WORST DEPRESSION SINCE 1706

(The Spectator, April 11, 2020)

Bank of England warns of sharpest annual contraction since 1706    For the year as a whole, the economy is expected to contract by 14%. 

This would be the biggest annual decline on record, according to Office for National Statistics (ONS) data dating back to 1949.   It would also be the sharpest annual contraction since 1706, according to reconstructed Bank of England data stretching back to the 18th Century.    By Szu Ping Chan, Business reporter, BBC News, 7 May, 2020    (https://www.bbc.com/news/business-52566030 (5/7)

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 Factories in US Close for Good as Coronavirus Cuts Demand    Some manufacturers that furloughed employees during lockdowns say plants won’t reopen

Factory furloughs across the U.S. are becoming permanent closings, a sign of the heavy damage the coronavirus pandemic and shutdowns are exerting on the industrial economy.   (Wall Street Journal, 5/11/2020)

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U.S. levels of hunger and unemployment are soaring
Nearly one in five young children in the U.S. are going hungry. 

That’s according to a new survey of households by the Brookings Institution, which found that 17.4 percent of children were not eating enough.   The level is three times as high as in 2008, during the Great Recession.

Disruptions in school meal programs during the pandemic may be part of the problem, the lead researcher said, with some families unable to reach distribution sites and older siblings at home competing for limited food.   As hunger rises, Democrats in Washington are seeking to raise food stamp benefits for the duration of the economic crisis, but Republicans have balked at a long-term expansion of the program.

April’s labor report, due Friday, is expected to show that U.S. payrolls fell by 22 million, according to economists surveyed by MarketWatch.   The worst monthly loss on record was nearly two million jobs in September 1945. (NY Times, 7 May 2020)

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Covid-19 is our punishment, but we need to work with doctors to fight the pandemic, says Zulu king
9 May 2020, by Zimasa Matiwane,  TimesLive

Zulu King Zwelithini also believes Africa had strayed from God and earned his wrath and if the people of Africa “went back to God, I am certain he will protect us.”   “We must admit that we angered Jehovah, that is why he is punishing us, he is humbling us.   This tells me God wants us as a nation, he wants his time with us as a nation. It’s a time where God wanted us to prepare, in connecting with him, not just to meet at churches, he wanted a one-on-one with us,” the monarch explained. King Goodwill Zwelithini addressed his subjects via Zoom on Saturday about Covid-19.

(https://www.timeslive.co.za/news/south-africa/2020-05-09-covid-19-is-our-punishment-but-we-need-to-work-with-doctors-to-fight-the-pandemic-says-zulu-king/)

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PROTEST AGAINST BORDER CLOSURE

Over the weekend, hundreds of French and Luxembourgian citizens have protested the ongoing closure of German borders.   On March 16, the German government unilaterally reinstated strict border controls.   Since then, German police have prevented more than 100,000 citizens of several neighboring countries from entering Germany.   Berlin’s measures have been causing considerable hardships also for French and Luxembourgian citizens, working in German factories and hospitals.   They are also being regularly exposed to harassment by German border police and to a resurgence of old anti-French chauvinism in Germany.   French commuters are increasingly being treated as “second-class EU citizens,” notes a French senator.

The former EU Commission President Jean-Claude Juncker had warned that “Germany will cause permanent damage with the way it is treating some of its neighbors.” 

Germany’s crisis policy is also provoking protests in Southern and Eastern Europe.   (German Foreign Policy, 5/11)

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MEMORIES OF WORLD WAR II

Union Jacks lowered, replaced with swastikas.   This was the British government’s worst nightmare in the early years of the second world war.   And in June 1940 it became reality in the Channel Islands, the only British territory to come under Nazi control.   Today they celebrate their 75th annual “Liberation Day” since the German surrender.   The islands just off France’s northern coast endured almost five years of Nazi rule; food shortages inspired Guernsey’s famous “potato-peel pie.”   With a media blackout in place, local journalists set up an underground news service.  Jersey’s residents daubed swastikas on the houses of anyone considered too cosy with the invaders.   But the islands were not exactly a hotbed of anti-Nazi resistance.   Just two local politicians spoke out against anti-Semitic orders.   Jews were registered and their businesses liquidated.   Most were deported.   Three died in Auschwitz.   Indeed the islands’ experience weakens post-war claims that Britain would have resisted Nazi occupation more strongly than other European states. (The Economist, 5/9/2020)

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MODERN FRANCE

A few months ago, a police officer, Noam Anouar, who infiltrated Islamist circles . . . stated that no-go zones in France are now foreign enclaves on French territory.   “The gangs operating there,” he wrote, “have formed a parallel economy based on drug trafficking. They consider themselves at war with France and with Western civilization.   They act in cooperation with Islamist organizations, and define acts of predation and rampage as raids against infidels.”   He noted that reclaiming these areas today would be complicated, costly, and involve calling in the army.

