A few weeks after the World Economic Forum launched their ‘Great Reset‘ initiative, it was followed up with the release of a new book titled, ‘Covid-19: The Great Reset‘, authored by the executive chairman of the WEF, Klaus Schwab, and Senior Director of the Global Risk Network at the institution, Thierry Malleret.

Having read the book I wanted to share with you some initial thoughts on the potential significance of the publication.

There are 5 planks to the Great Reset – economic, societal, geopolitical, environmental and technological – all of which the book covers in detail. But I want to focus largely on the conclusion, as it is here where the author’s motivations and rationale for championing a Great Reset, in the wake of Covid-19, become clearer.

Schwab and Malleret characterise the future direction of the world as ‘The Post Pandemic Era‘, a phrase that is repeated ad nauseam throughout. Rather than define it to a particular outcome, the authors opt instead to ask whether this new era will be marked by more or less cooperation between nations. Will countries turn inward resulting in the growth of nationalism and protectionism, or will they sacrifice their own interests for greater interdependence?

No firm prediction is made either way, but we do manage to gain a degree of insight into the authors’ way of thinking when they discuss what they call ‘the direction of the trend.’ They write that concerns over the environment (primarily through the prism of climate change) and the advancement of technology (integral to the Fourth Industrial Revolution) were pervasive long before Covid-19 entered the picture. With the economic and health implications of the lockdowns now ingrained within society, Schwab and Malleret contend that long established worries amongst citizens ‘have been laid bare for all to see‘ and ‘amplified‘ because of the pandemic. In other words, if minds were not concentrated on the problems and threats the world faced before Covid-19, then they certainly are now.

And whilst the direction of these trends on the environment and technology may not have changed, with the onset of Covid-19 it ‘got a lot faster.’ It is why Schwab and Malleret believe that these two issues in particular ‘will force their way onto the political agenda‘ due to increasing public pressure. A movement such as Extinction Rebellion is one example. Another is the rapid growth of the Fintech community which is leading people to question what constitutes money ‘in the digital age.’

As for where they see things going in the future, the suggestion is that current trends are pointing towards a world that will be ‘less open and less cooperative than before the pandemic.’

Effectively, the WEF have presented the world with two potential outcomes. The first is that the Great Reset can be achieved relatively peacefully with nations acquiescing to the objectives being pushed by global planners. The second outcome, they warn, would be far more disruptive and damaging. It would come about through countries failing to address the ‘deep rooted ills of economies and societies‘, which could see a reset being ‘imposed by violent shocks like conflicts and even revolutions.’

And, apparently, we do not have much time to decide our fate. What we have now, according to the authors, is ‘a rare and narrow window of opportunity to reflect, re-imagine and reset our world‘. If a ‘proper reset‘ is to be realised, it can only occur through an increased level of collaboration and cooperation between nations. As Schwab and Malleret see it, the alternative is a world entrenched in perpetual crisis which would eventually lead to the disintegration of the post World War Two ‘rules based global order‘ and a global power vacuum.

There is, therefore, a very real risk of the world becoming ‘more divided, nationalistic and prone to conflicts than it is today.’

One thing the authors do write on from a position of clarity is that never can the world return to normal. Or more to the point, be allowed to return to normal. Their view is that before Covid-19 took hold, a ‘broken sense of normalcy prevailed‘. The situation now is that the virus ‘marks a fundamental inflection point in our global trajectory.’ In a very short space of time it ‘magnified the fault lines that beset our economies and societies‘.

If it was not already obvious, then the authors confirm over the last few pages of the book that the United Nations’ Agenda 2030 Sustainable Development programme is intertwined with the Great Reset. This is evident when studying the WEF’s Strategic Intelligence unit. Sustainable Development and the Great Reset go hand in hand.

For Agenda 2030 to be implemented successfully, Schwab and Malleret offer an alternative to the possibility of countries failing to come together. As you might expect, it revolves around collaboration and cooperation. In their eyes no progress can otherwise be made. Covid-19 offers the opportunity to ‘embed greater societal equality and sustainability into the recovery‘. And, crucially, this would ‘accelerate rather than delay progress towards 2030 Sustainable Development Goals‘.

But it does not end simply with the full implementation of Agenda 2030. Schwab and Malleret want to go further. Their aim is that the open exposure of weaknesses within existing global infrastructure ‘may compel us to act faster by replacing failed institutions, processes and rules with new ones that are better suited to current and future needs.’ To convey the importance of this statement, the authors state that this alone is ‘the essence of the Great Reset’. What they appear to be seeking is global transformation where systems and the age of the algorithm take precedent over political institutions. We are already beginning to see moves by major global institutions like the Trilateral Commission, the World Trade Organisation and the European Union to ‘reform‘ and ‘rejuvenate‘ both their work and membership. Covid-19 has undoubtedly straightened the hand of global planners and their quest for reformation.

