Tag: bankruptcy

Clothing and cotton sales plummet 50% due to Wuhan panic

9:06 pm

The beatings will continue until morale improves: According to the U.S. Census Bureau, the clothing and cotton industry has seen a 50% plunge in sales in the past month due to Wuhan panic.

The result?

As countries worldwide take measures to slow the spread of coronavirus by quarantining people and closing nonessential businesses, sales of cotton — and the clothing and textiles made from it — have declined sharply.

Demand for cotton is so low that even though prices hit their lowest levels in more than a decade, retailers and manufacturing facilities around the world are cancelling orders. “Every stage of the supply chain is getting hit,” said Jon Devine, senior economist for Cotton Incorporated, a nonprofit industry organization based in North Carolina. “Retailers are suffering,” he said. “In between, you’ve got all the manufacturers that are trying to get their orders cancelled. And then you get all the way back to the field. Farmers are entering their planting time. They have some difficult decisions to make.”

In other words, even if we get the country reopened in May (something that right now looks unlikely because of the desire of politicians to crush the economy and cancel the Bill of Rights in order to hurt Trump), this crash now is going to spiral into next year.

I should note that the stories on the crashing economy that I am posting are very easy to find. More to come. Sadly, I have had to widen my searches to more business related sources to find them. In more sane times, a business crash like this would be front page news on every news outlet in the country. Not now. We have gone insane.

1 comment

Five million more applied for unemployment benefits last week

6:09 pm

The beatings will continue until morale improves: More than five million people applied for unemployment benefits last week, a jump caused almost entirely by the government shutdown nationwide.

That brings total claims over the four weeks ended April 11 to nearly 22 million workers, erasing the entirety of labor market gains since the 2008 financial crisis, a stunning sign of the colossal economic damage inflicted by the virus outbreak. Before the pandemic, the largest number of Americans to seek jobless aid in a four-week stretch was 2.7 million in the fall of 1982.

With a labor force that totals about 162 million people, that brings the unemployment rate close to 13 percent.

That exceeds the 10 percent peak during the worst of the Great Recession more than a decade ago and tops the previous post-World War II high of 10.8 percent in 1982, bringing the U.S. closer to Depression-era levels of unemployment. A growing number of economists have warned the so-called “Great Lockdown” will push the global economy into the worst recession since the Great Depression.

This by the way is only the beginning. If businesses are not allowed to open in the next week or so, the cascade of new job loses will make these numbers seem tiny.

But hey, we have to prevent even one death from COVID-19, no matter what the cost, even though its overall impact remains comparable to the annual flu.

33 comments

Best Buy furloughs 51,000 workers because of Wuhan panic shutdown

5:57 pm

The beatings will continue until morale improves: Best Buy yesterday announced that it is furloughing 51,000 workers because their stores have been shuttered by the government imposed lockdown over the Wuhan flu.

Best Buy announced Wednesday the tech chain will furlough roughly 51,000 hourly and part-time store employees nationwide beginning Sunday as the company grapples with the business impact of the coronavirus pandemic.

In addition to furloughing the workers, who include “nearly all part-time employees,” an unspecified amount of corporate staff members have volunteered to work reduced hours and, in turn, take pay cuts, while others have volunteered themselves for the temporary furloughs, Best Buy announced Wednesday.

The company will provide health benefits for three more months. No promises after that.

You know, if the company goes under, caused by the government-imposed shutdown, wouldn’t that be a kind of taking of property? And doesn’t the violate the fifth amendment of the Bill of Rights?

Oh, right, that doesn’t count anymore, according to the Democratic governor of New Jersey. I forgot.

1 comment

JC Penny faces bankruptcy due to Wuhan panic

5:47 pm

The beatings will continue until morale improves: J.C. Penny is now facing bankruptcy because it will unable to meet a due date on a loan because of store closures forced on it by state governors, panicking over the Wuhan flu.

Like many traditional retailers, J.C. Penney’s business has been under pressure in recent years amid declining store traffic and a shift toward digital outlets. The company’s struggles were compounded in recent weeks after the coronavirus pandemic forced the closure of 850 J.C. Penney stores.

