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Some Predictions about Downstream Effects of COVID-19 Shutdown: 1

May 20, 2020 12 comments

Since I have been recently writing a lot of posts about the COVID-19 shutdown (link 1, link 2, link 3, link 4, link 5, link 6), I thought it might be a good idea to write down some more and specific predictions about the downstream effects of COVID-19 shutdown. So here are some of them, in no particular order of importance or significance. Just so you know, most are pretty depressing.

1] As I have mentioned many times in the past, jobs in the service sector dominate the economic landscape of post-industrial western countries. Just think about how many people you know who work in a place which makes a real physical product or processes some raw material vs all those who work at some shop, mall, hotel, restaurant or something similar. But this goes even further, as the largest employers in most towns and cities in this country are either hospitals, universities or school districts. While these more “credentialed” jobs might seem to be something other than service sector jobs- they are just that and you will see why that matters later in this post.

While jobs in the service sector might seem too heterogeneous to be hit by the shutdown and its aftermath, they share some common features that make them especially vulnerable to economic disruption. Firstly, majority of business in the service sector operate on much low margin of profit compared to some other sectors. For example, there is no service sector equivalent of Apple or Microsoft with a few hundred billion dollars stashed into overseas accounts and obscure financial instruments. In other words, consumer sector businesses and employers lack the very deep pockets of corporations in other sectors.

Secondly, as a partial consequence of the first, they are heavily dependent on highly predictable levels of businesses activity and are usually (especially in west) financially over-optimized to the point that they cease to be profitable or even viable when capacity utilization levels are not close to maximum. This is a fancy way of saying that restaurants, bars, hotels, airlines, most shops in malls etc become money pits if they are not operating at close to their maximum capacity for a good part of the year. FYI- this is less of an issue in some Asian countries where the proprietors often own the premises and are not so heavily financially leveraged.

But why does this matter? Well.. because even if they can survive a couple of months of being closed down due to helicopter money from the government, they are just not viable if forced to operate at 25% or 50% capacity for even couple of months. Sure.. restaurants which do mostly takeout (pizza joints, chinese) might survive, but the vast majority will simply close it down because there is no way a sane person would operate, for more than a couple of months, under poorly thought and uncertain regulations made up by bozos without any skin in the game.

And it gets worse.. the service sector is far less monopolized than other sectors of the economy, and the majority of business in it are either small or medium sized. Given that government largess seems to preferentially benefit the large and politically connected in every sector, it is likely.. almost certain.. that many small to medium sized businesses will go bankrupt or close forever. What makes this outcome especially problematic is that those business account for the majority of jobs in that sector. In other words, we will a large rise in long-term unemployment in the very societies which have decided (about four decades ago) to abandon their economies to the “free market” aka financialism and monopolization by choice.

To add insult to injury, the vast majority of people in this sector are under 60 years of age and therefore the least likely to die (less than 1 in 1,000 chance) from COVID-19. And here is what will happen next.. tens of millions will be unable to pay their rents, mortgages, student loans, car loans etc for a prolonged time. Of course, trying to throw so many people on the street and out of their cars will have some very nasty political repercussions- more so because the majority are young. Some of you might say.. but what about unemployment insurance? Well.. that amount paid by most western countries (but especially USA) is not adequate for covering majority of their bills- more so if you live in a medium to large city.

And it gets worse…

2] The whole “social-distancing” and “quarantine” bullshit along with dubious measures such as requiring everybody to wear mask in public perpetuates the atmosphere of a perpetual crisis. I liken these measures to the security theater we saw in USA after 9/11- but with the potential to cause infinitely more economic problems. Think about it.. would you eat out at restaurants with same frequency as before if you server was wearing a face mask and every alternate table was closed off with big stupid stickers? Would you go to a pub as often? What about a movie theater? What about shops in malls pestering you to disinfect your hands every time you walked into them? Would you buy as many clothes as before if you couldn’t try them out in fitting rooms?

What about airlines? would you take a flight as often if you had to deal with all that bullshit? What about vacations? Would you stay at hotels as often even if you still had a job? And all of this security theater for what end? To maybe slow spread of a highly infectious disease with an gross population IFR of less than 0.5% and mostly problematic in people over 70 and 80? A disease that does not cause symptoms bad enough to seek any medical attention in over 90% of those infected. A disease that is functionally asymptomatic in most people it infects? A disease that the vast majority recover from without any therapeutic intervention or long-term sequelae.

The vast majority of disease control measures deployed to stop this pandemic are closer to ritualistic virtue display than good science. Consider for example, face masks. Do they benefit people under 70 to the same extent as those over 70? And given the highly infectious nature of this disease along with very low mortality in most age cohorts, isn’t it a good idea to let non-vulnerable people get the illness and recover from it. thus conferring them immunity than wait for an effective and safe vaccine- which will likely take at least a few months. Now let me ask you another question- do you think I am the only one thinking along these lines?

It is becoming increasingly harder to maintain lock-down in many parts of the world and while those regions might suffer more death at first- it will become increasingly obvious that letting people under a certain age get infected while protecting the more vulnerable minority is the least bad option. Notice I said ‘least bad option’ because there is no realistic good option in the near future. You are really choosing between options that front-load death or those which spread far wider economic misery over a much longer time-scale. Personally, I choose the first and you can be sure that the majority will eventually choose it because the second one sucks far more.

Noe let me ask you a related question- what happens to the credibility of the people and institutions who pushed the second option. As many of you know, it is my opinion that Trump’s rise of power had a lot to the non-recovery of most people from the GFC of 2008 and continued neoliberal policies under Obummer. Imagine what such a crisis and much bigger repudiation of “credentialed” people and institutions would do for the political scene in this country. You might remember that in a previous post I made the case that rise of fascist and strong-men type leaders in continental Europe during 1920s and 1930s had everything to do with high rates of unemployment among men combined with a repudiation of the elites who led them into WW1.