As ‘Covid-19: The Great Reset’ was published, it was accompanied by an article written by Schwab and Malleret. Called, ‘COVID-19’s legacy: This is how to get the Great Reset right‘, they stated plainly that not only will a lot of things change forever, ‘the worst of the pandemic is yet to come’:

We will be dealing with its fallout for years, and many things will change forever. It has wrought (and will continue to do so) economic disruption of monumental proportions.

Indeed, no industry or business will be able to avoid the impact of the changes ahead. Either they adapt to fit in with the Great Reset agenda (assuming they have the resources to do so), or they will not survive. According to Schwab and Malleret, ‘millions of companies risk disappearing‘, whilst only ‘a few‘ e.g. corporate monoliths, will be strong enough to withstand the disruption. It is your smaller companies and independent run businesses that are faced with ruin, opening the door to a new era of mergers and acquisitions that will further erode consumer choice and competition.

Schwab and Malleret tell us that the worst of the pandemic is yet to come, and from an economic standpoint I would not doubt them. But let’s look at the health aspect for a moment. Global media coverage of Covid-19 has characterised it as a deadly virus that kills with impunity, and without the antidote of a vaccine could devour communities whole.

Perhaps surprisingly, the authors offer up a little fact based logic. They admit that Covid-19 is ‘one of the least deadly pandemics in the last 2000 years‘, and barring something unforeseen ‘the consequences of the virus will be mild compared to previous pandemics.’ At the time the book was published, 0.006% of the global population were reported to have died from Covid-19. But even this low figure is not altogether accurate.

In the UK for instance the way the death rate has been calculated has meant that people who have been diagnosed with the virus and then succumbed to an accident within 28 days of being tested will have their cause of death marked as Covid-19.

To quote Professor Yoon Loke, from the University of East Anglia, and Professor Carl Heneghan, from Oxford University:

Anyone who has tested COVID positive but subsequently died at a later date of any cause will be included on the PHE COVID death figures.

Schwab and Malleret could not be clearer when they write that Covid-19 ‘does not constitute an existential threat or a shock that will leave its imprint on the world’s population for decades‘. As it stands the Spanish Flu and HIV/AIDS have a larger mortality rate.

It was not an uncontrollable spread of Covid-19 that caused governments around the world to shut down their national economies, but the data modelling of unaccountable technocrats like Neil Ferguson of Imperial College London that predicted hundreds of thousands of people were at immediate risk of dying without the imposition of social restrictions, which we now know to be a combination of social distancing and lockdown measures.

When Schwab and Malleret talk about Covid-19 leaving it’s imprint on the world, the truth of the matter is that it is the measures imposed in the name of Covid-19 that have caused widespread economic destruction, not the virus itself. That distinction is one that mainstream outlets in particular refuse to engage with.

In summary, if we are to take the authors at their word, then they see a rise in nationalism and protectionism off the back of Covid-19 as a detriment to the quest for a Great Reset. The much coveted Sustainable Development Goals could even be at risk should nations turn inward. IMF Managing Director has said the world has a choice between the Great Reset or the Great Reversal (the Great Reversal being ‘more poverty, more fragmentation, and less trade‘) I would argue that there is another way of looking at it.

In the book Schwab and Malleret describe how in an interdependent world – which is precisely the kind of world that global planners have been championing since at least the end of World War Two –  ‘risks conflate with each other, amplifying their reciprocal effects and magnifying their consequences‘. When nations are interdependent, ‘the systemic connectivity between risks, issues, challenges determines the future.’ It is the old cliche of dominoes falling. Once one falters it sets off a chain reaction, which was evidenced back in 2008 when Lehman Brothers collapsed.

The scale of change that globalists are calling for through the vehicle of a Great Reset, which by definition is global in nature, will in my view require the implosion of the current world order to lay the foundations for a new world order. The old must make way for the new. And the one method for how that could be achieved is through increased kickback against interdependence. Sustained crises offer many opportunities for global planners. The potential for a contested U.S. election, an upcoming no deal Brexit and warnings of ‘vaccine nationalism‘ are three eventualities that if brought to bear could be exploited and used to advance the cause for a Great Reset. I would say that the further the world appears from collaboration and cooperation, the more people are going to call for those very same things if they become increasingly desperate.

