The US GDP drops by a Third, The biggest GDP contraction since the Great Depression !!!

The US GDP drops by a Third, The biggest GDP contraction since the Great Depression !!!







US Q2 GDP Crashes By A Record 32.9%, Worse Than Great Depression. The coronavirus pandemic triggered the sharpest economic contraction in modern American history, the Commerce Department reported yesterday. Gross domestic product — the broadest measure of economic activity — shrank at an annual rate of 32.9% in the second quarter as restaurants and retailers closed their doors in a desperate effort to slow the spread of the virus, which has killed more than 150,000 people in the US. This is about $1.75 trillion of lost econ activity. This is on top of $2 trillion Cares act spending. Admittedly 100% if funds were not distributed in q2. The quartering is just how much the Cares Act was in GDP number. Obviously, if all $2 trillion was in q2, then GDP would have been down 3.75 trillion or about 75%! So, GDP plunged by 33%, and billionaires are up 33%. What a world we live in! The economic shock in April, May, and June was more than three times as sharp as the previous record — 10% in 1958 — and nearly four times the worst quarter during the Great Recession. The second-quarter decrease in real GDP reflected decreases in consumer spending, exports, inventory investment, business investment, and housing investment that were partially offset by an increase in government spending. Imports, a subtraction in the calculation of GDP, decreased. That said, the biggest contributor to the overall GDP drop was the crash in consumption - the decrease in consumer spending reflected decreases in services (led by health care) and goods (led by clothing and footwear). Personal Consumption accounted for the bulk, or -25.05%, of the overall -32.9% GDP drop, and five times more than the -4.75% Q1 GDP drop. Business and personal investments plummeted, with a staggering 43.5% annualized rate decrease, or a 10.9% decrease from last quarter, on non-defense federal spending softening the blow of the shutdown. (Whereas decreased demand for goods only contributed to 2% of our GDP contraction, service consumption contributed to nearly a quarter, a plurality coming from the shutdown of the healthcare industry.) Predictably, the nation suffered its first quarter of deflation since 2009, with our PCE price index falling by 1.9%. The flip side to our deflation? Nominal losses are actually slightly worse than our real GDP contraction. So, we are in a depression now. A 10% decline of GDP in a single quarter defines an economic depression. And the Markets will rise because “we beat the expectations.” The biggest GDP contraction since the Great Depression - and it is like it never even happened - in a little over 4 hours. All bad news is Priced in, always. New All-time highs here we come. Who needs GDP when we have central banks? US stock prices are rigged by Fed computers. How else can you explain new all-time highs For stocks in the middle of a Depression. The Fed 500 is only down a few percentage points during this economic meltdown. It’s funny how seriously people take a market that is so blatantly staged. It’s like thinking a reality tv show is real. Caracas stocks up 300% this year. It is indeed where we may be headed. Of course, not as high as our currency will still be considered safer. But in the early stages of devaluation, it’s easy to confuse stock market gains meaning economic growth, when really it’s just devaluation. Of course, the issue is that there aren’t many better countries to run better. So we’ll be able to continue charade longer. Crashing the economy worked wonders for the market in Venezuela. If you like eating cats and having large returns, it is the place to be. And everybody over there is a millionaire. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely totally on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. How many sectors would be dead without government intervention via bailouts? We've skipped the hundreds of billions, and gone straight to trillions. We've broken every tenet of Keynesian economic doctrine, by bailing out bankrupt, and non-viable businesses by money printing. It's over. The US economy is all but dead, and what comes next won't be pretty. And the looming evictions may soon make 28 million homeless. By comparison, 10 million people lost their homes in the Great Recession. This is what you get when every single Mayor and Governor across the Country shuts their state down, WHY IS THIS SHOCKING? AND WHAT DID we EXPECT? The response to Covid-19 has been more lethal and will continue to be more lethal than the disease. The body's response is what kills. Almost like it was planned to demolish the economy so effectively. In the Great Depression, politicians didn’t have Goldman Sachs showing up for lunch, to sell them on the idea that the taxpayer is totally irrelevant. “You can pay for anything, anytime, in any amount,” the sales pitch goes. The idiots believe it. That is the real pandemic: stupidity. We are witnessing in the United States