You think Trump is bad? Just imagine the type of right-wing ‘populists’ that will arise in response to these stupid and ruinous lock-down policies. In future posts of this series, I intend to write about the impact of these stupid policies on schools, universities, future of “left”, effects on certain parts of manufacturing sector, municipal bonds, velocity of money, effect on rates of drug use and much more. But before I finish this post, let me say something else. If you think that a crisis of this extraordinary magnitude will make corporate-owned western governments question their faith in neoliberalism- think again.

And another thing.. this crisis will destroy whatever residual faith people in many countries still have in the WHO- but that is the topic of another post.

What do you think? Comments?

Aftermath of Pandemic Will Destroy Residual Trust in Mainstream Media

May 9, 2020 7 comments

In the past, I have written many posts about why (and how) the majority of people have now lost faith in a range of supposedly “objective” and “impartial” institutions. The takeaway from those posts was as follows: 1] No institution can be “better” than the average person who populates them; 2] All institutions, given sufficient time, will end up being run by cliques of incompetent sycophants; 3] Institutions created to solve any problem will always end up perpetuating that problem in order to remain relevant, 4] All institutions, given time, will either lose or expel their competent members and replace them with clever-sounding but ineffectual cock suckers, 5] These changes make said institutions increasingly incestuous, fragile and ineffectual. 6] While decaying institutions can keep going for some time on social inertia alone, sooner or later they will face a series of real-life challenges exposing them for what they have become.

The above stated pattern holds true whether the institution in question is the democratic party, presidency, AMA, Google or the mainstream corporate media. While I have a few things to say about the WHO, let us leave that for another post and focus on the corporate mainstream media. But before we do that, let us define the term. In my opinion, mainstream corporate media often referred to as MSM is best understood as official propaganda in so-called “democratic” countries. The scam works as follows.. to maintain the pretense of a “democratic” and “free” society, the corporation-controlled government allows certain trusted ass-kissers to label themselves as “objective” journalists. To demonstrate their alleged “objectivity”, these clowns are occasionally allowed to write or publish content that is slightly adversarial to those in power. But don’t worry, these presstitutes will never publish anything that will truly challenge the malfeasance of those in power or expose their sheer incompetence.

This is why, for example, very few journalists challenged the official narrative about the Vietnam war until it was obvious that USA would lose. Something similar happened in 2003, when almost no journalist would contradict the official bullshit about the Iraq War until it became painfully obvious that USA was going to lose this war too. Now you know why the media cheerlead the housing boom of mid-2000s until that house of cards crashed or why it supported an endless slew of “free trade” treaties until pissed off people in the MidWest elected Trump in November 2016. People who work in corporate media outlets are best understood as the modern equivalent of minstrels and troubadours whose livelihood is dependent on remaining in the good graces of their real patrons while they sing songs and tell stories about their patron’s nobility and competence to the masses. However, while the medieval audience of minstrels and troubadours saw them as nothing more than entertainment, more than a few people today (usually older) still see their modern counterparts as courageous truth-tellers.

To be fair, the decline of residual public trust in MSM began sometime during the 1990s. But why the 1990s and not say in the 1950, 60s, 70s or even the 80s? Well.. the early part of the 1990s was the first decade which saw a slow decline in living standards of some Americans. While this decline was initially restricted to blue-collar workers in some flyover states, it was different from other ones in past because it was irreversible. The thing is.. most people will go along with a lot of government bullshit as long as they believe that their present is secure and future is hopeful. The 1990s was the first decade in which some Americans had to finally face the fact that their lives were not going to get better. But why should that fact affect their ability to trust MSM? Well.. belief in the MSM is like belief in any religion or cult. People stop believing in religions and cults once those belief systems cannot satisfactorily explain the reality they face.

This is why material affluence does far more damage to continued belief in Islam and Christianity than continued poverty. Another example would be how urbanization has done far more damage to belief in caste system than any reform movement in Hinduism. Or why the plague pandemic in 14th century did more to damage to the hold of catholic Church over Europe than anything before that or since then. But back to the topic of this post.. many believe that the internet (especially Google, FakeBook etc) struck the fatal blow for MSM by depriving them of money made through advertising. While it is true that the Internet in general, and Internet monopolies in particular, did irreversible harm to the previous business model of many MSM outlets, they did not destroy its credibility. That was a self goal.

See.. media overreaction to 9/11, shilling for the Iraq war, shilling for the housing bubble, shilling for financialism of the economy, shilling for Obama, shilling for LIEbralism in an environment where the fortunes of most people in this country slowly but irreversibly went south was the real reason why it lost so much credibility- especially among people who were born after 1970. People went looking in the internet for alternative news because the establishment mouthpieces were clearly, deliberately and repeatedly misleading them. This is also why a reality show clown.. I mean host.. with a sketchy past could win the presidential election against a “qualified” and “credentialed” establishment insider in 2016. Partisan democrats (MikeCA) still want to believe that the election of Trump was an inexplicable aberration rather than the highly predictable consequences of establishment politicians (of both parties) ignoring the needs and interests of a large section of the population. And this finally brings us the topic of this post.

Many of you might have noticed that an endless parade of “professional journalists” seem to have a deep emotional and material investment in keeping the economy closed during this pandemic. While I won’t go into the details of why this is such an incredibly bad idea in this post (read my previous posts on covid-19), let’s just say that shutting down the economy without a definitive and feasible exit plan or crippling it with restrictions for a diseases that kills less than 1 in 400 people below 65 has far more dangerous medium- and long-term consequences than these ivy league morons can imagine. For one, unemployment rates over 20% (closer to 30 or 40%) in a country without a decent social safety net is a disaster waiting to happen. Trying to shout down and at people who want the economy to open in this environment is more risky than striking a storm-proof match in a room drenched with gasoline.

