investmentwatchblog--2020-06-27--STOP Waiting for the Global Economic Collapse. It’s Here.

Is it interesting that the Fed reduced its balance sheet and the stock market declined ?
Is it interesting that @ @ @ @ @ has taken since the Financial Crisis has been looked at with fine detail , and @ @ @ @ @ on financial markets , reverberating for years afterward ?
Or is it now understood that @ @ @ @ @ we should just hope they will print until we achieve fiat confetti ?
( 14 @ @ @ @ @ : “ Fact : The S & P 500 peaked on June 8th during the @ @ @ @ @ ’ s balance sheet peaked .
t.co/8w1yAigezB ” / Twitter Fed puts restrictions on bank @ @ @ @ @ banks could be stressed in pandemic Fed stress tests US banks for the pandemic era @ @ @ @ @ Disconnect Between Prices And Profits In Stock Market History ?
– The Felder Report

Is it interesting that the Fed reduced its balance sheet and the stock market declined? Is it interesting that every single action the Fed has taken since the Financial Crisis has been looked at with fine detail, and has had a major impact on financial markets, reverberating for years afterward? Or is it now understood that the Fed is everything and we should just hope they will print until we achieve fiat confetti?
Assets: Total Assets: Total Assets (Less Eliminations from Consolidation): Wednesday Level (WALCL) | FRED | St. Louis Fed
fred.stlouisfed.org/series/WALCL
(14) Sven Henrich on Twitter: “Fact: The S&P 500 peaked on June 8th during the same week when the Fed’s balance sheet peaked. t.co/8w1yAigezB” / Twitter
twitter.com/NorthmanTrader/status/1276432081258717184
fed BS 6.25.jpg (1016×686)
www.zerohedge.com/s3/files/inline-images/fed%20BS%206.25.jpg?itok=Q0sFk9KX
FRB: H.4.1 Release–Factors Affecting Reserve Balances– June 25, 2020
www.federalreserve.gov/releases/h41/current/
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Fed BS vs SPX.jpg (909×503)
www.zerohedge.com/s3/files/inline-images/Fed%20BS%20vs%20SPX.jpg?itok=Uw6NZYDE
Fed puts restrictions on bank dividends after test finds some banks could be stressed in pandemic
www.cnbc.com/2020/06/25/fed-puts-restrictions-on-bank-dividends-after-test-finds-some-banks-could-be-stressed-in-pandemic.html
Fed stress tests US banks for the pandemic era | Financial Times
www.ft.com/content/2e381aa9-93ef-45b8-807f-11c66fe62d37?FTCamp=engage/CAPI/desktopapp/Channel_Bloomberg//B2B
The Biggest Disconnect Between Prices And Profits In Stock Market History? – The Felder Report
thefelderreport.com/2020/06/24/the-biggest-disconnect-between-prices-and-profits-in-stock-market-history/


investmentwatchblog--2020-06-27--According to India Today, India is exploring all types of military options as a response if Chinese

According to India Today , India is exploring all types of military options as a response if Chinese aggression continues @ @ @ @ @ are special operations to push the Chinese back from Pangong Lake or continue a military @ @ @ @ @ the LAC .
Sushant Singh @ SushantSin · 2h Chinese Army is now building a @ @ @ @ @ Pangong Tso , PLA patrols are now regularly making small forays down the ridge of @ @ @ @ @ of the lake and then returning , it is massing troops on southern bank of @ @ @ @ @ .

According to India Today, India is exploring all types of military options as a response if Chinese aggression continues. Some options being discussed are special operations to push the Chinese back from Pangong Lake or continue a military build-up at other sectors along the LAC.
According to India Today, India is exploring all types of military options as a response if Chinese aggression continues. Some options being discussed are special operations to push the Chinese back from Pangong Lake or continue a military build-up at other sectors along the LAC. — Global: MilitaryInfo (@Global_Mil_Info) June 27, 2020
Due to grave situation on #China border journalists & media this time are not allowed to venture in eastern #Ladakh except the administrative capital #Leh #IndiaChinaFaceOff pic.twitter.com/BwFuAg9H8R — Neeraj Rajput (@neeraj_rajput) June 27, 2020
Sushant Singh
@SushantSin
·
2h
Chinese Army is now building a helipad at Finger 4 in Pangong Tso, PLA patrols are now regularly making small forays down the ridge of Finger 3 towards the bank of the lake and then returning, it is massing troops on southern bank of the lake. My report.
We are primarily funded by readers. Please subscribe and donate to support us!
indianexpress.com/article/india/chinese-building-helipad-in-pangong-tso-massing-troops-on-southern-bank-of-lake-6478087/
h/t Builder


investmentwatchblog--2020-06-27--What was the point of shutting down the economy if we were just going to re-open too soon, not wear

What was the point of shutting down the economy if we were just going to re-open too soon , not @ @ @ @ @ gatherings leading to a second resurgence .
# COVID19 pic.twitter.com/aGlEcCW1lZ

What was the point of shutting down the economy if we were just going to re-open too soon, not wear masks & have mass gatherings leading to a second resurgence. #COVID19 pic.twitter.com/aGlEcCW1lZ
— Greg S. CFA (Chartered Federal Reserve Analyst) (@GS_CapSF) June 27, 2020


investmentwatchblog--2020-06-27--The diminishing returns of monetary policy are evident.

Federal Reserve Balance Sheet is now 37 % of GDP on its way to 50 % The diminishing returns of @ @ @ @ @ pic.twitter.com/HpRi8bI3tp

Federal Reserve Balance Sheet is now 37% of GDP on its way to 50%
The diminishing returns of monetary policy are evident. pic.twitter.com/HpRi8bI3tp
— Daniel Lacalle (@dlacalle_IA) June 27, 2020


investmentwatchblog--2020-06-27--Business hotel defaults,large Mall bankruptcies,loan defaults,in a few months this start kicking in

This is where I believe we start to see the fractures in the economy,that may affect the markets. Business hotel defaults,large Mall bankruptcies,loan defaults,in a few months this start kicking in … market will open its eyes t.co/vgVQuayZUy — Peter Tuchman (@EinsteinoWallSt) June 27, 2020
"Global trade in goods dropped 12 per cent in April compared with the previous month, the largest fall since records began in 2000" t.co/6Ht7YbvzU0 pic.twitter.com/Cpea1V6qzq — Trevor Noren (@trevornoren) June 27, 2020
FAAMNG stocks – Someone yelled sell. GOOG, FB, NFLX on a NT sell signal with MSFT and AAPL close – so Monday the first hour will be defining time for the markets – Watch Apple especially. AMZN hit it's target, so that may be turn out the lights time, too. pic.twitter.com/ox77BdOYfn — David Larew (@ThinkTankCharts) June 27, 2020
"We know the vast majority of Americans lost income even if they didn't lose their jobs. It is this segment of the population that is going to be affected it is no longer to say 'You have to save for a rainy day.' A lot of people will be savers."t.co/VpnteLLeUz — Danielle DiMartino Booth (@DiMartinoBooth) June 27, 2020


investmentwatchblog--2020-06-27--The Moment Seattle Took CHOP Down No Surrender

ENOUGH…The moment the Seattle Police take back control – refusing the BLM protesters any surrender to their Police Department …it @ @ @ @

It’s about time!
ENOUGH…The moment the Seattle Police take back control – refusing the BLM protesters any surrender to their Police Department …it’s happening pic.twitter.com/mla9hEkCTz
— Ruthann (@TeaBoots) June 27, 2020


investmentwatchblog--2020-06-27--Video: Savanah Hernandez Attacked For Peacefully Standing Up For Police With “Police Lives Matter” S

Video: Savanah Hernandez Attacked For Peacefully Standing Up For Police With “Police Lives Matter” Sign

I 've felt the need to stand up for the police lives , so I went and demonstrated with a @ @ @ @ @ sign and as per usual , the violent left found their way over .
Luckily @ @ @ @ @ attending the nearby BLM rally protected me and my first amendment .
Thank you .
@

I've felt the need to stand up for the police lives, so I went and demonstrated with a "Police Lives Matter" sign and as per usual, the violent left found their way over.
Luckily, many of the people attending the nearby BLM rally protected me and my first amendment. Thank you. pic.twitter.com/JaF31OypYr
— Savanah Hernandez (@sav_says_) June 27, 2020


investmentwatchblog--2020-06-27--COVID-19 Hype is Needed In Order to Justify Trump-Biden “Virtual Debates,” Mail-In Voting…

In order to support the most important political objectives of the DNC writ large in the 2020 election , COVID-19 hype is essential : ♦Without COVID-19 panic Democrats can not easily achieve ‘ mail-in ’ voting ; which they desperately need in key battleground states in order to control the outcome .
♦Without COVID-19 panic Democrats can not shut down rallies and political campaigning efforts of President Trump ; which they desperate need to do in key battleground states .
♦Without COVID-19 panic Democrats can not block the campaign contrast between an energetic President Trump and a physically tenuous , @ @ @ @ @ @ @ panic Democrats do not have an excuse for cancelling the DNC convention in Milwaukee ; thereby blocking Team Bernie Sanders from visible opposition while protecting candidate gibberish from himself .
♦Without COVID-19 panic Democrats do not have a mechanism to keep voters isolated from each-other ; limiting communication and national debate adverse to their interests .
COVID-19 panic pushes the national conversation into the digital space where Big Tech controls every element of the conversation .
♦Without COVID-19 panic Democrats can not keep their Blue state economies easily shut-down and continue to block @ @ @ @ @ @ @ are against the political interests of Democrats .
♦Without COVID-19 panic Democrats can not easily keep club candidate Joe Biden sealed in the basement ; where the electorate is not exposed to visible signs of his dementia .
♦Without COVID-19 panic it becomes more difficult for Big Tech to censor voices that would outline the fraud and scheme .
With COVID-19 panic they have a better method and an excuse .
♦Without COVID-19 panic Democrats can not advance , influence , or organize their preferred presidential debate format , a ‘ virtual presidential @ @ @ @ @ @ @ Whitmer knows this plan , hence she cancelled the Michigan venue ] All of these , and more , strategic outcomes are based on the manufactured weaponization of the COVID-19 virus to achieve a larger political objective .
There is ZERO benefit to anyone other than Democrats for the overwhelming hype surrounding COVID-19 .
It is not coincidental that all corporate media are all-in to facilitate the demanded fear that Democrats need in order to achieve their objectives .
Thus there is an alignment of all big government institutions and multinationals to support @ @ @ @ @ @ @ Everything is political .