The authors say that there is only a narrow window of opportunity for the Great Reset. Let’s keep in mind though that so far it is only global institutions like the WEF that are promoting the initiative, not national administrations. When it starts to permeate politics is when you know the agenda is advancing. But what exactly will the economic and societal conditions be when the Great Reset becomes part of the global conversation? Has what we have seen up to now been enough to compel people to call for change on a global scale? Has there yet been enough degradation and material change to living standards for citizens to implore global institutions to take action? I would argue not.

Already ‘solutions‘ like Universal Basic Income have been touted. But as yet there is not a widespread clamouring for change. But that time is coming. Whether it be in the name of Agenda 2030 (aka Sustainable Development), The Green New Deal or The Great Reset, it would amount to largely the same outcome – the subjugation once and for all of national sovereignty where the nation state is subordinate to global governance.

We are undoubtedly living (in) one of the most serious economic and social and crises in modern history. In some regards, we are living history and we are unable to comprehend the logic of the corona virus pandemic.

What is at stake is the pretext and the justification for closing down national economies worldwide based on a public health concern.

We have to understand the causalities. Closing down an economy, nationally and globally does NOT resolve the pandemic. In fact, it creates a situation of INSTITUTIONAL INSTABILITY.

It also results in massive unemployment, confinement of people in their homes, without employment, without food . . . That is what we’re living.

There is NO justification for closing down national economies based on a public health concern, which can be resolved, and SHOULD be resolved!

There is a very complex decision-making process, which has been PLANNED WELL IN ADVANCE. From ‘central authority’, governments are instructed to close down their economies and then, in turn, the governments instruct people to implement social engineering, not to meet, not to have family reunions . . .

And, essentially, what we do not understand, and which is fundamental, is that economic activity is the basis for the reproduction of real life. By that I mean, institutions, purchasing power of families, a whole series of activities, which have developed in the course of history – economic activity constitutes the foundation of all societies.

And what these measures have resulted in is a massive crisis, in which particularly small and medium sized enterprises are being precipitated into bankruptcy, millions of people have become unemployed, and in many countries this has resulted in mass poverty, famine, among certain groups of the population.

We have ample evidence to this effect and we have to understand that this process of closing down national economies is deliberate. IT’S A PLAN.

And, it’s co-ordinated with the financial crisis which took place in the month of February (2020), which led to massive collapse in banking institutions, stock markets and so on. Economists, conventional economists, have a tendency to say that there’s no relationship between the corona pandemic crisis and the financial crash in February. That is utterly mistaken. The fear campaign, the disinformation campaign, have facilitated the MANIPULATION OF STOCK MARKETS. And we’re (I’m) talking about the use of very sophisticated derivatives, speculative instruments and so on.

What is now happening is that governments have been indebted up to their ears. They’re paying out compensation to companies which have been affected; in some cases it’s generous bailouts, in other cases it’s part of a social safety net coming to the rescue of workers and small-scale enterprises.

And the next stage is the MOST SERIOUS DEBT CRISIS IN WORLD HISTORY. In other words, the levels of employment have crashed and companies are bankrupt. We will have a fiscal crisis of the state. In other words, a dramatic decline in (income) tax revenues due to the collapse in employment, and the  companies (which have not gone bankrupt) are going to deduct corporate losses, of course (on their tax statements). How will the governments around the world continue to govern, finance social programs and so on?

It will ultimately be through a gigantic global debt operation implemented both in the so-called ‘developed’ countries – e.g. Italy, France, United States, Canada – and in the developing countries where it will be more the international financial institutions, the World Bank, the IMF, the regional development banks.

Now, the problem of Western governments is that that debt is NOT REPAYABLE. The Italian government has issued bonds with the support of Goldman Sachs and so on; that was done a couple of months back. And what has happened? Italy’s debt is categorized (by Standard and Poor). . . these Italian bonds, are classified ‘BB’, which essentially means junk bond status. In other words, that means that an entire state apparatus is now in the hands of the creditors. And these creditors are the financial institutions, the banks and so on.

And the next stage is ultimately the confiscation of the State! THE STATE WILL BE PRIVATIZED. All the programs will be under the helm of the creditors. We can say, “Goodbye” to the welfare state in Western Europe. Why? Because the creditors will immediately, following what they did in Greece a few years back . . . they will immediately impose austerity measures, and the privatization of social programs, the privatization of anything that can be privatized – cities, land, public buildings.

And, in other words, we are living a very important evolution because the State, as we know it, will no longer exist. It will be run by private banking interests, who will . . . and they’re already doing that . . . APPOINT their governments, or their politicians, their corrupt politicians, and essentially they will take over the whole political landscape.

