A Quarter Of All Household Income In The US Now Comes From The Government

By Tyler Durden

Following today’s release of the latest Personal Income and Spending data, Wall Street was predictably focused on the changes in these two key series, which showed a modest slowdown in personal spending (to be expected one month after the savings rate in the US hit a record), coupled with a modest decline in personal income (as government benefits and stimulus checks slowed substantially).

But while the change in the headline data was indeed notable, what was far more remarkable was less followed data showing just how reliant on the US government the population has become.

We are referring, of course, to Personal Current Transfer payments which are essentially government sourced income such as unemployment benefits, welfare checks, and so on. In May, this number was $4.9 trillion annualized, and while it is down from the record $6.6 trillion hit in April when the US government activated the money helicopters to avoid a total collapse of the US economy, it was nearly $2 trillion above the pre-Covid trend where transfer receipts were approximately $3.2 trillion.

Even more striking, is that as of June when total Personal Income was just below $20 trillion annualized, the government remains responsible for over a quarter of all income.

Putting that number in perspective, in the 1950s and 1960s, transfer payment were around 7%. This number rose in the low teens starting in the mid-1970s (right after the Nixon Shock ended Bretton-Woods and closed the gold window). The number then jumped again after the financial crisis, spiking to the high teens.

And now, the coronavirus has officially sent this number into the mid-20% range, after hitting a record high 31% in April.

And that’s how creeping banana republic socialism comes at you: first slowly, then fast.

So for all those who claim that the Fed is now (and has been for the past decade) subsidizing the 1%, that’s true, but with every passing month, the government is also funding the daily life of an ever greater portion of America’s poorest social segments.

Who ends up paying for both?

Why the middle class of course, where the dollar debasement on one side, and the insane debt accumulation on the other, mean that millions of Americans content to work 9-5, pay their taxes, and generally keep their mouth shut as others are burning everything down and tearing down statues, are now doomed.

To read the complete article, with charts and graphs, click here…

Jim Jordan Presses Dr. Fauci On COVID-19 Protest Hypocrisy

By Tyler Durden

Friday’s testimony before the House coronavirus subcommittee on Friday was supposed to be just another snoozefest with Dr. Fauci fielding the same questions from obsequious Democrats and hostile Republicans.

But viewers perked up roughly 2 hours into the hearing on Friday when Ohio Congressman Jim Jordan, one of the good doctor’s most vocal critics, was called on to ask a question.

His initial question was simple enough: “Dr. Fauci,” Jordan asked. “Can protests spread the virus?”

Considering the straightforwardness of the question, Dr. Fauci seemed surprisingly startled. He took a few moments to gather his thoughts, then responded that all large gatherings where people aren’t complying with all social distancing recommendations are ill-advised – though, the good doctor insisted, he didn’t want to make a specific judgment about what types of activities are permissible, and which aren’t.

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CDC Director Says There are More Suicides and Overdoses than COVID Deaths

By Micaela Burrow

Center for Disease Control Director Robert Redfield testified in a Buck Institute webinar that suicides and drug overdoses have surpassed the death rate for COVID-19. Redfield argued that lockdowns and lack of public schooling constituted a disproportionally negative impact on young peoples’ mental health.

“We’re seeing, sadly, far greater suicides now than we are deaths from COVID. We’re seeing far greater deaths from drug overdose that are above excess that we had as background than we are seeing the deaths from COVID,” he said.

Roughly 146,000 people have died from COVID or COVID-related causes in the U.S., according to CDC data.

The most recent publicized federal data records 48,000 deaths from suicide and at least 1.4 million attempts in 2018. In 2019, almost 71,000 people died from drug overdoses.

Where Redfield obtained his data is unknown, although a doctor at John Muir Medical Center in Walnut Creek, CA claimed the facility has “seen a year’s worth of suicide attempts in the last four weeks.” He did not say how many deaths occurred, or whether the statement was exaggerated for emphasis.

“What I have seen recently, I have never seen before,” Hansen said. “I have never seen so much intentional injury,” said a nurse from the same hospital.

And while health authorities will not have verified data regarding suicides and drug overdoses in 2020 for two more years, local reporting indicates that suicide fatalities have increased year-on-year.

According to the American Medical Association, “More than 35 states have reported increases in opioid-related mortality as well as ongoing concerns for those with a mental illness or substance use disorder in counties and other areas within the state.”

In Eagle County, Colorado, six suicides have been recorded, just one below the yearly average. Colorado on the whole recorded a 40 percent decrease in suicides in March and April, but the number of calls to Colorado Crisis Services increased 48 percent.

The Chicago Sun-Times looked specifically at black populations. In Cook County, Illinois, the number of suicide deaths is already higher than for all of 2019.

In Yakima County, Washington, the suicide rate has risen 30 percent, according to the county coroner.

Between March 15 and April 29, as many people commited suicide in Queens, New York than did between January 1 and April 29 the year prior.