one of the greatest failures of basic governance and leadership in modern times. Pretty pathetic that our government hands out free money to anything that moves, and GDP still crashes this much. Look at the FED balance sheet that didn't start three years ago. It was 2008........they are just kicking the can now. Remember when news like this would have crashed markets? But now it’s simply just another day on Wall Street. What would we do without Central Banks? The dollar is dead, and the world knows it. There is nowhere else to hide the mountains of dirt under the faux economy rug. Who would have ever thought that government mandating businesses shut their doors and stop all economic activity by telling people to stay home would cause GDP to go negative?? Maybe next, they'll show us a new study proving that water is in fact wet. For all that money the Fed was about to print, you needed an economic shutdown. The Corona was the excuse. I would say this has been the biggest crime portrayed in history. Things would have been much, much, much worse if it wasn't for all that free money from the federal reserve. Bringing the stock market back up when it was taking a dive greatly contributed to the wealth effect. If the stock market was allowed to collapse, that wealth effect would have instead become the poverty effect, and spending would have slowed dramatically. And the stimulus checks, and the $600 extra per week in people's unemployment benefits, which also came from free money from the federal reserve, helped the GDP numbers greatly. And that isn't even including all the other stimuli such as the payroll protection scam, I mean plan, the fed buying up all bad debt, etc. etc. So if it wasn't for free money from the federal reserve, the GDP would have tanked by at least 50% easily. So the Fed did a good job. A good job at duping people. Money is losing its value; debt is climbing, jobs are dwindling, the US will cease to function long before it can impose its will on the world. The world knows this fact very well and is just stringing along with the giant while it dies. And The one thing that Trump is going to accomplish—as he desperately struggles for re-election—is he’s going to finally rip off the Band-Aid. We’re going to have a real debate about this awful curse of Keynesian central banking. Trump hasn't taken on the Central Bank, and his issues with the Fed are for his own political ends. The belief Trump has gone after the FED, because of Keynesian central banking is blatantly absurd. At best, the above has happened due to the law of unintended consequences. Trump isn't trying to rip apart the Fed. He's trying to force their hand to allow for negative rates. You are seeing the true masters of the country. And it is not the populace. Every dollar printed is an obligation on our backs. People need to wake up and think about that and stop viewing their country from a perspective of blue versus red. They both are plotting our downfall. Until that happens, there is no reason for hope. That's just the way it is. The cockroaches of the FED never die; they keep feasting off the host and allow it to live long enough to generate more capital for the parasites to waste. Most of the money in the US is created by banks when they make loans. The only way to get extra money into the economy is to borrow it from banks, leaving us all trapped under a mountain of personal debt and mortgages. When you take out a loan, new money is created. As people borrow more, more new money comes into the economy. All the extra spending this newly created money funds gives people the impression the economy is doing well, which encourages them to borrow even more. As the debt goes up, so does the amount of money. FOR EVERY dollar OF MONEY, THERE’S a dollar OF DEBT. Because banks create money when people borrow, for every dollar of money in the economy, there will be a dollar of debt. If there’s $100 in your bank account, someone else must be $100 in debt. Across the whole economy, there will be as much debt as money. IF WE WANT MORE MONEY IN THE ECONOMY, WE HAVE TO GO FURTHER INTO DEBT. If we need to get more money into the economy – for example, during this depression – then we have to go further into debt to the banks. This is why the government is desperate to get banks lending again: if banks start lending more, they’ll create more new money in the process, and the people who borrowed will spend this new money. But if the financial crisis was caused by people having too much debt, how can the solution be for people to take on more debt? IF WE TRY TO PAY OFF DEBT, THEN MONEY DISAPPEARS. When you pay down your debts, the money that leaves your bank account doesn’t go to anyone else – it just disappears. This is because loan repayments are just the opposite process to money creation: banks create money when they make new loans, and effectively destroy money when they repay loans. This was The Atlantis Report. Please Like. Share. Subscribe. Leave me a comment. 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Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics