Wednesday, March 4, 2020

Symptoms Worse Than Virus

Everyone is talking about the virus. I understand that no one wants to risk sickness with a chance at death. However, this is just a version of a flu in flu season. Dear Reader, we have a flu season every year. People catch it. Some will die. This is a part of living. In China there is presently 90,000 cases, but less than 3,000 have passed. The global communities ratio is similar. It is good to be aware of dangers, but we have more serious threats in our present economy and environment.

Malaria

Now, that is a dangerous bug. It kills over 40,000 people each and every year. Be thankful that this sickness does not mutate into a more global danger. With that said, the present fears caused by the corona bug will cause supply chains to suffer. There are many small companies in China that could collapse. This could have a chain reaction more dangerous than the virus. Even if the Chinese government intervenes and they will, it will take time to ramp up production. Many items are seasonal. Those orders will not be needed, however the repercussions of lost product will hit bottom lines in all corporations throughout the world. The next earning season will be a disaster. It will create new fears. These worries will show up in the stock exchanges.

Vaccines

President Trump's reply to this virus crisis shows the weakness in him and the GOP. When it comes to doing something for American citizens, the republicans fall on their face. Our nation is blessed to have some outstanding talent like doctor Anthony Fauci. He was willing to help, but conflict with the government policies makes him a no show. Instead we get the vice-president. Why, you ask? Because republicans cut health care. We don't even have a group of doctors at the CDC to answer any alarms like this virus. We put all our money into the wasteful hands of the military. If anything, this point should remain in the media. It should be a central issue in this election year. Then, there is also no money for our environment or pollution. This is where the money and government should be.

Symptoms

Because of the apparent ramifications of the virus to supply chains and production, other related needs like oil and equipment will not be needed or go into delay. This will show up in bottom lines. This is why stock exchanges throughout the world are declining. Pressure will be put on central banks to address the needs of firms to which many will not be able to comply with their debt, payroll, etc.

But...

this is a big butt, central banks have already provided cheap money. They have set their interest rates at historical lows. Negative rates are already present in many nations. What to do?

Capital controls...

will be coming along with a host of other regulations. Governments and central banks are hoping that the flu will pass. They will preach a V-shape recovery. They will say, "When the warm weather comes, the economy will roll again."
Meanwhile, regulations against cash will come into play.
Believe it or not: Australia has proposed a law that gives a $25,000 dollar fine and two years in jail for anyone who makes cash transactions of $10,000 or more. This is stealing your economic independence. The law will be sold to prevent money laundering, tax evasion and terrorist. What they are doing is limiting your financial options while the same government is deep in debt. This type of contagion is spreading to all debt laden fiat governments. By the way the US 10-year note broke its record low at 1.31% to form a new record low of 1.00%. Negative rates are on the horizon. The next low should test .23%. This is fatal to everyone's economic freedom. It tells you that the Federal Reserve is a failure like we maintain at Evolution. We expect the Fed to make an announcement about cutting rates again in the very near future. It came sooner than we even realized on Tuesday. They cut a half point. Debt is there only remedy. It is all they know. The debt to GDP ratio will climb.
This has been expressed before by Evolution, but it is more clearer to you, End the Fed!

Other signs...

Even if the economy does do a V-shape correction, the damage has been done. The writing on the subways walls are being fulfilled just as JFL said that the interest rate lows will be tested. He now says that the recent lows in the market will also be tested. As for the prophecies on the walls, they may be hard to see. Why, you ask? Because there will be homeless sleeping against them.
This is another example of GOP cuts that effect US citizens. The Dept. of Urban Housing claims that there are only 500,000 homeless in the US. People, California alone has 250,000. The Department of Education tallies show that they have 1.3 million students who are homeless within our school system. Stats are misleading and wrong, especially if a republican is head of the department. Not that the democrats are any better. When President Obama was signing the stimulus package, he basically gave away taxpayer's money to the rich. He offered troubled banks to investors with government protection. This makes the investment risk free. These banks were bought by greedy people like Wilbur Ross and Steven Mnuchin to which both work for President Trump. These two were the leaders in foreclosing on homes. They both became billionaires by taking citizens homes. They have no conscience.
The stats on homelessness keeps growing with public awareness. The city of Dallas has had back-to-back 9% growth in homelessness. San Francisco's homelessness grew by 30% in 2019.
All of the above and many more are the reasons why America needs a new third political party. The cornerstone purpose should be a US that has less military and no foreign entanglements. The other main aspect should be to protect US workers. If a firm outsources production, then put tariffs on that product. It is no longer American. In a related aspect immigration should be limited until our economy works for all Americans. When we can read the writing of new prophets on the subway walls, then we can allow immigration. As it stands now, immigrants are competing for low wage jobs to which does not provide enough income to be able to exist in our culture. Homelessness reflects this contagion.