Tag: finance

With markets heading lower on Friday as the White House declares war on social media, riots in Minnesota spread across the country and Trump ratchets up tensions with China, Fed Chairman Jerome Powell is set to speak Friday at the Griswold Center for Economic Policy Studies at Princeton, where he will be joined by former Fed vice-chairman Alan Blinder.

The focus of the talk will likely be on the economy and the central bank’s stimulus measures during the coronavirus crisis.

The event will take place virtually, and is set to begin at 1100ET and a Q&A will be moderated by Blinder, now a member of Princeton’s faculty.

Earlier this month, Powell said policymakers may need to use’ additional tools’ to pull the country out of  a devastating economic downturn, but Fed officials have also expressed wariness of negative rates, and the ability of the central bank to mitigate the impact of the crisis on ordinary Americans.

Watch it live below:

Submitted by Michael Every of Rabobank

Pres Pressing ‘Press’; And Pres Presser

US President Trump has just signed an executive order which forces federal agencies to reinterpret section 230(c) of the Communications Decency Act, which until now has allowed YouTube, Twitter, Instagram, and Facebook to say they are platforms rather than publishers, and hence not hold any liability for content they hold. The threat is that if these US ‘platforms’ decide to censor certain opinions, or to demonetise them to the same effect, or to allow political bias to come into play then they will now be seen as breaking section 230. This would involve them being forced to become publishers and taking liability for ALL of their online content even if user-created – which would be vastly expensive, if not impossible.

I will leave the inevitable wrangling to the inevitable expensive lawyers, who must be rolling up their sleeves; to the expensive software engineers, who will have to try to work out how the algorithms that determine what a user sees and doesn’t isn’t political bias; and to the expensive politicians, where the initial reaction from the Democrats appears to be that social media controls need to be tightened rather than loosened. Nonetheless, this does seem to be a clear victory for the US first amendment and unfettered online freedom of speech – although of course the quid pro quo is that the social consequences of that freedom are likely to get even shriller.

So that’s the Pres pressing the ‘press’. Today’s other huge market focus is the Pres presser. Trump will be holding a press conference to announce a new set of US policies towards China following the inevitable passage of the agreement to impose a national security law at the National People’s Congress in Beijing yesterday. What will he say?

• We have the optimist camp: Trump won’t want to rock markets. Trump won’t want to rattle big business. Trump needs Hong Kong. Trump needs the Chinese market. Trump is all talk and no action. Trump wants his phase one trade deal. Trump doesn’t need hassle before the election. Trump can’t win if he takes on China. Trump needs Chinese capital inflows.
• Then we have the pessimist/realist camp: Trump needs a new narrative vs. China domestically, where he is being called soft on Beijing. Trump’s phase one trade deal is finished (China is buying Brazilian soy) and phase two was never going to happen. Trump needs to send a clear message to Beijing over the red lines it has crossed. Trump won’t look good if he has the whole world watching him and produces a small water pistol and not a bazooka. Trump has finally got allies like the UK and Australia moving in his direction on China (the UK is talking about extending visa rights for hundreds of thousands of Hong Kongers), with even the EU seemingly moving against China, so he can’t afford to go soft for fear that they will falter. Trump’s ideological weather vanes like Steve Bannon are calling for aggressive actions vs. China as a si vis pacem, para bellum. Trump doesn’t really care what US businesses think about China because he wants them to focus on the US market. Trump can bail out US farmers now that federal money seems to be no object. Trump has the Fed behind him to prop up markets anyway.

Surely there must be a healthy risk (>50%?) that today will see significant US action vs. China in the form of sanctions beyond merely not allowing key members of the Hong Kong government to vacation in Hawaii or California from now on. If this is not the case, why hold a press conference: wouldn’t it be easier to slip a token measure out with a simple press release?

The most optimistic outcome must be Trump signs the recently-passed Uyghur Human Rights Policy Act imposing sanctions on some Chinese officials and entities, but then does not act on Hong Kong. The more realist case is Trump signs that Uyghur Act and revokes Hong Kong’s favoured status, and imposes separate sanctions on China over that issue. The most pessimistic case is if Trump also mentions the China-India border clash and takes India’s side and/or if he brings up the Chinese red line of Taiwan.