For years, successive French governments have chosen a policy of “willful blindness”:   they simply behave as if they do not see what is going on.   They do not even try to find solutions.   (Guy Milliere, Gatestone, 5/10/2020)

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72 Knesset Members back Netanyahu to form next government
Once approved by Rivlin, Likud leader has two weeks to form a government; move comes hours after Knesset passes amendment to Basic Law that allows for Netanyahu and Gantz to share premiership as part of recently signed coalition deal
(Associated Press, 7 May 2020, Ynet)

Prime Minister Benjamin Netanyahu formally received the support of a majority of lawmakers to lead a new government on Thursday, paving the way for a controversial power-sharing deal with rival-turned-partner Benny Gantz.   Likud and Blue & White said that “representatives of the two parties submitted to President Reuven Rivlin the 72 signatures of Knesset members recommending Benjamin Netanyahu for the task of assembling an emergency national unity government.”

Once approved by Rivlin, Netanyahu will have two weeks to form a government.   Of the 72 MKs who supported Netanyahu, 36 were members of Likud, 16 came from Blue & White, two were from Derech Eretz party, two from Labor, nine from Shas and seven from United Torah Judaism.   Lawmakers from Naftali Bennett’s Yamina party did not add their support to back Netanyahu and was unclear whether they would join the new government, which is set to be sworn in on Wednesday of next week.
(https://www.ynetnews.com/article/ry57ljWq8)

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CBS CHEATS

During a pandemic, the media can play an invaluable role in providing accurate reporting so that people may take action based on the best available information.

Scare tactics not only gravely undermine that sacred duty but give credence to the dangerously wrong belief that the coronavirus (COVID-19) presents no real threat.

For a second time, that lesson appears lost on CBS News.  Weeks ago, the network aired footage of a chaotic scene at an Italian hospital while alleging the video came from New York City.

Project Veritas has now learned that a CBS News crew filming in Grand Rapids, Michigan wasn’t satisfied with the orderly COVID-19 testing scene at Cherry Medical Center in Grand Rapids, Michigan. Getting their desired footage involved taking medical professionals away from their duties and getting them in cars to give the illusion that the line of patients was longer.   (Townhall)

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GREATEST DANGER TO CATHOLIC CHURCH

Life Site News reported on May 4:   “Dr. Robert Moynihan, the editor-in-chief of the Catholic journal Inside the Vatican, revealed on April 23 that he once had a conversation with then-Cardinal Joseph Ratzinger (who later became Pope Benedict XVI) about the ‘greatest danger to the Church,’ and he recounts that Ratzinger said:   ‘It is Freemasonry . . . Bishop Schneider states that Freemasons were crucial in the promotion of abortion, same-sex ‘marriage,’ and euthanasia in France . . .

“Then-Cardinal Ratzinger was already in the 1980s so concerned about the nature and work of Freemasonry that he worked out a statement for the Congregation for the Doctrine of the Faith, whose Prefect he then was, which repeated the Church’s long-standing ban on Freemasonry.   That is to say, he re-stated that Catholics may not be members of Freemasonry.   On November 26, 1983, Ratzinger signed a document that stated, ‘Therefore the Church’s negative judgment in regard to Masonic association remains unchanged since their principles have always been considered irreconcilable with the doctrine of the Church and therefore membership in them remains forbidden.   The faithful who enroll in Masonic associations are in a state of grave sin and may not receive Holy Communion.’”

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POST-CORONA CHURCHES

Stephen Bullivant, whose book Mass Exodus studied Catholic attrition in Britain and America, offers three reasons why he believes churches will shrink after the pandemic.