In order to support the most important political objectives of the DNC writ large in the 2020 election, COVID-19 hype is essential:
♦Without COVID-19 panic Democrats cannot easily achieve ‘mail-in’ voting; which they desperately need in key battleground states in order to control the outcome.
♦Without COVID-19 panic Democrats cannot shut down rallies and political campaigning efforts of President Trump; which they desperate need to do in key battleground states.
♦Without COVID-19 panic Democrats cannot block the campaign contrast between an energetic President Trump and a physically tenuous, mentally compromised, challenger.
♦Without COVID-19 panic Democrats do not have an excuse for cancelling the DNC convention in Milwaukee; thereby blocking Team Bernie Sanders from visible opposition while protecting candidate gibberish from himself.
♦Without COVID-19 panic Democrats do not have a mechanism to keep voters isolated from each-other; limiting communication and national debate adverse to their interests. COVID-19 panic pushes the national conversation into the digital space where Big Tech controls every element of the conversation.
♦Without COVID-19 panic Democrats cannot keep their Blue state economies easily shut-down and continue to block U.S. economic growth. All thriving economies are against the political interests of Democrats.
♦Without COVID-19 panic Democrats cannot easily keep club candidate Joe Biden sealed in the basement; where the electorate is not exposed to visible signs of his dementia.
We are primarily funded by readers. Please subscribe and donate to support us!
♦Without COVID-19 panic it becomes more difficult for Big Tech to censor voices that would outline the fraud and scheme. With COVID-19 panic they have a better method and an excuse.
♦Without COVID-19 panic Democrats cannot advance, influence, or organize their preferred presidential debate format, a ‘virtual presidential debate’ series.
[Comrade Gretchen Whitmer knows this plan, hence she cancelled the Michigan venue]
All of these, and more, strategic outcomes are based on the manufactured weaponization of the COVID-19 virus to achieve a larger political objective. There is ZERO benefit to anyone other than Democrats for the overwhelming hype surrounding COVID-19.
It is not coincidental that all corporate media are all-in to facilitate the demanded fear that Democrats need in order to achieve their objectives. Thus there is an alignment of all big government institutions and multinationals to support the same.
Nothing is coincidental. Everything is political.


investmentwatchblog--2020-06-27--Jack Posobiec Attacked by the Mob

Jack Posobiec Attacked by the Mob

Assault , battery & attempted robberty commited by antifa/blm on @ OANN 's reporter @ JackPosobiec in DC earlier this @ @ @ @ @ federal property so I filed a report with US Park Police as well And yes @ @ @ @

Clip courtesy of @BreitbartNews edited by moi .. God Bless t.co/qXrO1MgGg8 pic.twitter.com/QLYiDCks0c
Assault, battery & attempted robberty commited by antifa/blm on @OANN 's reporter @JackPosobiec in DC earlier this evening.
Lincoln Park is federal property so I filed a report with US Park Police as well
And yes I am pressing charges
— Jack Posobiec (@JackPosobiec) June 27, 2020


investmentwatchblog--2020-06-27--UPMC doctor sees too much focus on rising COVID-19 cases, too little on declining severity and hospi

UPMC doctor sees too much focus on rising COVID-19 cases, too little on declining severity and hospitalizations.  Hospital patients four times less likely to die now than they were in April

GOOD NEWS : UPMC doctor sees too much focus on rising COVID-19 cases , too little on declining severity and hospitalizations .
A UPMC doctor on Wednesday said the number of people hospitalized with COVID-19 within UPMC is the lowest in many weeks , and people who test positive aren ’ t getting as sick .
Dr. Donald Yealy pointed out that is occurring even in the midst of Pennsylvania ’ s reopening and the ongoing social justice protests .
He suggested the country is focusing too much on rising COVID-19 case counts .
“ We need to change our @ @ @ @ @ @ @ number of cases , but on the severity of illness .
We shouldn ’ t just be counting those who have a diagnosed infection , ” Yealy said .
“ For the vast majority of people testing positive , their illness is mild , or they don ’ t even know they have any symptoms of COVID-19 infection.
” Related : Hospital patients four times less likely to die now than they were in April , Oxford study finds .
Experts say doctors may be becoming better at treating patients and several drugs @ @ @ @ @ @ @ survival Related : Heather Mac Donald : Where Are The Deaths ?
“ In May , Georgia was the main target of expert contempt for its allegedly premature reopening .
Since then , the media have gone silent , due to the state ’ s truly discouraging downward daily death toll from a high of 119 on April 7 , long before the reopenings , to 10 on June 24. .
.
.
There are no crises in hospital capacity anywhere in the country .
Nursing homes , meat-packing plants , and prisons @ @ @ @ @ @ @ ” Also : Getting Realistic About The Coronavirus Death Rate .
Nearly all the studies find between 10 and 100 times the number of total infections as reported infections , with the average somewhere around 20 to 25 times .
In other words , while the CDC reports 2.34 million Americans have been infected with the coronavirus , the actual number of infected and recovered people may be closer to 50 million .
( CDC Director Robert Redfield told journalists Thursday that the number of cases may be 10 times higher than the @ @ @ @ @ @ @ the death rate , which would be 5.2 percent based on that 2.34 million figure , is actually more like one-20th as high — or 0.26 percent .
It can be awful in some people , but overall it ’ s turning out to be nowhere near as bad as we feared a few months ago .
And that ’ s good !

GOOD NEWS: UPMC doctor sees too much focus on rising COVID-19 cases, too little on declining severity and hospitalizations.
A UPMC doctor on Wednesday said the number of people hospitalized with COVID-19 within UPMC is the lowest in many weeks, and people who test positive aren’t getting as sick.
Dr. Donald Yealy pointed out that is occurring even in the midst of Pennsylvania’s reopening and the ongoing social justice protests.
He suggested the country is focusing too much on rising COVID-19 case counts.
“We need to change our mindset and focus not exclusively on the number of cases, but on the severity of illness. We shouldn’t just be counting those who have a diagnosed infection,” Yealy said. “For the vast majority of people testing positive, their illness is mild, or they don’t even know they have any symptoms of COVID-19 infection.”
Related: Hospital patients four times less likely to die now than they were in April, Oxford study finds.
We are primarily funded by readers. Please subscribe and donate to support us!
Experts say doctors may be becoming better at treating patients and several drugs now appear to have an impact on survival
Related: Heather Mac Donald: Where Are The Deaths? “In May, Georgia was the main target of expert contempt for its allegedly premature reopening. Since then, the media have gone silent, due to the state’s truly discouraging downward daily death toll from a high of 119 on April 7, long before the reopenings, to 10 on June 24. . . . There are no crises in hospital capacity anywhere in the country. Nursing homes, meat-packing plants, and prisons remain the main sources of new infections.”
Also: Getting Realistic About The Coronavirus Death Rate.
Nearly all the studies find between 10 and 100 times the number of total infections as reported infections, with the average somewhere around 20 to 25 times. In other words, while the CDC reports 2.34 million Americans have been infected with the coronavirus, the actual number of infected and recovered people may be closer to 50 million. (CDC Director Robert Redfield told journalists Thursday that the number of cases may be 10 times higher than the earlier 2.34 million.) Thus, the death rate, which would be 5.2 percent based on that 2.34 million figure, is actually more like one-20th as high — or 0.26 percent.
It can be awful in some people, but overall it’s turning out to be nowhere near as bad as we feared a few months ago. And that’s good!
h/t GR


investmentwatchblog--2020-06-27--If you are SHOT inside a left-wing “autonomous zone,” no police will come to help you

( Natural News ) During a recent episode of Fox News Channel ‘ s “ Fox & Friends ” program , Seattle Police Officers Guild President Michael Solan told viewers that Seattle police officers have been prohibited from entering the so-called Capitol Hill Occupied Protest ( CHOP ) area .
This means that if someone gets shot inside the area then they are entirely on their own .
According to Solan , “ violence has now besieged ” what used to be known as the Capitol Hill Autonomous Zone ( CHAZ ) of Seattle , a six-block area of total @ @ @ @ @ @ @ making an appearance – unless , of course , they want to be violently assaulted .
Early on in its existence , Seattle Mayor Jenny Durkan described the CHOP as a “ street fair , ” likening its vibe to “ the summer of love.
” But according to Solan , anyone who dares to enter the CHOP will actually be entering “ the summer of chaos , ” as all law enforcement activity has ceased within the containment area .
Demonstrating that America really has become a failed state , the continued @ @ @ @ @ @ @ of writing on the wall for many other large American cities .
Many had hoped that the CHOP would be broken up by now , and the fact that it has not suggests that the rule of law everywhere could be on the brink of no return .
“ Early this morning , that violence was raw and real , ” Solan explained about what he had witnessed a day prior , noting that he is extremely frustrated with local officials ’ reluctance “ to enforce the rule of law ” within the @ @ @ @ @ @ @ members lost their ( sic ) life , and police are still not allowed into that area , and we are prevented [ from ] providing that police service to the area to locate victims and / or render aid , ” he added .
Listen below to The Health Ranger Report as Mike Adams , the Health Ranger , talks about how Black Lives Matter has now achieved legal immunity to continue burning , looting and murdering without consequence : Will Seattle ever again be a safe place for normal people ?
@ @ @ @ @ @ @ , then more areas of Seattle could become “ autonomous , ” as could areas in other cities across America .
This is why Solan and others have been pushing those at the helm to take action , though they have yet to see any formidable response .
Solan laments the fact that Seattle officials have failed “ the reasonable community of Seattle to enforce the rule of law.
” As lawlessness continues to spread , more and more areas may become “ no-go ” zones where rapes , murders , and illicit @ @ @ @ @ @ @ land .
It is a dire situation that requires immediate attention , he says .
If life , liberty and the pursuit of happiness is ever to exist again in the city of Seattle , then the CHOP needs to be disbanded and absorbed back into society .
The alternative is more chaos , more violence , and more societal breakdown .
“ In America , there is no political leadership whatsoever , ” warns the Health Ranger , noting that both sides of the aisle are guilty of doing absolutely nothing to @ @ @ @ @ @ @ and fair for all Americans .
“ The Democrats are traitors and the Republicans are feckless , spineless lose-o-crats who are utterly incapable of asserting even an inkling of leadership or the assertion of the principles they ( falsely ) claim to represent.
” Can America be saved , then ?
Probably not , at this point , which is why we urge our readers to prepare for the worst that is probably yet to come .
For more related news about the collapse of American society , be sure to check out @ @

