investmentwatchblog--2020-05-12--Aramco May Delay Payments For $69 Billion Sabic Acquisition

Aramco is considering staggering payments for the 70 percent in chemicals conglomerate Sabic that it said it would acquire last year .
Bloomberg reports that the options the oil major was mulling over involved delaying payments for the majority stake in Sabic as well as reducing the initial installment to the seller , Saudi Arabia ’ s sovereign wealth fund .
Aramco signed the deal to buy 70 percent in Sabic from the Public Investment Fund of Saudi Arabia in March 2019 , for the equivalent of US $ 69.1 billion in Saudi riyals at the time .
The acquisition @ @ @ @ @ @ @ for going public , which happened , after much anticipation , at the end of last year .
Meanwhile , an exclusive Reuters report said that Aramco was also looking to review the price of the Sabic acquisition .
The chemicals major ’ s market value , according to the report , which cited unnamed sources , had fallen by 40 percent since the start of the latest oil price rout , with the price Aramco paid for the 40-percent stake high above the current trading price of Sabic .
The Reuters report @ @ @ @ @ @ @ fallout of the oil price crisis .
The company is supposed to pay some $ 75 billion in dividends to its majority owner , the Saudi government , but its free cash flow is less than that , hence the need to review the Sabic deal .
The sovereign wealth fund , meanwhile , was looking to extend the maturity of a $ 10-billion loan that it took with ten banks last year to boost the availability of short-term funding for new investments .
The loan was to be repaid after the completion @ @ @ @ @ @ @ the Saudi government is turning to bond markets amid persistently low oil prices that have pressured oil revenues .
Last month , Riyadh issued its second bond since the start of the year , at $ 7 billion , after a much more modest first one , at $ 2.5 billion .

By Irina Slav
Aramco is considering staggering payments for the 70 percent in chemicals conglomerate Sabic that it said it would acquire last year.
Bloomberg reports that the options the oil major was mulling over involved delaying payments for the majority stake in Sabic as well as reducing the initial installment to the seller, Saudi Arabia’s sovereign wealth fund.
Aramco signed the deal to buy 70 percent in Sabic from the Public Investment Fund of Saudi Arabia in March 2019, for the equivalent of US$69.1 billion in Saudi riyals at the time. The acquisition was part of Aramco’s preparation for going public, which happened, after much anticipation, at the end of last year.
Meanwhile, an exclusive Reuters report said that Aramco was also looking to review the price of the Sabic acquisition. The chemicals major’s market value, according to the report, which cited unnamed sources, had fallen by 40 percent since the start of the latest oil price rout, with the price Aramco paid for the 40-percent stake high above the current trading price of Sabic.
The Reuters report also notes Aramco has also suffered the fallout of the oil price crisis. The company is supposed to pay some $75 billion in dividends to its majority owner, the Saudi government, but its free cash flow is less than that, hence the need to review the Sabic deal.
We are primarily funded by readers. Please subscribe and donate to support us!
The sovereign wealth fund, meanwhile, was looking to extend the maturity of a $10-billion loan that it took with ten banks last year to boost the availability of short-term funding for new investments. The loan was to be repaid after the completion of the Sabic deal.
Separately, the Saudi government is turning to bond markets amid persistently low oil prices that have pressured oil revenues. Last month, Riyadh issued its second bond since the start of the year, at $7 billion, after a much more modest first one, at $2.5 billion.
By Irina Slav for Oilprice.com


investmentwatchblog--2020-05-12--Gold Sets Its Sights on $1,800

Gold Sets Its Sights on $1,800

This week , Your News to Know rounds up the latest top stories involving gold and the overall economy .
Stories include : Gold could move past $ 1,800 in the near future , every investor should view gold as a core asset , and times like these highlight gold ’ s true purpose .
Analyst : Gold could be heading above $ 1,800 next Gold has been trading steadily around the $ 1,700 level as various uncertainties grip the global market .
According to UBS Investment Bank ’ s precious metal strategist Joni Teves , the metal has a @ @ @ @ @ @ @ upside above $ 1,800 after that .
In an interview with CNBC , Teves explained that investor interest in gold has skyrocketed , not only because of all-encompassing uncertainty but also due to central bank actions that have already caused some concern .
As Teves noted , the slicing of interest rates has harmed bonds that were posting all-time low showings prior to the outbreak .
David Lennox , a resources analyst at Fat Prophets , echoed much of what Teves said , telling CNBC that interest rate cuts and money printing will @ @ @ @ @ @ @ currencies .
Lennox also pointed to the growing sovereign debt issue that is , and will likely continue to be , aggravated by governments attempting to stimulate their economies post-coronavirus by any means necessary .
The spike in interest in gold investment was shown in a recent report by the World Gold Council , which revealed that individual investors and funds pushed central banks aside to become the biggest buyers of gold in Q1 as panic gripped the global markets .
Among other things , the report noted that funds bought the most @ @ @ @ @ @ @ last four years in that period .
All investors should treat gold as a core asset In a recent webinar hosted by British financial communications firm Buchanan , some of the most prominent figures in global finance shared their bullish sentiment regarding gold and urge people not to overlook the metal .
Michael Widmer , head of metals research at Bank of America , James Burdass , gold specialist and independent consultant , Gervais Williams , fund manager at Premier Miton and Tom Attenborough , head of international business development and primary markets @ @ @ @ @ @ @ their views on why gold should be treated as a key part of every person ’ s portfolio , rather than being approached as an afterthought .
Widmer expanded upon his highly bullish sentiment that recently saw him and his team of analysts call for gold to reach $ 3,000 within the next 18 months .
According to Widmer , he had been bullish on gold prior to the pandemic , and its blow to the global economy lowered bond yields even further , along with bringing about massive amounts of money printing @ @ @ @ @ @ @ for gold to reach $ 3,300 by the end of the year as negative interest rates become the norm .
Williams also pointed out that gold is benefitting from being resilient to whatever scenario the economic recovery involves .
Burdass highlighted the impact that the ballooning of global debt will have on various economies .
According to Burdass , the toll that the coronavirus has had on the global economy will be felt for years to come .
Although Burdass voiced a more modest gold forecast of $ 1,850 by year ’ s @ @ @ @ @ @ @ ’ after-effects will bring gold ’ s role as a store of value to the forefront and cause people to significantly reassess their allocation to the metal .
Attenborough added that gold ’ s spike to the highest level in over seven years should be seen as a call to action for people to add the metal to their portfolio .
Gold is a tailor-made investment for environments such as these Out of the various good reasons to own gold in the current climate , MarketWatch ’ s Jared Dillian thinks money printing @ @ @ @ @ @ @ poignant one .
Ever since the U.S. dollar was untethered from gold in 1971 , gold bugs , along with numerous experts and analysts , have criticized the ability by central banks to print as much money as they want , whenever they want it .
And while money printing has been a persistent concern at any point over the past few decades , the trillions of dollars that were printed as a response to the biggest economic downturn since the Great Depression have made Dillian especially wary .
While gold fulfills many @ @ @ @ @ @ @ certainly among the most important ones .
And while this role is normally treated as a benefit to be reaped over years or decades , the recent Quantitative Easing ( QE ) programs have made it more of an immediate perk .
While gold purchases tend to be fear-driven , gold ’ s climb to $ 1,700 and above over a short span of time is indicative of a fear of a rapid loss of purchasing power .
Dillian believes it is this fear that shot gold ’ s price up from $ @ @ @ @ @ @ @ 2011 as the Federal Reserve began its QE .
Notably , gold stuck far above its starting point even as the fear subsided and the economy stabilized .
Whether fears of inflation are justified or not , the Fed ’ s openness to print an infinite amount of money , as opposed to a capped figure in 2008 , is reason enough to be very optimistic on gold ’ s prospects .
The federal deficit was another major price driver between 2009 and 2011 , so it ’ s exceedingly relevant that the @ @ @ @ @ @ @ deficit in the nation ’ s history .
Even in the absence of factors such as these , Dillian firmly advocates some allocation to gold within one ’ s savings , as it can help to reduce volatility .
When taking into consideration the current climate , there is no shortage of volatility to be slashed .

From Birch Gold Group
This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold could move past $1,800 in the near future, every investor should view gold as a core asset, and times like these highlight gold’s true purpose.
Analyst: Gold could be heading above $1,800 next
Gold has been trading steadily around the $1,700 level as various uncertainties grip the global market. According to UBS Investment Bank’s precious metal strategist Joni Teves, the metal has a short-term target of $1,790 with an upside above $1,800 after that.
In an interview with CNBC, Teves explained that investor interest in gold has skyrocketed, not only because of all-encompassing uncertainty but also due to central bank actions that have already caused some concern. As Teves noted, the slicing of interest rates has harmed bonds that were posting all-time low showings prior to the outbreak.
David Lennox, a resources analyst at Fat Prophets, echoed much of what Teves said, telling CNBC that interest rate cuts and money printing will greatly diminish the willingness to hold fiat currencies. Lennox also pointed to the growing sovereign debt issue that is, and will likely continue to be, aggravated by governments attempting to stimulate their economies post-coronavirus by any means necessary.
The spike in interest in gold investment was shown in a recent report by the World Gold Council, which revealed that individual investors and funds pushed central banks aside to become the biggest buyers of gold in Q1 as panic gripped the global markets. Among other things, the report noted that funds bought the most gold out of any quarter over the last four years in that period.
All investors should treat gold as a core asset
In a recent webinar hosted by British financial communications firm Buchanan, some of the most prominent figures in global finance shared their bullish sentiment regarding gold and urge people not to overlook the metal.
Michael Widmer, head of metals research at Bank of America, James Burdass, gold specialist and independent consultant, Gervais Williams, fund manager at Premier Miton and Tom Attenborough, head of international business development and primary markets at the London Stock Exchange all shared their views on why gold should be treated as a key part of every person’s portfolio, rather than being approached as an afterthought.
We are primarily funded by readers. Please subscribe and donate to support us!
Widmer expanded upon his highly bullish sentiment that recently saw him and his team of analysts call for gold to reach $3,000 within the next 18 months. According to Widmer, he had been bullish on gold prior to the pandemic, and its blow to the global economy lowered bond yields even further, along with bringing about massive amounts of money printing.
During the panel, Williams called for gold to reach $3,300 by the end of the year as negative interest rates become the norm. Williams also pointed out that gold is benefitting from being resilient to whatever scenario the economic recovery involves. Burdass highlighted the impact that the ballooning of global debt will have on various economies.
According to Burdass, the toll that the coronavirus has had on the global economy will be felt for years to come. Although Burdass voiced a more modest gold forecast of $1,850 by year’s end, he noted that the coronavirus’ after-effects will bring gold’s role as a store of value to the forefront and cause people to significantly reassess their allocation to the metal. Attenborough added that gold’s spike to the highest level in over seven years should be seen as a call to action for people to add the metal to their portfolio.
Gold is a tailor-made investment for environments such as these
Out of the various good reasons to own gold in the current climate, MarketWatch’s Jared Dillian thinks money printing should perhaps be seen as the most poignant one. Ever since the U.S. dollar was untethered from gold in 1971, gold bugs, along with numerous experts and analysts, have criticized the ability by central banks to print as much money as they want, whenever they want it.
And while money printing has been a persistent concern at any point over the past few decades, the trillions of dollars that were printed as a response to the biggest economic downturn since the Great Depression have made Dillian especially wary. While gold fulfills many roles, preservation of purchasing power is certainly among the most important ones. And while this role is normally treated as a benefit to be reaped over years or decades, the recent Quantitative Easing (QE) programs have made it more of an immediate perk.
While gold purchases tend to be fear-driven, gold’s climb to $1,700 and above over a short span of time is indicative of a fear of a rapid loss of purchasing power. Dillian believes it is this fear that shot gold’s price up from $800 in 2009 to $1,900 in 2011 as the Federal Reserve began its QE. Notably, gold stuck far above its starting point even as the fear subsided and the economy stabilized.
Whether fears of inflation are justified or not, the Fed’s openness to print an infinite amount of money, as opposed to a capped figure in 2008, is reason enough to be very optimistic on gold’s prospects. The federal deficit was another major price driver between 2009 and 2011, so it’s exceedingly relevant that the government is now bracing for the biggest deficit in the nation’s history.
Even in the absence of factors such as these, Dillian firmly advocates some allocation to gold within one’s savings, as it can help to reduce volatility. When taking into consideration the current climate, there is no shortage of volatility to be slashed.