First, he says, churchgoers (both lay and clergy) tend to be elderly and therefore more likely to die of coronavirus.   Second, many churches rely on a steady influx of immigrants.   With the world in lockdown, that supply has, at least temporarily, dried up.   Third, churchgoing is a habit, and once that habit is broken, it is hard to take it up again.  (“Risen Again,” Luke Coppen, The Spectator (UK), 4/11/2020)

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TO THE POINT

  • Deadly attacks on funeral and hospital in Afghanistan — A suicide bomber has attacked the funeral of a police commander in Afghanistan, killing at least 24 people and injuring 68. In a separate attack, gunmen disguised as police stormed a hospital in the Afghan capital Kabul, killing 16 people, including two newborn babies, at a maternity clinic run by the humanitarian organization Doctors Without Borders.  (The Week, 5/18/2020)
  • The Trump administration ordered that an American federal pension fund, the Thrift Savings Plan, with around $600bn under management, stop investing in all Chinese companies.  The White House says they pose national-security threats and might become subject to sanctions.   There is a growing clamor among Republicans to devise punitive measures against China, which they accuse of covering-up facts about covid-19.   (The Economist, 5/13/2020)
  • The number of confirmed cases of covid-19 surged past 4m globally, with more than 282,000 deaths.   America, with a third of the world’s fatalities, is by far the worst-hit country.   Yet even governments that appeared to have tamed the disease warned of its re-emergence.   South Korea reported 35 new cases on Monday—its biggest increase in a month.   A new cluster of infections in Shulan, in north-eastern China, forced the city into complete lockdown.   And Germany’s infection rate accelerated. (The Economist, 5/11/2020)
  • Boris Johnson, Britain’s prime minister, announced plans to relax England’s lockdown, encouraging people who cannot work from home to return to their jobs and permitting more outdoor activities from Wednesday.   Shops and some schools may reopen in June.   Mr. Johnson’s new “stay alert” slogan was criticized by some for being confusing.   Harsher restrictions will remain in Scotland and Wales. (The Economist, 5/11/2020)
  • “The American media is using the virus crisis in order to attack Trump, but the Greek people will not tolerate such craven opportunism and dishonesty.   Criticism of the government is almost non-existent, as the suddenly wise populace is united against the unseen menace.”  (Taki, The Spectator, 4/11/2020).

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AFTERTHOUGHT

As if the coronavirus isn’t bad enough, debt could be the determining factor as regards the future of the US in particular and the West in general.

I got to thinking about this during the week when Nancy Pelosi proposed giving every household in the US $6,000.   That’s a total of $3 trillion.   To be added to a national debt of $23.3.   What’s an extra $3 trillion between friends?

Isn’t anybody frightened of debt anymore?  I know I avoid it like the plague (the coronavirus!).

Romans 13:8 tells us to “Owe no one anything.”

If you are in debt, you are not in the best position to weather whatever storms may come your way as a result of the virus (unemployment, reduced hours and wages, rising food prices, to name just three).

Why did you get into debt in the first place?

Let’s be honest here – greed is normally the answer.   We want.   We want things we can’t afford, but we believe the ads that tell us “you owe it to yourself.”

Or we want a bigger home (why?), or a second car (why?) or new furniture (again, why?).

Matthew 6:31-33:   So don’t worry about these things, saying, “What will we eat?  What will we drink?  What will we wear?”  These things dominate the thoughts of unbelievers, but your heavenly Father already knows all your needs.  Seek the Kingdom of God above all else, and live righteously, and he will give you everything you need.

Stay out of debt.   If you’re in debt, get out of it ASAP.   You will be able to cope with the new reality, the “new normal,” a lot better if you’re not in debt.

MR     

2 thoughts on “WORST DEPRESSION SINCE 1706”

  1. A post-COVID-19 crisis era, will see an emergence of global political leaders who are bathed in humility and the willingness to share the newly created wealth with fairness. Sadly, the arrogant and proud ones would be swept away under the canopy of irrelevance.

  2. Debt is certainly a serious problem in this country. I dropped by our local Wells Fargo branch this week and while talking to the manager she mentioned that they had stopped ALL business loans and home equity loans….totally, at all branches. I keep up with economic news so I know how dire things are getting, quickly, but I still asked her what the bank’s reasoning was. She said “Andy, they are more scared NOW than they were after the 2008 Crisis.” They are predicting a massive wave of loan defaults of all types.

    Total personal debt has skyrocketed from $17.9 trillion just four years ago to $20.5. That’s a staggering increase.

    Andy

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