Then again.. this turn of events is highly predictable. The vast majority of presstitutes alive today fall into one of three categories- 1] People from rich families who attended the “right” universities and don’t need the money, 2] People from a less-privileged but still solidly upper-middle class background who aspire to ge in the first category and 3] Social climbers without much money but who still want to emulate the second type so they can become them. Notice that all of them are in it for the fame, prestige, exposure and yes.. some money. My point is that the vast majority of journalists today are in for for giving each other blowjobs, according to a strict hierarchy- of course. But notice what they are not interested in.. “objective” journalism.. you know that thing they all claim to be their guiding principle. But how can I be so sure that is the case?

Well.. just have a look at the bullshit.. I mean “news stories”.. they are peddling. It is all about ‘how COVID-19 is much worse than we think’ or some fake scare story about ‘how it is mutating into increasingly dangerous forms’. But wait.. there is more. If you start asking them about how the results of serological tests affect our perception of the real IFR of this disease, they will tell you with great certainty that all those tests used to determine the results they don’t like are bad- even though these dumbfucks haven’t studied medical microbiology. These pathetic losers are enthusiastically pumping up doomsday stories peddled by aspy shitheads with delusions of grandeur such as Bill Gates or dishonest guinea dagos who haven’t touched a single laboratory instrument for the past four decades such as Fauci.

And they are doing this while either ignoring the real and massive harm done due to shutdown of everything from elective surgeries and cancer treatments to places that offer haircuts and food. Ask them about how to help the tens of millions whose lives have been turned upside down for no fault of theirs to perhaps protect protect a couple of million (at most) very old and dying people warehoused in nursing homes. Do they have a plan or idea to help the far more numerous group? If not, why not? How do these dumbfucks think people are going to buy food, let alone pay rent in a few months from now? Sure.. opening the economy right now might kill 10-15% of all people living in nursing homes or assisted living facilities. But what is their fraction in the population compared to all those whose lives are being destroyed by this lockdown. Also think about what will happen once it becomes obvious that the IFR is much lower than these presstitutes are claiming it to be. Do they think that tens of millions will just forgive them for helping ruin their lives without adequate compensation.

You might not like my argument because it is too coldly utilitarian. But let me ask you another question.. given the way things are setup in this country, and how the course of events have proceeded thus far, do you have a better and more feasible idea?

What do you think? Comments?

Economic Fallout of COVID-19 Shutdown will Dominate 2020 Elections

May 3, 2020 17 comments

As many of you know, I have consistently held the opinion that social and economic fallout from overreaction to this pandemic is going to be far worse and consequential than the final death toll. In case you need a refresher, here are a few links (link 1, link 2, link 3). While yet another post about this general topic might seem tediously repetitive, it is my opinion that even supposedly non-corporate media-types are too fixated on the deaths of 81-year-olds in nursing homes to notice the absolutely unprecedented socio-economic damage and long-term consequences of this shutdown on many western countries. And yes.. the negative effects of this shutdown will be far bigger in western countries and wannabes such as India than their East-Asian counterparts.

1] Many serological surveys in areas with high rates of deaths due to COVID-19 have consistently shown that the number of people who were infected by this virus (and developed antibodies to it) but did not develop symptoms sufficient to seek medical attention is about 10-50 times higher than number who tested positive for the virus with PCR-based tests. Note that PCR-based tests can only detect active infection (in all patients) or post-infectious viral shedding (in a small minority). In other words, asymptomatic or mildly symptomatic infections account for the vast majority of cases. To make a long story short, serological surveys from even the worst hit areas with an older population suggest an Infection Fatality Rate (IFR) of less than 0.5%.

Even in areas of northern Italy that are full of old retirees and nursing homes, the chance of an infection leading to death is less than 1 in 200. Now I am sure that some of you are going to tell me that the present generation of serological tests have high error rates etc. And this is in spite of most of you never having performed a serological test let alone have an understanding of the factors which lead to false positive and false negative results in those tests. Once again, to make a long story short, the tests used in most of these surveys were independently validated by the researchers who used them and almost every single one had false positive rates below 1%. To put it another way, while some of the tests could be better, the vast majority were good enough to detect rates of seropositivity over 2%.

In many heavily affected areas, these surveys show rates of seropositivity in the 10-15%, 20-30% and even 50% range. Moreover, the geographical distribution of seropositivity rates in each survey tracks the death rate in those areas. But what does a discussion of seropostivity trends and extrapolated IFR contribute to a post on how the socio-economic fallout of this pandemic will dominate 2020 elections. Well.. let me spell it out for you. An infection, however contagious, with an IFR of less than 0.5% and most likely closer to 0.2% is not much worse than a bad strain of Influenza. Since the end of WW2, we had at least 4-5 Influenza pandemics with similar or slightly higher IFR rates. While some of these pandemics necessitated shutting down schools etc for a few weeks etc, none resulted in a generalized economic shutdown of the kind we are seeing today.

2] Given that the 2020 elections are in early November, which is about six months from today, you can be certain that general experience and many more serological surveys with even better tests will reveal an IFR of around 0.2% (1 death per 500 infections). Since this is no worse for most of the population (below 80 years) than an especially bad Influenza season, people who have been ruined and impoverished through the loss of their jobs and businesses will start asking some very inconvenient questions about the “official response” to this pandemic. Was a general shutdown really necessary? Given the mild presentation and low infectivity of this disease in children and young adults, was the closure of schools and universities really necessary?