investmentwatchblog--2020-05-12--WORLD ASKS: RESTART OR RE-STOP?

WORLD ASKS: RESTART OR RE-STOP?

NEW YORK ( AP ) — A top world health official Monday warned that countries are essentially driving blind in @ @ @ @ @ up strong contact tracing to beat back flare-ups of the coronavirus .
The warning came @ @ @ @ @ from lockdowns , the Netherlands sent children back to school , and many U.S. states @ @ @ @ @ restrictions .
In California , Tesla CEO Elon Musk announced the company ’ s 10,000-worker @ @ @ @ @ Francisco was operating Monday in defiance of coronavirus health orders that closed non-essential businesses .
@ @ @ @ @ scourge could come back with a vengeance without widespread testing and tracing of infected people @ @ @ @ @ .
Fears of infection spikes in countries that have loosened up were borne out in @ @ @ @ @ where new clusters were linked to three slaughterhouses ; in Wuhan , the Chinese city @ @ @ @ @ and in South Korea , where a single nightclub customer was linked to 85 new @ @

As nations reopen, warning emerges about virus tracing voids
NEW YORK (AP) — A top world health official Monday warned that countries are essentially driving blind in reopening their economies without setting up strong contact tracing to beat back flare-ups of the coronavirus.
The warning came as France and Belgium emerged from lockdowns, the Netherlands sent children back to school, and many U.S. states pressed ahead by lifting business restrictions. In California, Tesla CEO Elon Musk announced the company’s 10,000-worker electric car factory near San Francisco was operating Monday in defiance of coronavirus health orders that closed non-essential businesses.
Authorities have cautioned that the scourge could come back with a vengeance without widespread testing and tracing of infected people’s contacts with others.
Fears of infection spikes in countries that have loosened up were borne out in recent days in Germany, where new clusters were linked to three slaughterhouses; in Wuhan, the Chinese city where the crisis started; and in South Korea, where a single nightclub customer was linked to 85 new cases.


investmentwatchblog--2020-05-12--China is playing lockdown whack-a-mole in its battle against a second wave of Covid-19 cases

As much of the rest of the world continues to find ways to contain and emerge from the first wave @ @ @ @ @ China is now facing the specter of a second wave of infections , with many @ @ @ @ @ located in the country ’ s northeast region .
Shulan , a small city in @ @ @ @ @ North Korea and Russia , has been put under a partial lockdown since Saturday , @ @ @ @ @ for its over 630,000 citizens .
The city has reported 13 locally transmitted cases as @ @ @ @ @ ’ s more than two-month streak of reporting no new cases , according to Shulan @ @ @ @ @ in Chinese ) , who said the city is in “ wartime ” mode .
@ @ @ @ @ are still under investigation , according to the Shulan government .
Shulan was also classified @ @ @ @ @ ” Covid-19 area yesterday in China , three days after the central government classified all @ @ @ @ @ low-risk .

As much of the rest of the world continues to find ways to contain and emerge from the first wave of the coronavirus outbreak, China is now facing the specter of a second wave of infections, with many of the new reported cases located in the country’s northeast region.
Shulan, a small city in Jilin province, which neighbors North Korea and Russia, has been put under a partial lockdown since Saturday, with all non-essential transportation banned for its over 630,000 citizens. The city has reported 13 locally transmitted cases as of today, ending Jilin’s more than two-month streak of reporting no new cases, according to Shulan’s mayor (link in Chinese), who said the city is in “wartime” mode. The source of the infections are still under investigation, according to the Shulan government.
We are primarily funded by readers. Please subscribe and donate to support us!
Shulan was also classified as the only “high-risk” Covid-19 area yesterday in China, three days after the central government classified all counties in the country as low-risk.
qz.com/1855154/china-re-imposes-strict-lockdowns-as-cases-re-emerge-in-northeast/


investmentwatchblog--2020-05-13--COVID 19 effectively wiped out our company…virtually overnight!

After decades of education , hard labor , planning , and an entire life savings…COVID 19 effectively wiped out our company…virtually overnight !
3D Improvements LLC ( sole proprietorship ) was the lifelong dream of owner , Mr. Dawson .
He poured countless hours , days , weeks , ( hell , months and years ) of his life into his creation .
In 2016 , he was finally able to see his efforts come to fruition !
He built his OWN machine shop , which was really more of a garage , in his driveway and began acquiring used @ @ @ @ @ @ @ his own savings in order to start his company independently and not ask for any handouts or loans .
He worked tirelessly rebuilding these old , mostly nonfunctional machines and by the end of 2017 , he had a fully functional machine shop !
We successfully completed several contracts with local companies , landing two major accounts !
The company we received regular orders from closed it ’ s doors temporarily in early March in response to Ohio Covid regulations .
Our orders and revenue abruptly ceased !
We felt great relief that @ @ @ @ @ @ @ rescue of small businesses like 3D Improvements .
I personally submitted an application for the EIDL loan in March , on the first day it opened on the SBA website .
I then had to reapply in April when they changed the application format .
After about a month and a half of waiting , we received a mysterious deposit of $ 2,000 .
We were hopeful that all businesses would be receiving the full $ 10,000 grant as some sources speculated .
Either way , we were over the moon grateful for @ @ @ @ @ @ @ a gut wrenching email that stated we had been denied for the EIDL loan portion .
There was no reason provided .
They hadn ’ t even taken the time or given our company the respect to submit a separate , formal email .
The representative/lender simply replied to a previous email we sent to [ disastercustomerservice @ sba.gov ] ( mailto : disastercustomerservice @ sba.gov ) : “ Thank you for contacting the U.S. Small Business Administration Customer Service Center regarding assistance related to the Coronavirus ( COVID-19 ) Pandemic .
After @ @ @ @ @ @ @ we regret we were unable to approve your request for an Economic Injury Disaster Loan ( EIDL ) .
If you disagree with the decision made on your loan , you may request reconsideration , subject to the availability of funds.
” I have requested to be given a written “ reason for denial ” as well as an opportunity to appeal the SBA ’ s decision .
We offered collateral for any loan awarded to us , even if it is less than $ 25,000 .
The company we depended upon for @ @ @ @ @ @ @ operational and will not yet be purchasing from any outside sources .
We have approvals ( DLA , JCP , etc . )
and staffing capabilities ( currently not “ employed ” but quick access to skilled machinists ) to bid on government contracts , however we now do not have the financial reserve to purchase the CNC we need to manufacture products to the quality level required by the U.S. government .
We even have a small 3D printer and have considered assembling face masks to aid in PPE relief efforts .
@ @ @ @ @ @ @ filament and materials that would be required to do this .
We were actually contemplating spending our entire EIDG grant to purchase a Makerbot Replicator Z18 because there was one listed at such a great rate and doing so would allow us to supply at least the local community with face shield/masks and we could still utilize the 3D printer if we were ever able to open back up .
Feeling pretty hopeless .
Losing hope in the “ American Dream ” that we ’ ve all been sold our whole lives .
@ @ @ @ @ @ @ work and sacrifice does not prevail .
Big business prevails .
Any words of advice or encouragement would be appreciated .
Has anyone heard of an SBA denial being overturned through appeal ?
Any secret sources of funding out there that we may have missed ?
We have tried SBA , PTAC , SCORE and SBDC without much luck .
These organizations are terrific assets but they only seem to offer assistance with getting started , obtaining registrations and governments “ numbers ” , etc .
We have already done all of this @ @ @ @ @ @ @ we just need to secure funding in order to jump start the shop , upgrade our machinery , pay a machinist , etc .
Thank you for receiving the vent/rant .
American small businesses have to stick together through this !
I hope others out there are having better luck during this trying time .
Disclaimer : This is a guest post and it doesn ’ t necessarily represent the views of IWB .