by: Ethan Huff
(Natural News) During a recent episode of Fox News Channel‘s “Fox & Friends” program, Seattle Police Officers Guild President Michael Solan told viewers that Seattle police officers have been prohibited from entering the so-called Capitol Hill Occupied Protest (CHOP) area. This means that if someone gets shot inside the area then they are entirely on their own.
According to Solan, “violence has now besieged” what used to be known as the Capitol Hill Autonomous Zone (CHAZ) of Seattle, a six-block area of total lawlessness where cops are now prohibited from making an appearance – unless, of course, they want to be violently assaulted.
Early on in its existence, Seattle Mayor Jenny Durkan described the CHOP as a “street fair,” likening its vibe to “the summer of love.” But according to Solan, anyone who dares to enter the CHOP will actually be entering “the summer of chaos,” as all law enforcement activity has ceased within the containment area.
Demonstrating that America really has become a failed state, the continued existence of the CHOP is a type of writing on the wall for many other large American cities. Many had hoped that the CHOP would be broken up by now, and the fact that it has not suggests that the rule of law everywhere could be on the brink of no return.
“Early this morning, that violence was raw and real,” Solan explained about what he had witnessed a day prior, noting that he is extremely frustrated with local officials’ reluctance “to enforce the rule of law” within the CHOP.
“One of our community members lost their (sic) life, and police are still not allowed into that area, and we are prevented [from] providing that police service to the area to locate victims and / or render aid,” he added.
Listen below to The Health Ranger Report as Mike Adams, the Health Ranger, talks about how Black Lives Matter has now achieved legal immunity to continue burning, looting and murdering without consequence:
Will Seattle ever again be a safe place for normal people?
If things continue as they have been, then more areas of Seattle could become “autonomous,” as could areas in other cities across America. This is why Solan and others have been pushing those at the helm to take action, though they have yet to see any formidable response.
Solan laments the fact that Seattle officials have failed “the reasonable community of Seattle to enforce the rule of law.” As lawlessness continues to spread, more and more areas may become “no-go” zones where rapes, murders, and illicit gun-dealing become the new law of the land.
We are primarily funded by readers. Please subscribe and donate to support us!
It is a dire situation that requires immediate attention, he says. If life, liberty and the pursuit of happiness is ever to exist again in the city of Seattle, then the CHOP needs to be disbanded and absorbed back into society. The alternative is more chaos, more violence, and more societal breakdown.
“In America, there is no political leadership whatsoever,” warns the Health Ranger, noting that both sides of the aisle are guilty of doing absolutely nothing to try to make things just, equitable and fair for all Americans.
“The Democrats are traitors and the Republicans are feckless, spineless lose-o-crats who are utterly incapable of asserting even an inkling of leadership or the assertion of the principles they (falsely) claim to represent.”
Can America be saved, then? Probably not, at this point, which is why we urge our readers to prepare for the worst that is probably yet to come.
For more related news about the collapse of American society, be sure to check out Collapse.news.
Sources for this article include:
Breitbart.com
NaturalNews.com
NaturalNews.com


investmentwatchblog--2020-06-27--Obama/Biden scandals: -Fast & Furious -Solyndra -Benghazi -IRS targeting -Opperation Choke Point -Sp

Obama/Biden scandals: -Fast & Furious -Solyndra -Benghazi -IRS targeting -Opperation Choke Point -Spying on journalists -VA waiting lists -Cash payments to Iran -Clinton emails -Unmasking of political rivals….

Newly Released Document Prove Hunter Biden Was Selling Access to the Obama Administration ROGER SIMON : No Holds Barred : @ @ @ @ @ Obama & Biden Too .

. @GenFlynn KNEW about the rotten, deadly corruption of the Obama/Clinton gang — which is why he was ambushed and framed! Benghazi big arms scandal is only tip of the iceberg. #Benghazi #Obamagate t.co/DAoos8zr7w
The scandal the nightly news can’t be bothered to cover: Two months after the 2016 election, Joe Biden said, let's use the Logan Act (an unconstitutional 200-year-old law that the DOJ has never used to prosecute anyone) to target Michael Flynn. And Obama agreed. pic.twitter.com/6bJeM5zBGY
— Senator Ted Cruz (@SenTedCruz) June 25, 2020


investmentwatchblog--2020-06-27--Three Minneapolis Council Members Vote to Disband Police – Then Hire Private Security for Protection

Three Minneapolis Council Members Vote to Disband Police – Then Hire Private Security to Protect Them
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investmentwatchblog--2020-06-27--A journalist actually wrote this, they literally debunk themselves

They bank on people only reading the headline .
Unfortunately it ’ s a safe bet .
You see it @ @ @ @ @ fact checking ” sites too .
What a joke .
Hey @ pbump you are @ @ @ @ @ arent you .
Youbhave to go past ten to get to 3 non democrats .
@ @ @ @ @ you are biased .

by BananaWizard
archive.fo/Ulklv
They bank on people only reading the headline. Unfortunately it’s a safe bet.
You see it a lot with the “fact checking” sites too. What a joke.
Hey @pbump you are a special kind of dumb arent you.
This is literally laughable.
Youbhave to go past ten to get to 3 non democrats.
Y'all wonder why we say you are biased.
"Here's your sign" pic.twitter.com/HAfwiCxG1G
— Rob Eno (@Robeno) June 27, 2020


investmentwatchblog--2020-06-27--HUGE: Email Shows Strzok Bragging About Pinning Logan Act Crimes on General Flynn

Another email release shows that dirty cop Peter Strzok from Obama and Comey ’ s FBI is the one who identified using the Logan Act for the crime to pin on General Michael Flynn .
Strzok ’ s newly released notes also suggest a secret meeting in January at that time was the reason the Flynn investigation was not closed .
Overnight Catherine Herridge reported that Strzok is the one who identified the Logan Act and he bragged about it in an email .
“ And because I am so awesome CRS piece on the Logan Act from 2015 .
@ @ @ @ @ @ @ not involve incoming administrations.
” # FLYNN ANALYSIS : Recently declassified FBI agent Strzok notes are among the earliest documented discussions of Logan Act – apparent basis to further investigate Flynn .
Filing states the notes are believed to be January 4 , 2017 .
“ According to Strzok ’ s notes , it appears that Vice President Biden personally raised the idea of the Logan Act .
” Emails from DOJ motion to dismiss also show that on January 4 , 2017 Strzok , FBI lawyer Lisa Page + FBI General Counsel @ @ @ @ @ @ @ 18 USC 953 # MyHighlighter # connectingthedots @ CBSNews

HUGE: Newly Released Email Shows Dirty Cop Peter Strzok Bragging About Pinning Bogus Logan Act Crimes on General Michael Flynn
Another email release shows that dirty cop Peter Strzok from Obama and Comey’s FBI is the one who identified using the Logan Act for the crime to pin on General Michael Flynn.
Strzok’s newly released notes also suggest a secret meeting in January at that time was the reason the Flynn investigation was not closed.
Overnight Catherine Herridge reported that Strzok is the one who identified the Logan Act and he bragged about it in an email.
Strzok brags:
“And because I am so awesome CRS piece on the Logan Act from 2015. All the legislative history they cite does not involve incoming administrations.”
We are primarily funded by readers. Please subscribe and donate to support us!
www.thegatewaypundit.com/2020/06/huge-newly-released-email-shows-dirty-cop-peter-strzok-bragging-pinning-bogus-logan-act-crimes-general-michael-flynn/
Catherine Herridge
@CBS_Herridge
#FLYNN ANALYSIS: Recently declassified FBI agent Strzok notes are among the earliest documented discussions of Logan Act – apparent basis to further investigate Flynn. Filing states the notes are believed to be January 4, 2017. “According to Strzok’s notes, it appears that Vice
#FLYNN ANALYSIS: Recently declassified FBI agent Strzok notes are among the earliest documented discussions of Logan Act – apparent basis to further investigate Flynn. Filing states the notes are believed to be January 4, 2017. “According to Strzok’s notes, it appears that Vice — Catherine Herridge (@CBS_Herridge) June 27, 2020
Catherine Herridge
@CBS_Herridge
President Biden personally raised the idea of the Logan Act. ” Emails from DOJ motion to dismiss also show that on January 4, 2017 Strzok, FBI lawyer Lisa Page + FBI General Counsel James Baker searched for Logan Act statute 18 USC 953 #MyHighlighter #connectingthedots @CBSNews
President Biden personally raised the idea of the Logan Act. " Emails from DOJ motion to dismiss also show that on January 4, 2017 Strzok, FBI lawyer Lisa Page + FBI General Counsel James Baker searched for Logan Act statute 18 USC 953 #MyHighlighter #connectingthedots @CBSNews pic.twitter.com/yzabiXbw0z — Catherine Herridge (@CBS_Herridge) June 27, 2020
h/t CrsCrpr


investmentwatchblog--2020-06-27--CLOWN WORLD: Anderson Cooper LOVES That his Grandpa Got BEATEN TO DEATH By A Black Man

Vulgar Cuck Anderson Cooper LOVES That his Grandpa Got BEATEN TO DEATH and Humiliated By A Black Man
We are primarily funded by readers. Please subscribe and donate to support us!
h/t CrsCrpr


investmentwatchblog--2020-06-27--VIDEO: Sheriff Troy Nehls: “A US Postal worker was just caught on video throwing a stack of my campa

VIDEO: Sheriff Troy Nehls: “A US Postal worker was just caught on video throwing a stack of my campaign mailers in a dumpster.