Yet as we all wait let me add that talking of algorithms and political bias, when I typed “Trump China press conference” into one search engine this morning (which rhymes with sing), I got no news of today’s event at all, just a summary of weeks’ old events. Luckily another search engine was able to provide me with news of what is happening today and what it had already seen happen in late US trading yesterday – stocks selling off.

Meanwhile, yesterday saw an exclusive report from MNI on the CNY, the headline of which was “PBOC To Permit Broader Yuan Band, 7.2 Key Level”, the sub-headline was “The PBOC Will Permit A Wider Band, But Will Act Against Volatility, Sources Say” and the substantive take-aways were that: the PBOC still has no wish for one-way CNY trading; it expects more volatility; it will ensure both by a willingness to raise rates for CNH and/or intervene in CNY with counter-cyclical fixing again; 7.20 is now the short-term line in sand; they fear capital flight(!) and that a weaker CNY would prompt it to occur; weaker CNY is not needed to boost exports at a time when there is simply no demand – and Beijing is seen subsidising exports anyway(!); and that CNY could trade as low as 7.40 this year.

That is a huge step from a central bank that was recently saying 6.90 was the line in the sand; then 7.0; then 7.10; now 7.20. In short, CNY is going lower. Much lower. The PBOC just wants to try to control the descent and avoid markets pushing it too far too fast.

Yet that was before Trump announced his press conference for today. More ‘press’ ahead.

One of the recurring laments about the BLS’ “average hourly earnings” series is that it does not actually measure the change in average hourly earning – which as a reminder surged 7.9% in April according to the latest jobs report…

… but is merely a ratio between aggregate compensation and hours worked, and since the denominator crashed much more than the numerator, the number actually posted a sharp spike contrary to what actually happened since the start of the Second Great Depression.

So what did happen?

According to latest monthly income and spending reported published earlier today by the BEA, the reality was far uglier, as wages for private industries plunged to $7.0 trillion annualized from $7.7 trillion in March, and from $7.8 trillion last April. The drop of 10.1% was not only the accurate description of what actually happened to private wages, but was also the biggest annual drop on record, surpassing even the worst drop during the financial crisis. Furthermore, it meant that three years of private wage growth was lost in one month, as the last time private wages printed an annualized $7.0 trillion was in April 2017! Meanwhile, as private wages imploded, government workers also saw their pay drop drop, but far more modestly, from $1.487 trillion in March to $1.438 trillion in April, an unchanged print from a year ago, meaning that government workers have been far more insulated from the economic collapse, in line with expectations.

The chart below shows the true hit to private and government wages in April, a far cry from the “fake news” reported by the BLS’ average hourly earnings print which is clearly meaningless in a time of corona.

And yet, as total wages crashed by almost $1 trillion, down from $9.22 trillion annualized in March to $8.48 trillion in April, total personal income actually soared by nearly $2 trillion, from $18.7 trillion to $20.7 trillion.

How did this happen? Simple: the government unleashed the biggest ever flood of personal current transfer receipts (i.e., government handouts), which soared from an annualized $3.3 in March to a record $6.3 trillion in April. Here, unemployment benefits were a major contributor, rising from $69.6BN to $430BN annualized, but it was the “Other” line, which exploded from $528 billion to $3.122 trillion – which consisted of various coronavirus stimulus measures – that was primarily responsible for the surge.

Meanwhile, as noted earlier, despite this record boost to personal incomes, US spending – that biggest contributor to GDP accounting for 70% of US output – collapsed by the most on record, sliding -13.6%…

… as consumers were frozen, unsure if and when things will return to normal.

The result of this surge in personal incomes and plunge in spending, is that the annualized amount of Personal Savings exploded by a mindblowing $4 trillion in  May, rising from $2.1 trillion to $6.1 trillion…

… and accounting for 33% of disposable personal income.

And while economists will say that consumer better start spending all those pent up savings soon to reboot the economy, we have a different question: how much of these “government stimulus” checks were already spent by the retail public to buy stocks, because as we observed last week, in addition to paying down debt and withdrawing cash, investing in stocks was listed as the third most popular use of government funds…

… and would easily explain the market’s torrid surge in recent weeks.

 

A gang of monkeys in Delhi, India assaulted a laboratory assistant and escaped with coronavirus test samples from three patients, according to Sky News, citing local media.

The incident happened near Meerut Medical College. According to the report, one of the monkeys was later spotted in a tree chewing one of the sample collection kits, the Times of India reported – which noted that the patients required new tests.