by 3dimprovements
After decades of education, hard labor, planning, and an entire life savings…COVID 19 effectively wiped out our company…virtually overnight!
3D Improvements LLC (sole proprietorship) was the lifelong dream of owner, Mr. Dawson. He poured countless hours, days, weeks, (hell, months and years) of his life into his creation. In 2016, he was finally able to see his efforts come to fruition! He built his OWN machine shop, which was really more of a garage, in his driveway and began acquiring used industrial machinery. Mr. Dawson literally depleted his own savings in order to start his company independently and not ask for any handouts or loans. He worked tirelessly rebuilding these old, mostly nonfunctional machines and by the end of 2017, he had a fully functional machine shop! We successfully completed several contracts with local companies, landing two major accounts!
The company we received regular orders from closed it’s doors temporarily in early March in response to Ohio Covid regulations. Our orders and revenue abruptly ceased! We felt great relief that the US Government was coming to the rescue of small businesses like 3D Improvements. I personally submitted an application for the EIDL loan in March, on the first day it opened on the SBA website. I then had to reapply in April when they changed the application format. After about a month and a half of waiting, we received a mysterious deposit of $2,000. We were hopeful that all businesses would be receiving the full $10,000 grant as some sources speculated. Either way, we were over the moon grateful for the deposit.
This afternoon we received a gut wrenching email that stated we had been denied for the EIDL loan portion. There was no reason provided. They hadn’t even taken the time or given our company the respect to submit a separate, formal email. The representative/lender simply replied to a previous email we sent to [disastercustomerservice@sba.gov](mailto:disastercustomerservice@sba.gov):
“Thank you for contacting the U.S. Small Business Administration Customer Service Center regarding assistance related to the Coronavirus (COVID-19) Pandemic.
After a thorough review of your application, we regret we were unable to approve your request for an Economic Injury Disaster Loan (EIDL). If you disagree with the decision made on your loan, you may request reconsideration, subject to the availability of funds.”
We are primarily funded by readers. Please subscribe and donate to support us!
Instant devastation!
I have requested to be given a written “reason for denial” as well as an opportunity to appeal the SBA’s decision. We offered collateral for any loan awarded to us, even if it is less than $25,000. The company we depended upon for part orders, is still not fully operational and will not yet be purchasing from any outside sources. We have approvals (DLA, JCP, etc.) and staffing capabilities (currently not “employed” but quick access to skilled machinists) to bid on government contracts, however we now do not have the financial reserve to purchase the CNC we need to manufacture products to the quality level required by the U.S. government. We even have a small 3D printer and have considered assembling face masks to aid in PPE relief efforts. However, we can not afford the filament and materials that would be required to do this. We were actually contemplating spending our entire EIDG grant to purchase a Makerbot Replicator Z18 because there was one listed at such a great rate and doing so would allow us to supply at least the local community with face shield/masks and we could still utilize the 3D printer if we were ever able to open back up.
Feeling pretty hopeless. Losing hope in the “American Dream” that we’ve all been sold our whole lives. To me, this proves that hard work and sacrifice does not prevail. Big business prevails. Any words of advice or encouragement would be appreciated.
Has anyone heard of an SBA denial being overturned through appeal? Any secret sources of funding out there that we may have missed? We have tried SBA, PTAC, SCORE and SBDC without much luck. These organizations are terrific assets but they only seem to offer assistance with getting started, obtaining registrations and governments “numbers”, etc. We have already done all of this on our own. At this point we just need to secure funding in order to jump start the shop, upgrade our machinery, pay a machinist, etc.
Thank you for receiving the vent/rant. American small businesses have to stick together through this! I hope others out there are having better luck during this trying time.
Disclaimer: This is a guest post and it doesn’t necessarily represent the views of IWB.


investmentwatchblog--2020-05-13--The Oil Crisis Puts The Entire U.S. Economy At Risk

Job losses , well shut-ins , and bankruptcies have replaced the praise surrounding the shale oil boom that greatly enhanced America ’ s energy independence and gave President Trump a reason to tout energy dominance .
Now , the federal government is mulling over ways to help the industry curb its losses amid historically low prices and little chances of their improvement anytime soon .
And the crisis will have much wider repercussions .
The trough of the oil industry cycle always harms the broader economy , usually on a regional level .
During the last crisis , for example @ @ @ @ @ @ @ Mexico shrunk as mass layoffs dealt a blow to the local economies .
This is bound to repeat again and already is : the Wall Street Journal reports state economies from Wyoming to Alaska , Oklahoma , and North Dakota are taking a hit from the oil industry ’ s crisis .
According to the American Petroleum Institute , the oil and gas industry in the United States supports as many as 10.3 million jobs and generates close to 8 percent of gross domestic product .
This is , of course , nowhere @ @ @ @ @ @ @ makes up in the Saudi GDP , but it is a portion sizeable enough to suggest that a crisis in the oil industry could have a ripple effect on the national economy .
The question is , how strong this ripple effect would be .
According to a Goldman Sachs analyst , it has the potential to be quite strong .
“ Typically , oil price fluctuations have a small aggregate impact on U.S. growth , with roughly offsetting effects from the energy capex and consumption channels , ” Paul Choi wrote in @ @ @ @ @ @ @ However , the sharp rise in the likelihood of bankruptcies in the energy sector and spending constraints due to the virus suggest that the decline in oil prices might be a larger drag on growth this time.
” In all fairness , the extent of the damage that the oil crisis could do to the U.S. economy might not be that serious , at least against the backdrop of the wider slump caused by the coronavirus pandemic .
Analysts indeed expect more bankruptcies , more spending cuts , and less investment , all @ @ @ @ @ @ @ state and federal budgets and people ’ s bank accounts as layoffs expand .
And yet the cumulative drag from the oil crisis on U.S. economic growth is seen at 0.25 percent .
That ’ s compared with a forecast of double-digit economic slumps this quarter and for the full year , even from the optimistic analysts who expect a V-shaped rather than U-shaped recovery .
The doomsday scenario has recently stepped away from the spotlight as the easing of lockdown measures across the States has given rise to optimism about the immediate @ @ @ @ @ @ @ said earlier this week , as quoted by Business Insider , that oil demand is about to start recovering fast–but it won ’ t recover fully , with jet fuel demand suffering a longer-term decline , according to the bank .
Supply , meanwhile , might never reach pre-crisis levels , Goldman warned .
Indeed , there have been warnings that well shut-ins in response to the low oil price environment may lead to a permanent loss of production .
This could affect future output as much as continued spending control after the @ @ @ @ @ @ @ , the repercussions from this pain seem like they would have a limited effect on the national economy as a whole .
But only relatively : relative to the damage the pandemic is expected to have on U.S. growth , which pretty much everyone , including the federal government , expects to be the worst blow to GDP since the Great Depression .

By Irina Slav
Job losses, well shut-ins, and bankruptcies have replaced the praise surrounding the shale oil boom that greatly enhanced America’s energy independence and gave President Trump a reason to tout energy dominance. Now, the federal government is mulling over ways to help the industry curb its losses amid historically low prices and little chances of their improvement anytime soon. And the crisis will have much wider repercussions.
The trough of the oil industry cycle always harms the broader economy, usually on a regional level. During the last crisis, for example, once-thriving towns in Texas and New Mexico shrunk as mass layoffs dealt a blow to the local economies. This is bound to repeat again and already is: the Wall Street Journal reports state economies from Wyoming to Alaska, Oklahoma, and North Dakota are taking a hit from the oil industry’s crisis.
According to the American Petroleum Institute, the oil and gas industry in the United States supports as many as 10.3 million jobs and generates close to 8 percent of gross domestic product. This is, of course, nowhere near the over 50 percent that oil makes up in the Saudi GDP, but it is a portion sizeable enough to suggest that a crisis in the oil industry could have a ripple effect on the national economy. The question is, how strong this ripple effect would be.
According to a Goldman Sachs analyst, it has the potential to be quite strong. “Typically, oil price fluctuations have a small aggregate impact on U.S. growth, with roughly offsetting effects from the energy capex and consumption channels,” Paul Choi wrote in a note cited by Axios. “However, the sharp rise in the likelihood of bankruptcies in the energy sector and spending constraints due to the virus suggest that the decline in oil prices might be a larger drag on growth this time.”
We are primarily funded by readers. Please subscribe and donate to support us!
In all fairness, the extent of the damage that the oil crisis could do to the U.S. economy might not be that serious, at least against the backdrop of the wider slump caused by the coronavirus pandemic. Analysts indeed expect more bankruptcies, more spending cuts, and less investment, all of which means less money flowing into state and federal budgets and people’s bank accounts as layoffs expand.
And yet the cumulative drag from the oil crisis on U.S. economic growth is seen at 0.25 percent. That’s compared with a forecast of double-digit economic slumps this quarter and for the full year, even from the optimistic analysts who expect a V-shaped rather than U-shaped recovery.
The doomsday scenario has recently stepped away from the spotlight as the easing of lockdown measures across the States has given rise to optimism about the immediate future of oil demand. Goldman Sachs said earlier this week, as quoted by Business Insider, that oil demand is about to start recovering fast–but it won’t recover fully, with jet fuel demand suffering a longer-term decline, according to the bank. Supply, meanwhile, might never reach pre-crisis levels, Goldman warned.
Indeed, there have been warnings that well shut-ins in response to the low oil price environment may lead to a permanent loss of production. This could affect future output as much as continued spending control after the pain of the crisis. Even so, the repercussions from this pain seem like they would have a limited effect on the national economy as a whole. But only relatively: relative to the damage the pandemic is expected to have on U.S. growth, which pretty much everyone, including the federal government, expects to be the worst blow to GDP since the Great Depression.
By Irina Slav for Oilprice.com


investmentwatchblog--2020-05-13--RUSH: So when he is the one being accused, women cannot be believed, and now the media have to come

RUSH: So when he is the one being accused, women cannot be believed, and now the media have to come along and investigate them.