That is happening in a number of countries. And in some countries they have even instructed the governments NOT to debate (in parliament) the enormous debts which have been accumulated in the last few months as a result of the pandemic, which now are the object of financing by these powerful financial institutions. In Canada there was an agreement between Prime Minister Trudeau on the one hand and the leader of the opposition – NO DEBATE in parliament on $150 billion of debt, which then has to be covered through public debt operations and loans from financial institutions.

And essentially the scenario that we are living. . . which is unfolding is that, on the one hand, the real economy in the course of the last few months starting in March, well, in fact, starting in February with the stock market crash is in a state of crisis, production activity has been affected, trade has been affected. Millions and millions of people are going to be unemployed, without earnings, and it’s not only poverty – it’s poverty and despair. It’s the marginalization of large sectors of the world population from the labour market. There are figures on that, published by the ILO (International Labour Organization) that in fact, at this stage, it is premature to even start estimating these impacts.

We can look at it country by country. We can see, for instance, that in developing countries the informal sector, let’s say in India or in certain countries in Latin America, (such as) Peru, a large sector of the labour force is involved in what is called the ‘informal sector’; self-employed, small-scale industries and so on. Well, this has been COMPLETELY WIPED OUT and the people affected are left very often, homeless. The only choice they have is to do it to go back to their home villages and in the process they are the victims of famine and a situation of TOTAL MARGINALIZATION.

That is the scenario. It’s beyond global poverty. It’s mass unemployment. It is something which has been ENGINEERED, it’s not something which is accidental. And it’s certainly not something which has been used to resolve a global health crisis.

The global health crisis pertaining to covid has been MULTIPLIED. People have been confined, they have fallen sick, they have lost their jobs, and at the same time the whole health apparatus has been in crisis, unable to function.

What we have to understand is that this process HAS TO BE CONFRONTED! There has to be an organized opposition. This is a neo-liberal project! It’s neo-liberalism to the extreme.

Now, bear in mind that today, what we have, (is that) in some regards, the stock market crash used speculative instruments, insider trading, but also the fear campaign to implement what is THE MOST SIGNIFICANT TRANSFER OF WEALTH IN WORLD HISTORY! In other words, everybody loses money in the stock market crash and the money goes into the hands of, you know, a limited number of billionaires. And there have been estimates as to the enrichment of this class in the course of the last three months. I won’t get into details. So that, this, in a sense, this crisis of February, the stock market crisis, sets the stage for the lockdown.

And on (the topic of) the lockdown, we can call it by another name. The lockdown is the CLOSURE OF THE GLOBAL ECONOMY! It is an act which instructs national governments to close down their economy, and they obey! That’s what we call, ‘global governance’. But it’s an imperial project. They obey and they close down everything.

And then they they try to convince their citizens that this is all for a good cause, we are closing down the economy so that we can save lives due to covid-19. That is a very strong statement and at the same time the statistics on covid-19 are the source of manipulation.

I won’t get into that particular dimension but I can say in all certitude that the impact of this crisis is so dramatic, the economic crisis, that it DOESN’T COMPARE to the impact of covid-19, which, according even to people like Anthony Fauci, is comparable to the seasonal influenza. They’ve written that in their peer-reviewed articles.

What they say online, on CNN is a different matter. But they do not consider covid-19 as an ultimate danger of all dangers. It’s not. There are many other health pandemics affecting the world. That does not mean that we shouldn’t take it seriously but we should understand, it’s common sense, it’s not by closing down the global economy that you’re going to resolve this pandemic.

So somebody’s lying, somewhere. And in fact, the lies are ‘becoming the truth’, they’re becoming part of the ‘consensus’ and THAT IS EXTREMELY DANGEROUS.

Because when the lie becomes ‘the truth’, there’s no turning backwards.

And we notice how independent scientists, independent analysts, are being CENSORED,  that we have many doctors and nurses and scientists, virologists as well as economists who are speaking out. And you just have to look at the figures, the millions and millions of people who are unemployed as a result of this.

So, what we really need is a historical understanding of what’s going on, because closing down the economy through orders from ‘somewhere up there’ . . .

First of all, it’s DISTINCT FROM ANY PREVIOUS CRISIS. But secondly, we have to RESIST THAT MODEL. And it’s not by changing the paradigm, no. It’s a mass movement; it’s a mass movement against our governments, it’s a mass movement against the architects of this diabolical project . . .

And we can’t ask the Rockefellers, “Please lend us the money” to pay for our expenses, we have to do that on our own.

And that’s why all these NGOs, which are funded by corporate foundations Cannot  . . . I’m not saying . . . some of the things they do are fine but they cannot wage a campaign against those who are sponsoring them, that’s an impossibility.

