Author: Steve Tee
The magnitude of layoffs is shifting to gear 5 and now we are seeing big major companies cutting headcounts and closing offices and stores. Now, if small medium enterprises close their doors, it may not be a big deal. However, if MNCs are doing so, we have to pay serious attention at what’s happening to the job market. We start off with a very notable and household brand name related to supermarkets, Walmart. As reported and tracked by Forbes, Walmart has laid off employees at 5 plants, Florida, New Jersey, Pennsylvania and Texas. This happens, after, they announce 200 plus job cuts. Amazon plants are anything but small, potentially 1,000 minimum employees at each plant. Do that math, and you know retails sales is in serious trouble. Following up to that, McDonald’s are laying off hundreds of employees and shutting down their corporate offices. World’s most famous fast-food chain is reducing cost and manpower, this cannot be good.
US banking crisis still not stopping and as mentioned before, Q2 will be bank run galore. Jamie Dimon of JPMorgan says US banking turmoil not over yet, see longs term repercussions as reported by Reuters. I totally agree with that statement and its more credible compared to what Janet Yellen is saying at the very least. Week ending March 15th, US$98.4B was pulled out of US banks and week ending March 22nd, another US$122B yanked; a new data from The Fed as stated by The Economic Collapse. Many SMEs are hurting now and bankruptcy filling is at higher rate than peak of pandemic, Business Insider reports. Adding that banks are tightening lending requirements, it’s a double whammy.
US Dollar weakens day by day and many argues that Dollar bill could be worthless in the future, because it’s backed by nothing. Nations are waking up and retaliating to US Dollar hegemony and taking strides to stray away from Dollar debt system. Kenya for example, has agreed with Saudi Arabia to buy oil in their local currency, Kenyan Shillings. ASEAN finance ministers and central banks came together and discuss ways to phase out dependency on US Dollar, Euro and Yen, according to ASEAN Briefing. India, another East superpower, is offering nations to trade with them in Rupees as an alternative counter-measure to Dollar shortage. One fine day, it will reach a scenario whereby BRICS are ready to unleash the beast and with one snap of a finger, just imagine they dump their US Bonds and FX Reserve simultaneously. What level of inflation will hit American shores when all the fake printed money comes back to the barn?