RUSH : I have here a story that is written by some guy named Tom Rogers , editor-at-large at Newsweek .
Does anybody read Newsweek anymore ?
It ’ s just… It ’ s digital only now , right ?
You can ’ t get it at newsstands .
Are there newsstands anymore ?
I guess the virus has shut newsstands down now .
Anyway , the headline of this clown ’ s piece .
“ Words Matter .
And Joe Biden Needs to Use His Better — Tom Rogers , editor-at-large for Newsweek , the founder of CNBC… ” @ @ @ @ @ @ @ guy ’ s ancient .
That Tom Rogers ?
You got ta be kidding !
The founder of CNBC ?
Holy smokes !
This guy has got ta be 110 , and I know he ’ s , I mean , a dyed-in-the-wool commie leftist .
Okay .
Well , anyway , this guy , let me give you a couple pull quotes .
“ When Biden is talking with a teleprompter , he commands the situation much better than Trump .
But in his living room media appearances so far , [ @ @ @ @ @ @ @ sentences , searches for words , repeats the same points , has difficulty hitting the right points and does not take points to a deeper level , making his comments seem overly general and superficial.
” Here ’ s another pull quote .
I can ’ t believe it ’ s that Tom Rogers !
Holy smokes .
Anyway… “ If Biden ’ s speaking does not improve , it will play into the most obvious critiques of his candidacy .
The Trump campaign will go after Biden as an establishment politician of @ @ @ @ @ @ @ , ’ who therefore talks in ‘ political speak ’ ; or [ the Trump campaign ] will characterize him as ‘ confused , ’ and therefore standing for nothing ; or [ the Trump campaign ] will paint him as ‘ too old ’ to handle the job.
” Now , one more pull quote : “ [ I ] f Biden can ’ t pick up his game , capturing the hearts of those voters he needs at the margin is going to be extremely difficult , and instead , he @ @ @ @ @ @ @ of their minds in recognizing him as the superior candidate.
” I read this ( chuckles ) and I could not believe it .
Do you think , folks… ?
Do you think the… ?
This is a question that we have asked over and over .
Do you think the people in Biden ’ s campaign do not know that he ’ s got dementia ?
Do you think the people in his campaign — and like this guy covering his campaign — don ’ t know that his cognitive skills are @ @ @ @ @ @ @ they chalk what Biden is up to just not being a good performer lately ?
My goodness , this is even better than that I could have dreamed of .
They don ’ t… ?
If this guy ’ s writing this stuff seriously , he ’ s got no idea that Plugs is doing the best he can .
He ’ s got no idea that Plugs doesn ’ t know where he is half the time .
By the way , have you heard Plugs ’ latest defense on Tara Reade @ @ @ @ @ @ @ , Good Morning America .
He was asked , “ Look , you said during the Kavanaugh hearings — and when Blasey Ford was out there doing her routine , you said — ‘ every woman should be believed.
’ But you ’ re saying Tara Reade ’ s not tellin ’ the truth.
” Plugs said ( and I ’ m paraphrasing ) , “ Well , I think… I think that — that , uh , all these women need to be vetted by the media to find out if they @ @ @ @ @ @ @ you — you haven ’ t vetted Tara Reade in the media.
” So when he is the one being accused , women can not be believed , and now the media have to come along and investigate them .
Now , the other day the New York Times said the DNC needs to investigate Biden and Tara Reade , and now Plugs is saying the media needs to do it .
Now we got this guy writing a piece that obviously doesn ’ t think Plugs has anything wrong with him ; @ @ @ @ @ @ @ game .

via rushlimbaugh
RUSH: I have here a story that is written by some guy named Tom Rogers, editor-at-large at Newsweek. Does anybody read Newsweek anymore? It’s just… It’s digital only now, right? You can’t get it at newsstands. Are there newsstands anymore? I guess the virus has shut newsstands down now.
Anyway, the headline of this clown’s piece. “Words Matter. And Joe Biden Needs to Use His Better — Tom Rogers, editor-at-large for Newsweek, the founder of CNBC…” Oh, that Tom Rogers? This guy’s ancient. That Tom Rogers? You gotta be kidding! The founder of CNBC? Holy smokes! This guy has gotta be 110, and I know he’s, I mean, a dyed-in-the-wool commie leftist.
Okay. Well, anyway, this guy, let me give you a couple pull quotes. “When Biden is talking with a teleprompter, he commands the situation much better than Trump. But in his living room media appearances so far, [Biden] stumbles, fails to complete sentences, searches for words, repeats the same points, has difficulty hitting the right points and does not take points to a deeper level, making his comments seem overly general and superficial.”
Here’s another pull quote. I can’t believe it’s that Tom Rogers! Holy smokes. Anyway… “If Biden’s speaking does not improve, it will play into the most obvious critiques of his candidacy. The Trump campaign will go after Biden as an establishment politician of the Washington, D.C., ‘swamp,’ who therefore talks in ‘political speak’; or [the Trump campaign] will characterize him as ‘confused,’ and therefore standing for nothing; or [the Trump campaign] will paint him as ‘too old’ to handle the job.”
Now, one more pull quote: “[I]f Biden can’t pick up his game, capturing the hearts of those voters he needs at the margin is going to be extremely difficult, and instead, he will have to rely on the rationality of their minds in recognizing him as the superior candidate.” I read this (chuckles) and I could not believe it. Do you think, folks…? Do you think the…?
We are primarily funded by readers. Please subscribe and donate to support us!
This is a question that we have asked over and over. Do you think the people in Biden’s campaign do not know that he’s got dementia? Do you think the people in his campaign — and like this guy covering his campaign — don’t know that his cognitive skills are on the downside? Do you think they chalk what Biden is up to just not being a good performer lately?
My goodness, this is even better than that I could have dreamed of. They don’t…? If this guy’s writing this stuff seriously, he’s got no idea that Plugs is doing the best he can. He’s got no idea that Plugs doesn’t know where he is half the time. By the way, have you heard Plugs’ latest defense on Tara Reade? He was on with George Stephanopoulos, Good Morning America.
He was asked, “Look, you said during the Kavanaugh hearings — and when Blasey Ford was out there doing her routine, you said — ‘every woman should be believed.’ But you’re saying Tara Reade’s not tellin’ the truth.” Plugs said (and I’m paraphrasing), “Well, I think… I think that — that, uh, all these women need to be vetted by the media to find out if they’re telling the truth, and you — you haven’t vetted Tara Reade in the media.”
So when he is the one being accused, women cannot be believed, and now the media have to come along and investigate them.
Now, the other day the New York Times said the DNC needs to investigate Biden and Tara Reade, and now Plugs is saying the media needs to do it. Now we got this guy writing a piece that obviously doesn’t think Plugs has anything wrong with him; he just needs to step up his game.


investmentwatchblog--2020-05-13--Trump Praises “Benefits” Of Negative Interest Rates, Pushes US To Accept (Too Bad Elderly American S

Trump Praises “Benefits” Of Negative Interest Rates, Pushes US To Accept (Too Bad Elderly American Savers & Non-Adult Citizens!)

( by Half Dollar ) I guess I ’ ve got ta make some people mad again .
So be it .
President Trump not only wants elderly American savers to die , but to choose how they will commit suicide ( slowly by not buying food , or more quickly by not buying meds ) , and he wants to make sure American minors are debt slaves for their entire lives .
But don ’ t take ‘ Ol Half Dollar ’ s word for it , see Trump pumping the destruction of America for yourself : That ’ @ @ @ @ @ @ @ s been pushing for negative interest rates , either , just the latest .
For the other negative interest rate Tweets , and for all of Trump ’ s Tweets for that matter , check out the Trump Twitter Archive website and search to your heart ’ s content .
That said , here ’ s a little article if you need absolute proof Trump will never do anything “ good for gold ” , as if it weren ’ t obvious enough already .
OK , “ Hey Half Dollar , why @ @ @ @ @ @ @ rates today ?
” .
First , they ’ re trial balloons , prep-work if you will , or if I may , plus , recall that last week , we covered the fact that the “ markets ” were pricing-in a negative interest rate on the Fed Funds Rate for the first time , ever .
So what we have is some good old-fashioned follow-through momentum to keep the negative interest rates topic front-n-center on the radar , perhaps to keep the pesky Supreme Court hearings about Trump ’ s financial records @ @ @ @ @ @ @ interest rate talk was normal dinnertime conversation .
And just so we ’ re clear : Negative interest rates are evil , and Trump loves them .
Unless , of course , your battle cry is “ trust the plan ” , and then it ’ s just a little short-term pain until we can drain the swamp !
The fact that “ trust the plan ” is still a thing is truly amazing .
Finally , if you ’ re one for seeing just how much you can stomach Trump ’ s @ @ @ @ @ @ @ also from today : If you thought falling prices at the pump and rising prices for crude oil were mutually exclusive , you ’ d be wrong .
And no , Trump ’ s not talking about reducing the Federal gas tax or anything like that to account for rising crude oil prices with falling gasoline prices .
To the contrary , President Trump has been an advocate for raising the Federal gas tax .
Here ’ s the thing , in case you didn ’ t know : Trump ’ s the @ @ @ @ @ @ @ have his cake and eat it too while simultaneously knocking-out Chuck Norris with one swift , round-house kick to the face .

(by Half Dollar) I guess I’ve gotta make some people mad again.
So be it.
President Trump not only wants elderly American savers to die, but to choose how they will commit suicide (slowly by not buying food, or more quickly by not buying meds), and he wants to make sure American minors are debt slaves for their entire lives.
But don’t take ‘Ol Half Dollar’s word for it, see Trump pumping the destruction of America for yourself:
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers! — Donald J. Trump (@realDonaldTrump) May 12, 2020
That’s not the first time he’s been pushing for negative interest rates, either, just the latest.
For the other negative interest rate Tweets, and for all of Trump’s Tweets for that matter, check out the Trump Twitter Archive website and search to your heart’s content.
Or disgust.
That said, here’s a little article if you need absolute proof Trump will never do anything “good for gold”, as if it weren’t obvious enough already.
OK, “Hey Half Dollar, why is Trump harpin’ on negative interest rates today?”.
Good question.
First, they’re trial balloons, prep-work if you will, or if I may, plus, recall that last week, we covered the fact that the “markets” were pricing-in a negative interest rate on the Fed Funds Rate for the first time, ever.
So what we have is some good old-fashioned follow-through momentum to keep the negative interest rates topic front-n-center on the radar, perhaps to keep the pesky Supreme Court hearings about Trump’s financial records off the radar, as if negative interest rate talk was normal dinnertime conversation.
We are primarily funded by readers. Please subscribe and donate to support us!
It’s not.
And just so we’re clear: Negative interest rates are evil, and Trump loves them.
Unless, of course, your battle cry is “trust the plan”, and then it’s just a little short-term pain until we can drain the swamp!
The fact that “trust the plan” is still a thing is truly amazing.
But I digress.
Finally, if you’re one for seeing just how much you can stomach Trump’s hypocrisy on the economy and markets, also from today:
Crude Oil prices going up as Saudi Arabia cuts production levels. Our great Energy Companies, with millions of JOBS, are starting to look very good again. At the same time, gasoline prices at record lows (like a big Tax Cut). The BEST of all Worlds. “Transition To Greatness” — Donald J. Trump (@realDonaldTrump) May 12, 2020
If you thought falling prices at the pump and rising prices for crude oil were mutually exclusive, you’d be wrong.
And no, Trump’s not talking about reducing the Federal gas tax or anything like that to account for rising crude oil prices with falling gasoline prices.
To the contrary, President Trump has been an advocate for raising the Federal gas tax.
Here’s the thing, in case you didn’t know: Trump’s the only man on the planet who can have his cake and eat it too while simultaneously knocking-out Chuck Norris with one swift, round-house kick to the face.
Developing…


investmentwatchblog--2020-05-12--Big Food Price Inflation Arrives To US Government’s Own Statistics (Consumer Price Index)