The Pima County Health Department in Arizona has recorded an uptick in suicide rates as well.

Historical trends give reason to believe the suicide rate may rise due to extenuating circumstances caused by COVID-19, including unemployment and social isolation. For example, in the year after the Great Recession in 2008, the rate in America was 6.4 percent higher than expected. While the rate didn’t’ “skyrocket,” as some have predicted it will this year, the coronavirus pandemic and economic shutdown has dealt a worse blow to the U.S. psyche.

Thirty to 40 million jobs have been lost to the economic shutdown, compared to 2.6 million in 2008.

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GOP Outlines Economic Relief Package

By Melanie Waddell

Senate Majority Leader Mitch McConnell, R-Ky., detailed Monday afternoon Republicans’ new stimulus plan — being dubbed the Health, Economic Assistance, Liability Protection and Schools, or HEALS, Act.

“Just like in March with the CARES Act, Senate Republicans have authored another bold framework to help our nation,” McConnell said. “Now we need our Democratic colleagues to reprise their part as well. They need to put aside their partisan stonewalling we saw in police reform, rediscover the spirit of urgency that got the CARES act across the finish line and quickly join us around the negotiating table.”
Senate Minority Leader Chuck Schumer, D-N.Y., said on the Senate floor just after McConnell spoke, however, that Democrats had yet to see a “coherent” bill.

“They can’t even put one bill together they are so divided,” Schumer said.
Schumer also said that “Not only do we not know if the president supports any of these proposals, we don’t even know if Senate Republicans fully support them.”

Further comments by Schumer signaled that tough negotiations are likely ahead.

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McConnell Says GOP Will Pitch Its Own Stimulus Plan Next Week

Senate Republicans will finish their own plan for a new round of pandemic relief as early as next week and only then will open negotiations with Democrats as the last stimulus begins running dry and a resurgence of Covid-19 cases threatens a deeper recession.

Senate Majority Leader Mitch McConnell said he is working with the Trump administration on drafting a GOP-only proposal, the first step before talks with Democrats, who’ve already put out a $3.5 trillion stimulus bill that has passed the House.

“We shouldn’t lightly add more to the national debt, but I’m predicting that we will have one more rescue package, which we’ll begin to debate and discuss next week,” McConnell said during a news conference in his home state of Kentucky.

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HG Wells on the Partnership Between Viruses and Humans

By Peter Earle

The tension between man and nature is always, everywhere, taut. It is particularly easy to forget that, particularly in urban environs — given the preponderance of concrete, steel, and glass amid commerce and social engagement. But even in midtown Manhattan, one of the most heavily trod places on earth: isolate a small area of pavement for a few days and sprigs soon appear from the edges. In just a few months, frail plants with leaves thinner than paper have wrest modernity back to the primordial: splitting asphalt, invading neighboring areas, and inexorably pushing toward the sky.

The outbreak of the novel coronavirus pandemic has come so differently than most other collisions between human beings and the natural world — natural disasters and extreme weather, usually — that it seems to have leapt to an existential status.

At AIER we have written at length about historical analogues to the pandemic, about the need to maintain our humanity. Not so much the need as the requirement to not sacrifice the things that make us human — commerce, social interaction, creative association — in the wake of a new microbe.

HG Wells’ “War of the Worlds” (1898) carries a bevy of allegories, from colonialism and militarism to primitivism, Social Darwinism, and war. The nameless narrator (“Narrator”) survives the onslaught of a brutal Martian invasion. Amid the invasion, as he makes his way from Woking, England to London, he finds that many of his formerly rational countrymen have descended into bizarre behaviors and views. With citizens creeping around to avoid detection, a clergyman begins bellowing about the Apocalypse, leading to his death. Another suggests abandoning the surface of earth to restart civilization in subterranean caverns. Hysteria leads to the demise of untold numbers of people.

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Stanford’s Dr. Scott Atlas: ’80-85%’ Of Texas Hospital Patients ‘Have Nothing To Do With COVID-19

By SCOTT MOREFIELD

Dr. Scott Atlas told Fox News’ “The Story” that a significant percentage of the surge in Texas hospital beds “have nothing to do with COVID-19.”

Atlas, former chief of neuroradiology at Stanford University Medical Center and a senior fellow at Stanford’s Hoover Institution, urged viewers not to panic at the spike in coronavirus cases before explaining that it “doesn’t really matter how many cases” there are, only “who gets the cases.”

For those under 70, Atlas said, the death rate is actually lower than the seasonal flu.

“We realize we have to wait to have the story play out here, but right now, the cases have been going up for three weeks and we have no increase,” he told guest host Trace Gallagher. “In fact, we have a decrease in death rates. You know, it doesn’t matter if you get the illness if you’re going to fully recover and be fine from it. That is what people must understand. For younger healthier people, there’s not a higher risk from this disease at all.”

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