Weren’t highly targeted actions meant to protect the most vulnerable (65+ and chronically ill) the better option- especially since we knew, even early on, that the disease caused the vast majority of fatalities in those groups? Given that this virus can easily spread in aerosols beyond 2 meters, how was this whole “social distancing” bullshit any different from post 9/11 security theater in airports. How was the decision to close “non-essential” retail and restaurants a good idea, when studies show that most transmissions occur in private residences, nursing homes, hospitals, cruise ships, aircraft carriers and other unusually crowded and enclosed areas. And the questions will keep get more problematic..

Why did so many elected officials not have a well-thought out (if somewhat unemotional) plan to reopen the economy? Even today, politicians from states such as NY and CA to TX and GA do not have a coherent and well-thought of plan for definitively reopening the economy- the key word being ‘definitively’. Do these elected dumbfucks think that pausing the economy for 12-18 months is possible? This question becomes especially important when it becomes obvious that the IFR is about 0.2% and there is a very clear way to identify those with the worst outcomes? Do these dummies have a plan to successfully develop, mass produce and mass vaccinate hundreds of millions? Given how badly they have bumbled thus far, why would you believe them? Why would you trust people whose poor decision-making skills have already ruined your life?

3] Talking about those who have suffered due to incompetent leaders making poor decisions.. how can all these unemployed people afford to keep on paying rents, mortgages, car payments, health insurance payments, university fees etc. While it might be tempting to point out that the Trump administration has been especially incompetent and stingy at delivering cash payments to average people- even countries which have done a much better job have not been able to make average people whole again. Small business in this country face a similar problem, because most of the trillions in government aid has gone to large companies and multinationals. Long story short, even if the economy all over this country was opened tomorrow, there would tens of millions who would be unemployed and many millions whose small businesses had failed for no fault of theirs. Do we have the political will to implement a decent social safety net?

Democrats, such as that corrupt dago from NY and that neoliberal from CA, are now positioning themselves as the new ‘resistance’ against Trump. They keep on mumbling random bullshit, which they don’t understand, such as “science based plans” for reopening economy etc. Are you fucking serious? Have these democrat dumbfucks even performed a back-of-envelope reckoning of the number (and percentage) of newly unemployed people and failed business in their state? Are they stupid enough to imagine that people won’t blame them for destroying their livelihoods? Then again the democratic party was stupid enough to nominate HRC in 2016 and that dementia patient.. Joe Biden.. in 2020. So, I guess it is possible. Also note how establishment democrats such as that hag with bad plastic surgery.. Nancy Pelosi.. and her compatriots have pretty much disappeared from the public arena. It doesn’t help that these losers haven’t come up with anything beyond a few “means tested” and very inadequate programs to help those affected by biggest financial crisis since the great depression.

Yes.. you read that right. The COVID-19 pandemic, specifically its aftermath, is the biggest financial crisis since the great depression of the early 1930s. The GFC of 2008 now looks almost quaint compared to how bad things have gotten so far, and we are nowhere near the end of this one. And you something else.. when such a large scale disaster or crisis strikes any country, affected people always look for scapegoats. The last time we had an election with over 20% unemployment in this country was in 1932, about 88 years ago- and we know how that went. Heck, even a now minor one like the one in 2008 made many people vote for a black guy who sounded good on TV than anyone remotely connected to that mess. Some partisan democrats (MikeCA) might think that this crisis will translate into a victory for his cult. I wouldn’t be so sure.. because in this crisis, democrats have visibly fucked up at least as much (if not more) than their republican counterparts- and it shows.

Establishment types in the democratic party seem to believe (almost as a matter of faith) that Trump’s fuckups will somehow magically hand them the presidency in 2020. However, as I mentioned in the previous paragraphs, there is more than enough blame to go around, and this will be very apparent by early November. At that time, many tens of millions of impoverished and angry people will want to find and lynch a scapegoat.. any scapegoat. Chances are that Trump’s rhetoric of “opening the economy for business” might sound far better to them than “lets keep it all closed (or close to that) until some undefined date in the future”. This outcome is especially likely once it becomes obvious that the IFR is somewhere between 0.2-0.5% and even lower (0.1%) in working-age population. In any case, the economic fallout of the response to this pandemic is going to totally overshadow the number of deaths from it by November 2020.

What do you think? Comments?

Aftermath of COVID-19 Shutdown will Deepen Political Divisions in USA

May 1, 2020 12 comments

Here is another prediction I am willing to make.. ready? I predict that the COVID-19 shutdown, specifically its aftermath, will greatly deepen existing political divisions in this country. To better understand what I am talking about, and get an appreciation of how far things have deteriorated, let me take you back to November 1984. In the presidential election of that year, Ronald Reagan won the electoral college in 49/50 states and got almost 60% of the popular vote. Interestingly, despite such a landslide victory for the republican candidate in presidential elections, democrats held their majority in the house and even gained a few states in the senate. If I told anyone who is not old enough to have remembered this particular election, perhaps someone born after the late 1970s, they would find this particular result to be highly implausible. But why was this the case in 1984 and more importantly.. what changed between 1984 and 2020 (or even 2000).

To understand what changed between 1984 and 2000, we have talk about the peculiar political environment prevalent in this country between 1945 and the late 1980s. To make a long story short, during those four decades there wasn’t much difference in the public and private positions of members from both parties. You could find tons of CONservative racist democrat legislators (even after 1968) as easily as you could find socially LIEbral republicans who were not especially racist. Even when attitudes changed (such as embrace of neoliberalism after late 1970s) there wasn’t much light between the positions of democrats and republicans. This is why republican presidents such as Eisenhower, Nixon and Reagan got along well with democratic legislators and JFK and LBJ got along pretty OK with republicans. When some living fossils such as Pelosi and McConnell bemoan the lack of “bipartisanship”, they are referring to this era.

