Bankruptcy filings across the United States have surged to their highest level since the last time we had a Communist/Globalist president—Barack Hussein Obama in 2009.
This from survivethenews.com.
For the past year, the Obiden Regime and the Federal Reserve have been struggling to combat runaway inflation and the resulting wage-price spiral without causing a recession.
Specifically, Zero Hedge noted Wednesday:
[B]ased on the recent increase in bankruptcy filings, it seems [the Federal Reserve] may soon have to admit they have failed.
A month ago, the outlet highlighted a concerning trend in the pace of large bankruptcy filings (i.e., those with over $50 million in liabilities) in the U.S.
Zero Hedge reported:
[I]n the first month of the year, the number of U.S. bankruptcies exceeded 20, which was the highest for any January since 2010 when there were 25 filings, as the economy was still recovering from the Great Financial Crisis (GFC).
According to Bloomberg data:
[T]he increase in large bankruptcy filings in the U.S. is not a one-time event, as the pace of such filings continues to surge.
As of the end of February, a total of 39 large companies have filed for bankruptcy in the U.S. since the beginning of the year, exceeding the pace seen in January.
This marks the fastest rate of company bankruptcies since the aftermath of the global financial crisis in 2009, when there were 63 large filings at this point in the year.
The outlet continued:
Last week, there were seven large bankruptcy filings in the U.S., which included generic drugmaker Akorn’s liquidation and Covid-19 testmaker Lucira Health’s Chapter 11 filing. These filings were tied to at least $50 million in liabilities.
Zero Hedge added:
Some of the most significant bankruptcy filings this year include Party City Holdco Inc, Serta Simmons Bedding LLC, and cryptocurrency lender Genesis Global Holdco. Additionally, the pile of dollar-denominated corporate bonds and loans trading at distressed levels in the Americas has risen to $237.2 billion in the week ending Friday, which is a 1.63% increase from the previous week’s $233.4 billion, according to BBG data.
The Obiden Regime inherited a period of low inflation and an economy that was beginning to recover from the coronavirus recession under President Trump’s pro-growth economic policies.
Right off the bat, however, The Regime proposed, and the then-Communist/Globalist Congress passed, a $1.9 trillion relief package to “stimulate” the economy, which included rounds of stimulus checks, an expansion of the Child Tax Credit, and additional unemployment benefits.
According to a number of experts:
“The economic stimulus from [The Regime]
is what led to an increase in inflation.”
That was because the increased money available in the economy drove up prices as individuals and businesses had more money to spend, and there were fewer goods to buy as a result of a supply chain crisis that still hasn’t been fixed.
“Inflation was exacerbated further
by the additional unemployment benefits.”
The Regime tried taking some steps to mitigate inflationary pressures. The Federal Reserve had kept interest rates low but in recent months has started raising them in an effort to slow inflation, but so far, it hasn’t had much effect.
“Still, inflation is likely to remain a risk for [The Regime].”
The expansionary fiscal policies and the increased money supply could lead to higher prices and slower wage growth.
This could be compounded by the higher demand for goods and services, as well as the additional money given out as part of the stimulus package.
“By comparison, during the Trump presidency,
the U.S. economy experienced a period of expansion.”
– The unemployment rate reached a historic low of 3.5 percent in December 2019.
– Wages increased each year for several years.
– The tax cuts and Jobs Act of 2017 were credited with boosting economic growth.
– The stock market reached record highs.
– And importantly, bankruptcies were way down.
Final thoughts: Obvious to even an economics ignoramus is the fact that the Obiden Regime is on a demolition course with a crash-test dummy driver, and the Trump administration was a businessman’s dream—a starship bound for the stratosphere.