With turnaround plans temporarily shelved due to the pandemic, J.C. Penney executives are considering filing for bankruptcy, Reuters reported on Tuesday, citing sources familiar with the matter. While the retailer has enough cash on hand to weather the store closures, bankruptcy protections would allow J.C. Penney to restructure its upcoming debt payments. The company owes nearly $4 billion in long-term debt.

The article did not say how many employees are presently out of work because of the shut down of JC Penny stores.

I think I will start posting these stories, as I see them. There are a lot, and they illustrate that the shut downs are hurting far more people than the Wuhan flu.

6 comments

Economy crashes in March due to Wuhan lockdowns

9:46 am

Never let a crisis go to waste: Retail sales in March dropped a record 8.7%, almost entirely due to the nationwide lock downs and business closures imposed by the government on what government officials have arbitrarily determined are “nonessential” businesses.

The Census Bureau said though “many businesses are operating on a limited capacity or have ceased operations completely,” it had “determined estimates in this release meet publication standards.”

Last month’s decrease in retail sales reflected depressed receipts at car dealerships, with light vehicle sales crashing in March. With millions at home and crude oil prices collapsing amid worries of a deep global recession, gasoline prices have dropped, which weighed on sales at service stations in March.

In addition, the closure of non-essential retailers knocked sales at clothing, sporting goods and furniture stores.

There were also steep declines in receipts at restaurants and bars, which stopped in-person service and moved to take-out and delivery service. Though some businesses, including restaurants, have shifted to online sales, the volumes were insufficient to close the gap from social distancing measures. [emphasis mine]

I wonder if the families that run these “non-essential retailers” consider their livelihoods to be “non-essential.” Somehow I don’t think so.

3 comments

Bloomberg News killed story, fired reporter, critical of China

10:31 am

Modern journalism: According to NPR, Bloomberg News killed an investigative story about China’s Communist Party elites and their high lifestyles — eventually firing the reporter — out of fear its publication would get their business kicked out of China.

Former Bloomberg News correspondent Mike Forsythe was part of a Bloomberg team that published an “award-winning investigation” in 2012 into the accumulation wealth by China’s ruling class. He was part of an ongoing effort in 2013 “focusing on Chinese leaders’ ties to the country’s richest man, Wang Jianlin. Among those in the reporters’ sights: the family of new Chinese President Xi Jinping. The story gained steam throughout 2013.”

The “story never ran,” NPR reports. The reason? NPR obtained audio of Bloomberg News founding editor-in-chief Matthew Winckler from a private conference call:

“It is for sure going to, you know, invite the Communist Party to, you know, completely shut us down and kick us out of the country … So, I just don’t see that as a story that is justified … There’s a way to use the information you have in such a way that enables us to report, but not kill ourselves in the process and wipe out everything we’ve tried to build there,” [emphasis in original]

This is the new organization owned and run by a former presidential candidate for the Democratic Party, Mike Bloomberg. And Bloomberg is still spending millions to support Democratic candidates across the country.

I however wonder what country he is working for. It certainly does not appear to be the U.S.

2 comments

Large ozone hole forms over northern hemisphere for first time

9:11 am

The uncertainty of science: For the first time since the 1980s, when scientists were first able to track the ozone layer and discovered the appearance of a winter ozone zone hole above Antarctica, scientists have detected the formation of a large winter ozone hole over the northern hemisphere.

The Arctic, which has more variable temperatures, doesn’t usually see the same ozone-depleting conditions, the researchers said. But this year, powerful winds trapped cold air in a “polar vortex” above the Arctic. That led to colder temperatures and more high-altitude clouds than normal. Hence, North Pole ozone-depletion began.

Fortunately, with the sun slowly getting higher over the Arctic, atmospheric temperatures are already beginning to increase, which means the conditions causing the ozone hole should soon change, the researchers said. However, if the hole continues to expand south, Arctic residents — like those living in southern Greenland — may need to apply sunscreen to prevent UV damage.

The article, as is usual for this topic, is filled with some ignorant assumptions about the south pole ozone hole that mirror similar ignorant assumptions related to global warming.