A US Postal worker was just caught on video throwing a stack of my campaign mailers in a dumpster .
@ @ @ @ @ noise when she tossed them in & went to investigate .
They found a stack @ @ @ @ @ .
No wonder people are skeptical of mail in voting .
pic.twitter.com/I28SBydg2N

A US Postal worker was just caught on video throwing a stack of my campaign mailers in a dumpster. Some patriots nearby heard a noise when she tossed them in & went to investigate. They found a stack of them and called me. No wonder people are skeptical of mail in voting. pic.twitter.com/I28SBydg2N
— Sheriff Troy Nehls (@SheriffTNehls) June 26, 2020


investmentwatchblog--2020-06-27--The Central Bank “Bailout of Everything” Will Be a Disaster

Despite massive government and central bank stimuli , the global economy is seeing a concerning rise in defaults and delinquencies .
The main central banks ’ balance sheets ( those of the Federal Reserve , Bank of Japan , European Central Bank , Bank of England , and People ’ s Bank Of China ) have soared to a combined $ 20 trillion , while the fiscal easing announcements in the major economies exceed 7 percent of the world ’ s GDP according to Fitch Ratings .
This is the biggest combined stimulus plan in history .
However , businesses @ @ @ @ @ @ @ unemployment has reached extremely elevated levels in many countries .
There is an important risk in what I call the “ bailout of everything , ” or the conscious decision by governments and central banks to provide any needed support to all sectors and companies with access to debt .
Most of these stimulus packages and liquidity measures are aimed at supporting current government spending and providing liquidity to companies with assets , with access to debt , and in traditional sectors .
It is not a surprise , then , that at @ @ @ @ @ @ @ largest fiscal and monetary support plan since World War II , we are already witnessing two dangerous collateral effects : the rise of zombie companies and the collapse of small businesses and startups .
According to the Institute of International Finance ( IIF ) , the figure of global corporate bond defaults has risen to $ 50 billion in the second quarter of 2020 despite historic low interest rates and high liquidity .
Additionally , according to Deutsche Bank and the Bank of International Settlements , the number of zombie companies in the @ @ @ @ @ @ @ that can not cover their interest expenses with operating profits , has rocketed to new all-time highs .
In 2019 Professors Petroulakis ( ECB ) and Andrews ( OECD ) stated , “ Europe ’ s productivity problem is partly due to the rise of zombie firms that crowd out growth opportunities for others ” ( “ What Zombie Firms Tell Us about Europe ’ s Productivity Problem , ” World Economic Forum , April 2019 ) .
This problem is only increasing in the current crisis .
The rise in bond defaults @ @ @ @ @ @ @ in a weakening operating income environment .
This should not be a concern if creative destruction works to improve the economy , as inefficient companies are taken over by efficient ones and new investors restructure challenged businesses to make them competitive .
The big problem is how massive liquidity and low rates are perpetuating overcapacity and keeping an extraordinary amount of zombie firms alive .
Maintaining and increasing zombie firms destroys any positive effect from restructuring and innovation .
Additionally , to maintain cash flows and stay alive , companies are cutting investment @ @ @ @ @ @ @ .
Meanwhile , small businesses that do not own hard assets or have access to debt are dissolving every day .
In most developed economies , where 80 percent of employment comes from small businesses , the “ bailout of everything ” is becoming a massive transfer of wealth from the new economy to the old economy , preventing a stronger and more productive recovery .
In the eurozone , the main beneficiaries of the European Central Bank corporate bond purchases are large industrial conglomerates that were already facing weak margins , poor @ @ @ @ @ @ @ 2019 .
In the United States , the financing channel of the real economy is more diverse , and the impact of zombification is smaller , but not negligible or irrelevant .
Some of these problems may have been inevitable in a crisis , but the majority of them could have been mitigated significantly by implementing supply-side policies instead of large government-directed stimuli and recovery plans based on adding more debt to already challenged sectors .
The Bailout of Everything ( as long as it is large ) creates significant risks .
Low-productivity @ @ @ @ @ @ @ perverse incentive that benefits malinvestment and poor capital allocation .
Additionally , as these sectors already had overcapacity and structural problems , their bailout does not lead to higher job creation or stronger investment .
Furthermore , high-productivity sectors will likely suffer the rising tax burden after these governments ’ rescue plans diminish the employment potential and the likelihood of rising real wages as productivity growth stalls .
Finally , when governments bail out large and overcapacity-ridden conglomerates , investment in innovation , efficiency , and restructuring of loss-making divisions is severely diminished @ @ @ @ @ @ @ governments agree to take stakes or bail out large sectors is precisely to prevent them from restructuring in the first place .
Tax cuts and supply-driven liquidity measures to small businesses and technology would have worked significantly better and at a lower cost for taxpayers .
What we are seeing today may have long-term negative implications .
A weaker than expected recovery , with low-productivity growth and a challenging return of the lost employment as well as poor investment growth , are likely the collateral damage of the misguided and panic-driven Bailout of @ @ @ @ @ @ @ generate more debt and higher taxes that will further complicate things for taxpayers and innovative sectors .
Originally published at DLacalle.com as “ The Risk of the ‘ Bailout Of Everything ‘ .
” Author : Daniel Lacalle , PhD , economist and fund manager , is the author of the bestselling books Freedom or Equality ( 2020 ) , Escape from the Central Bank Trap ( 2017 ) , The Energy World Is Flat ( 2015 ) , and Life in the Financial Markets ( 2014 ) .
He is a professor @ @ @ @ @ @ @ in Madrid .

by Daniel Lacalle via Mises
Despite massive government and central bank stimuli, the global economy is seeing a concerning rise in defaults and delinquencies. The main central banks’ balance sheets (those of the Federal Reserve, Bank of Japan, European Central Bank, Bank of England, and People’s Bank Of China) have soared to a combined $20 trillion, while the fiscal easing announcements in the major economies exceed 7 percent of the world’s GDP according to Fitch Ratings.
This is the biggest combined stimulus plan in history. However, businesses are closing at a record pace and unemployment has reached extremely elevated levels in many countries.
There is an important risk in what I call the “bailout of everything,” or the conscious decision by governments and central banks to provide any needed support to all sectors and companies with access to debt. Most of these stimulus packages and liquidity measures are aimed at supporting current government spending and providing liquidity to companies with assets, with access to debt, and in traditional sectors. It is not a surprise, then, that at the same time as we see the largest fiscal and monetary support plan since World War II, we are already witnessing two dangerous collateral effects: the rise of zombie companies and the collapse of small businesses and startups.
According to the Institute of International Finance (IIF), the figure of global corporate bond defaults has risen to $50 billion in the second quarter of 2020 despite historic low interest rates and high liquidity. Additionally, according to Deutsche Bank and the Bank of International Settlements, the number of zombie companies in the eurozone and the US, large companies that cannot cover their interest expenses with operating profits, has rocketed to new all-time highs. In 2019 Professors Petroulakis (ECB) and Andrews (OECD) stated, “Europe’s productivity problem is partly due to the rise of zombie firms that crowd out growth opportunities for others” (“What Zombie Firms Tell Us about Europe’s Productivity Problem,” World Economic Forum, April 2019). This problem is only increasing in the current crisis.
The rise in bond defaults is a consequence of previous high leverage in a weakening operating income environment. This should not be a concern if creative destruction works to improve the economy, as inefficient companies are taken over by efficient ones and new investors restructure challenged businesses to make them competitive. The big problem is how massive liquidity and low rates are perpetuating overcapacity and keeping an extraordinary amount of zombie firms alive.
Maintaining and increasing zombie firms destroys any positive effect from restructuring and innovation. Additionally, to maintain cash flows and stay alive, companies are cutting investment in innovation, technology, and research. Meanwhile, small businesses that do not own hard assets or have access to debt are dissolving every day. In most developed economies, where 80 percent of employment comes from small businesses, the “bailout of everything” is becoming a massive transfer of wealth from the new economy to the old economy, preventing a stronger and more productive recovery.
In the eurozone, the main beneficiaries of the European Central Bank corporate bond purchases are large industrial conglomerates that were already facing weak margins, poor growth, and bloated balance sheets in 2019. In the United States, the financing channel of the real economy is more diverse, and the impact of zombification is smaller, but not negligible or irrelevant.
Some of these problems may have been inevitable in a crisis, but the majority of them could have been mitigated significantly by implementing supply-side policies instead of large government-directed stimuli and recovery plans based on adding more debt to already challenged sectors.
We are primarily funded by readers. Please subscribe and donate to support us!
The Bailout of Everything (as long as it is large) creates significant risks.
Low-productivity and indebted sectors survive, creating a perverse incentive that benefits malinvestment and poor capital allocation. Additionally, as these sectors already had overcapacity and structural problems, their bailout does not lead to higher job creation or stronger investment. Furthermore, high-productivity sectors will likely suffer the rising tax burden after these governments’ rescue plans diminish the employment potential and the likelihood of rising real wages as productivity growth stalls.
Finally, when governments bail out large and overcapacity-ridden conglomerates, investment in innovation, efficiency, and restructuring of loss-making divisions is severely diminished. Why? Because the reason why governments agree to take stakes or bail out large sectors is precisely to prevent them from restructuring in the first place. Tax cuts and supply-driven liquidity measures to small businesses and technology would have worked significantly better and at a lower cost for taxpayers.
What we are seeing today may have long-term negative implications.
A weaker than expected recovery, with low-productivity growth and a challenging return of the lost employment as well as poor investment growth, are likely the collateral damage of the misguided and panic-driven Bailout of Everything. Unfortunately, it will also generate more debt and higher taxes that will further complicate things for taxpayers and innovative sectors.
Originally published at DLacalle.com as “The Risk of the ‘Bailout Of Everything‘.”Author:
Daniel Lacalle
Daniel Lacalle, PhD, economist and fund manager, is the author of the bestselling books Freedom or Equality (2020),Escape from the Central Bank Trap (2017), The Energy World Is Flat (2015), and Life in the Financial Markets (2014).
He is a professor of global economy at IE Business School in Madrid.


investmentwatchblog--2020-06-27--WASHINGTON D.C.: OANN Reporter Attacked By Antifa Mob At The Emancipation Statue

One America News Reporter Jack Posobiec Was Assaulted At The Emancipation Statue Protest Jack Posobiec forced out of Lincoln Park @ @ @ @ @ has become so crazy that Tim seems like a conservative .