Of course, the flip side of this bonhomie was that both political parties developed a knack for repeatedly screwing over the majority of their constituents, to benefit their donors, under the guise of bipartisanship. To make matters more interesting, the realignment of late-1960s also resulted in both parties gradually cultivating different voter bases. There is a reason why the republican party is today associated with the white working class in non-coastal states, while democrats are the party of affluent white coastal professional types + inner city minorities. 1984 was pretty much the last major national-level election where the majority of voters still saw themselves as part of a larger group. We can argue about which party abandoned which group or vice-versa but it is clear that by the late 1980s, the emerging divisions between political parties (and their bases) were ideological rather than socio-economic. But what does any of this have to do with future political divisions and how is any of this related to aftermath of this pandemic?

Sometime ago, I tweeted about something which can be summarized as follows: Trump’s electoral success was largely due to his realization that american politics was about providing empty reality-show theater, rather than competent governing. In other words, he figured out that most people had lost all hope in the system actually working for them and were only in for the stupid drama and dumb pet peeves indulged in by both parties since early 1980s. Since that time, politicians from both parties have been busy pushing for ever increasing levels of job outsourcing, de-industrialization while simultaneously defunding social safety nets, destroying job security, increasing costs of higher education, making housing less affordable and much more. Electoral turnout in this country is so low because people correctly assume that elections have no effect on public policies. The only way either party can get anyone to vote for them, nowadays, involves empty posturing on meaningless or minor cultural issues such as gun control, abortion or vague and equally meaningless ideological position such as ‘diversity’, ‘patriotism’ or support/disbelief in one set of charlatans.. I mean.. “experts” vs another.

Basically, this country and most other western countries are run by two (or three) “teams” of D-grade actors on the payroll of same corporate masters. This might sound cynical but just have a look at how poorly the political systems of most western countries have dealt with major systemic crisis for the past 2-3 decades. Now.. it is much easier to go slowly go downhill if you you start at a higher point than others. But ultimately the course of events throws up challenges which expose the decrepitude and incompetence of the underlying system. In the past two decades, we had at least three major events (9/11 and its aftermath, GFC 2008 and its aftermath and COVID-19 and its aftermath) that have exposed the allegedly competent western systems for their reality. But what does any of this have to with ever deepening political divisions in this country?

Well.. it comes down to how politics in this country has evolved. Long story short, it has become a meaningless team sport played by an increasingly geriatric and dumb group of elected leaders posturing against each other to win applause from their own crowd of partisan morons (such as Mike CA) rather than come up with even a half-decent solution to a problem- especially if such a solution angered their corporate masters. In the context of the COVID-19 pandemic, but more so in its aftermath, this has taken the following forms..

1] Neither political party in this country has a clear exit plan from the lockdown and its massive associated job loss, some of which will be long-term. On one side, the ‘scientism’ worshiping democratic morons are working themselves up into a frenzy every time somebody suggests that the broader economy has to reopened soon or the disease is nowhere as lethal as they want to believe. On the other side, republican idiots believe that simply opening the economy after such an unprecedented shutdown will miraculously restore the economy to its previous (and let us be honest.. pretty shitty) state- because of “free market” and “american capitalism” pixie dust. But more importantly, neither party has demonstrated any clue as to how to reopen the economy and keep it open while simultaneously fixing the very real human misery (a good part of it medium term or longer) caused by this shutdown.

And here is why this will matter. In Chapter 17 of the ‘Prince’ by Niccolò Machiavelli, he wrote “Men sooner forget the death of their father than the loss of their patrimony”. Let me explain that in terms of the COVID-19 crisis.. in the end, most people care far more about the effect of this pandemic and ensuing shutdown on their own financial status than the possible demise of their 81-year old parents or grandparents who have been warehoused in some nursing home. As many of you might have figured out by now, the aftermath of this crisis will cause a large sustained increase in unemployment in sectors of economy that have a lot young people- such as tourism, hospitality, retail and many part-time/ seasonal gigs (concerts, festivals etc). This will occur even if the lock down is lifted today. To make matters worse, there will be an unprecedented number of small-business bankruptcies which, once again will, occur even if the lockdown is lifted today. The point I am trying to make is you will sustained unemployment rates of over 30% in people under 40 and millions of small business owners whose whole sense of self-worth and livelihood will be destroyed for no fault of theirs. As you will soon see, this has an interesting historical precedent- specifically continental Europe in the decade after end of WW1.

Have you ever wondered why so many fascists came to power in continental Europe between 1920 and 1932? Well.. in each case (and this include countries in Eastern Europe) there was a massive increase in unemployment among young men, old and sometimes new political systems that were unable to adapt to new reality, tons of small-business owners who has experienced business failure due to finance-based consolidation and.. oh.. a party that appealed to these disaffected groups- often led by some charismatic individual. Italy had Mussolini, Poland had Pilsudski, Estonia, Latvia, and Lithuania had their own dictators, Hungary had Gyula Gombos, Austria had Engelbert Dollfuss, USSR had Stalin, Spain had Franco and Germany had Hitler. While each took a slightly different manner to power, the overall circumstances and forces which let to those outcomes were remarkably similar.

