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It Literally Looks Like a Nuke Went Off – We Are Witnessing the Costliest Fire Disaster in U.S. History by a Very Wide Margin

by Michael Snyder
January 9, 2025

(The Economic Collapse Blog)—Some of the images of the destruction that has taken place in the Los Angeles area are hard to believe.  We are being told that approximately “75% of Pacific Palisades has been completely leveled by fires”, and the use of the phrase “completely leveled” is not an exaggeration at all.

It literally looks like a nuke went off and wiped out everything.  There have been plenty of fire disasters in California before, but never anything like this.  At this point, Accuweather is projecting that total economic losses will be “between $52 billion and $57 billion”…

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The blazes — which are ripping through some of the nation’s priciest real estate — are likely to cause between $52 billion and $57 billion in damages and economic loss, according to a preliminary AccuWeather estimate.

That may sound like a very high estimate, but JPMorgan analyst Jimmy Bhullar came up with a very similar figure…

A separate estimate from JPMorgan analyst Jimmy Bhullar also pegged total economic losses from the LA fires at close to $50 billion, the Wall Street Journal reported Thursday. That total includes insured losses at more than $20 billion and “even more if the fires are not controlled,” Bhullar said.

Those losses would make the Los Angeles-area infernos the costliest wildfires in U.S. history.

Previously, the Camp Fire in 2018 was the most destructive wildfire in history — causing an estimated $12.5 billion in insured losses, WSJ said.

Read that last sentence again.

Prior to 2025, the costliest fire disaster in U.S. history caused 12.5 billion dollars in insured losses.

This disaster is going to beat that by a very wide margin.

One of the reasons why this disaster is going to be so costly is because homes are being destroyed in an area where home values are extremely high…

Some of the worst damage is located in Santa Monica and Malibu, where median home values are over $2 million, AccuWeather said.

On Thursday, multiple fires continued to spread all around Los Angeles.

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Sadly, it was being reported that the Palisades Fire and the Eaton Fire were still zero percent contained…

Firefighters on Thursday continued to battle multiple deadly wildfires that erupted across Los Angeles, creating an apocalyptic scene as residents fled the raging infernos.

At least five fires were active in Los Angeles County, scorching more than 40 square miles across the region, according to Cal Fire. The Palisades Fire in the coastal Pacific Palisades community and the Eaton Fire, located east in the foothills of the San Gabriel Mountains, remained the largest blazes with 0% containment.

Why aren’t they able to contain these fires?

So far, over 2,000 structures have been destroyed, and more are catching fire with each passing hour…

Out-of-control blazes are still raging in Los Angeles, with firefighters unable to contain one of Southern California’s worst natural disasters in history.

Roughly 30,000 acres were on fire, and at least five people were dead early Thursday, with more than 180,000 residents ordered to evacuate, and more than 425,000 without power. More than 2,000 structures have been lost in the Pacific Palisades fire and in the Eaton fire in and around Altadena, with critical fire weather forecast through Friday night, local officials said. Forecasters said no rain is expected over the next week.

This disaster is far from over.

And what is making things even worse is that arsonists have apparently been trying to start additional fires.

In fact, podcaster Andrew D. Huberman says that he literally witnessed this happening…

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Huberman, who has 5.2 million subscribers to his health podcast Huberman Lab, took to social media platform X to share the footage, urging people to ‘call in any activity’.

He wrote: ‘People are lighting fires in otherwise non-burning urban areas of LA.

‘Saw this happen first hand in Santa Monica. Called it in & fire dept & police responded.

‘Stay safe and call in any activity ASAP. We don’t need more flames out here.’

Why would anyone do such a thing?

Have they gone completely and utterly insane?

There should be absolutely no tolerance for anyone that is attempting to set new fires in the middle of a major fire emergency such as this.

In areas where fire has already come and gone, many are discovering that there is nothing left of their homes except for a pile of ash…

Some residents ventured back to areas the fire had already swept through, where brick chimneys were left looming over charred waste and burnt-out vehicles. The remnants of a tattered and scorched American flag flapped from a pole.

“I had just come from my family home where my mother lives that was burned to a crisp … And then I came up to my home and – same thing. It’s completely dust,” said Oliver Allnatt, 36, wearing ski goggles and a filtered face mask as he took pictures of the ruins. “Basically just a chimney stack and a pile of ash. I mean, it’s something out of a movie.”

Many of these homeowners will not be able to rebuild because they had their insurance policies canceled.

One woman that was interviewed by KABC was trying to ward off the fires with a garden hose because the home where her parents have lived for more than 70 years was no longer covered by fire insurance…



Lynne Levin-Guzman stood in the front yard of her 90-year-old parents’ home in Los Angeles County, California, trying to protect it with a garden hose — because their insurance company no longer would.

“I know I’m not supposed to be here, but this is my parents’ home and they just lost — they got canceled from their fire insurance. So they’re dealing with this,” she told CNN affiliate KABC. “They’ve lived in this house for 75 years and they’ve had the same insurance and these insurance people decided to cancel their fire insurance.”

“And they wonder why people leave California,” she added.

I couldn’t have said it better myself.

As I discussed yesterday, I simply do not understand why anyone would still want to live in California at this stage.

Yes, there are good paying jobs in the state and the weather is nice.  But in recent years California has been hit by historic disaster after historic disaster.

Sadly, this is just the beginning.

A lot more chaos is on the way, and natural disasters will continue to be a major theme throughout the rest of 2025.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

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Two Storms, One Harvest

Empty Shelves

Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.

What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.

Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.

This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.

Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.

Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.

The Fertilizer Clock Is Already Running

While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.

The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.

Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.

The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.

Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.

The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?

The System Has No Slack Left

The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.

Today’s supply chain challenges are tomorrow’s hunger crisis.

There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.

The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.

What Joseph Knew

Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.

Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.

Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.

Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.

None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.

Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.

Comments 6

  1. SilenceDoGood says:
    2 years ago

    For fire management, the first thing that needs to happen is to cut down every single palm tree and eucalyptus tree.

    Reply
  2. Nunyo says:
    2 years ago

    Look on the bright side – they can now build one of the 15 minutes cities they want to implement so badly.

    I’m sure that wasn’t the goal of the arsonists all along or anything.

    Reply
  3. Ross says:
    2 years ago

    I’m just chalking it up as an act of God. Burning down one of the biggest and most famous cities in the world while they try to stop it is one thing, but to burn it down in the dead of winter…

    I think the overall apathy of the nation might surprise you. Most of us have wanted L.A. to un-exist for some time now. Look at all the filthy, Godless people in this beautiful state. The countless millions of lawless foreign invaders. Unholywood, etc.

    Christians should be thanking God, and possibly requesting more wind.

    Reply
  4. Thermos says:
    2 years ago

    California is a near perfect State with 4 seasons, the beach, good weather and snow if you want it. That, unfortunately meant it would attract the leftist, the haters of America, etc., to degrade it so nobody can enjoy one of our most beautiful and complete States.

    Don’t leave California. You make THEM leave California.

    Reply
  5. Hap says:
    2 years ago

    Just wait until the resident of the burned homes are told they have to pay their property taxes for a home that burned down

    Reply
  6. Hap says:
    2 years ago

    Just wait until the owners of the burned homes are told they have to pay their property taxes for a home that burned down

    Reply

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