So we have to implement a grassroots movement, nationally and internationally, to CONFRONT THIS DIABOLICAL PROJECT and to restore our national economies, our national institutions. And, to DENY THE LEGITIMACY OF THE DEBT PROJECT. And to investigate the elements of corruption which have led to this diabolical adventure, which is affecting humanity in its entirety.

This is a war against humanity, implemented through complex economic instruments.

When we take into consideration $144.6 trillion in US Unfunded Liabilities, $20.4 trillion in Social Security Liability, and $31.6 trillion in Medicare liability, the nation lingers on the precipice a total collapse.

For all the uncertainties the COVID-19 pandemic poses to the world, especially in the US, one thing seems evident.  Our neoliberal capitalist civilization has proven itself to be unprepared for unexpected crises and catastrophes. For decades, the US has been falling behind other developed nations to infuse economic resiliency in society. Not only has the American medical system and federal health agencies been shown to be naked, we are also discovering we cannot rely on epistemological statistics and computer modeling alone to account for our flawed health policies.

Aside from the pandemic’s toll on people’s lives, there is also its impact upon the national economies and the global economy at large that is barely being discussed in any depth. Rather, hopes and wishes are being directed towards life returning to normal. We are expected to believe that our addiction to unconscionable consumerism will return, employment will rise and the American dream can again be mentally photo-shopped on the horizon. In short, we are persuaded that the comfort of our illusions and denial of harsh realities will return.  However, if a past Nobel laureate of economics, Joseph Stiglitz, is correct, then “if you leave it to Donald Trump and Mitch McConnell we will have a Great Depression.” Likewise, former Federal Reserve chair Jenet Yellen has also warned that the 30% GDP decline is leading us towards Depression. In fact, we may already be there.

As of today, the federal government has guaranteed $5.2 trillion dollars to keep the economy afloat as a depression worse than 1932 looms overhead. Some economists believe that this massive bailout is insufficient and upwards to $10-15 trillion may be necessary.  In 2008, with one broad stroke the Obama administration rescued Wall Street.  What was believed to be just the TARP bailout of $700 billion was in fact over $4 trillion worth of outlays, including TARP and other FED and Treasury expenditures.  The Levy Institute at Bard College calculated the outlays may have been as high as $29 trillion, a number the Sanders’ campaign had quoted.

Obama’s bailout was to assist the incompetency and corruption of Wall Street and the financial industry. Today it is a submicroscopic organism, approximately 120 nanometers (one nanometer is one billionth of a meter or about 20 oxygen atoms lined up), that threatens the financial well being of most Americans.

However before the COVID-19 reached our shores, the US was already in a horrible debt crisis.

Fiscal conservatives are angered that the US National Debt has reached $24.5 trillion while at the same time adamantly ignoring that the US Total Debt now hovers above $77 trillion. Neither party shows concern about Americans’ increasing personal debt (mortgage, credit card, auto, student loans, etc), nor the rise in corporate, state and city debts.

When we take into consideration $144.6 trillion in US Unfunded Liabilities, $20.4 trillion in Social Security Liability, and $31.6 trillion in Medicare liability, the nation lingers on the precipice a total collapse.

Before the pandemic, Trump boasted an unemployment level as low as 3.6 percent. But in the US, there are different ways to calculate unemployment figures. There is the official figure (U-3) that Wall Street and presidential administrations rely upon and then a more realistic statistic or U-6 that includes those underemployed and those only marginally attached to the work force.

Before the pandemic the “real” or U-6 employment was 6.9 percent.  Finally there is the shadow statistic, which adds the millions of Americans who have dropped out of the work force because their benefits ceased or because they are homeless or unaccounted for by the Labor Bureau.  When those adjustments are made, the shadow unemployment is likely around 23 percent.

Now, unemployment is skyrocketing.  The most recent estimate is that over 26 million people lost work during the past month and, according to Fortune magazine, the official unemployment rate may be as high 18 percent. 

Consequently a more accurate unemployment figure would be approximately 32 percent or almost a third of population. This is far worse than at the height of the Great Depression when unemployment stood at 25 percent.

The dark side of American jobs has been decades of large layoffs, workers being replaced by automation, downsizing, corporate consolidation due to equity partnerships, mergers and off shoring of manufacturing. In addition, tens of thousands of foreign professionals have received work visas and are eager to take the place of middle seniority positions in firms for lower salaries and without full benefits.  The system is so corrupt that the millions of people who work full time for less than a living wage are completely ignored. Hence most Americans are deep in debt and frequently live paycheck to paycheck. The fact of the matter is that there is no security whatsoever for millions of people who may not find work for a very long time.

Even if the lockdown were to end tomorrow, the lights would not immediately switch back on.