2] And this brings us to why the existing political system or establishment in those nations was unable to stop the rise of all these strongmen to power. The simple answer is.. the pre-existing political class of those countries was largely insulated and disconnected from the dire struggles of their fellow citizens during that era. They simply could not care, did not want to care and thought they could get away with it while still retaining their old positions in those societies. Today we are seeing something similar, among members of both political parties- but especially democrats. You might have many instances of members of the sinecured LIEbral classes lecturing to and scolding white working class and small-business types who are desperately looking for any sign of the economy reopening and things getting back to normal. These LIEbral shitheads, holed up in their nice suburban houses and condos while being paid via various secure streams of money for their useless jobs have the temerity to confidently tell everyone else that the economy is not going to reopen for 12-18 months while vehemently denying every bit of information that points to a different outcome truly deserve the Guillotine.

But the underlying problem is worse.. if that is possible. These LIEBrals (mostly of the democratic party persuasion) spend time fantasizing about the imminent death of working class people just because they want to get a regular paycheck. Did I mention that USA has a deliberately shitty social safety net and that the number of people without their regular income is closer to 50-60 million, instead of the 30-something million official number) right now. But wait, it gets better. These dumfucks, who decry the desire of working class and petit bourgeois for a return to ‘normal’ have no plan of helping them through measures such as cancelling rent, mortgages, auto and health insurance payments.. let alone give them some sort of universal basic income until the economy returns to some level of normalcy. AS I mentioned in one of my previous post, it would not be surprising if these LIEbral attitudes led to an electoral defeat for the democratic party in 2020 inspite of running against orange man and a bunch of assholes.

I will wrap up this post by giving you one more example of how clueless and disconnected these LIEbals are from reality. You might have heard about how some meat-packing plants have been temporarily closed because of local outbreaks of COVID-19. While I do not support the way these plants are run, especially the working conditions within them, I understand why keeping them open and running at this time is necessary to prevent food shortages, more panic buying and social disorder. But what do LIEbrals think? Well.. these retards are busy lecturing to poor people about their “excessive” meat consumption. I even saw a few urging people to adopt a vegan diet! Yes.. even in the midst of such a massive crisis, rich LIEbrals are busy performing virtue displays. If you still believe that political divisions in this country wont intensify in aftermath of COVID-19 crisis, I have a bridge in London to sell you.

What do you think? Comments?

Response to COVID-19 Will Destroy Democratic Party in 2020 Elections

April 20, 2020 74 comments

I was going to post an article about the stupid western LIEbral reaction to use of Chloroquine and Hydroxychloroquine to treat SARS-2 disease in its initial stages. FYI- there is a rapidly increasing amount of evidence from different parts of the world that standard dosages of both drugs started within first few days of symptomatic SARS-2 illness do significantly reduce (by about 4-5 times) the risk of hospitalization in its later stages. This is a big deal, as the percentage of older people who die after becoming sick enough to be hospitalized is much higher than those below 65. While writing that article, which will be hopefully post next, I had an interesting epiphany. In its briefest form, it is as follows: the reactions (and in cases, the lack thereof) by establishment LIEbrals to the economic crisis created by current dumb and ineffectual measures deployed to contain this coronavirus pandemic will likely sink the democratic party during 2020 elections.

While this particular take on what is clearly a rapidly evolving and multifactorial crisis might seem premature, especially since the election is almost 6 months away- my analysis is based on solid factors which most LIEbrals are ignoring at their own peril. I am sure some of the more ardent worshipers of LIEbralism (MikeCA?) would like to tell me how the republican party will suffer the biggest electoral losses in generations since Trump (and by association, that party) botched the initial response to this pandemic. To which I say.. sure, Trump and the republican party certainly botched the initial response to this pandemic and ensuing crisis- but so did every other major western country (from UK and France to Italy and Spain). But let us be honest about something, we have already passed the point where the initial botched response still matters to most people. What matters now is how the political parties in power in those countries deal with the massive economic fallout caused by measures instituted to allegedly contain this pandemic.

Some of you might say.. isn’t the mortality due to this pandemic still the biggest cause for concern. Well.. based on a preponderance of evidence, it is not and let me explain how I reached that conclusion. A number of recent population studies which look for specific antibodies generated in response to SARS-2 infection seem to strongly suggest that the percentage of population who were exposed to this infection and went on to develop an asymptomatic (or mildly symptomatic) form is about 10-50 times higher than the cases who were ill enough to be tested by the PCR tests used for detecting viral RNA. In other words, rate of functionally asymptomatic infections for SARS-2 is at least 10 fold higher than previously thought- especially in otherwise healthy people below 60. While there is no shortage of doomers pretending to be “statisticians” who want to tell you that all that data is somehow wrong, the number of studies from different countries (using different test kits) which support the high rates of asymptomatic infection is now so high that a non-biased person would have to admit that it is true.

So why does this matter? Well.. it immediately changes the Case Fatality Rate (CFR) of SARS-2 from 1-3% in countries with extensive PCR-based testing to lower than 0.3-0.1% or even lower for those under 65. While a CFR of about 0.2% is higher than most yearly influenza epidemics, it is in the range of major influenza pandemics such as the one in 1957-1958. That pandemic killed about 100k people in USA when its population was almost half of what it is today. At that time it was seen as an unfortunate, but still acceptable, body count and things improved quickly once it was over. My point is that, heartless as it might seem, a body count of 200k (mostly old people) is not going to have a long-term adverse effect on this country. However a prolonged shutdown which creates 30-40% unemployment rates on top of massive number of business failures is going to cause far more problems that burying or burning the corpses of 200k mostly very old (and white) dead people. And yes, I have factored in the differences in rates of death by race as well as the percentage of each group in population.

