In the banana republic of the United States that is the question. Evidently, spending over $7 trillion so far this year just isn’t enough, and the Nobody CARES Act could only take us so far. This leaves the Democrats and the White House negotiating for another massive spending bill. The Democrats are at $2.2 trillion, while the White House is closer to $1.6 trillion. In discussion is another round of bailouts for the airline industry – around $20 billion. Recall earlier in the year, the airline industry received $25 billion. During the first round, an arbitrary date of 30 September was established as the deadline, whereby the airlines would be set free to “fly” on their own. This was clearly in anticipation that the industry and broader economy would have been in recovery by now, and much closer to where things were prior to the pandemic. This is, unfortunately, not the case. The airlines have been making some noise over the last several weeks highlighting this fact, and dangling tens of thousands of further layoffs over the heads of Congress and the White House – seeking further bailouts. Well it appears that they may be getting their wish. As it stands now, another 32,000 jobs would be lost without further governmental assistance. So, let’s do the math: $20 billion divided by 32,000 jobs equates to $625,000 per job – not too shabby. We knew pilots were paid well, but $625,000?! No wonder the airlines wanted another bailout. Let us not forget that these are publicly traded companies that have access to financial markets – corporate debt and equity. There is ZERO reasoning behind why they should be coming to the US taxpayer to bail them out – let alone for the second time within one year.
It is Thursday, so the bulk of today’s discussion was focused on the initial jobless claims data. For the week ending 26 September, another 837,000 Americans filed for initial claims. This was slightly below market expectations around 850,000, but still another heartbreaking number nonetheless. The prior week’s figures were also adjusted higher by 3,000 to 873,000. In total for all persons claiming an unemployment benefit, for the week ending 12 September, 26.5 million is the number – an increase of some 485,000 from the week prior. An important technical note was added to the Department of Labor’s release, describing how the state of California will be pausing the release of their data due to the backlog of claims and to implement an anti-fraud system. The pause will be for two weeks. California is one of the largest economies on the planet in and of itself and is the most populous state in the country. This will further blur the true picture of the jobs market. What is also worth questioning, is what happens if the economy doesn’t quickly rebound and the backlog of claims continues to get larger – will the state “pause” further data releases? And finally, the last official jobs report prior to the 3 November elections will be released tomorrow. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #Unemployment #Elections #USA #Gold #Silver #Debt #Congress #Recession #Depression #BananaRepublic #EndTheFed #Liberty #Revolution