Throughout the financial news, we are reading headlines of companies eyeing bankruptcy as credit ratings are being rapidly downgraded.  Retail stores are being especially hit badly. According to Global Data Retail, over 190,000 retail stores have closed, accounting for nearly 50 percent of the nation’s retail square footage. Forbes has listed Dillards, JC Penny, Kohl’s, Levi Strauss, Macy’s, Nordstrom, and Signet to likely go under.  Others include Pier 1 Imports, Rite Aid, J Crew that is loaded up with private equity debt, Fairway supermarkets, and niche organic grocer Lucky’s. Macy’s capital alone dropped from $6 billion to $1.5 billion since February. This trend had already been rising since Trump came to office with large chain companies increasingly closing outlets including Walgreens, Gap, GNC, H&M and Victoria’s Secret. For sure, when and if the pandemic ends, there will be far less retail stores. The New York Times predicts very few are likely to survive. And we are not even looking at the hundreds of their vendors that are also being affected.

With 60 percent of Americans eating regularly outside the home, the restaurant industry is also being hit fiercely. Restaurants employ more minority managers than any other industry — approximately 60% — and employs almost 16 million people. Between 2010 and 2018, it represented the largest number of low middle class jobs ($45,000 to $75,000), 300 percent more than the overall economy. Now a restaurant apocalypse is underway, with an estimated 20 percent of restaurant operations going under. Larger chains are far better equipped. They are simply closing down dining room facilities and only offering carryout, pickup, delivery or drive-thru. Smaller independent restaurants are at the greatest risk.

Then there are the farms, the concentrated agriculture feeding organizations (CAFOs) and food chain suppliers. In the past it was very rare to enter a large grocery store and find empty shelves. Now it is a common sight because the food supply chain has been upended.

Pork and other meat suppliers such as Smithfield Foods, Tyson and Cargill are forced to close plants. Due to Trump’s draconian position on immigration of foreign workers, farm produce will not be harvested.

Niv Ellis at The Hill reports that “some $5 billion of fresh fruit and vegetables have already gone to waste.”  The pandemic, therefore, is contributing to rising food insecurity throughout the nation. Before the pandemic, Ellis notes, 37 million Americans were already food insecure.  The additional 26 million unemployed will increase that number, and it is sure to continue to climb. Finally, the UN Food and Agriculture Organization expects that the frantic efforts underway by countries to import basic staple foods may launch global food inflation.

We are also facing “the quickest and deepest oil demand crash in history,” says Richard Heinberg from the Post Carbon Institute. Oil prices plunged to an inconceivable negative minus $37 a barrel last week as global fossil fuel demand dropped roughly 30 percent. “The entire petroleum industry,” writes Heinberg, “is teetering.”  Natural gas producers relying on hydrofracking shale, which had already been burdened with high debt from private equity, are scrambling for bankruptcy protection. According to Reuters, “numerous midstream companies [in the energy sector] backed by private equity are in danger of bankruptcy.” With the collapse of hydrofracking companies, the pipeline firms have also entered troubled waters. The Federal Reserve Bank of Kansas City predicts that 40 percent of energy producers may be insolvent “if oil prices remain around $30 a barrel” for the year. Then consider the larger picture of the impact this has on the 6.4 million people working in the energy sector.

Also we might consider the future of 15 million Americans who work in the tourism industry, including hotels, entertainment, parks, museums, etc. It is estimated that 96 percent of global tourism has vanished in the blink of an eye.

State and local city governments are also “staring at budget shortfalls that will substantially exceed what they faced during the great recession.” States are reporting significant gaps in their capacity to remain fiscally afloat. The Republican Senate led by Mitch McConnell seems determined to withhold $150 billion of emergency funds to the states in the CARES Act before Congress — less than half of the $300 billion to $1 trillion state legislators are demanding. Consequently, states are staring into a deep abyss.

Americans who will either return to a job or seek work when the pandemic slows will be further imprisoned by an economy buried in greater debt.

• Downsizing will accelerate along with borrowed money to continue operations while the White House refuses to pass a rent holiday, forgive student loans and other debts, cease payday loans, reduce interest rates on credit nor provide free healthcare for those infected with COVID-19;
• The average person without a steady paycheck is living off savings and credit cards. Therefore, when the economy reopens, large numbers of people will be unable to return to the marketplace to circulate dollars;
• As corporate debt mounts, the most insidious truth are the vultures of capitalism who will profit. These are the great white sharks in the finance industry that smell blood. For the trillions of dollars Trump is dishing out to the 1 percent, these are the first to get the lion’s share of the quarry.