First, it assumes that one of the prime causes of the south pole ozone hole was the use of certain chemicals in spray cans, banned in 1987. This theory however was never proven, and had some very serious holes of its own. For example, the atmospheres of the northern and southern atmospheres are largely independent of each other. Almost all spray can use was in the northern hemisphere. Yet there no ozone hole occurred. No one has ever explained how northern hemisphere pollution only caused an ozone hole in the southern hemisphere.

Second, we have no data on the long term history of that south pole ozone hole prior to the 1980s. To assume human activity had caused it to suddenly appear in the 1980s was so large an assumption as to be ridiculous. More likely it was a normal winter event, on-going for eons, caused because the lack or reduction of sunlight hitting that layer prevented the ionization of oxygen molecules that turns them into ozone. Thus, no sunlight, no ozone, and you get a hole.

Third, though that south pole ozone hole has shown a 1% to 3% shrinkage, per decade, since the 1987 ban, that does not fit with what had been predicted in the 1980s when environmentalists pushed for the ban. Then, the hole was supposedly caused entirely by the spray cans, and once banned the hole would quickly dissipate. This very slow shrinkage seems instead nothing more than a long term variation of a normal yearly event.

Fourth, if banning the spray can chemicals would eliminate the ozone hole, why do we suddenly see a new hole in the northern hemisphere, decades after the chemicals were banned?

All in all, the data suggests that the ban was largely irrelevant to the comings and goings of the ozone layer. It might have been a good thing, but no one really knows.

But don’t worry. I guarantee some climate modeler will come along soon and tell us that this new hole was obviously caused by some new evil human activity, and demand that we ban it. It seems that is what our modern “science” modelers do.

9 comments

IHME lowers its death prediction for Wuhan virus again

2:25 pm

In what appears to be becoming an almost twice-weekly event, the scientists who created the Institute for Health Metrics and Evaluation (IHME) model that the White House has been depending on to deal with the Wuhan flu epidemic have once again lowered their projected total deaths from COVID-19, from about 82,000 to 61,000.

Wednesday’s dramatic reverse in the model’s projection of U.S. deaths was made without a press release from IHME explaining the reasons for the reduction. It marks the second reduction in the model’s U.S. deaths projections since April 1, when it forecast 93,765 U.S. fatalities.

On April 5, the death projections were lowered to 81,766.

“Our estimates assume statewide social distancing measures are continuing in states where they have already been enacted, and for those states without such measures in place, it is assumed they will be will be in place within seven days,” IHME director Christopher Murray said on April 5. [emphasis mine]

Murray’s highlighted statement above gives the impression that these new lower numbers are because of the imposed “social distancing measures.” This is a lie. All their predictions, even their highest, always included such measures. Thus, their earlier predictions were simply wrong, and very badly wrong.

In only a week they have dropped their prediction by one third.

I must add that this is the same model that has vastly over-estimated the number of hospitalizations that would occur, to the point of absurdity. Instead of having so many coronavirus patients that hospitals were overwhelmed, hospitals have had numerous empty beds, even in New York.

If the deaths from the Wuhan flu end up around 61,000, that number will match exactly the number of total deaths during the 2017-2018 flu season. Remember how we shut down the entire economy then too? I don’t.

I will also make a prediction. The final numbers will still be far lower than the 61,000 they are now predicting, even though there is clear evidence that many states are exaggerating the number of Wuhan flu deaths, probably in order to justify their panic that has shutdown the country and is bankrupting millions. In the end, even with these overstated numbers, the totals (including the flu) will I bet end up not much more than a somewhat bad flu season, but not one far different than 2017-2018, the worst in many years.

If the voters don’t fire a lot of politicians come November for this disgusting travesty, then we are surely doomed to bankruptcy and tyranny in future years.

21 comments

Lost freedoms and media lies

2:13 pm

The panic over the Wuhan virus is clearly doing irreparable harm to our freedoms. And worse, the loss of those freedoms is being celebrated and supported by the press, the very people who should be acting to protect them, for their own sake if not ours.

Consider for example this article, which documents how four of the ten rights in the Bill of Rights have been tossed out the window during the government imposed lockdowns over the Wuhan flu. It also notes that a more basic right, the right to life, liberty, and the pursuit of happiness, has been cancelled as well.