It is the latest example of the highly intelligent, red-faced rhesus macaques taking advantage of India’s nationwide lockdown to combat the spread of coronavirus.

While they have proved an increasing problem in urban areas of the country in recent years, lockdown measures in the last two months have emboldened the monkeys.

Reports have shown them congregating in parts of Delhi normally crowded with humans. –Sky

In March we noted that rival monkey gangs in Thailand – driven by starvation due to a lack of visitors amid the pandemic – have been roving the streets looking for food.

The ferocity of the animals shocked even locals, who are used to seeing the monkeys on a daily basis. One onlooker who captured video of the monkeys said: “They looked more like wild dogs than monkeys. They went crazy for the single piece of food. I’ve never seen them this aggressive,” according to the Daily Mail.

Hundreds of hungry monkeys swarm across Thai street as ‘rival gangs’ fight over food after tourists who normally feed them stay away because of coronavirus https://t.co/lQZ0sOzwDF pic.twitter.com/8TgrCTBrQ8

— Daily Mail Online (@MailOnline) March 12, 2020

According to the Sky report, people have been advised not to feed monkeys during the pandemic over fears that doing so could cause the disease to mutate and infect primates. If that happened, it could have a devastating impact.

“The point is, we have very little understanding of the virus, and it is better to limit our interactions with wildlife till there is more research done on its effects on non-human primates and other animal species,” a senior biologist from the Tamil Nadu Forest Department previously told The Hindu.

“Very often they snatch food from people as they are walking, and sometimes they even tear files and documents by climbing in through the windows,” said Home Ministry employee Ragni Sharma in 2018.

UMich sentiment was expected to have accelerated its rebound from preliminary May data, but it disappointed (despite surging stocks and reopenings).

• Headline UMich Sentiment up from 71.8 to 72.3 (but down from the 73.7 flash print and below the 74.0 expectations)

• Current Conditions up from 74.3 to 82.3 (but down from the 83.0 flash print and below the 84.0 expectations)

• Expectations “Hope” down from 70.1 to 65.9 (and down from the 67.7 flash print and below the 68.4 expectations)

Source: Bloomberg

This is the lowest level for expectations since Nov 2013.

It should not be surprising that a growing number of consumers expected the economy to improve from its recent standstill, or that the majority still thought conditions would remain unfavorable in the year ahead. This has been a common occurrence in past cycles. The gap between judgements about economic growth and the current performance is likely to grow significantly when the 2nd quarter GDP is announced.

Is it any wonder current conditions sentiment is rebounding – screw 40 million unemployed, the government just dumped $ 3 trillion in transfer payments for people to sit on their ass for a month or two?

Federal payments distributed under the CARES Act are giving a jolt to consumers’ finances — though the bump may be temporary as some of the stimulus money includes one-time checks. And while the worst of the economic downturn may be over, Americans are expecting prolonged hardship, according to the report.

The 50% of consumers who expected “bad financial times over the next five years” was the second-worst reading since Donald Trump became president, Richard Curtin, director of the survey, said in a statement.

The question – as we noted previously, is what happens when the transfer payments run out and unemployment remains at depression levels?

Finally, consumers reported hearing more negative economic news in May than at any other time in the long history of the surveys, with an all-time record of 89% mentioning the steep increases in unemployment.

We’ve mentioned in nearly every single one of our posts about this week’s dustup between the president and Twitter that the Ayatollah has an account on the company’s platform, where he routinely spouts dangerously anti-American rhetoric, without drawing even a whiff of scrutiny from Twitter (or the American left),

Now, as the GOP cranks up the pressure on Trump’s (least) favorite social media company, Senator Ted Cruz is calling for a full-on investigation of how the company treats foreign leaders who use the platform. To be sure, this isn’t exactly coming out of nowhere – Cruz led an earlier pressure campaign to convince Twitter to boot senior Iranian officials off the platform, even insinuating that not doing so would violate international sanctions against Iran, as Axios reported.

In a letter sent to the DoJ and the Treasury Department on Friday, Cruz asked Attorney General Bill Barr and Treasury Secretary Steven Mnuchin to investigate whether Twitter’s refusal to comply with Cruz’s request violates US sanctions prohibiting American companies from providing goods and services to senior officials of targeted nations.