One America News Reporter Jack Posobiec Was Assaulted At The Emancipation Statue Protest
Jack Posobiec forced out of Lincoln Park by Antifa activists
FULL VIDEO: Reporter Jack Posobiec attacked by Antifa, blm mob – BHAZ Washington DC
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The left has become so crazy that Tim seems like a conservative.
h/t CrsCrpr


investmentwatchblog--2020-06-27--Feds Bust Black Lives Matter Organizer for Blackmailing Local Businesses: “You don’t want 600 people

Feds Bust Black Lives Matter Organizer for Blackmailing Local Businesses: “You don’t want 600 people to come here and destroy your business

The riot in Madison was inspired by the arrest of organizer Devonere Johnson for ‘ organizing ’ in a restaurant .
The resulting violence saw statues toppled and a Democrat state senator beaten .
Now the Feds have busted Johnson for blackmailing businesses .
Federal prosecutors brought extortion charges Friday against the man whose arrest this week sparked violence and destruction in the capital city .
U.S. Attorney Scott Blader filed the charges against Devonere Johnson , alleging he threatened to bash windows of downtown businesses unless employees gave him money .
Blader also alleges Johnson , 28 , threatened @ @ @ @ @ @ @ another business unless Johnson and his friends were provided free food and drinks .
In one restaurant , Johnson allegedly brought a boombox indoors and refused to turn it down .
When the owner told Johnson he donated money to a group supporting the Black Lives Matter campaign , Johnson asked what he had done “ locally.
” Ultimately , Johnson allegedly told the owner “ give me money or we ’ ll break windows , ” according to the criminal complaint .
Johnson entered another bar and allegedly asked for free food @ @ @ @ @ @ @ be “ marked , ” according to the complaint .
“ You don ’ t want 600 people to come here and destroy your business and burn it down .
The cops are on our side , ” according to the complaint , which included interviews with the bar owner about what Johnson allegedly said .
“ You notice that when you call them , nothing happens to us.
” Even Sharpton was slicker than that .
But in the BLM kneeling age , Johnson thought he could get away with it .
@ @ @ @ @ @ @ , is a Madison activist who has been present at every protest following Floyd ’ s death .
He was arrested outside a Capitol square restaurant on Tuesday after he brought a baseball bat and a bullhorn into the tavern and shouted at customers .
The arrest sparked hundreds to march in Madison ’ s downtown streets seeking Johnson ’ s release from jail .
The demonstrations turned violent and threatening as protesters entered a private condo building and forced a driver from a car , and assaulted at least two people — @ @ @ @ @ @ @ BLM Handled by Group With Convicted Terrorist On Its Board ( washingtonexaminer.com ) – The co-founder of Black Lives Matter names a convicted cop killer as one of her heroes , and the BLM national organization is fiscally sponsored through a leftist group whose board of directors includes a convicted terrorist .
Alicia Garza , one of three co-founders of the Black Lives Matter national organization , has repeatedly talked about how convicted cop killer and wanted domestic terrorist Joanne Chesimard , also known as Assata Shakur , is one of her main @ @ @ @ @ @ @ of the board of directors for the left-wing Thousand Currents group , which handles the intake of donations made to Black Lives Matter , is a convicted terrorist who , among other things , was suspected of helping Shakur escape from prison .
Rosenberg , who was listed as the vice chairwoman of the board of directors for Thousand Currents until the webpage was pulled down this week , as first reported by the Capital Research Center , had been a member of the radical leftist revolutionary militant group known as the May @ @ @ @ @ @ @ Weather Underground terrorist group and other radicals .
She was convicted on weapons and explosives charges and sentenced to 58 years in prison , serving 16 years before being pardoned by President Bill Clinton in January 2001 .
Thousand Currents did not return a request for comment .
Black Lives Matter , which is not a 501 ( c ) ( 3 ) charitable group , uses an IRS-approved 501 ( c ) ( 3 ) organization — Thousand Currents — as its fiscal sponsor , and so donations made on the Black @ @ @ @ @ @ @ donation platform go to Thousand Currents , which says it then distributes them to Black Lives Matter .
Black Lives Matter has gained a vast amount of national attention , and funding , since the death in Minneapolis police custody of George Floyd on Memorial Day .
Rosenberg was a radical in the 1960s and 1970s who landed on the FBI ’ s Most Wanted List for a number of suspected crimes and was nabbed in 1984 while unloading from her car and into a New Jersey storage unit hundreds of pounds of @ @ @ @ @ @ @ sub-machine gun .
She was believed to have been part of future politically motivated bombing plots .
Rosenberg and her M19 associates were also charged with roles in bombings during the 1980s at the Capitol and the Navy War College , among other targets .
They were also tied to a 1981 Brink ’ s armored car robbery that killed a guard and two police officers… NEW YORK : Democrat Rioters Camp Out At City Hall ; Demand One BILLION Cut To Police Budget

Feds Bust Black Lives Matter Organizer for Blackmailing Local Businesses
The riot in Madison was inspired by the arrest of organizer Devonere Johnson for ‘organizing’ in a restaurant. The resulting violence saw statues toppled and a Democrat state senator beaten.
Now the Feds have busted Johnson for blackmailing businesses.
Federal prosecutors brought extortion charges Friday against the man whose arrest this week sparked violence and destruction in the capital city. U.S. Attorney Scott Blader filed the charges against Devonere Johnson, alleging he threatened to bash windows of downtown businesses unless employees gave him money. Blader also alleges Johnson, 28, threatened to “shut down and destroy” another business unless Johnson and his friends were provided free food and drinks. In one restaurant, Johnson allegedly brought a boombox indoors and refused to turn it down. When the owner told Johnson he donated money to a group supporting the Black Lives Matter campaign, Johnson asked what he had done “locally.” Ultimately, Johnson allegedly told the owner “give me money or we’ll break windows,” according to the criminal complaint. Johnson entered another bar and allegedly asked for free food and drinks or else the bar would be “marked,” according to the complaint. “You don’t want 600 people to come here and destroy your business and burn it down. The cops are on our side,” according to the complaint, which included interviews with the bar owner about what Johnson allegedly said. “You notice that when you call them, nothing happens to us.”
Even Sharpton was slicker than that. But in the BLM kneeling age, Johnson thought he could get away with it.
Johnson, also known as Yeshua Musa, is a Madison activist who has been present at every protest following Floyd’s death. He was arrested outside a Capitol square restaurant on Tuesday after he brought a baseball bat and a bullhorn into the tavern and shouted at customers. The arrest sparked hundreds to march in Madison’s downtown streets seeking Johnson’s release from jail. The demonstrations turned violent and threatening as protesters entered a private condo building and forced a driver from a car, and assaulted at least two people — including a state senator.
Fundraising for BLM Handled by Group With Convicted Terrorist On Its Board
(washingtonexaminer.com) – The co-founder of Black Lives Matter names a convicted cop killer as one of her heroes, and the BLM national organization is fiscally sponsored through a leftist group whose board of directors includes a convicted terrorist.
Alicia Garza, one of three co-founders of the Black Lives Matter national organization, has repeatedly talked about how convicted cop killer and wanted domestic terrorist Joanne Chesimard, also known as Assata Shakur, is one of her main inspirations. Susan Rosenberg, a member of the board of directors for the left-wing Thousand Currents group, which handles the intake of donations made to Black Lives Matter, is a convicted terrorist who, among other things, was suspected of helping Shakur escape from prison.
We are primarily funded by readers. Please subscribe and donate to support us!
Rosenberg, who was listed as the vice chairwoman of the board of directors for Thousand Currents until the webpage was pulled down this week, as first reported by the Capital Research Center, had been a member of the radical leftist revolutionary militant group known as the May 19th Communist Organization, affiliated with the Weather Underground terrorist group and other radicals. She was convicted on weapons and explosives charges and sentenced to 58 years in prison, serving 16 years before being pardoned by President Bill Clinton in January 2001.
Thousand Currents did not return a request for comment.
Black Lives Matter, which is not a 501(c)(3) charitable group, uses an IRS-approved 501(c)(3) organization — Thousand Currents — as its fiscal sponsor, and so donations made on the Black Lives Matter website through the left-wing ActBlue donation platform go to Thousand Currents, which says it then distributes them to Black Lives Matter. Black Lives Matter has gained a vast amount of national attention, and funding, since the death in Minneapolis police custody of George Floyd on Memorial Day.
Rosenberg was a radical in the 1960s and 1970s who landed on the FBI’s Most Wanted List for a number of suspected crimes and was nabbed in 1984 while unloading from her car and into a New Jersey storage unit hundreds of pounds of dynamite along with weapons, including a sub-machine gun. She was believed to have been part of future politically motivated bombing plots. Rosenberg and her M19 associates were also charged with roles in bombings during the 1980s at the Capitol and the Navy War College, among other targets. They were also tied to a 1981 Brink’s armored car robbery that killed a guard and two police officers…
NEW YORK: Democrat Rioters Camp Out At City Hall; Demand One BILLION Cut To Police Budget
Protesters are settling in for the weekend outside City Hall. They plan to stay here until the city budget is due next week, & want $1B cut from the NYPD’s $6B budget. #OccupyCityHall @CBSNewYork pic.twitter.com/kvDRczHrow — Ali Bauman (@AliBaumanTV) June 27, 2020
h/t dr0id


