An Economic Update ... It appears that we will have a Recurrance of the CaronaVirus in the Fall, which will mean another shutdown ... So I will make the following Predictions ...
1. The Stimulus check folks received last month will go on indefinitely. We will eventually call it UBI, and it will replace what we know as Social Security for Everyone. Clinton signed the budget in 1995 that moved the Social Security Fund into the general Fund. We have seen 30+ Million folks file for Unemployment in the last 6 weeks ... It will be 50 to 60 Million by the end of the year, and we had only about 110 Million Folks in the Work force on Jan 1st, 2020 ...
2. We will NOT See the Federal Govt Buy Shares in Companies and move them into a GSO/GSE organizations like what happened with Fannie Mae, Freddie Mac, and Ginnie Mae in 2008. They will get some bailout money and be allowed to be restructured. Trump has already said this ... It is Good in that bad debts will get translated into Good Debt.
3. The Health Care industry is currently collapsing as everything is based around the Coronavirus and Emergencies ... The Virus itself has been much less than expected, and All Hospitals are suffering from the elimination of whatever would be consicered non essential medical care. Doctors, Dentists, and Opthamologists are servicing few, and there are layoffs over the entire spectrum ... We will see Government funded Health Insurance to cover the Following ...
1. Catastrophic Health Care
2. Preventitive Health Care
3. Preexisting Conditions
4. Pharmaceuticals
This is much different than the Cadillac Obamacare Plan that covered 10 guidelines. This will work well for the country in the long term as it will shed those costs from companies. They can split the last 25% with Employees which we know as GAP Insurance.
4. Many Small and Midsie businesses will not reopen, and those jobs will go away. We will have a "Cold War" with China which will result in a lot of jobs coming back to the United Staes ... Also A Good Thing. It will take a few years.
5. The Following Industries will be hit harder than the Federal Govt can Possibly bail out:
- Airline Industry
- All Service Industries
- The Energy Sector
- All Tourism to include Cruise lines
- Transportation of all kinds
- Real Estate
- Education
- And a total Credit Collapse
6. We will see a total Global shift in money. We will have the Dollar for Use in the U.S. - All International Trade will be replaced with a Global Currency, most likely the SDR.
Protect your Assets Folks ... The Next Generation will be very unhappey with the fact we stole their future
Best of Luck - Shermann
AI
