The Energy Disaster Kicking Into Full Gear

By SRSrocco – Re-Blogged From Gold Eagle

There’s more evidence finally surfacing in the media of the dire energy predicament the world is now facing.  The negative ramifications of peak oil and the falling EROI were going to hit the world economy within the next 2-5 years, but the global contagion has sped up the process considerably.  Unfortunately, the world will never return back to the energy consumption and GDP growth experienced in 2019.  I believe the peak of unconventional oil production has finally arrived… FOREVER.

Here are a few highlights describing the ongoing ENERGY DISASTER taking place

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Record 3.3 Million Americans Apply for Unemployment Benefits

By Associated Press – Re-Blogged From Headline Wealth

Nearly 3.3 million Americans applied for unemployment benefits last week — almost five times the previous record set in 1982 — amid a widespread economic shutdown caused by the coronavirus.

The surge in weekly applications was a stunning reflection of the damage the viral outbreak is inflicting on the economy. Filings for unemployment aid generally reflect the pace of layoffs.

Layoffs are sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms and airlines. Auto sales are plummeting, and car makers have closed factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.

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Pandemic Virus Impacts An Economy Already In Decline Before The Crisis

By David Haggith – Re-Blogged From Silver Phoenix

The soup lines hadn’t formed yet. Jobs had not even noticeably started to dry up, but they weren’t as easy to find anymore. You had to be angry to quit without having a better job firmly in hand. Stocks were climbing furiously above an economy that had been slowly ebbing away since summer. Sales were down for months, so revenues were down for months, and profits were down. Funding in the world’s easiest credit market — interbank repos — was extremely tight — so tight the Fed had to come to the rescue every single day for months, and the problem was only getting worse.

Such were the times before COVID-19 struck the world in 2020 like an asteroid from some far reach of the solar system crumbling the walls that already sat on cracked foundations, burying in ash a partying world that hadn’t yet figured out it was already slowly dying from its own internal decay.

Stocks Crash Into Bear Market Faster Than 1929!

By David Haggith – Re-Blogged From Gold Eagle

The bear roared today, ripping the ears off everyone, as the Dow and Russel 2000 both landed more than 20% below their last peak. Their 19-session rampage landed a record as the, steepest, fastest downhill bear run in the history of the US stock market.

The market’s waterfall run over the cliffs now looks like El Capitan.

The Bear Is At The Door

By David Haggith – Re-Blogged From Silver Phoenix

Yesterday was the greatest crash in Wall Street history by one measure, and took down many other milestones. The Dow plunged 2,012 points in its largest single-session drop on record! Percentage-wise it was down 7.8%, which still knocked out decades of lows, leading to “Black Monday” being the hot search term on Google today as people sought a comparison worthy of this Monday crash.

For comparison, the 1929 event looked like this:

The stock market crash of 1929 – considered the worst economic event in world history – began on Thursday, October 24, 1929, with skittish investors trading a record 12.9 million shares. On October 28, dubbed “Black Monday,” the Dow Jones Industrial Average plunged nearly 13 percent. The market fell another 12 percent the next day, “Black Tuesday.” While the crisis send shock waves across the financial world, there were numerous signs that a stock market crash was coming.

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Fed’s Real Mandate: Ever Expanding Asset Bubbles

By Michael Pento – Re-Blogged From Silver Phoenix

Wall Street hit a new all-time high on February 20th. It was supposed to be smooth sailing from there, riding along the global liquidity wave. But then, that wave crashed into what turned out to be the fastest correction from a new high in the history of the US stock market. Even though the fall was mild in comparison to the record-breaking bull run of the past few years, it was enough to frighten central planners to the core. Hence, we had further confirmation on Tuesday, March 3rd of what we already knew: our central bank has been fully corrupted and co-opted by Wall Street.

The Fed lowered rates by 50bps in an emergency meeting, even though its regularly scheduled meeting was just two weeks away–maybe Trump will now give Powell the Presidential Medal of Freedom. But someone should have informed the White House and the Fed that the 4th rate cut in a rate-cutting cycle has nearly always led to market panics. But to be clear, the only reason the Fed cut rates is that the stock market suffered a brief correction. It wasn’t a bear market or a recession. It wasn’t even runaway deflation or an outright recession scare, …but just an 8% fall in stock prices from an all-time bubble high at the time of its decision.

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Pandemic Pandemania Causes Global Economic Crisis

By David Haggith – Re-Blogged From Gold Eagle

Back in the oil-embargo recession of the early 70s when Boeing was Seattle’s economy and was laying off thousands of Seattleites, a billboard on the edge of town by Sea-Tac Airport read, “Will the last person leaving Seattle turn the lights out?” (Boeing had gone from 100,800 employees in 1967 to 38,690 in 1971.)

Since Seattle is the first area where the coronavirus made landfall in the US, I’ll present Seattle’s viral transformation in the last forty-eight hours (about two weeks since the first cases were reported) as an anecdote for the extremely rapid changes already sweeping many cities in the US as outbreaks begin to show elsewhere.