investmentwatchblog--2020-06-27--Mall Giant Intu Collapses Into Bankruptcy

A zombie well before the pandemic , the UK company had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago .
Intu Properties , which owns 17 malls in the UK , including nine of the 20 biggest , and partially owns three in Spain , has fallen into administration , a form of bankruptcy under UK law , after talks with its myriad creditors collapsed on Friday afternoon .
Worth £13 billion at its peak over a decade ago , Intu is Britain ’ s biggest corporate casualty of the @ @ @ @ @ @ @ problems predated Covid ’ s arrival .
Its demise leaves 132,000 jobs , both at the company and in the thousands of stores it hosts at its malls , on the line , as well as some £4.5 billion of debt .
Intu had until 11:59 p.m. Friday night to convince seven of its lenders to accept yet more covenant waivers on £600 million of loans .
But those lenders refused to be swayed .
They knew that Intu , which had only managed to collect 10 % of its second-quarter rents by @ @ @ @ @ @ @ cited by The London Evening Standard , would never be able to repay the debt it owed .
This year alone , the company had £190 million of debt maturing and £93 million of swaps payable , compared to £168 million of cash and £129 million of other available funding facilities .
Things would get particularly hairy thereafter , with £920 million of debt coming due in 2021 , followed by £780 million in 2022 , £1.03 billion in 2023 and £670 million in 2024 .
Mid-morning Friday , Intu reported that “ @ @ @ @ @ @ @ been achieved on such terms.
” Hours later , it announced it had appointed three administrators at KPMG .
Before that , the company ’ s shares nose-dived in a near-perfect straight line from almost worthless ( four pence a piece ) to nearly totally worthless ( just over one pence a piece ) .
In early afternoon , the Financial Conduct Authority decided to suspend the listing the shares .
Shortly after , the London Stock Exchange suspended the trading of those shares , at which point the company ’ s market @ @ @ @ @ @ @ The significance of Intu ’ s collapse “ can not be understated , ” said Richard Lim , chief executive of Retail Economics .
The coronavirus lockdown is speeding up a trend towards buying more consumer goods online , he said .
“ It ’ s going to be a really , really tough challenge .
There ’ s no getting away from the fact we have too much retail space.
” And many of the occupants of that retail space are no longer paying their rents .
Commercial landlords in the UK @ @ @ @ @ @ @ were owed by their last quarterly rent collection date ( June 24 ) , according to data collected by Re-Leased , the cloud-based commercial property management platform .
That ’ s even lower than the 24 % collected by the March quarterly rent day , laying bare the growing pains being felt by commercial real estate tenants , particularly the non-essential retailers that were forced to close between March 23 and June 15 .
Their loss has been e-commerce ’ s gain .
After years of gradual incremental growth , online spending surged @ @ @ @ @ @ @ May , online sales accounted for 33.4 % of retail spending in the UK ( unlike US retail figures , this measure does not include motor vehicles and pharmaceutical products ) , compared with 19.6 % in April , according to the Office for National Statistics .
“ In many ways , the pandemic is an accelerator , and will really have forced change that would have taken five years or more to happen now , ” retail analyst Mr Hyman told BBC News .
The UK ’ s brick-and-mortar retail meltdown was @ @ @ @ @ @ @ s arrival , as a toxic cocktail of factors — high rents , low profitability , online competition , low consumer confidence and spending power , among others — took its toll on both the high street and the mall .
A total of 117,000 retail jobs were lost and 14,500 stores were closed in 2019 alone as a result of brick-and-mortar retail companies hitting the wall or simply cutting costs in a desperate bid to stay afloat , according to a report published by the Centre for Retail Research .
The impact @ @ @ @ @ @ @ on the financial health of Intu — which had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago — was too much to bear .
In 2019 , it registered losses of £2 billion as many of its tenants either shut stores or ceased trading altogether .
The value of its property assets had fallen 33 % in little over two years .
Its only chance of staving off bankruptcy was to raise new funds .
It needed at least £1.3 billion .
It @ @ @ @ @ @ @ much money : One , selling off its most valuable UK properties , but demand for malls was not exactly strong .
In 2019 , shopping center transactions hit their lowest level since 1993 .
Or two , raising fresh capital from investors .
But this was an impossible task , given its shares had already collapsed to almost zero and the sector it was in — brick-and-mortar retail — was in the deepest depression and had the bleakest prognoses .
Now , the company is in administration .
Its 2,500 employees , @ @ @ @ @ @ @ lockdown , face a deeply uncertain future , So , too , do the 130,000 people who work in the thousands of shops housed in Intu ’ s malls .
Intu insists that the underlying group operating companies remain unaffected and all shopping centers will continue to trade .
But those decisions will no longer be up to Intu .
The new owners of Intu ’ s assets are Intu ’ s creditors — mainly its banks — and they will want KPMG to sell off those assets as quickly as possible .
@ @ @ @ @ @ @ stopped moving , that can only mean one thing : bargain basement prices of those properties , which will further depress asset values in the sector .
And that is the last thing other large retail property owners such as Hammerson and Landsec , which face similar problems to Intu — including non-paying tenants , plunging asset values and rising losses — need right now .
By Nick Corbishley , for WOLF STREET .

A zombie well before the pandemic, the UK company had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago.
Intu Properties, which owns 17 malls in the UK, including nine of the 20 biggest, and partially owns three in Spain, has fallen into administration, a form of bankruptcy under UK law, after talks with its myriad creditors collapsed on Friday afternoon. Worth £13 billion at its peak over a decade ago, Intu is Britain’s biggest corporate casualty of the virus crisis so far, though its problems predated Covid’s arrival. Its demise leaves 132,000 jobs, both at the company and in the thousands of stores it hosts at its malls, on the line, as well as some £4.5 billion of debt.
Intu had until 11:59 p.m. Friday night to convince seven of its lenders to accept yet more covenant waivers on £600 million of loans. But those lenders refused to be swayed. They knew that Intu, which had only managed to collect 10% of its second-quarter rents by the due date, according to sources cited by The London Evening Standard, would never be able to repay the debt it owed.
This year alone, the company had £190 million of debt maturing and £93 million of swaps payable, compared to £168 million of cash and £129 million of other available funding facilities. Things would get particularly hairy thereafter, with £920 million of debt coming due in 2021, followed by £780 million in 2022, £1.03 billion in 2023 and £670 million in 2024.
Mid-morning Friday, Intu reported that “insufficient alignment and agreement [had] been achieved on such terms.” Hours later, it announced it had appointed three administrators at KPMG.
Before that, the company’s shares nose-dived in a near-perfect straight line from almost worthless (four pence a piece) to nearly totally worthless (just over one pence a piece). In early afternoon, the Financial Conduct Authority decided to suspend the listing the shares. Shortly after, the London Stock Exchange suspended the trading of those shares, at which point the company’s market value was just £24 million.
“The significance of Intu’s collapse “cannot be understated,” said Richard Lim, chief executive of Retail Economics. The coronavirus lockdown is speeding up a trend towards buying more consumer goods online, he said. “It’s going to be a really, really tough challenge. There’s no getting away from the fact we have too much retail space.”
And many of the occupants of that retail space are no longer paying their rents. Commercial landlords in the UK received just 18% of what they were owed by their last quarterly rent collection date (June 24), according to data collected by Re-Leased, the cloud-based commercial property management platform. That’s even lower than the 24% collected by the March quarterly rent day, laying bare the growing pains being felt by commercial real estate tenants, particularly the non-essential retailers that were forced to close between March 23 and June 15.
We are primarily funded by readers. Please subscribe and donate to support us!
Their loss has been e-commerce’s gain. After years of gradual incremental growth, online spending surged to new highs during lockdown. By May, online sales accounted for 33.4% of retail spending in the UK (unlike US retail figures, this measure does not include motor vehicles and pharmaceutical products), compared with 19.6% in April, according to the Office for National Statistics.
“In many ways, the pandemic is an accelerator, and will really have forced change that would have taken five years or more to happen now,” retail analyst Mr Hyman told BBC News.
The UK’s brick-and-mortar retail meltdown was already well under way before Covid’s arrival, as a toxic cocktail of factors — high rents, low profitability, online competition, low consumer confidence and spending power, among others — took its toll on both the high street and the mall. A total of 117,000 retail jobs were lost and 14,500 stores were closed in 2019 alone as a result of brick-and-mortar retail companies hitting the wall or simply cutting costs in a desperate bid to stay afloat, according to a report published by the Centre for Retail Research.
The impact of wave after wave of store closures on the financial health of Intu — which had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago — was too much to bear. In 2019, it registered losses of £2 billion as many of its tenants either shut stores or ceased trading altogether. The value of its property assets had fallen 33% in little over two years. Its only chance of staving off bankruptcy was to raise new funds. It needed at least £1.3 billion.
It had only two ways of raising that much money: One, selling off its most valuable UK properties, but demand for malls was not exactly strong. In 2019, shopping center transactions hit their lowest level since 1993. Or two, raising fresh capital from investors. But this was an impossible task, given its shares had already collapsed to almost zero and the sector it was in — brick-and-mortar retail — was in the deepest depression and had the bleakest prognoses.
Now, the company is in administration. Its 2,500 employees, some of whom were furloughed during the lockdown, face a deeply uncertain future, So, too, do the 130,000 people who work in the thousands of shops housed in Intu’s malls. Intu insists that the underlying group operating companies remain unaffected and all shopping centers will continue to trade. But those decisions will no longer be up to Intu.
The new owners of Intu’s assets are Intu’s creditors — mainly its banks — and they will want KPMG to sell off those assets as quickly as possible. And in a market that has essentially stopped moving, that can only mean one thing: bargain basement prices of those properties, which will further depress asset values in the sector. And that is the last thing other large retail property owners such as Hammerson and Landsec, which face similar problems to Intu — including non-paying tenants, plunging asset values and rising losses — need right now. By Nick Corbishley, for WOLF STREET.


investmentwatchblog--2020-06-27--[DS] Foot Soldiers Are Being Taken Out, Year Of The Boomerang

The [ DS ] /MSM are continuing with their events , the silent majority is now taking note of who @ @ @ @ @ voice they will let the establishment know how they feel .
The patriots are allowing @ @ @ @ @ now arresting the [ DS ] foot soldiers , everything is about to change , @ @ @ @ @ of the entire situation , this is the year of the boomerang .

