A Zombie Apocalypse is Coming
The number of Zombies are increasing, and they are growing fast. Do not underestimate their impact. The Zombie Apocalypse is coming, and it is coming soon. It will have an adverse effect on all of us. This is your warning.
When I talk about Zombies, I’m not talking about a reawakened corpse that feasts on human brains. That kind of Zombie is mostly fictional. One would be a fool to assume that kind of Apocalypse is near. Those Zombies will likely not infest our earth for several decades.
The Zombies I’m referring to are the unsustainable businesses who cannot even afford the interest payments on the debt that they hold.
Where are the Zombies Coming From?
In 2020 worker productivity halted to a standstill as governments shut down factories and selective businesses. Small businesses that cannot do business have a very low probability of making a profit. While more than 200,000 excess businesses closed during the pandemic, debt and the US Governments PPP program allowed many businesses to “survive” — in a life support sort of way.
With the current decrease in sales and production along with increased labor costs, inflation, and more expensive interest on debt, the number of Zombie companies is already at an all time high.
Remember. A Zombie company is not just a company that’s not making a profit, it’s company that doesn’t even have enough money to make the interest payments on the debt that they already have.
According to Stansberry Research,
Nearly one out of every four companies is a zombie. That’s the most by a long shot. It’s higher than before the last financial crisis and higher than the previous peak of 17%, set back in 2001.
These companies are living on borrowed time. They’re dependent on creditors who are willing to lend them more money when their debt comes due.
The next recession is going to bury many of them. Zombies are already choking on today’s higher interest rates and inflation. An economic downturn will be the final nail in the coffin.
While work and productivity diminished during the pandemic, demand for products increased in 2020-2021 when cash was pumped into the economy through money printing and reckless government stimulus. With travel and many services closed, the spending outlet for excess American cash went primarily to available products sold by the companies allowed to remain open.
Amazon and big box stores that remained open saw record sales and profits. Assuming this high demand spending was part of a “new normal,” businesses became overzealous in their outlook and engaged in restocking at absurdly high levels.
Overcrowded US ports and supply chain issues further exasperated the “in stock” woes. With empty shelves and no shipping containers in site, retailers additionally boosted orders to restock the restocks; anticipating that the in transit products would continue to sell at the same rapid pace as when American’s were receiving stimulus checks.
In attempt to meet the immediate overwhelming product demand, factories invested heavily in machinery and facilities to increase production. This expansion required additional debt.
Now both small businesses and large retailers like Walmart, Costco, and Target have a massively large supply of excess inventory. This excess inventory is primarily funded by debt which is increasingly getting more expensive with rising interest rates meant to curb inflation.
The artificial consumer spending boom on physical products during the pandemic is turning a Zombie problem into a full out Zombie apocalypse. As interest rates continue to rise and consumer spending declines, many companies surviving on debt life support are going to fail and go bankrupt. Jobs will be lost. We will see a recession and economic downturn like we have never seen before.
So what can we do about it?
In regards to stopping the Zombies, likely nothing. The poor decisions made by governmental and business leaders is sunk. Unless you have a time machine, the damage has already been done and cannot be reversed.
What you can do is have a positive attitude about the collapsing infrastructure and global economy. While others panic and violence and chaos surround you — you can have peace of mind and avoid the chaos through disc golf.
You can prepare now by joining Team Doomsday. Converse with and contribute to our likeminded group on Discord. Use your wisdom and creative aspirations to advance the future of this community by helping to test, name, and assign flight numbers to prototype discs. Your input can also help develop future disc stamp and products that will help us all prepare for the coming Doomsday.
Go down throwing.
Join Team Doomsday Here.