Cruz isn’t alone: Sen Josh Hawley suggested earlier this week that Twitter’s move to affix these “warnings” to Trump’s tweets was politically motivated. In a letter to Dorsey, Hawley wrote that the decision “raises serious questions about whether Twitter targeted the President for political reasons.”

Shortly after Cruz first raised the issue, twitter responded by arguing that its service is exempt from the sanctions, and that the public conversation on the platform is critically important during the coronavirus pandemic.

“Fundamental values of openness, free expression, public accountability, and mutual understanding matter now more than ever,” Vijaya Gadde, Twitter’s legal, public policy & trust and safety lead, wrote. “Regardless of the political agenda of a particular nation state, to deny our service to their leaders at a time like this would be antithetical to the purpose of our company, which is to serve the global public conversation.”

Twitter has long maintained that it’s important to have public figures use the platform, even if they use the platform to attack the US.

Read Cruz’s letter below:

2020.05.29 – Letter to DoJ and Treasury on Twitter Criminal Probe by Zerohedge on Scribd

 

 

 

That wasn’t supposed to happen.

Various other cherry-picked sentiment surveys have been soaring against expectations in recent days but Chicago PMI just plummeted to its lowest level since 2009, notably below expectations…

Against expectations of a bounce back to 40.0 from 35.4, Chicago PMI tumbled to 32.3 in May…

• Prices paid rose and the direction reversed, signaling expansion

• New orders fell at a faster pace, signaling contraction

• Employment fell at a slower pace, signaling contraction

• Inventories rose and the direction reversed, signaling expansion

• Supplier deliveries rose at a slower pace, signaling expansion

• Production fell at a faster pace, signaling contraction

• Order backlogs fell at a faster pace, signaling contraction

Of course, this important sentiment signal will be shrugged off because stocks are higher this month.

Authored by John Vibes via TheMindUnleashed.com,

A bizarre twist in the murder of George Floyd was reported on Thursday night, as a former club owner in south Minneapolis revealed that Floyd worked at her club as a security guard, alongside recently fired police officer Derek Chauvin, the man who killed him.

Club owner Maya Santamaria says that the two both worked the same security shift at El Nuevo Rodeo club on Lake Street, before the business was sold a few months ago.

“Chauvin was our off-duty police for almost the entirety of the 17 years that we were open. They were working together at the same time, it’s just that Chauvin worked outside and the security guards were inside,” Santamaria told KSTP.

However, Santamaria said that she can’t be certain that Chauvin and Floyd knew each other, because often over a dozen security guards working at the club on any given night.

Still, they did work overlapping shifts, and the fact that one man ended up killing the other should justify further investigation into whether or not the two had a prior relationship.

If Chauvin and Floyd were not meeting for the first time in the moments before Floyd’s death, that could potentially mean that there was a deeper motive behind the murder.

If true, this could make the difference between a manslaughter charge or a murder charge.

As of right now, no other evidence of a prior relationship has been revealed, but this is an extremely strange coincidence, which would be cause for serious suspicion in any other circumstance.

Santamaria says that she did not realize that the men in the video were her former employees until a friend told her.

“My friend sent me (the video) and said this is your guy who used to work for you and I said, ‘It’s not him.’ And then they did the closeup and that’s when I said, ‘Oh my God, that’s him.’ I didn’t recognize George as one of our security guys because he looked really different lying there like that,” Santamaria said.

People around the country are calling for Chauvin to be charged with murder, but thus far no formal charges have been filed against any of the officers involved in Floyd’s death.

All four of the officers who were on the scene at the time of the incident were fired from the police force, but Floyd’s family says that is not enough, and the city’s mayor agrees.

Minneapolis Mayor Jacob Frey has called for criminal charges against the police officer who killed George Floyd.

“I’ve wrestled with, more than anything else over the last 36 hours, one fundamental question: Why is the man who killed George Floyd not in jail. If you had done it, or I had done it, we would be behind bars right now,” Frey said.

When asked about which specific charge he would want to see for the officer, Mayor Frey declined to comment, but many legal experts have speculated that Chauvin could face manslaughter charges considering the video evidence against him.

At this point, Fox Business should just give Larry Kudlow a set 20 minute slot every morning. During his latest appearance, which comes just hours before President Trump delivers a widely-hyped statement on China’s latest abrogation of Hong Kong’s political freedoms, Kudlow said the president is “furious” over what Beijing has done “in recent days, weeks and months.”