While this right is not listed in the Bill of Rights and instead appears in the Declaration of Independence, it covers all of our rights in a general sense and should be considered under attack. I have heard from friends who have been stopped at the border of their state and turned back by police; people with out-of-state plates turned away from grocery stores over the border that have supplies they need and can’t get in their own state; and people whose livelihoods are being destroyed by government edicts with no end date in sight. [emphasis mine]

As the author also notes, “anyone who has studied human history knows the ‘temporary’ loss of human rights is rarely temporary.”

The worst part of this article however is the incompleteness of the list of civil rights abuses. Consider these for example:
» Read more

26 comments

Shutdowns forcing hospitals to cut staff during Wuhan panic

1:31 pm

This makes perfect government sense: The shutdowns that our governments have imposed on people and businesses nationwide due to the Wuhan panic has forced hospitals to cut staff and shorten hours.

The article describes the growing collapse of medical services caused by the state-imposed lockdowns in Ohio, Massachusetts, Kentucky, Connecticut, South Carolina, Tennessee, New Jersey, Oregon, Virginia, and Arizona. That’s only ten states, but it is very likely the remaining states are experiencing the same problems, as described in the article:

The Connecticut Children’s Medical Center is furloughing 400 across its health system as a result of surgeries being delayed, which has caused patient volumes to plummet, resulting in millions of dollars of lost revenue, according to the Hartford Courant.

The number of elective cases at Prisma Health in South Carolina has fallen by over 75% in two weeks. CEO Mark O’Halla issued a letter to employees informing them of furloughs, adding that they will be able to file for unemployment and apply for open positions at the hospital.

Two-hundred healthcare workers in Tennessee are being furloughed as a result of “dramatically reduced” hospital visits, which means a loss of revenue, according to the Tennessean.

We need to bankrupt ourselves in order to save us! Thank you government and centralized rule!

5 comments

First estimate of the cost of the Wuhan panic shutdown

12:48 pm

The estimated lose to the U.S. economy due to the shutdown over the Wuhan panic is now estimated at $32 trillion, more than the entire annual gross national product for the country.

That number is of course preliminary, but for a first guess I think it is probably low, especially because it does not include the following:

  • Lost opportunity cost for businesses
  • Lost opportunity cost for individuals who had to delay dreams, plans, etc.
  • The loss of freedom (priceless)
  • The cost of not educating millions of students and falling further behind in academic standards

It also assumes we get back to work relatively soon. Should the shut down extend through May, I think the Great Depression will appear like a lark in comparison.

Note that the overall social cost of this panic and shutdown cannot be measured, as it is also establishing new social distancing customs that are probably overwrought and counter-productive for a healthy society.

11 comments

Total mortality is DOWN in Europe during Wuhan panic

1:29 pm

According to the latest weekly report of overall mortality in Europe, the number of deaths during the March 18 to 24 time period had dropped, even though that was the exact period when the panic and alarm over the COVID-19 epidemic began to reach its height.

The article at the link also notes that this particular flu season has so far been relatively mild, which corresponds with the U.S. data I posted on March 26.

Both the article and his source speculate with some puzzlement as to why this is the case. Obviously, the panic shutting down our entire economy and society is probably helping. At the same time, this flu season was already clearly going to be a mild one, long before the Wuhan panic took over.

Regardless, what these numbers once again suggest is that the response to COVID-19 has been way out of line and over the top. While our bankrupt press keeps focusing on specific deaths and coronavirus mortality rates, they are failing to note that the overall death rate is not changing, and is possibly even dropping.

A good example are the wild rumors, widely reported, of a gigantic order of burial urns for China, implying that these urns were needed because of millions of extra COVID-19 deaths, not reported by the Chinese authorities. What nobody asks is how many urns are normally ordered each year? I suspect the numbers would be quite similar.

We are not all going to die from the Wuhan virus, though the extreme measures our government is forcing us to take might very well kill us, in other ways. At a minimum, those extreme measures are destroying what was once a free society.

35 comments
1 … 167 168 169 170 171 … 239