But what does any of this have to do with why the official response to this pandemic will likely destroy the democratic party in 2020 elections. To better understand what I am going to talk about, let us first spell out a few obvious facts. Firstly, elections will occur in early November 2020, when the economic impact of the shutdown due to official government response will be a far bigger issue than the number of old dead people. As a consequence, the way both parties respond over next few months to the growing economic disaster will be far more relevant than it is right now. But.. wouldn’t that favor the democrats, since they are allegedly the working class party? Well, in case you haven’t been reading what I have been writing for last few years- the democratic party became the party of credentialed suburbanites + professionals a long time ago. Sure.. some black people vote for them- but that is largely due to historical affiliations among older black people. Neither the democratic party, or its republican equivalent, cares about black people or most white people for that matter.

So what have the democrats have been doing so far?

1] It is no secret that democrats haven’t been doing much, if anything, to help the working class they claim to represent. Most of the two-something trillion dollars in first bailout bill has gone to large business pretending to be small ones. In fact, republican dipshits such as Marco Rubio and Josh Hawley are the reason why it even contains a provision to bail out small business. But it gets worse.. democrats did not seriously try to pass a 2k/month universal unemployment provision in that bill. That number is important because every west-European country, Canada, Australia etc made sure that even their gig and contract workers could easily get at least 2k/ month in addition to generous (75-80%) support for both large and small business to keep their employees on payroll. Now LIEbrals (like MikeCA?) might say that such a measure would not have passed in the senate. Well.. they never tried seriously, so we don’t know. But even if it hadn’t passed, trying hard to pass it would have shown potential voters that the party cared about them- especially important in a presidential election year.

Instead democrats are totally banking on Trump screwing up the response to this pandemic. Yes.. you heard that right. Thy have no other plan to win the 2020 elections other than hope and pray that Orange Man fucks up so badly that people will just vote for their dementia patient aka Joe Biden. To make matters even worse, if that is possible, their response to the crisis has been either cringeworthy or downright repulsive. Some of you might have seen Nancy Pelsoi displaying the expensive contents of her super-expensive refrigerators on national TV at a time when about half the country don’t know whether they can afford food within few weeks and food banks in many cities have been swamped by tens of thousands who had never used such services in the past. Or look at that stupid cunt who is the current governor of Michigan acting like an out-of touch autocrat or the governor of Virgina using this opportunity to push through ‘gun control’ legislation. It is as if democrats at both the national and state level are completely out of touch with the needs and demands of their supposed constituencies.

2] Many of you might have also seen the decrepit MSM giving tons to air time to Andrew Cuomo and to a lesser extent- Gavin Newsom. They are doing so to project both of them, especially the former, as future potential presidential candidates. The only problem is that they are both very mediocre and borderline incompetent leaders with serious electability issues at national level. Don’t believe me? Let us go through their records. Cuomo is a part of a political dynasty which benefited from being in the 2nd most openly corrupt state in USA- after neighboring New Jersey. Andrew’s biggest achievement has been his full throated support for neoliberalism and working with the republican party to keep in his state to maintain that status quo. Did I mention NY is one the most unequal states in this country. As far as his supposed ability to contain this pandemic.. well, it was Cuomo (who against the better judgement of Bill de Blasio) delayed any serious response to the pandemic in NY state by about 2-3 weeks. Under Cuomo, NY reduced its hospital bed count by over 20k in the last few years to build luxury condos and now he also cut Medicaid funding in the most recent state budget.

Gavin Newsom, while not as venally corrupt as Cuomo, is nonetheless a highly problematic potential democratic party leader at national level. From his support of severe ‘gun control’, SJW causes such as trangenderism to being ineffectual at actually solving real problems such as very high levels of homelessness and economic inequality in that state. At best he is a neoliberal who is not as bad as Nancy Pelosi or Joe Biden, assuming the later still knows who he is. But the much bigger problem, as far as 2020 elections are concerned, is how they are acting right now. See.. both are trying to position themselves as ‘resistance’ to Trump, which means opposing everything put forth by Trump- irrespective of the merit of each idea. That is why both are opposed to any concrete and defined plan for reopening the economy in their states. But why would this matter? Well.. because other states, especially those run by republican governors will reopen sooner and while they may initially suffer from outbreaks of SARS-2, their economies won’t be as thoroughly trashed as those of NY and CA. And this will matter come election time.

As I have repeatedly mentioned in my previous posts on this general topic, USA has neither the bureaucratic framework or ideological bent to quickly provide effective levels of financial help to its citizens in times of crisis. Consequently, this shutdown is going to an incredible amount of socio-economic damage to everyone in this country who is not rich, well connected or has a sinecured job. Sure, some will be hurt more than others but even most doctors are seeing their income plummet because of the cancellation of scheduled surgeries, normal medical procedures and reduction in appointments. The same is true for supposedly resilient entities such as universities, municipalities and many more. Even if the government decides to bail them out, under the present set of rules, most of the money will not reach the people it was intended to help (employees, contractors, small business dependent on them etc). In other words, a prolonged shutdown will cause exponentially increasing amounts of damage to economy and those states which are closed for a longer time (to show their resistance to Trump) will inflict the most suffering on their residents. And this will be weaponized by Trump reelection campaign.

3] Talking about the ‘resistance’.. it is an open secret that corporate media and democrats want Trump to fail. To be clear, I am not suggesting Trump is competent- but then again, there is no evidence that his predecessors were any better than him. Sure, they were somewhat “better spoken” in public, but their policies were just as neoliberal, poorly thought out and shitty as his. You might have seen these ‘resistance’ bullshitters convert each press briefing into an adversarial nightmare and constantly question his actions. The problem with such behavior is that it highly counterproductive. Because the corporate media is so openly adversarial to Trump, he can claim false persecution and thus divert attention from this many actions which are actually stupid and shitty. There is a reason why “RussiaGate”, “Mueller Report”, “UkraineGate”, “impeachment” and now this crisis has not had any impact on his popularity. The relentless but totally ineffectual media attacks on Trump are, ironically, what keep his popularity from going down.