He added that Trump will have “a lot of comments” and “a lot of ideas” about how to hold China accountable, which he will present to the press later on Friday.

Not long after Kudlow’s appearance, President Trump – who, in addition to dealing with the pandemic, is also battling with Twitter and monitoring the situation in Minneapolis – tweeted a typically terse burst of rage.

CHINA!

— Donald J. Trump (@realDonaldTrump) May 29, 2020

It’s still not clear when today’s press briefing will be held.

No word yet on when the president’s China press conference will be today, but his top economic adviser, Larry Kudlow, just told Fox that the U.S. is “furious” with how China has acted in recent months.

— Josh Wingrove (@josh_wingrove) May 29, 2020

As of 0920ET, the White House calendar only had one live press event – a 4pm roundtable with industry execs – on the agenda.

Well, by now, social unrest in Minneapolis, worsening by the day, has become an international story. The world is watching as protesters breached the Minneapolis 3rd Police Precinct building and set it ablaze on Thursday night. 

The police station on E. Lake Street, across from the Target that was looted and burned on Wednesday, has been the center of demonstrations this week as people demand justice after the death of George Floyd, who died in police custody on Monday. 

On early Friday morning, Minneapolis Mayor Jacob Frey explained his reasonings to evacuate officers from the 3rd Police Precinct.

Minneapolis Mayor Jacob Frey addresses the burning of a police precinct amid protests over the fatal arrest of George Floyd: “The symbolism of a building cannot outweigh the importance of life, of our officers or the public.” pic.twitter.com/ALUNx4yfcU

— CBS News (@CBSNews) May 29, 2020

As police officers were evacuated from the precinct, some reports said by a helicopter, the Minneapolis National Guard entered the city with 500 armed soldiers and fully armored Humvees. 

One Twitter user captures a video of “multiple Humvees probably from the Minneapolis-Saint Paul Air Station are headed to the 3rd Precinct.”

Multiple Humvees probably from the Minneapolis-Saint Paul Air Station are headed to the 3rd Precinct. Video from Snap Map. pic.twitter.com/IeVlvfb0zW

— Edgar (@edgar2k20) May 29, 2020

An up-close shot of National Guard Humvees on Minneapolis streets. 

WATCH: Vehicles thought to be National Guard seen about 39 mins ago in #Minneapolis (Given the military surplus program, where police gets military equipment, this could be the PD, but its very unlikely they have HMVS.) pic.twitter.com/YOiO5rb1n8

— AS-Source News / MILITARY〽️ (@ASBMilitary) May 29, 2020

More video of the National Guard mobilizing on city streets as social unrest spirals out of control. 

Update: The national guard are now on the streets of #Minneapolis after a third straight night of violent protests #GeorgeFloydpic.twitter.com/NVHcZpchM9

— Shark NewsWires (@SharkNewsWires) May 29, 2020

So here’s where shit hit the fan on Thursday night. Unicorn Riot News, documented the moment, via live stream when protesters stormed the Minneapolis 3rd Police Precinct building. Video from inside the police station shows protesters igniting fires, and at one point, someone lights a weapon storage closet on fire, and ammunition can be heard exploding. 

LIVE VIDEO: The fire alarms just went off at the third precinct. There are fires everywhere. Ammunition is exploding. #minneapolisriots #BlackLivesMatter pic.twitter.com/kcTcFvsFSD

— Minneapolis Updates (@EgyptianWeeknd) May 29, 2020

Protesters cheer in front of the police station as it burns.

Video of the police station burning.

The 3rd Precinct is burning to the ground. pic.twitter.com/QTdybRvNc0

— Keaon Dousti کیان (@KeaonDousti) May 29, 2020

Protestors chanting “I can’t Breath” as 3rd precinct burns #minneapolisriots #GeorgeFloydprotest pic.twitter.com/Tu1UH4gMvf

— Zach Boyden-Holmes (@Boydenphoto) May 29, 2020

Unicorn Riot News tweeted: “Minnesota National Guard w Humvees, rifles and fire truck posted up at an intersection a few blocks away from 3rd Precinct.” 

Despite President Trump’s ongoing battle with social media companies, and signing an executive order on Thursday afternoon to punish these companies for their treatment against conservative media, Twitter accused the president of violating its rules by “glorifying violence,” after he tweeted, looters at protests in Minneapolis would be shot. 

