Serious signals of U. S. economic damage – * Jobless claims hit 3.84 million, topping 30 million total, * GDP drops 4.8% indicative of tough times ahead, * Local City of Yelm planning is required now!
- Editor’s note: Prior to the coronavirus leading to shelter-in-place orders, President Trump amassed the largest amount of debt in three years than any other President in recorded history.
- The explosion of national debt incurred in the last 6 weeks has been astronomical.
- Recall Trump said during the 2016 campaign he would balance the budget in 8 years?
- Today, the U. S. National Debt is $24.8+ trillion, while the U. S. GDP is $21.4 trillion.
- The total market value of all goods and services (GDP) is $3.4 trillion short of covering the national debt.
- U. S. National Debt to GDP ratio is 115.96% and growing.
- Click here for the actual numbers from the Congressional Budget Office.
- Unless Trump forgives debts, puts U. S. on gold standard, his legacy will be massive debt and taxation on future generations!
- The City of Yelm needs to publicly present their plan to handle the coming assault on their revenue!
“US weekly jobless claims hit 3.84 million, topping 30 million over the last 6 weeks”
“Weekly jobless claims hit 3.84 million last week, higher than economist expectations of 3.5 million. The total brings the rolling six-week figure to 30.3 million,” by Jeff Cox, CNBC. Read more
Total unemployment claims top 20%
“The only time the unemployment rate has been over 20% in modern American history was in a four-year period from 1932 to 1935 — right in the teeth of the Great Depression.”
“The growing number of people filing for unemployment checks raises fresh questions about whether states have stockpiled enough money since the last recession to tide over idled workers until the crisis ends. Some fear the demand for help could outpace the states’ ability to pay claims.”
“The last recession led to the insolvency of unemployment trust funds in 35 states that collectively racked up more than $40 billion of debt to keep paying unemployed workers. In many states, those debts were repaid through higher taxes on employers,” by the San Francisco Chronicle. Read more
“4.8% GDP Drop Is The Beginning Of Tough Times That Need Plans Now”
“The U.S. Bureau of Economic Analysis released its first GDP estimate (there are ultimately three) for the first quarter of 2020: 4.8% contraction that is significantly higher than consensus expectations of 4%. As a reminder, that means an annualized rate for a quarter-over-quarter loss. In other words, the first quarter of 2020 was down roughly 1.2% from the fourth quarter of 2019.
How Bad It Might Get
“The concern among economists is not that the -4.8% figure for Q1 was so large, but that it will seem tiny in comparison to the current quarter that ends on June 30. Oxford Economics expects a “near-40% plunge,” according to a mailing I received, which would be beyond anything the country has seen. CNBC reported in early April JPMorgan JPM expecting that level of decline. The Congressional Budget Office last week came to the same conclusion.
“Atop unemployment has already crossed the 20% mark, we’re likely in a situation that is worse in many ways than during the Great Depression,” by Erik Sherman, Forbes. Read more