Nobody in the mainstream media has properly criticized the huge monetary allocations being made for the pandemic. The FED is buying corporate debt in order for companies to off load their mistakes and receive fresh, new money. But the average small business receives the left over pennies.  The virus is teaching us the harsh reality about Washington pervasive culture of corruption. On this account both parties have no empathic regard for average citizens and small business owners.  Even the money from Trump’s and Mnuchin’s stimulus package given to citizens can be confiscated by debt collectors.

Imagine if you are an average citizen, not an insider, at the conference table with executives from Facebook, Google, the major banks and mega-corporate industries. You have no income or savings and no health insurance. If you are hungry, where do you get money for food? Where do you get money if you are sick or gas for your car? The unintended consequences of Trump’s and the Congress’ irresponsible and inhumane policies are literally bankrupting the nation.

By extension the millennial and iGen generations are the victimized recipients of this debt bequeathed to them by older generations. They are further compromised with the inability to secure jobs equal to their educational level nor secure a satisfying living wage. They are burdened with high interest student loans. They also are far more aware of the impact climate change will have on their futurs. Therefore, millions of young adults are rapidly losing faith in America’s neoliberal capitalist system and our self-centered culture of predation.

Similar to waking up the day following September 11, 2001, we will be emerging into a new world after the COVID19 pandemic subsides. It is now being called the “shut-in economy.” The pandemic is not solely a health crisis; it is equally an existential crisis, an impasse in the global civilization that is forcing us to realize that our over dependence and perverse reliance upon natural resources, such as fuel, energy, food and corrupt banking and healthcare services, is fragile. We are learning that at every level there are numerous cracks in our structures of governance and our economic and social bases.  Yet the virus did not break the nation; it has been broken for a long time. Only now more people are waking up from their dream. Furthermore, few people, including the mainstream media, now believe there will ever be a return to the normalcy of life that ended after Wuhan had its first patient infected with the virus. It is time for every individual to reassess her or his priorities. A life full of well-being is more possible today if we realize the virus has also been our teacher. But it is living a life that is founded upon simplicity, insight and wisdom, and community rather than consumption and competitive power.

There’s a simple fact that’s not noticed or remarked on nearly enough. The world’s two large English speaking societies, America and Britain, are collapsing. And they are collapsing in eerily similar ways, for eerily similar reasons, too. Yet in these societies, this basic point doesn’t seem to be understood much, if at all. And yet it’s not really a matter for debate. It’s a simple empirical fact.

There are only two societies in the rich world where life is getting shorter, poorer, meaner, and more hopeless — fast. Where life expectancies, incomes, and savings are all falling. America and Britain. Where middle classes have imploded, people live hand to mouth, and upward mobility has all but vanished. Where the idea of living a better life is somewhere between a joke and a distant memory. Where entire generations of young people — at last count, three, Gen X, Millennials, and Get Z — live worse lives than their parents and grandparents. Just two such societies where trust, happiness, and purpose have all imploded catastrophically — while depression, rage, anxiety, and suicide are all surging.

In fact, there are just a handful of societies with those grim statistics anywhere in the world — Venezeula, perhaps, Russia, North Korea, war torn African shells. Failed states, in other words. That is what America and Britain are becoming.

In a failed state, progress has become regress. That’s what happened to these societies. They are self-destructing. America, of course, is further down that road. But Britain is catching up fast. So how did they get here?

America and Britain have entered a vicious cycle, a death spiral. It’s a novel and bizarre phenomenon for a modern, rich society, unseen since Weimar Germany. It goes like this. In the 1980s, America began decades of underinvestment in public goods and social systems. It privatized whatever there was to privatize. The idea was that whatever it was — healthcare, education, finance — the private sector could do it better. The Reagan Revolution was in full effect — as a backlash to the advances civil rights made in the 1960s and 1970s, the good white American using “choice” as a shield to protect themselves from ever having to invest in or mingle with those dirty, filthy subhumans. All that was called “neoliberalism.” Let markets sort it all out! Translation: let the strong survive, and the weak perish.

But the result of massive underinvestment in public goods was predictable: stagnation, debt, falling living standards, and a permanent loss of mobility. More and more people were forced to desperately compete for all those “private sector” jobs, which didn’t really exist to begin with, since jobs were just slashed and cut en masse. Instead of creating tons of new jobs, the private sector built…huge monopolies, which, by today, employ scant numbers of people, like a Facebook or a Google or an Uber.

That competition for what few decent jobs there were led to massive wage stagnation. What “private sector” jobs did exist weren’t very good ones, and over time, they degenerated further, to the point that now many of them aren’t really “jobs” at all, but shells, with no benefits or mobility or protection. Today, America and Britain have record low unemployment…and plummeting real incomes. That should be an economic impossibility. It’s a reality that tells us their economies are unable to employ their populations at decent levels of income anymore.