( by Half Dollar ) Food price inflation should come as no surprise to anybody .
You know how the coronavirus was only the pin that pricked the bubble that was blown out of underlying financial system problems ?
Yeah , it ’ s kind of like that with the coronavirus and this rapid food price inflation .
You see , we ’ ve been discussing food price inflation as a major concern for the better part of a year as , season after season , all around the globe , we began to see big problems with big agriculture @ @ @ @ @ @ @ sampling of the problems with food production , pre-coronavirus : • Historic flooding last Spring across large parts the US , and that flooding involved the loss of a million calves in Nebraska alone .
• In Asia in general and in China devastatingly , there was what was commonly reported on as “ pig Ebola ” , where millions of pigs either died of the disease ( also called “ African Swine Fever ” ) or were euthanized .
• Shifting back to the US in the Fall of 2019 , who @ @ @ @ @ @ @ wreaking havoc on the fall harvest season ?
• Or how about last winter , when we reported on locust plagues of Biblical proportions devastating crops in the Middle East and Africa ?
The point being there were already a gazillion signs pointing to rapid food price inflation , and , more importantly , food supply disruptions .
Which brings us to the just released Consumer Price Index , and the accompanying food charts are quite impressive .
Food is acknowledge from the get-go : Does anybody really feel they ’ re spending @ @ @ @ @ @ @ point , without travelling , commuting , or whatever , who ’ s actually enjoying low gasoline and diesel prices ?
I mean , if a person ’ s burned 3 gallons of gasoline over the past two months , then who the heck cares how much money he or she could be saving at the pump if he or she is jobless and now spending more money on food ?
Of note is the “ home index ” of the food category since so many are people sheltering-in-place , staying-home , bugging-in @ @ @ @ @ @ @ it : The food at home index increased 4.1 percent over the last 12 months .
All six major grocery store food group indexes rose over the last year , with increases ranging from 0.4 percent ( fruits and vegetables ) to 6.8 percent ( meats , poultry , fish , and eggs ) .
The index for dairy and related products rose 5.2 percent , and the index for nonalcoholic beverages increased 5.0 percent .
The index for food away from home rose 2.8 percent over the last year .
The index @ @ @ @ @ @ @ and the index for full service meals rose 2.4 percent over the last 12 months .
Indeed , to anybody who buys food , this is all too real : And to think : If you believe the US government understates price inflation as official policy , through myriad cheap parlor tricks , which is an article for another day , then it ’ s even worse than the charts demonstrate .
Furthermore , that ’ s if food can be found , which is another issue altogether .
Even food away from @ @ @ @ @ @ @ , is over 2.0 % : And Food price inflation is something that bites into the bottom 90 % much more than the top 10 % because the bottom 90 % pay a significantly higher percentage of their income to food , that is , if they even have any income right now .
Speaking of income and food prices , what would it mean if the nation is broke and feeling the pain of six months of rapid food price inflation going into the 2020 election this November ?
Regardless , last @ @ @ @ @ @ @ had a great discussion about inflation , employment , recovery on Main Street , and so much more : Also , don ’ t forget to watch our in-depth food discussions with a high-producing Kansas wheat farmer , recorded over the past several months , found here and here .
Editor ’ s Note : President Nixon ordered a “ freeze on all prices and wages throughout the United States ” on that same dreadful August day in 1971 : Nixon did that when the CPI was 4.0 % , and while the @ @ @ @ @ @ @ , President Trump has shown he has no problems nationalizing the nation ’ s food supply , as he did last month , so it is likely Trump would have no problems putting on the price controls when prices spiral out of control .
Curiously , the last time this was tried was in Venezuela .
And some would say that didn ’ t turn out too well .

(by Half Dollar) Food price inflation should come as no surprise to anybody.
You know how the coronavirus was only the pin that pricked the bubble that was blown out of underlying financial system problems?
Yeah, it’s kind of like that with the coronavirus and this rapid food price inflation.
You see, we’ve been discussing food price inflation as a major concern for the better part of a year as, season after season, all around the globe, we began to see big problems with big agriculture.
Here’s just a small sampling of the problems with food production, pre-coronavirus:
The point being there were already a gazillion signs pointing to rapid food price inflation, and, more importantly, food supply disruptions.
Which brings us to the just released Consumer Price Index, and the accompanying food charts are quite impressive.
Food is acknowledge from the get-go:
Does anybody really feel they’re spending less for stuff?
And at this point, without travelling, commuting, or whatever, who’s actually enjoying low gasoline and diesel prices?
I mean, if a person’s burned 3 gallons of gasoline over the past two months, then who the heck cares how much money he or she could be saving at the pump if he or she is jobless and now spending more money on food?
Of note is the “home index” of the food category since so many are people sheltering-in-place, staying-home, bugging-in, or whatever you want to call it:
The food at home index increased 4.1 percent over the last 12 months. All six
major grocery store food group indexes rose over the last year, with increases
ranging from 0.4 percent (fruits and vegetables) to 6.8 percent (meats, poultry,
fish, and eggs). The index for dairy and related products rose 5.2 percent, and
the index for nonalcoholic beverages increased 5.0 percent. The index for food
away from home rose 2.8 percent over the last year. The index for limited service
meals increased 3.2 percent and the index for full service meals rose 2.4 percent
over the last 12 months.
Indeed, to anybody who buys food, this is all too real:
And to think: If you believe the US government understates price inflation as official policy, through myriad cheap parlor tricks, which is an article for another day, then it’s even worse than the charts demonstrate.
Furthermore, that’s if food can be found, which is another issue altogether.
We are primarily funded by readers. Please subscribe and donate to support us!
Anybody had luck finding yeast?
Or chicken breast?
But I digress.
Now.
Even food away from home, as reported by the BLS, is over 2.0%:
And Food price inflation is something that bites into the bottom 90% much more than the top 10% because the bottom 90% pay a significantly higher percentage of their income to food, that is, if they even have any income right now.
Speaking of income and food prices, what would it mean if the nation is broke and feeling the pain of six months of rapid food price inflation going into the 2020 election this November?
Regardless, last week, Charles Hugh Smith and I had a great discussion about inflation, employment, recovery on Main Street, and so much more:
Also, don’t forget to watch our in-depth food discussions with a high-producing Kansas wheat farmer, recorded over the past several months, found here and here.
Developing…
*****
Editor’s Note: President Nixon ordered a “freeze on all prices and wages throughout the United States” on that same dreadful August day in 1971:
Nixon did that when the CPI was 4.0%, and while the headline CPI has plunged here in 2020, President Trump has shown he has no problems nationalizing the nation’s food supply, as he did last month , so it is likely Trump would have no problems putting on the price controls when prices spiral out of control.
Curiously, the last time this was tried was in Venezuela.
And some would say that didn’t turn out too well.
*****


investmentwatchblog--2020-05-12--Infinite money printing: Fed now buying ETFs

Just when you thought they couldn ’ t come up with any more crazy ideas , the Federal Reserve announced last night that they will start buying Exchange Traded Funds , effective immediately .
Just to be clear , this means that the Fed is going to conjure money out of thin air , and then use that new money to buy ETFs .
But not just any ETF .
The Fed is specifically targeting ETFs that own corporate bonds .
The key idea here is that the Fed is trying to bail out bankrupt companies across the Land of @ @ @ @ @ @ @ most medium and large businesses regularly issue corporate bonds ( which is a type of debt ) to help fund their companies .
This is pretty normal ; even very strong and healthy businesses regularly go into debt by issuing bonds .
For example , Apple has been wildly profitable for years .
But the company has about $ 90 billion in debt according to its most recent financial statements , plus they just issued another $ 8 billion in bonds last week .
Companies all over the world do this , and @ @ @ @ @ @ @ bond market is absolutely enormous– tens of trillions of dollars .
The obvious problem is that there are countless businesses around the world , both big and small , that simply aren ’ t going to make it through this economic crisis .
Airlines , hotels , restaurant chains , factories , shipping companies , retail stores , daycare facilities , construction companies , etc .
have all been devastated by the pandemic .
Most of these companies have borrowed extensively .
And without any revenue , there ’ s likely going to @ @ @ @ @ @ @ the corporate bond market .
American Airlines , for example , has $ 21 billion in debt .
There ’ s practically zero chance they ’ ll be able to make interest payments , which will trigger a default of their corporate bonds .
Thousands of other companies are in a similar position ; they won ’ t be able to make their payments .
The even bigger problem is that , eventually , bonds mature and need to be paid back .
Unlike the mortgage on your house , whose principal balance @ @ @ @ @ @ @ , most corporate bonds are interest-only .
They pay what ’ s called a ‘ coupon ’ , which is a regular interest payment , and then the entire principal balance is paid back when the bond ‘ matures ’ after perhaps 7-10 years .
Usually when their corporate bonds mature , most companies simply issue new bonds .
It ’ s sort of like a refinance ; so instead of paying back $ 1 billion worth of bonds that are about to mature , the company will issue $ 1 billion in @ @ @ @ @ @ @ In this way they keep rolling over their debt .
And in normal times , that approach typically works just fine .
But these are not normal times .
Right now the bond market is frozen solid .
And very few investors want to buy bonds of , say , an airline or cruise operator .
But a lot of those companies have billions of dollars worth of bonds that are about to mature .
And without a way to roll over those bonds and refinance the debt , they ’ ll be @ @ @ @ @ @ @ those bonds will suffer major losses .
This is a huge problem because it can cause a chain reaction across the entire financial system .
Let ’ s imagine “ Rude Airways ” has $ 10 billion worth of bonds that are about to mature .
But Rude Airways is out of cash and has no hope of generating revenue while the lockdowns are in place .
So instead of paying back the $ 10 billion , Rude Airways defaults .
“ Big Ego Capital Partners ” is a hedge fund that owns @ @ @ @ @ @ @ s bonds .
So when Rude Airways defaults , Big Ego is also wiped out .
Big Ego owes a lot of money to “ Liars Bank ” .
So when Big Ego goes under , Liars Bank also takes a huge hit .
You get the idea .
If thousands of companies constituting trillions of dollars worth of bonds don ’ t pay , then the chain reaction across the entire financial system will be nothing short of cataclysmic .
This is what the Fed is trying to prevent… with the only @ @ @ @ @ @ @ .
So , again , the Fed is going to conjure money out of thin air , and use that money to buy corporate bonds and bond ETFs .
Their plan is to help companies like Rude Airways roll over their debts , and hopefully prevent a chain reaction of defaults across the entire financial system .
According to yesterday ’ s press release , the Fed estimates spending $ 750 billion initially , though it ’ s clear they could easily blow past that number .
That , of course , is @ @ @ @ @ @ @ worth of other commitments they ’ ve already made , the $ 2.6 trillion they ’ ve already printed , and the trillions of dollars of other facilities they ’ ll create in the future .
I ’ ve been writing about this a lot lately , but at the risk of beating this horse to death , I believe it ’ s worth repeating : There is so much we don ’ t know about the economic consequences of this pandemic .
Will we see major inflation ?
Depression ?
Stagflation ?
@ @ @ @ @ @ @ But one thing that has become totally obvious is that central banks around the world are going to continue printing incomprehensible sums of money– this is ‘ whatever it takes ’ monetary policy .
I won ’ t bother opining on whether what they ’ re doing is right or wrong .
It doesn ’ t matter .
The reality is that it ’ s happening ; they ’ re printing ridiculous quantities of money , and that ’ s that .
Nothing we can do will change that fact .
Our only @ @ @ @ @ @ @ .
Again , there ’ s no playbook here , and every possible scenario is on the table .
But historically speaking , whenever central banks devalue their currencies by printing vast amounts of money , real assets ( and especially gold and silver ) generally tend to be safe havens from the monetary consequences .