The [DS]/MSM are continuing with their events, the silent majority is now taking note of who is responsible and with one voice they will let the establishment know how they feel. The patriots are allowing these events and they are now arresting the [DS] foot soldiers, everything is about to change, the patriots are in control of the entire situation, this is the year of the boomerang.
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investmentwatchblog--2020-06-28--The Fed’s reckless experiment…  Tale of global debt crisis foretold

The quantity theory of money , the view that the money supply is the key determinant of inflation , is dead , or today ’ s mainstream economists tell us .
The Federal Reserve is now engaged in a policy that will either put the nail in the quantity theory ’ s coffin or restore it to the textbooks .
Sadly , if the theory is alive and wins out , the economy is in for a very rough ride .
The theory has had a long history of evidence in its support .
In earlier times new gold discoveries @ @ @ @ @ @ @ produced inflation .
Years later , in the early 1970s , Milton Friedman warned President Richard Nixon about expanding the money supply .
His advice fell on deaf ears , and Nixon proceeded to pressure Arthur Burns , then chair of the Federal Reserve , to “ goose ” the money supply .
A horrendous decade of inflation followed as the Fed feebly applied its policy tools to avoid recession .
Despite this , two recessions occurred , and the inflation rate worsened throughout the decade .
It took Paul Volcker in 1980 @ @ @ @ @ @ @ to get the inflation under control .
Interest rates soared ; the economy dropped into a serious recession , but inflation ’ s back was finally broken .
Anyone who believes that we are now well on the road to a global V-shaped economic recovery has not read the International Monetary Fund ’ s ( IMF ) recent gloomy World Economic Outlook .
More tellingly , they clearly have not considered how very likely it is that , if the IMF ’ s depressing world economic outlook is realized , we will have @ @ @ @ @ @ @ systemically important countries such as Italy and Brazil .
On the basis of a longer-than-expected pandemic , the IMF now forecasts that the global economy will contract by almost 5 percent in 2020 .
That would mark the global economy ’ s worst year since the 1930s Great Depression .
It would also represent a much worse economic performance than that in the 2008 Great Recession .
The IMF is particularly gloomy on the United States ’ and Europe ’ s economic outlooks .
For the United States , it now expects that @ @ @ @ @ @ @ 8 percent in 2020 before rebounding by 4.5 percent in 2021 .
It is even gloomier on the European economic outlook .
It now expects that the Euro area economies will contract by more than 10 percent in 2020 before bouncing back by some 6 percent in 2021 .
The IMF correctly emphasizes that its economic forecast is subject to more than the usual degree of uncertainty .
The world economic outlook would be considerably better if a vaccine or a cure for COVID-19 were soon to be developed .
However , the @ @ @ @ @ @ @ were to be a second wave of the pandemic or if there were to be debt-related problems associated with the economic downturn .

The Fed’s reckless experiment…
The quantity theory of money, the view that the money supply is the key determinant of inflation, is dead, or today’s mainstream economists tell us. The Federal Reserve is now engaged in a policy that will either put the nail in the quantity theory’s coffin or restore it to the textbooks. Sadly, if the theory is alive and wins out, the economy is in for a very rough ride.
The theory has had a long history of evidence in its support. In earlier times new gold discoveries, the source for old-fashioned money, produced inflation. Years later, in the early 1970s, Milton Friedman warned President Richard Nixon about expanding the money supply. His advice fell on deaf ears, and Nixon proceeded to pressure Arthur Burns, then chair of the Federal Reserve, to “goose” the money supply.
A horrendous decade of inflation followed as the Fed feebly applied its policy tools to avoid recession. Despite this, two recessions occurred, and the inflation rate worsened throughout the decade. It took Paul Volcker in 1980 to really slam on the money-supply brakes to get the inflation under control. Interest rates soared; the economy dropped into a serious recession, but inflation’s back was finally broken.
Tale of global debt crisis foretold
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Anyone who believes that we are now well on the road to a global V-shaped economic recovery has not read the International Monetary Fund’s (IMF) recent gloomy World Economic Outlook. More tellingly, they clearly have not considered how very likely it is that, if the IMF’s depressing world economic outlook is realized, we will have a series of major debt crises in systemically important countries such as Italy and Brazil.
On the basis of a longer-than-expected pandemic, the IMF now forecasts that the global economy will contract by almost 5 percent in 2020. That would mark the global economy’s worst year since the 1930s Great Depression. It would also represent a much worse economic performance than that in the 2008 Great Recession.
The IMF is particularly gloomy on the United States’ and Europe’s economic outlooks. For the United States, it now expects that GDP will decline by as much as 8 percent in 2020 before rebounding by 4.5 percent in 2021. It is even gloomier on the European economic outlook. It now expects that the Euro area economies will contract by more than 10 percent in 2020 before bouncing back by some 6 percent in 2021.
The IMF correctly emphasizes that its economic forecast is subject to more than the usual degree of uncertainty. The world economic outlook would be considerably better if a vaccine or a cure for COVID-19 were soon to be developed. However, the outlook would be appreciably worse if there were to be a second wave of the pandemic or if there were to be debt-related problems associated with the economic downturn.


investmentwatchblog--2020-06-28--PATHETIC! NYC Mayor de Blasio Gives BLM the Green Light to Ruin Street in Front of Trump Tower

Kaelan Deese from The Hill reports , New York City appears set to receive a “ Black Lives Matter ” @ @ @ @ @ in midtown Manhattan , according to a statement from Mayor Bill de Blasio ’ s @ @ @ @ @

Kaelan Deese from The Hill reports, New York City appears set to receive a “Black Lives Matter” street mural outside Trump Tower in midtown Manhattan, according to a statement from Mayor Bill de Blasio’s (D) office.
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Read More/Source/Credit/FairUse:
thehill.com/homenews/state-wa…


investmentwatchblog--2020-06-28--The Corona Crisis Could Bring a New Era of Decline for American Core Cities

Manufacturing company 7-Sigma made headlines when it decided to leave Minneapolis as a result of the company ’ s plant being burned by rioters .
“ They don ’ t care about my business , ” 7-Sigma owner Kris Wyrobek old the Star-Tribune .
After more than thirty years in the city , the company isn ’ t staying , nor are any of the company ’ s fifty jobs .
But the costs of being victimized in protests is just one of many reasons homeowners and businesses may be realizing life and business in central cities has lost its @ @ @ @ @ @ @ business lockdowns , more riots , higher taxes , and failing schools may induce many Americans to flee , once again , to the suburbs as their parents or grandparents did .
This goes well beyond the fear of the disease many journalists have assumed is behind the observed beginnings of an exodus from cities .
Yes , many in the upper classes have fled the cities for their mountain homes and yachts for “ health reasons.
” But these people are relatively few in number and their thinking quixotic .
They can @ @ @ @ @ @ @ overnight .
But the larger impacts are likely to be felt as middle class homeowners and business owners conclude they ’ d simply rather avoid the edicts and neglect of mayors and city councils in central cities who think nothing of issuing job-destroying “ stay-at-home ” orders while allowing rioters and vandals free rein .
The real cost to cities is likely to emerge over time .
It will come in the form of families and shop owners who decide it ’ s best to move their businesses ten miles down the road @ @ @ @ @ @ @ do something about rioters .
It will come in the form of families which decide their next home will be just a little bit farther from the urban dictator-mayors who have the heaviest hands in enforcing lockdowns and business closures .
It will come in the form of potential new business owners and homeowners will be decide to never purchase property to start a business in central cities in the first place .
The Decline of Cities at Mid-Century We may be seeing something reminiscent of what happened in America ’ s large @ @ @ @ @ @ @ .
Many Americans concluded these cities had become unlivable and crime infested .
Many concluded these were places that were quite inhospitable to doing business .
So they left .
( Forced busing for “ integration ” purposes was a factor as well . )
In some cases , there were dramatic events that illustrated the trend .
The late sixties in New York saw several strikes by city workers .
Transit and sanitation in the city became a disaster .
The 1977 blackout in New York City ended in widespread riots that @ @ @ @ @ @ @ never return .
Many households followed .
But for the most part , cities saw an exodus that took many years and slowly hollowed out the finances and tax revenues of big cities .
Areas of Detroit fell into ruin .
By the mid-seventies , New York City was lurching from one fiscal crisis to another .
“ Nearly half of large cities shrank by at least 10 percent ” during the 1970s , according to the Kansas City Fed : More than half of large cities lost population from 1950 to 1980 @ @ @ @ @ @ @ as well , of course .
The central cities were often hit the hardest as the old Rust Belt went into decline after the region was destroyed by labor unions and city and state laws that made business in the region inefficient and uncompetitive .
Business owners and workers who possessed any real ambition or entrepreneurial spirit had good reason to leave the region altogether .
[ RELATED : `` Unions and Protectionism , Not Free Trade , Doomed the Rust Belt ” by Ryan McMaken ] City centers , built on an @ @ @ @ @ @ @ The situation today is a bit different .
During the 1990s , core cities began to recover from their mid-century decline and many officials and intellectuals in these areas began cultivating the so-called “ creative class ” ( also known as the “ bohemian bourgeoisie “ ) with the idea that young artists , engineers , architects , and tech workers might be convinced to move into city centers and revitalize local urban economies .
It appears to have worked in many cases .
But in 2020 America the hey day of the @ @ @ @ @ @ @ case of the 7-Sigma closure in Minneapolis is just the most famous case of central cities ’ hostility to businesses within their borders .
We ’ re not hearing about the many small less-notable businesses that won ’ t re-open in the wake of the riots .
In other cities , such as Chicago , city officials are now begging retailers to not leave the city .
Meanwhile , a number of small businesses now within the “ CHOP ” zone in Seattle are suing the city for abandoning businesses to the whims @ @ @ @ @ @ @ by the local NBC affiliate , local businesses have been threatened and harassed by the bosses of the “ Capitol Hill Occupation Protest ” ( CHOP ) zone in the city .
The city government , the plaintiffs have concluded , essentially have abandoned these businesses to the new “ government ” : Minneapolis and Seattle aren ’ t the only cities with the prospect of continued civil unrest .
With forty million new unemployment filings in recent months , the US faces a worrisome period of highly elevated unemployment .
Many of @ @ @ @ @ @ @ living in core cities .
This won ’ t help the prospect of a speedy return to placid city environments .
As government experts and media pundits emphasize growth in reported COVID-19 cases , the prospect of renewed lockdowns now looms , as well .
This is a threat at the state level and in many suburban local governments .
But experience strongly suggests that those political jurisdictions controlled by political leftists are likely to embrace the longest and harshest lockdowns .
In many states , such as Texas and Colorado and California @ @ @ @ @ @ @ cities embraced lockdowns more enthusiastically than the surrounding regions and at the state capitols .
“ Regime uncertainty ” —uncertainty about what business-killing regulations a government might embrace next—appears to be greater in central cities .
Business owners are likely to remember this .
In the medium- and long-term , business owners and potential business owners will gravitate to those areas where the threat of harsh lockdowns is smaller .
The Rise of the “ Work-at-Home ” Trend If the work-at-home trend persists , core cities will have lost one of their main @ @ @ @ @ @ @ a shorter commute for those who can afford a home close-in to the employment centers .
Even if daily commutes are just reduced—say , to a three-days-per-week schedule—the commute-time cost of a home in the suburbs falls dramatically .
Without the need to sit in traffic five days per week , more expensive city homes and the congestion and crime of city centers becomes far less attractive .
On top of it all will come big cuts to city budgets as COVID lockdowns decimate tax revenues .
All cities and states will be @ @ @ @ @ @ @ taxpayers move out of the core cities , it is these areas that will feel the brunt of revenue shortfalls .
In other words , a shift of productivity toward the suburbs and small cities will hollow out big city budgets and school district budgets as well .
This will only encourage businesses and families to stay away in even larger numbers .
Families will seek to avoid poor-performing school districts , and employers won ’ t want to become part of a shrinking tax base where tax increases are frequently eyed by @ @ @ @ @ @ @ of this will take time to play out .
Yes , we ’ ve started to see those with means leave big cities already .
The New York Times has reported on numerous former residents of New York City who have left for the surrounding regions .
The Times asks “ is New York City worth it anymore ?
” and points out “ the pandemic send young New Yorkers packing.
” Meanwhile , some real estate agents report a “ mad rush ” of wealthy buyers to get out of the city @ @ @ @ @ @ @ San Francisco .
These are just the early movers .
The exiles of more modest means will come later .
Not surprisingly , the median rent in San Francisco for a one-bedroom apartment dropped 9.2 percent in May , compared year-over-year .
But these remain a small percentage of the overall population .
Most homeowners , families , and business owners need time to move their businesses , sell their properties , and be convinced it ’ s time to move on .
None of this should be interpreted , however , as @ @ @ @ @ @ @ .
There appears to be little risk that large numbers of Americans will be quitting metro areas for rural villages and towns .
Some will .
But most will notice that metro areas still have most of the jobs , most of the cultural institutions , and most of the health care services .
What can ’ t be said is that core cities have a monopoly on these resources .
In recent decades , suburbs and small cities have increasingly become places that host a wide variety of sports teams , museums @ @ @ @ @ @ @ more .
Metro areas are still a good place to be .
But old core cities ?
Not so much.Author : Ryan McMaken ( @ ryanmcmaken ) is a senior editor at the Mises Institute .
Ryan has degrees in economics and political science from the University of Colorado and was the economist for the Colorado Division of Housing from 2009 to 2014 .
He is the author of Commie Cowboys : The Bourgeoisie and the Nation-State in the Western Genre .