At the same time, the “private sector” which was supposed to provide good healthcare, education, retirement, finance, and so on, began to charge the average American more and more for these things, while lowering their quality. After all, corporations are profit-seeking entities: their motivation is money. And so over time, the average American began to pay prices for things that astonished the rest of the world: $50K for childbirth, $200K for an education, and so on. How could they afford the basics of life at ever increasing prices — when their incomes had begun to stagnate? They couldn’t — so they began to go into massive debt (and today, the average American dies in debt.)

As a necessary consequence, social systems and public goods were eviscerated — and left undeveloped. America has no functioning social systems at all at this point, from healthcare to education to retirement — precisely because for nearly half a century now, it hasn’t invested enough (read: almost anything) in them. Hence, those poor kids in the pic above: they really don’t have much of a future, and increasingly, they know it.

Today, the situation is this. The average American is in a “low-wage job” — translation: they earn less than the poverty line. Yes, really. That’s why most Americans live paycheck to paycheck and can’t afford to save, much less ever live better lives than their parents or grandparents. He desperately needs things like healthcare, education, retirement, finance, to have any hope — any — of living a better life, instead of just a worse and worse one every year. But he himself can’t afford to fund those things anymore, because now his income is too low. How can he pay more in taxes to fund the things he needs most, like healthcare or retirement — when he earns a relative pittance to begin with? What is he supposed to live on then?

That, my friends, is a death spiral for an economy (and a society.) Let me put that more precisely.

America and Britain are in an austerity-poverty death spiral. Austerity causes poverty which causes more austerity which causes more poverty. It goes like this.

1. Underinvesting in public goods and social systems led to fresh poverty
2. As profit-seeking corporations lowered wages and raise prices.
3. The result was that the tax base itself shrank — and now the average American or Brit will tell you they’re “too poor” to afford a functioning society. They’re not kidding. They are. They don’t have the money to invest in public goods or social systems anymore. They can’t make ends meet as it is.
4. But without those very things, all that’s left is permanently, perpetually lower wages and higher prices…into oblivion, because that’s what a profit-seeking system demands.
5. Bang! Game over. Your economy dies, and your society goes with it, pursuing follies like Brexits and Trumpisms, instead of solving its real problems.

Do you see the death spiral? Let me flip it on it’s head so it’s even more crystal clear. What’s the lesson here for other societies?

The less that we invest in public goods and social services as nations, the more that our economies corrode and our societies disintegrate. Incomes fall and prices rise, as all that’s left are people competing for private sector jobs, of which there aren’t enough, while paying ever increasing private sector prices. The average person is left impoverished. But because the average person is impoverished, there isn’t enough then left to fund the kind of tax base that can provide generous basics for everyone. Yet without those things, societies just decline into…forever. Regress becomes a way of life.

Below a certain threshold of investment, economies enter a death spiral. We must never let the amount that we invest in public goods and social services as a society fall too low. How low? Well, Britain and America give us hard proof: about 25% of an economy. When investment falls to that level, societies find themselves in the austerity-austerity-poverty death spiral. They may never emerge. Regress becomes locked-in, like in Russia.

(On the contrary, in Europe, rates haven’t fallen that low. They’re falling nonetheless though, hence reactionary movements like the Gilets Jaunes. And if they fall to such a point, Europe too will enter just such a death spiral.)

America and Britain’s future is questionable at this point — and I’m being generous. Think about what the above really means: these societies are caught in a trap from which there might well be no escaping. The average person needs more and better healthcare, education, finance, safety nets to ever live a better life again. But now they themselves are too poor to fund those things. What’s the obvious implication? That they will never have them again. That is the point. America and Britain let themselves be ruined. They fell into a trap — from which there is no good way out. Maybe no way out at all. Regress has likely become permanent, perpetual trend.

We are seeing a weird and gruesome new thing in the modern world. Rich countries which become failed states. In a precise and hard sense: they enter death spirals of austerity-poverty which cause a chain reaction self-destruction. That is the story of America and Britain’s twin collapses. Having let their investment rates fall too low, kicking off a vicious spiral of austerity and poverty leading to more austerity and poverty…which left the average person too poor to invest in anyone else, let alone him or herself…now no recovery towards a path of progress may be possible. Their future is just more of this, more regress, only harder and faster. Their destiny now well may be written in stone. They are joining nations like Russia and Venezuela in decline and collapse.

Let us hope that other nations are wise enough to learn from their mistakes. Because what follows folly is horror. What follows such death spirals, of course, is fascism, authoritarianism, and all the horrors of history.