Thursday, April 2, 2020

The Walls Are Closing In On The Exceptional Idiocracy

Now we are witnessing the full cost of electing a corrupt idiot to president. The Coronavirus has exposed Globalization's latent fragilities, which have been amplified 10x by a Faux News Idiocracy of rampant denial...

Begin with the fact that American signature capitalism has now led to 10 million layoffs in just two weeks of economic shutdown. More already than occurred during the entire 2008/2009 global financial crisis.Today we got confirmation that jobless claims doubled again over last week, to 6.6 million. 

Picture all of these people who are now losing their jobs now also losing healthcare coverage due to Trump's obliteration of Obamacare. Amid the worst health crisis in U.S. history.

The Trump legacy will be measured in body count

This is a clear indication of the amount of economic and financial leverage that has accumulated unchecked over the past decade. Many small businesses couldn't survive even a few days without incoming revenue. The small business bailout package just signed by Congress will arrive weeks too late to staunch the obliteration of jobs. For larger businesses, the story is just as bad. A decade of debt binged stock buybacks has impaired the balance sheet of the S&P 500. The MBA super idiots running these companies have all followed the exact same playbook - onboard as much debt as possible to maximize per share earnings. Human history's biggest leveraged buyout. These large companies are no different than the small businesses now falling like dominoes. All abided by the same lethal doctrine to maximize current profit at any cost.

Now, they are merely call options on the cycle. Expiring worthless.

For decades straight, the goal of the Republican party has been to stripmine the U.S. workforce of any and all labor protections and benefits. Now leading to a point wherein the "consumer" is merely cannon fodder for corporate pillage. The political ramifications of this shutdown have not even begun to take effect. Everything Trump has done to date has made this crisis far worse. From his signature policy of destroying Obamacare, to demanding low interest rates going into recession, and massively expanding oil production going into oil collapse. Meanwhile, Trump's trade war also reduced the imports of medical equipment and now he has restricted the travel of migrant farm workers from Mexico to California. Which puts the food supply at risk.

Nevertheless, as I write, Trump just rocketed markets with a tweet indicating that an oil cut agreement between Saudi and Russia is imminent. This assertion has yet to be confirmed by anyone else however. Herein lies the problem with this latest fantasy. 

Fifteen million barrels per day? Let's see:

Only the U.S. could cut that many barrels per day, but the Idiot-in-Chief doesn't know that:

Continuing on the topic of society shutting down, we now face a scenario in which the majority of society hunkers down for an extended staycation while the exact same small group of essential workers get pounded day in and day out by exposure to the virus. It's not hard to imagine global health care systems shutting down over the coming weeks, as health care supplies such as gloves, masks, gowns, and ventilators run out of supply.

You don't want to have to go to the hospital for any reason over these next 90 days.

Meanwhile, with respect to the food supply, there are indications that the supply chain is beginning to break down.

"So far, the worst of the problems in the United States have been temporarily empty shelves at some stores. But the consulting company Fitch Solutions says that it sees “risks at all levels of the supply chain, from production to trade”

And no surprise, Trump country is now in the crosshairs of this disaster, tremendously exacerbated by Trump's destruction of Obamacare:

"Four of the five states with the highest diabetes rates are in the South. And eight didn’t expand Medicaid under the Affordable Care Act, leaving thousands of families without access to routine care, even as financially troubled rural hospitals wither away."

“Covid-19 is going to be a disaster in the Southeast,” said Aaron Milstone, a Tennessee pulmonologist. “We’ll see higher morbidity, which is getting sick from the virus, and higher mortality, which is dying from the virus.”

When the Trump Super Idiocracy wakes up to the fact that they elected their own personal annihilator, there will be panic in the streets.

And these investors who still believe this will be a v-shaped recovery, will be buried deep under the rubble of the impending asset crash. With no chance of getting out.

Just more victims of Trump's non-stop lying. Propagated by what history will say were the dumbest people on the face of the Earth.

We have been warned.