by Ryan McMaken of Mises Institute
Manufacturing company 7-Sigma made headlines when it decided to leave Minneapolis as a result of the company’s plant being burned by rioters. “They don’t care about my business,” 7-Sigma owner Kris Wyrobek old the Star-Tribune. After more than thirty years in the city, the company isn’t staying, nor are any of the company’s fifty jobs.
But the costs of being victimized in protests is just one of many reasons homeowners and businesses may be realizing life and business in central cities has lost its luster. The ongoing threat of more business lockdowns, more riots, higher taxes, and failing schools may induce many Americans to flee, once again, to the suburbs as their parents or grandparents did.
This goes well beyond the fear of the disease many journalists have assumed is behind the observed beginnings of an exodus from cities. Yes, many in the upper classes have fled the cities for their mountain homes and yachts for “health reasons.” But these people are relatively few in number and their thinking quixotic. They can afford to drop everything and leave cities overnight.
But the larger impacts are likely to be felt as middle class homeowners and business owners conclude they’d simply rather avoid the edicts and neglect of mayors and city councils in central cities who think nothing of issuing job-destroying “stay-at-home” orders while allowing rioters and vandals free rein.
The real cost to cities is likely to emerge over time. It will come in the form of families and shop owners who decide it’s best to move their businesses ten miles down the road to a neighboring city that will actually do something about rioters. It will come in the form of families which decide their next home will be just a little bit farther from the urban dictator-mayors who have the heaviest hands in enforcing lockdowns and business closures. It will come in the form of potential new business owners and homeowners will be decide to never purchase property to start a business in central cities in the first place.
The Decline of Cities at Mid-Century
We may be seeing something reminiscent of what happened in America’s large central cities during the 1970s and 1980s. Many Americans concluded these cities had become unlivable and crime infested. Many concluded these were places that were quite inhospitable to doing business. So they left. (Forced busing for “integration” purposes was a factor as well.)
In some cases, there were dramatic events that illustrated the trend. The late sixties in New York saw several strikes by city workers. Transit and sanitation in the city became a disaster. The 1977 blackout in New York City ended in widespread riots that induced many businesses to pack up and never return. Many households followed.
But for the most part, cities saw an exodus that took many years and slowly hollowed out the finances and tax revenues of big cities. Areas of Detroit fell into ruin. By the mid-seventies, New York City was lurching from one fiscal crisis to another.
“Nearly half of large cities shrank by at least 10 percent” during the 1970s, according to the Kansas City Fed :
St. Louis, Cleveland, Buffalo, and Detroit each shrank by more than 20 percent. Vast stretches of urban land were left virtually deserted.
More than half of large cities lost population from 1950 to 1980.
There were other factors at work as well, of course. The central cities were often hit the hardest as the old Rust Belt went into decline after the region was destroyed by labor unions and city and state laws that made business in the region inefficient and uncompetitive. Business owners and workers who possessed any real ambition or entrepreneurial spirit had good reason to leave the region altogether.
[RELATED: “Unions and Protectionism, Not Free Trade, Doomed the Rust Belt” by Ryan McMaken]
City centers, built on an old manufacturing-based working class never recovered.
The situation today is a bit different. During the 1990s, core cities began to recover from their mid-century decline and many officials and intellectuals in these areas began cultivating the so-called “creative class” (also known as the “bohemian bourgeoisie“) with the idea that young artists, engineers, architects, and tech workers might be convinced to move into city centers and revitalize local urban economies. It appears to have worked in many cases.
We are primarily funded by readers. Please subscribe and donate to support us!
But in 2020 America the hey day of the new techno-city may be over.
Civil Unrest
The case of the 7-Sigma closure in Minneapolis is just the most famous case of central cities’ hostility to businesses within their borders. We’re not hearing about the many small less-notable businesses that won’t re-open in the wake of the riots. In other cities, such as Chicago, city officials are now begging retailers to not leave the city.
Meanwhile, a number of small businesses now within the “CHOP” zone in Seattle are suing the city for abandoning businesses to the whims of the leftist mob.
As reported by the local NBC affiliate, local businesses have been threatened and harassed by the bosses of the “Capitol Hill Occupation Protest” (CHOP) zone in the city. The city government, the plaintiffs have concluded, essentially have abandoned these businesses to the new “government”:
The City’s decision has subjected businesses, employees, and residents of that neighborhood to extensive property damage, public safety dangers, and an inability to use and access their properties.
Minneapolis and Seattle aren’t the only cities with the prospect of continued civil unrest. With forty million new unemployment filings in recent months, the US faces a worrisome period of highly elevated unemployment. Many of the worst-affected workers will be lower-income populations living in core cities. This won’t help the prospect of a speedy return to placid city environments.
Regime Uncertainty
As government experts and media pundits emphasize growth in reported COVID-19 cases, the prospect of renewed lockdowns now looms, as well. This is a threat at the state level and in many suburban local governments. But experience strongly suggests that those political jurisdictions controlled by political leftists are likely to embrace the longest and harshest lockdowns. In many states, such as Texas and Colorado and California and Pennsylvania, local governments in big cities embraced lockdowns more enthusiastically than the surrounding regions and at the state capitols. “Regime uncertainty”—uncertainty about what business-killing regulations a government might embrace next—appears to be greater in central cities.
Business owners are likely to remember this. In the medium- and long-term, business owners and potential business owners will gravitate to those areas where the threat of harsh lockdowns is smaller.
The Rise of the “Work-at-Home” Trend
If the work-at-home trend persists, core cities will have lost one of their main draws: namely, the prospect of a shorter commute for those who can afford a home close-in to the employment centers. Even if daily commutes are just reduced—say, to a three-days-per-week schedule—the commute-time cost of a home in the suburbs falls dramatically. Without the need to sit in traffic five days per week, more expensive city homes and the congestion and crime of city centers becomes far less attractive.
Declining Tax Revenue and Urban Blight
On top of it all will come big cuts to city budgets as COVID lockdowns decimate tax revenues. All cities and states will be impacted, but if the most productive taxpayers move out of the core cities, it is these areas that will feel the brunt of revenue shortfalls. In other words, a shift of productivity toward the suburbs and small cities will hollow out big city budgets and school district budgets as well. This will only encourage businesses and families to stay away in even larger numbers. Families will seek to avoid poor-performing school districts, and employers won’t want to become part of a shrinking tax base where tax increases are frequently eyed by politicians as a way out.
The Beginnings of a Trend?
All of this will take time to play out. Yes, we’ve started to see those with means leave big cities already. The New York Times has reported on numerous former residents of New York City who have left for the surrounding regions. The Times asks “is New York City worth it anymore?” and points out “the pandemic send young New Yorkers packing.”
Meanwhile, some real estate agents report a “mad rush” of wealthy buyers to get out of the city center and into the wealthy suburbs of San Francisco. These are just the early movers. The exiles of more modest means will come later. Not surprisingly, the median rent in San Francisco for a one-bedroom apartment dropped 9.2 percent in May, compared year-over-year.
But these remain a small percentage of the overall population. Most homeowners, families, and business owners need time to move their businesses, sell their properties, and be convinced it’s time to move on.
None of this should be interpreted, however, as a trend away from metropolitan areas overall. There appears to be little risk that large numbers of Americans will be quitting metro areas for rural villages and towns. Some will. But most will notice that metro areas still have most of the jobs, most of the cultural institutions, and most of the health care services. What can’t be said is that core cities have a monopoly on these resources. In recent decades, suburbs and small cities have increasingly become places that host a wide variety of sports teams, museums, convention centers, hospitals, and more. Metro areas are still a good place to be. But old core cities? Not so much.Author:
Contact Ryan McMaken
Ryan McMaken (@ryanmcmaken) is a senior editor at the Mises Institute. Ryan has degrees in economics and political science from the University of Colorado and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.