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Countdown to Economic Oblivion

Two weeks ago we exposed the expedient fiscal scams and loots being used to keep the economy afloat and keep manna flowing to the criminal classes. One of these is the Employee Retention Credit. We now learn that the trough is being removed and investigations launched into these abuses. In July $30 billion was paid out in this scheme. But in August that has dropped to $17 billion. There are moves afoot in Congress to eliminate this corrupt scheme altogether.

see: Bankrupting America with the Corrupt Employee Retention Credit

Another trough supporting the economy were the savings piled up under the scamdemic giveaways. Per Federal Reserve Bank of San Francisco of the original $2.1 trillion in “total accumulated excess savings” (free money handouts sourced from Uncle Sam), only $190B remained by June and they estimate the rest will be depleted within Q3. JP Morgan has now calculated that this will be all gone by October and in substantial deficit by Q1, 2024.

In one month student loan payments are due to be restarted for 40 million Americans. This comes as we approach the 3-year mark of student loan payments being suspended. This will involve $1.6 trillion of debt.

Target’s CFO Michael Fiddelke

“The upcoming resumption of student loan repayments will put additional pressure on the already strained budgets of tens of millions of households … We remain cautious in our planning.”

Levi’s CEO Chip Bergh

“It’s not going to help us … The consumer is already under pressure and this is just going to ratchet that up even further.”

Macy’s CFO Adrian Mitchell

“The expiration of student loan forgiveness beginning in October, higher interest rate levels, and lower new job creation are all new pressures on the consumer.” 

Tick, tick, tick: Is it any wonder that the scamdemic is being ramped up again so as to justify more largesse to fill the breach.

But issuance to fund the budget is exploding and there is a shift to longer term bonds. Yields are rising.

As a reminder 42% of all US Treasury debt rolls over in the next two years. The fiscal debt tidal wave at this point in time tacked on an extra $ half trillion in interest payment expense from two years ago.

See: Debt Trap and Beyond

At the same time the support to finance excessive fiscal deficits is steadily abating. Seems certain parties are getting the memo.

Meanwhile corporate debt raised at near zero interest rates is maturing. The defaults and bankruptcies will occur well before maturations. $230bn of corporate debt matures in the remainder of 2023. $790bn matures in 2024 and $1,070bn matures in 2025.

Commercial real estate matures at about 1/2 trillion a year over next five years of water torture.

Much of this shorter term CRE rollover is set to occur in some pretty fucked up poorly 5th Columnist governed locales.

San Francisco’s Woke Bust

Block after block of vacant retail and office in downtown Oakland.

“Lots of big retailers this summer are talking about theft, and how it’s hurting profit. But when an analyst asked department-store chain Nordstrom Inc. JWN, -9.54% about the subject on Thursday, following a massive late-afternoon robbery at one of its stores this month in California, executives said levels of theft haven’t been beyond what they expected.

“Certainly what happened at our Topanga store is disturbing to all of us,” Chief Executive Erik Nordstrom said on the retailer’s earnings conference call on Thursday, referring to the robbery, at the Westfield Topanga shopping center northwest of Los Angeles. “The loss is a concern. Losses from theft are at historical highs. We find it unacceptable and it needs to be addressed.”

Another headwind for retailers and consumers is the reverse UPS phenomenon.  Here we see entitled looters hauling off baby diapers from what looks like suburban front porches.

Retailers like Dick’s Sporting Goods Inc., Foot Locker Inc., Target Corp., Dollar General, Lowe’s Cos., and Walmart Inc. have warned this earning season that shrink is getting out of hand at their respective stores, causing continued margin pressure. Locations in less wealthy areas are being closed.

This chart captures daily activity at US Amazon facilities based on satellite imageries. Current 2023 activity is unusually low.

Winter Watch Takeaway: If we didn’t know any better we would suspect that a perfect storm has been planned.

I would highly recommend that readers view Netflix’s Painkiller fictionalized documentary. It takes square aim at the Sackler oxycontin opiate kingpins. However there is a strange and inexplicable suggestion at the beginning of episode 2 that this clan was Catholic. Go figure.

see: Jewish Forward: The Jewish Family Making Billions From The Opioid Crisis

Threat to Whites: The Opioid Plague

Oxytocin + Propaganda: Promotes Acceptance of Refugees, Stimulates Appetite For Financial Risk

3 Comments on Countdown to Economic Oblivion

  1. Tag this on with every other cost of living increase on the middle class. House valuations exploded with the low interest rates and now people with modest houses are paying upper middle class prices for tax valuations and home insurance, people who probably couldn’t afford the extra $300-$400 a month cost. Car insurance providers are ratcheting premium prices higher because new car costs are so astronomical and electronic parts in short supply. Credit card debt is rocketing higher too. Fun times ahead. Also, there is supposed to be solar flare activity next week.

  2. I caught the drift of whole Christmas gift scene in the very beginning. I’m guessing that was to distance the Sackler’s from their “tiny hat” lineage.

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