As for the chaos and destruction, here’s what happened last night along with raging fires and looting that continue into Friday morning: 

St. Paul O’Reilly is set ablaze pic.twitter.com/5QTnncNW1L

— Nick Ferraro (@NFerraroPiPress) May 29, 2020

Arbys. We had the meats. pic.twitter.com/oWp6ZdjKda

— ZΛY ⓥ (@Sekou_SZN) May 29, 2020

Huge fires in St. Paul
.#MN #Mpls #Mplsriot2020 #GeorgeFloyd #MinneapolisRiot #StPaul pic.twitter.com/hijlsXRfuI

— CrimeWatchMpls (@CrimeWatchMpls) May 29, 2020

2322 Washington Ave N, gas station on fire, tanks exploding.
AUDIO: https://t.co/eJ8c9qzQ3G
.#MN #Mpls #Mplsriot2020 #GeorgeFloyd #MinneapolisRiot pic.twitter.com/VMbEF7pqwC

— CrimeWatchMpls (@CrimeWatchMpls) May 29, 2020

View from I94 and Hiawatha.
.#MN #Mpls #Mplsriot2020 #GeorgeFloyd #MinneapolisRiot pic.twitter.com/EYgDft7UGE

— CrimeWatchMpls (@CrimeWatchMpls) May 29, 2020

Minneapolis burns. pic.twitter.com/XIZwNRbba1

— Jim Roberts (@nycjim) May 29, 2020

Jim Roberts, editor in chief at Cheddar, reports that “170 buildings damaged or looted” in the overnight hours.

Minneapolis unrest spread to St. Paul; 170 buildings damaged or looted. https://t.co/92BGdUd2vg pic.twitter.com/awyhgW98ZS

— Jim Roberts (@nycjim) May 29, 2020

Fires are still raging into the early morning.

It’s 4:48 am now in Minneapolis, and fires are out of control. Via @wcco.https://t.co/0K5P8O6OEA pic.twitter.com/lYuTg9Dnd3

— Jim Roberts (@nycjim) May 29, 2020

Smoke from fires are so dense, local weather radar is picking up on the “15-mile smoke plume.” 

Radar image shows 15-mile smoke plume rising from firest in #Minneapolis following third night of violence. https://t.co/0K5P8O6OEA pic.twitter.com/ymiD6ujbpG

— Jim Roberts (@nycjim) May 29, 2020

Fires continue to rage as daybreak arrives. 

Day breaks in #Minneapolis. Live feed from @WCCO https://t.co/fmS00Tl2xE pic.twitter.com/akUjNJQvtc

— Jim Roberts (@nycjim) May 29, 2020

Businesses continue to burn near Third Precinct headquarters in #Minneapolis. Live feed via @wcco: https://t.co/fmS00Tl2xE pic.twitter.com/zkCq9DaKUg

— Jim Roberts (@nycjim) May 29, 2020

Minnehaha and 27th Ave S, one block from Minneapolis Police’s 3rd Precinct, 6:40am. MFD fighting fires along 27th. State Patrol and conservation officers formed line. pic.twitter.com/zquyaiC163

— Tony Webster (@webster) May 29, 2020

Perhaps what is most notable about the whole farce is the fact that many local residents – not just white ones – are furious at what the “thugs” are doing.

As Summit News reports, a video clip shows a black woman and former NAACP chapter president trying to collect medication for her daughter outside a Target store in St. Paul telling rioters “these motherf**kers need to go home!”

“Leave this shit alone – “these motherf**kers need to go home!” she shouts, “these people don’t give a damn about George Floyd.”

Diane Binns, 70, of St. Paul is angry at the people here. Binns came here to get medication for her daughter. pic.twitter.com/GA1EJpx4XL

— Ricardo Lopez (@rljourno) May 28, 2020

The woman subsequently identified herself as Diane Binns, former president of the NAACP St. Paul from 2016-2018.

Critically, for the narrative-minded among you, she says she attended the initial protest against the killing of Floyd but after 30 minutes realized “it was going to be a riot, so I left.”

America is quickly descending into chaos as social unrest could spread to other major cities this weekend. Wealth inequality in many inner cities is at record levels. More than 40 million people are unemployed with a crashed economy, and people are already furious about virus lockdowns. This all suggests a perfect storm of unrest could flare up across the country. 

We warned of the possibility of this in late March, “West Faces “Social Bomb” As Pandemic Sparks Unrest Among Poorest.”