- Brandon Smith
Last week the Federal Reserve released a report predicting that the next print on GDP numbers will likely show a loss 34.9% in the second quarter. This is the biggest GDP plunge since the Great Depression; even the crash of 2008 doesn’t compare. And when we take into account the fact that the Fed artificially boosts GDP calculations by adding in many non-productive government programs, we have to ask, what are the REAL losses above and beyond what the Fed admits to?
With the supply chain in disarray, many companies (like Apple) are trying to shift their manufacturing base to dodge the pandemic. Of course, none of them want to bring factories back to the US; there’s simply no incentive to do so. And, the small business sector has been crushed by the shutdowns, with the vast majority of those seeking bailout loans still waiting for aid and over 20.5 million employees laid off in April alone.
Needless to say, the economy has been severely affected. The problem is that many people are being led to believe that this event has been triggered by the virus outbreak alone. This is a lie. As I noted back in February in my article ‘Global Centralization Is The Cause Of The Crisis – Not The Cure’, the collapse of the Everything Bubble was well underway long before the pandemic. The crash was started by the Federal Reserve hiking rates into economic weakness at the end of 2018, puncturing the bubble and setting the liquidity crisis in motion.
The pandemic is just the icing on the cake of a collapse that was going to happen anyway. It is also a convenient scapegoat, because now the banking elites are going to escape all the blame for the crash and the public is going to hyperfocus on the coronavirus as the culprit. …