough food to eat during the week that ended on July 21st… Once again, those numbers are so shocking that they are hard for me to believe. Are there really tens of millions of Americans that cannot afford three meals a day right now?
Maybe there are, but it is still difficult to grasp the fact that we have fallen so far in such a short period of time.
Meanwhile, we just got more bad news about the restaurant industry. According to the National Restaurant Association, at least 15 percent of all restaurants in the entire country will be shutting down. In the end, I think that we are going to lose hundreds of thousands of restaurants, and it deeply grieves me to say that.
Of course every industry is going to be devastated by this new economic depression, and even the biggest names are going to get hit really hard.
In fact, you know that things are starting to get really bad when even Walmart starts laying off workers…
More big corporations are going to go bankrupt, more businesses are going to fail, more workers are going to be laid off, and the financial dominoes are going to start to fall at a pace that is absolutely breathtaking.
So many of the things that myself and so many other economic writers have been warning about are starting to happen.
A great unraveling has begun, and it is imperative for all of us to find a way to survive the severe economic collapse pain that is ahead of us.
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