by Simon Black
Just when you thought they couldn’t come up with any more crazy ideas, the Federal Reserve announced last night that they will start buying Exchange Traded Funds, effective immediately.
Just to be clear, this means that the Fed is going to conjure money out of thin air, and then use that new money to buy ETFs.
But not just any ETF. The Fed is specifically targeting ETFs that own corporate bonds.
The key idea here is that the Fed is trying to bail out bankrupt companies across the Land of the Free.
Under normal circumstances, most medium and large businesses regularly issue corporate bonds (which is a type of debt) to help fund their companies.
This is pretty normal; even very strong and healthy businesses regularly go into debt by issuing bonds.
For example, Apple has been wildly profitable for years. But the company has about $90 billion in debt according to its most recent financial statements, plus they just issued another $8 billion in bonds last week.
Companies all over the world do this, and the total size of the global corporate bond market is absolutely enormous– tens of trillions of dollars.
The obvious problem is that there are countless businesses around the world, both big and small, that simply aren’t going to make it through this economic crisis.
Airlines, hotels, restaurant chains, factories, shipping companies, retail stores, daycare facilities, construction companies, etc. have all been devastated by the pandemic.
Most of these companies have borrowed extensively. And without any revenue, there’s likely going to be a giant wave of defaults in the corporate bond market.
American Airlines, for example, has $21 billion in debt. There’s practically zero chance they’ll be able to make interest payments, which will trigger a default of their corporate bonds.
Thousands of other companies are in a similar position; they won’t be able to make their payments.
The even bigger problem is that, eventually, bonds mature and need to be paid back.
Unlike the mortgage on your house, whose principal balance is slowly paid down over 20-30 years, most corporate bonds are interest-only.
They pay what’s called a ‘coupon’, which is a regular interest payment, and then the entire principal balance is paid back when the bond ‘matures’ after perhaps 7-10 years.
Usually when their corporate bonds mature, most companies simply issue new bonds. It’s sort of like a refinance; so instead of paying back $1 billion worth of bonds that are about to mature, the company will issue $1 billion in new bonds for another 10 years.
In this way they keep rolling over their debt. And in normal times, that approach typically works just fine.
But these are not normal times.
Right now the bond market is frozen solid. And very few investors want to buy bonds of, say, an airline or cruise operator.
But a lot of those companies have billions of dollars worth of bonds that are about to mature.
And without a way to roll over those bonds and refinance the debt, they’ll be in default… meaning most investors who owns those bonds will suffer major losses.
This is a huge problem because it can cause a chain reaction across the entire financial system.
We are primarily funded by readers. Please subscribe and donate to support us!
Let’s imagine “Rude Airways” has $10 billion worth of bonds that are about to mature.
But Rude Airways is out of cash and has no hope of generating revenue while the lockdowns are in place.
So instead of paying back the $10 billion, Rude Airways defaults.
“Big Ego Capital Partners” is a hedge fund that owns billions of dollars worth of Rude’s bonds. So when Rude Airways defaults, Big Ego is also wiped out.
Big Ego owes a lot of money to “Liars Bank”. So when Big Ego goes under, Liars Bank also takes a huge hit.
You get the idea. If thousands of companies constituting trillions of dollars worth of bonds don’t pay, then the chain reaction across the entire financial system will be nothing short of cataclysmic.
This is what the Fed is trying to prevent… with the only tool they have available: PRINTING MONEY.
So, again, the Fed is going to conjure money out of thin air, and use that money to buy corporate bonds and bond ETFs.
Their plan is to help companies like Rude Airways roll over their debts, and hopefully prevent a chain reaction of defaults across the entire financial system.
According to yesterday’s press release, the Fed estimates spending $750 billion initially, though it’s clear they could easily blow past that number.
That, of course, is on top of the trillions of dollars worth of other commitments they’ve already made, the $2.6 trillion they’ve already printed, and the trillions of dollars of other facilities they’ll create in the future.
I’ve been writing about this a lot lately, but at the risk of beating this horse to death, I believe it’s worth repeating:
There is so much we don’t know about the economic consequences of this pandemic. Will we see major inflation? Depression? Stagflation?
No one really knows for sure.
But one thing that has become totally obvious is that central banks around the world are going to continue printing incomprehensible sums of money– this is ‘whatever it takes’ monetary policy.
I won’t bother opining on whether what they’re doing is right or wrong. It doesn’t matter.
The reality is that it’s happening; they’re printing ridiculous quantities of money, and that’s that. Nothing we can do will change that fact.
Our only decision is how we choose to react.
Again, there’s no playbook here, and every possible scenario is on the table.
But historically speaking, whenever central banks devalue their currencies by printing vast amounts of money, real assets (and especially gold and silver) generally tend to be safe havens from the monetary consequences.


investmentwatchblog--2020-05-12--RUSH: Folks, I’m gonna tell you, these next four months are gonna be a veritable war like we have no

RUSH: Folks, I’m gonna tell you, these next four months are gonna be a veritable war like we have not seen.

RUSH : I ’ ll tell you something else that ’ s starting to send red flags up .
You probably have already noticed this .
All these blue state governors that want to keep their states locked down , it ’ s purely political .
But what are they depending on ?
They ’ re depending on the red states — the red states that are opening up !
The red states are gon na get the economy kickstarted .
The red states are gon na create capital and money to transfer to pay these people their stupid welfare @ @ @ @ @ @ @ re using to bleed this country dry ) , while their population sits home , doesn ’ t work , waits for the federal check to show up — and they sit around and they trash the supposedly reckless red states .
I can not tell you how this irritates me .
The red state governors — like Kemp in Georgia and any number of these people — are doing the right thing .
They ’ re trying to get their people back to work , for all the right common-sensical human and @ @ @ @ @ @ @ to protect livelihoods , the United States economy , the state economy .
And then you go to a blue state , and it ’ s the exact opposite .
They shut down and lock down , and they want to remain locked down until July or August or whatever — and nothing ’ s gon na open and nothing is gon na happen .
And they fully expect the red states to sit there and essentially pay for it .
Folks , I ’ m gon na tell you , these next @ @ @ @ @ @ @ veritable war like we have not seen .
The American left and the Democrat Party is going to do its best to keep this economy shut down , to extend and expand that shutdown — and blow up their own country ’ s jobs — just to ensure that Trump loses .
But here ’ s the thing about that .
Let ’ s do a little hypothetical .
Let ’ s say this continues as it is , and let ’ s say that more and more red states open up and @ @ @ @ @ @ @ return and revive The blue states stay locked down .
These are populous places — New York , Massachusetts , California .
So they stay locked down all for the express purpose of canceling out the increase created by the red states .
The economic activity that will happen from the red states going back to work , the blue state governors are gon na try to cancel it out by keeping their people at home .
They ’ re gon na wreck the economy .
Their objective is to wreck the economy @ @ @ @ @ @ @ let ’ s say that… Well , hard as it is to imagine , let ’ s say they succeed .
Let ’ s imagine they do this .
They keep the economy in such bad shape that Trump is sent packing .
What do they expect when that ’ s all over ?
Do they expect us just to forget it ?
They expect all these red state people to say , “ Oh , well , nice fair fight , you guys !
Great to see you .
We ’ ll @ @ @ @ @ @ @ put all of it aside , and try to all just get along again ?
What do they expect is gon na happen with this effort of theirs to ruin the U.S. economy ?
Do they think people are just gon na sit by and let it happen ?
And I ’ m telling you that they do .
These are the same people that pass tax increases on the rich , and then end up shocked that the rich find a way around it .
So here they ’ re gon na @ @ @ @ @ @ @ and entire Democrat Party — and , by the way , we predicted this here .
We predicted that it wouldn ’ t be long before the Democrats would start blaming Trump for the rotten economy because of the way he ’ s handled the virus .
And right on schedule , they ’ re now calling Trump Herbert Hoover .
Have you noticed that , Mr. Snerdley ?
They ’ re all… Ed Markey , they ’ re all over the place .
Trump is Herbert Hoover .
Herbert Hoover was the @ @ @ @ @ @ @ Depression .
There ’ s no comparison .
Unfortunately , because of the lack education of this country , nobody knows who Herbert Hoover is , particularly on the left .
But what do they expect to happen ?
They expect us to just watch them try to literally destroy this country ’ s economy and do nothing about it ?
They just expect us to just watch it and when the election ’ s over , wave at ’ em and say , “ Hey , guys , nice try !
” @ @ @ @ @ @ @ ?
They think they can ruin the economy .
They think they can go out and even try to ruin the economy — and at the end of it , we ’ re all just gon na be brothers and sisters and say , “ Okay .
Let ’ s now work together to heal.
” I can ’ t believe that that ’ ll work , but time will tell .
RUSH : To make a point that I earlier illustrated , I said these blue state governors are keeping their states @ @ @ @ @ @ @ demanding that the red states that are going back to work pay for them , red state governors like Kemp in Georgia and elsewhere who are opening up — Florida , DeSantis — trying to get businesses back up and running , restaurants , you name it .
These blue state guys are sitting around keeping themselves locked down crying , “ It ’ s so unfortunate , we ’ re in such bad shape.
” And they ’ re demanding that the federal government , which means tax revenue from you , @ @ @ @ @ @ @ support them .
You know what I would do ?
If I lived in California , if I lived in the state of Washington , if I lived in New York , if I lived in Massachusetts , you know what I would tell these stupid , idiotic governors ?
I would say no property tax if I can ’ t work .
No tax of any kind if I can ’ t work .
If you ’ re gon na prevent me from working , I ’ m not gon na pay @ @ @ @ @ @ @ can I ?
But they ’ re gon na be out there demanding taxes , collecting taxes , property taxes , while preventing their own citizens from working .
This screwball governor in Illinois , this J .
B. Pritzker guy , classic illustration of what ’ s gone wrong with every aspect of the Democrat Party , the liberal education .
This guy just announced a new edict .
I don ’ t know how new it is .
Only two people in a boat .
If you have a 400-foot yacht @ @ @ @ @ @ @ it .
If you have a 12-foot dinghy , only two people can be on it .
If you have a 40-foot Boston Whaler , only two people can be on it .
On a boat !
J .
B. Pritzker , governor of Illinois .
Now , listen .
Here ’ s Gavin Newsom .
To me , this is a purposeful and willful destruction .
I think these blue state governors have so many financial obligations they can ’ t cover , like the unfunded pension liabilities that they have , @ @ @ @ @ @ @ , New York , these states are in such bad fiscal condition even before the virus hits that you know what these governors are doing ?
These governors have seen the virus hit , and to them this is a once-in-a-100-year opportunity .
They are gon na let their states crash and burn to where only a federal bailout can save them .
Gavin Newsom — California , Oregon , Washington , Nevada , Colorado , and our legislative leaders , meaning in California , have joined together to ask the federal government @ @ @ @ @ @ @ schools , our public health and public safety services .
Without federal support , says Governor Newsom , states will be forced to make impossible decisions .
These are blue states .
They ’ ve been mismanaged .
They have been run by a bunch of incompetents .
They can ’ t print money .
They ’ re out of it , and they ’ re looking at this arrival of the virus as an opportunity .
It ’ s no wonder they want to crash .
They figure that ’ s the @ @ @ @ @ @ @ na ever be able to find any hope of being made whole , coming up with money to fund their pension obligations and all that is gigantic federal bailouts .
And if he sends his people back to work , if Governor Newsom opens the state , lets people reopen businesses , well , that starts the California economy .
And we can ’ t have that .
We can ’ t have one of these states ’ economies start up and get percolating because that would create revenue .
It would create @ @ @ @ @ @ @ They need financial destruction .
I think these blue state governors are doing this largely on purpose .
They are destroying the economy of their states in the belief or the hope that they ’ re gon na get federal money to bail ’ em out .
And now he ’ s called for $ 1 trillion for California , Oregon , Washington , Nevada , and Colorado .
I don ’ t know if he means a trillion each or a trillion total .
RUSH : Now , I checked the email @ @ @ @ @ @ @ you said , “ Well , you didn ’ t tell us what you think of what these blue state governors are doing.
” I didn ’ t ?
I thought it was abundantly clear what I thought .
Well , let me add on a little bit , in case you ’ re just joining us .
Governor Newsom of California has demanded — requested — essentially a trillion-dollar bailout .
He has said without federal support , California , Oregon , Washington , Nevada , Colorado will be forced to make @ @ @ @ @ @ @ survive .
We can ’ t survive , he ’ s saying , without a trillion dollars of federal money to protect our schools , our public health , and our public safety services .
Now , what ’ s obviously going on here is these states… As blue states with Democrats having run these states for who knows how many years , they ’ re in horrible fiscal and financial shape .
They have unfunded pension liabilities that they ’ ll never be able to pay .
They have spent money buying @ @ @ @ @ @ @ ve just spent money that they never , ever were gon na see generated by economic activity and taxes .
They see the arrival of the virus as a once-in-a-lifetime opportunity to have their states crash with the virus taking the blame for it happening , instead of them and their predecessors and their policies being the reason these states crash .
So that ’ s why they want the economic slowdown to keep on .
That ’ s why these blue state governors are gon na keep their economies locked down and @ @ @ @ @ @ @ This is gon na happen to them at some point .
They want the virus getting blamed , so that they will get a federal bailout , or at least have an easier shot at it .
So let me tell you what I think , since you ’ re right ; I didn ’ t close the loop on this .
If the — and look , I know this is easy for me to say , ’ cause I don ’ t live in one of these states .
I don @ @ @ @ @ @ @ , Washington , Nevada , Colorado , and many of you do .
But if these people , these governors of the Democrat Party are allowed to crash their states ’ economies in pursuit of a federal bailout and if they get that bailout , they are not going to change at all .
They ’ re gon na keep coming back for bailouts .
They ’ re gon na keep running their states into ground .
They ’ re not gon na learn a single thing about it .
I think… Look @ @ @ @ @ @ @ anyway .
They all do .
Trump can not lose any ground with these people .
They hate everything that Trump stands for .
Cutting off their money supply and letting ’ em go bankrupt may be what they deserve .
It may be what ’ s called for .
It may be what ’ s necessary .
It ’ s patently obvious what ’ s happening .
It ’ s time to rev up .
It ’ s time to get this country back up and running , folks .
We ’ @ @ @ @ @ @ @ Blue state governors want no part of it .
People are scratching their heads .
Why ?
This is the reason why .
They want their state economies wiped out with the virus taking the blame for doing it , so they ’ ll have a more valid claim to a federal bailout , ’ cause they ’ re gon na need a federal bailout regardless .
And they think if the virus can be blamed , there will be sympathy for them and there will be compassion and there will be concern @ @ @ @ @ @ @ government come along and bail ’ em out .
It ’ d be a big , big mistake .
But what are the odds ?
What are the odds that the federal government would ever let a state go bankrupt ?
But if they get bailed out , there won ’ t be a single lesson learned .

via rushlimbaugh
RUSH: I’ll tell you something else that’s starting to send red flags up. You probably have already noticed this. All these blue state governors that want to keep their states locked down, it’s purely political. But what are they depending on? They’re depending on the red states — the red states that are opening up! The red states are gonna get the economy kickstarted.
The red states are gonna create capital and money to transfer to pay these people their stupid welfare costs (and whatever else they’re using to bleed this country dry), while their population sits home, doesn’t work, waits for the federal check to show up — and they sit around and they trash the supposedly reckless red states. I cannot tell you how this irritates me.
The red state governors — like Kemp in Georgia and any number of these people — are doing the right thing. They’re trying to get their people back to work, for all the right common-sensical human and humane reasons — to protect lives — to protect livelihoods, the United States economy, the state economy. And then you go to a blue state, and it’s the exact opposite.
They shut down and lock down, and they want to remain locked down until July or August or whatever — and nothing’s gonna open and nothing is gonna happen. And they fully expect the red states to sit there and essentially pay for it. Folks, I’m gonna tell you, these next four months are gonna be a veritable war like we have not seen.
The American left and the Democrat Party is going to do its best to keep this economy shut down, to extend and expand that shutdown — and blow up their own country’s jobs — just to ensure that Trump loses. But here’s the thing about that. Let’s do a little hypothetical. Let’s say this continues as it is, and let’s say that more and more red states open up and the economy in these states starts to return and revive
The blue states stay locked down. These are populous places — New York, Massachusetts, California. So they stay locked down all for the express purpose of canceling out the increase created by the red states. The economic activity that will happen from the red states going back to work, the blue state governors are gonna try to cancel it out by keeping their people at home.
They’re gonna wreck the economy. Their objective is to wreck the economy and get rid of Trump. So let’s say that… Well, hard as it is to imagine, let’s say they succeed. Let’s imagine they do this. They keep the economy in such bad shape that Trump is sent packing. What do they expect when that’s all over? Do they expect us just to forget it?
They expect all these red state people to say, “Oh, well, nice fair fight, you guys! Great to see you. We’ll see you the next election,” put all of it aside, and try to all just get along again? What do they expect is gonna happen with this effort of theirs to ruin the U.S. economy? Do they think people are just gonna sit by and let it happen?
And I’m telling you that they do. These are the same people that pass tax increases on the rich, and then end up shocked that the rich find a way around it. So here they’re gonna be engaged, these blue state governors and entire Democrat Party — and, by the way, we predicted this here. We predicted that it wouldn’t be long before the Democrats would start blaming Trump for the rotten economy because of the way he’s handled the virus.
And right on schedule, they’re now calling Trump Herbert Hoover. Have you noticed that, Mr. Snerdley? They’re all… Ed Markey, they’re all over the place. Trump is Herbert Hoover. Herbert Hoover was the Republican president at the time of the Depression. There’s no comparison. Unfortunately, because of the lack education of this country, nobody knows who Herbert Hoover is, particularly on the left.
But what do they expect to happen? They expect us to just watch them try to literally destroy this country’s economy and do nothing about it? They just expect us to just watch it and when the election’s over, wave at ’em and say, “Hey, guys, nice try!” What do they expect to happen here? They think they can ruin the economy.
They think they can go out and even try to ruin the economy — and at the end of it, we’re all just gonna be brothers and sisters and say, “Okay. Let’s now work together to heal.” I can’t believe that that’ll work, but time will tell.
BREAK TRANSCRIPT
RUSH: To make a point that I earlier illustrated, I said these blue state governors are keeping their states shut down, and they’re demanding that the red states that are going back to work pay for them, red state governors like Kemp in Georgia and elsewhere who are opening up — Florida, DeSantis — trying to get businesses back up and running, restaurants, you name it.
These blue state guys are sitting around keeping themselves locked down crying, “It’s so unfortunate, we’re in such bad shape.” And they’re demanding that the federal government, which means tax revenue from you, be used to prop them up and support them.
You know what I would do? If I lived in California, if I lived in the state of Washington, if I lived in New York, if I lived in Massachusetts, you know what I would tell these stupid, idiotic governors? I would say no property tax if I can’t work. No tax of any kind if I can’t work. If you’re gonna prevent me from working, I’m not gonna pay you a dime in taxes. How can I?
We are primarily funded by readers. Please subscribe and donate to support us!
But they’re gonna be out there demanding taxes, collecting taxes, property taxes, while preventing their own citizens from working. This screwball governor in Illinois, this J. B. Pritzker guy, classic illustration of what’s gone wrong with every aspect of the Democrat Party, the liberal education. This guy just announced a new edict. I don’t know how new it is. Only two people in a boat. If you have a 400-foot yacht, only two people can be on it. If you have a 12-foot dinghy, only two people can be on it. If you have a 40-foot Boston Whaler, only two people can be on it. On a boat! J. B. Pritzker, governor of Illinois.
Now, listen. Here’s Gavin Newsom. To me, this is a purposeful and willful destruction. I think these blue state governors have so many financial obligations they can’t cover, like the unfunded pension liabilities that they have, just to name one thing. California, New York, these states are in such bad fiscal condition even before the virus hits that you know what these governors are doing? These governors have seen the virus hit, and to them this is a once-in-a-100-year opportunity. They are gonna let their states crash and burn to where only a federal bailout can save them.
Gavin Newsom — California, Oregon, Washington, Nevada, Colorado, and our legislative leaders, meaning in California, have joined together to ask the federal government for $1 trillion to protect our schools, our public health and public safety services. Without federal support, says Governor Newsom, states will be forced to make impossible decisions. These are blue states. They’ve been mismanaged. They have been run by a bunch of incompetents.
They can’t print money. They’re out of it, and they’re looking at this arrival of the virus as an opportunity. It’s no wonder they want to crash. They figure that’s the only way that they’re gonna ever be able to find any hope of being made whole, coming up with money to fund their pension obligations and all that is gigantic federal bailouts. And if he sends his people back to work, if Governor Newsom opens the state, lets people reopen businesses, well, that starts the California economy. And we can’t have that. We can’t have one of these states’ economies start up and get percolating because that would create revenue.
It would create something more than idle financial loss. They need financial destruction. I think these blue state governors are doing this largely on purpose. They are destroying the economy of their states in the belief or the hope that they’re gonna get federal money to bail ’em out. And now he’s called for $1 trillion for California, Oregon, Washington, Nevada, and Colorado. I don’t know if he means a trillion each or a trillion total.
BREAK TRANSCRIPT
RUSH: Now, I checked the email during the break, and some of you said, “Well, you didn’t tell us what you think of what these blue state governors are doing.” I didn’t? I thought it was abundantly clear what I thought. Well, let me add on a little bit, in case you’re just joining us. Governor Newsom of California has demanded — requested — essentially a trillion-dollar bailout.
He has said without federal support, California, Oregon, Washington, Nevada, Colorado will be forced to make impossible decisions. They can’t survive. We can’t survive, he’s saying, without a trillion dollars of federal money to protect our schools, our public health, and our public safety services. Now, what’s obviously going on here is these states…
As blue states with Democrats having run these states for who knows how many years, they’re in horrible fiscal and financial shape. They have unfunded pension liabilities that they’ll never be able to pay. They have spent money buying votes, buying welfare. They’ve just spent money that they never, ever were gonna see generated by economic activity and taxes.
They see the arrival of the virus as a once-in-a-lifetime opportunity to have their states crash with the virus taking the blame for it happening, instead of them and their predecessors and their policies being the reason these states crash. So that’s why they want the economic slowdown to keep on. That’s why these blue state governors are gonna keep their economies locked down and shut down.
They know their states… This is gonna happen to them at some point. They want the virus getting blamed, so that they will get a federal bailout, or at least have an easier shot at it. So let me tell you what I think, since you’re right; I didn’t close the loop on this. If the — and look, I know this is easy for me to say, ’cause I don’t live in one of these states.
I don’t live in California, Oregon, Washington, Nevada, Colorado, and many of you do. But if these people, these governors of the Democrat Party are allowed to crash their states’ economies in pursuit of a federal bailout and if they get that bailout, they are not going to change at all. They’re gonna keep coming back for bailouts.
They’re gonna keep running their states into ground. They’re not gonna learn a single thing about it. I think… Look, these governors, they hate Trump anyway. They all do. Trump cannot lose any ground with these people. They hate everything that Trump stands for. Cutting off their money supply and letting ’em go bankrupt may be what they deserve.
It may be what’s called for. It may be what’s necessary. It’s patently obvious what’s happening. It’s time to rev up. It’s time to get this country back up and running, folks. We’ve been shut down long enough. Blue state governors want no part of it. People are scratching their heads. Why? This is the reason why.
They want their state economies wiped out with the virus taking the blame for doing it, so they’ll have a more valid claim to a federal bailout, ’cause they’re gonna need a federal bailout regardless. And they think if the virus can be blamed, there will be sympathy for them and there will be compassion and there will be concern.
And then Trump and the federal government come along and bail ’em out. It’d be a big, big mistake. But what are the odds? What are the odds that the federal government would ever let a state go bankrupt? But if they get bailed out, there won’t be a single lesson learned.


investmentwatchblog--2020-05-12--SUPPLY CHAINS: FOOD & TOILET PAPER SUPPLY WERE DISRUPTED BY THE RULING CLASS, NOT A VIRUS

A lot of articles out there are titled something like “ the coronavirus disrupted supply chains.
” That headline is intentionally misleading .
As we know by now , the mainstream media is doing what they can to keep us all in a constant state of fear so the elites can finish enslaving us all .
Just like the flu or HIV didn ’ t disrupt supply chains , neither can the novel coronavirus .
But blaming the virus is how the media continues to pump up the fear factor and keep the public subdued about what ’ s to @ @ @ @ @ @ @ enslavement .
The media has been readying the public for additional fear of the “ second wave ” too .
All of this is important .
The fear of the virus has subsided dramatically and people are figuring our that the food supply is being manipulated by the powers-that-shouldn ’ t-be to produce even more fear .
The Science of Fear : How The Elitists Use it to Control Us & How to Break Free Do not fall for it !
Now is not the time to be living terrified for any reason @ @ @ @ @ @ @ be used to force humanity to suffer as much as possible .
Instead , know that you can prepare for a food shortage , and work toward self-reliance .
Work within your local community to help those who need it .
Localizing some of the preparations will definitely help when the ruling class decides to completely cut off all food .
Have items that can be bartered and make sure you can protect what you have stored .
Don ’ t fall for the fear , but keep your eyes open .
We @ @ @ @ @ @ @ happening so we can protect from it and place the blame where it belongs .
Will It Take Food Shortages For People To Stand Up To Tyranny ?
Safety has always been the rallying cry of tyrants and that is no different now .
People all over the world are waking up to what the power-hungry elitists and politicians have done to us for decades , but many are still sleeping .
Will it take these orchestrated food shortages to wake them up ?
Or will they continue down a path of slavery @ @ @ @ @ @ @ , Corruption , & Pay To Keep The Public In a Fear-Induced Panic For Ultimate Control We actually wouldn ’ t have a food shortage if it wasn ’ t being created on purpose to push the public further into a panicked and fearful state .
It ’ s just too obvious to ignore any longer .
-SHTFPlan Millions Of Of Pigs , Chickens And Cattle Are Being Euthanized While The Media Warns “ Shortages ” Are Coming We all need to stand together .
They ’ ve divided us for years over @ @ @ @ @ @ @ obeying the tyrants that have only ever had their best interests in mind .

by Mac Slavo of SHTFplan
A lot of articles out there are titled something like “the coronavirus disrupted supply chains.” That headline is intentionally misleading. As we know by now, the mainstream media is doing what they can to keep us all in a constant state of fear so the elites can finish enslaving us all.
Just like the flu or HIV didn’t disrupt supply chains, neither can the novel coronavirus. But blaming the virus is how the media continues to pump up the fear factor and keep the public subdued about what’s to come, and even beg for their enslavement. The media has been readying the public for additional fear of the “second wave” too. All of this is important. The fear of the virus has subsided dramatically and people are figuring our that the food supply is being manipulated by the powers-that-shouldn’t-be to produce even more fear.
The Science of Fear: How The Elitists Use it to Control Us & How to Break Free
Do not fall for it! Now is not the time to be living terrified for any reason! They have shown that it will be used to force humanity to suffer as much as possible. Instead, know that you can prepare for a food shortage, and work toward self-reliance. Work within your local community to help those who need it. Localizing some of the preparations will definitely help when the ruling class decides to completely cut off all food.
Prepping For The Upcoming Government-Induced Food Shortages
We are primarily funded by readers. Please subscribe and donate to support us!
Have items that can be bartered and make sure you can protect what you have stored.
Don’t fall for the fear, but keep your eyes open. We all need to know what’s happening so we can protect from it and place the blame where it belongs.
Will It Take Food Shortages For People To Stand Up To Tyranny?
Safety has always been the rallying cry of tyrants and that is no different now. People all over the world are waking up to what the power-hungry elitists and politicians have done to us for decades, but many are still sleeping. Will it take these orchestrated food shortages to wake them up? Or will they continue down a path of slavery with no hope? Exposed: Lies, Corruption, & Pay To Keep The Public In a Fear-Induced Panic For Ultimate Control We actually wouldn’t have a food shortage if it wasn’t being created on purpose to push the public further into a panicked and fearful state. It’s just too obvious to ignore any longer. -SHTFPlan
Millions Of Of Pigs, Chickens And Cattle Are Being Euthanized While The Media Warns “Shortages” Are Coming
We all need to stand together. They’ve divided us for years over every little thing until we are left obeying the tyrants that have only ever had their best interests in mind.