It does not help that all the losers clamoring for prolonged shutdowns in media, and on social media, are limo LIEbrals who have enough money and other resources to weather them. These dumbfucks have little, to no, connection or understanding of how the majority of people make a living. This position is going to become increasingly problematic as more and more evidence from other countries will show that specific antibodies to this virus in asymptomatic people (evidence of exposure and recovery) are far more widespread than currently believed- which implies that CFR is significantly less that 1-1.5%. At that point, I predict that these resistance dummies will try to sabotage testing of people for antibodies or claim that “antibodies in recovered patients do not offer protection” because they want to prolong shutdown and cause more economic damage to make Trump lose is reelection bid. Needless to say, such behavior is only going to make Trump and the republicans look like the better option in November for most of the country.

In summary, the reaction of establishment LIEbrals and corporate media to this pandemic is very likely to severely damage the electoral prospects of democratic party in the 2020 elections.

What do you think? Comments?

Inept Western Response to COVID-19 Will Result in Public Backlash: 4

April 13, 2020 26 comments

In the previous post of this series, I made the point that all of the dumbshit “democratic” western countries and their sad imitators (India etc) have not thought through the full consequences of shutting down most of their economies in response to the SARS-2 pandemic. Because, if they had performed any due diligence, it would be obvious that stopping the collection of all types of rents and bills had to be done before shutting down other things. It is also no secret that some large countries (USA and India) lack both the bureaucratic and financial infrastructure to deliver timely and sufficient money to most of their people who have lost income because of this shutdown. Even those who have done a far better job in this regard (Denmark, Canada, UK etc) are still half-assing it by not covering all their people and cancelling economic rents. Bad as these things are, these are not their biggest failures- so far.

In my opinon, the single biggest failure (thus far) has been the complete lack of any exit plan- something which Kim Iversen alluded to in one of her many videos. Any politician, bureaucrat or “credentialed epidemiologist” who cannot present a definitive and feasible exit strategy from this thoughtless lockdown is not living in the real world. While there will be ample opportunity to dunk on politicians and bureaucrats later on this post (or series), let me start by exposing the utter incompetence of all those “credentialed epidemiologists” who staff the public health departments of western countries. You know who they remind me of.. WW1 generals. If you have read a significant amount of history, you will be aware that the vast majority of generals in WW1 on both sides were epic disasters and clusterfucks whose decisions caused far more casualties than if they hadn’t been born. But why were they such massive disasters? Well it has to do with how they ended up in their positions and careers prior to 1914.

See.. for almost 50 years prior to WW1, there was no large scale warfare in western Europe. The only real action most soldiers and generals in that part of world saw from end of Franco-Prussian War in 1871 to the start of WW1 in 1914 was restricted to putting down rebellions in colonies and a few small skirmishes in the Balkans. Therefore, an entire generation of western generals had never faced anything beyond dark-skinned tribals with spears and a few old firearms. To put it another way, the upper military ranks of western countries were filled with shysters and dummies who had reached their position via family connections, patronage and bribes, flattery and good social manners etc. Sure.. many of them had attended “prestigious” schools and universities and were capable of accurately reciting back whatever they had learned in them. To put it another way, they were incompetent posers who could nevertheless give the appearance of competence. But reality cannot be fooled and WW1 exposed them in a most unflattering manner.

The current crop of “credentialed epidemiologists” in USA and other western countries are, in many ways, similar to WW1 generals. Here is why.. firstly, neither has actually faced a large scale challenge of this magnitude in their entire careers. Sure, there have been bad influenza seasons and occasional outbreaks of some exotic diseases in Africa or East Asia- but dealing with routine or small-scale problems does not prepare one for making decisions during large scale meltdowns. Secondly, just like their military counterparts a century ago, the bulk of these “credentialed epidemiologists” went to “prestigious” universities where they learned to regurgitate the alleged “wisdom” of those who had fought past wars while also building up their social networks. Most importantly, their training and experience leaves them particularly unequipped to think outside the box of “conventional wisdom” and “established norms”. You know.. in some ways, they remind me of the current democratic party establishment.

But why does any of this matter? The brief answer is as follows: any strategy or plan is always subject to the constraints of the system it operates within and available resources. Sure.. you can always find new ways to unlock resources that were previously unavailable or partially bypass existing constraints, but in the end the feasibility of any given plan is dictated by what exists and is available at that time. Let me explain that concept with a couple of examples- the stalemate of trench warfare in WW1 was ultimately broken by using shock-troop tactics by Germans and combined arms operations by the other side- but both approaches, though new, were extensions of what was feasible at that time. Similarly, in WW2- the development of jet aircraft made it possible to fly faster, V1 and V2 demonstrated that cruise and ballistic missiles were not pipe dreams. However, once again, they were extensions of what was feasible at that time.

My point is that physical, logistical and technological feasibility of any strategy or plan of action is central to success- whether you are waging war or trying to control a pandemic. With that in mind, let us talk about something almost every commentator in mainstream media seems to have missed. Ever wonder how you can motivate people to follow a plan of action which might be painful in short-term, but potentially rewarding in long run? The more delusional of you might think that fear would work. However any close reading of history shows that fear by itself, at best, can only buy you a short time (weeks to months). So what else can? The answer is hope.. specifically hope for a better future. In other words, a leader with a reasonably feasible plan to overcome whatever adversity they are facing will always motivate people to go along for a far longer time than somebody who is using only fear. Hope trumps fear. With that in mind, let us go through their stupidities, not necessarily in order of importance.

1] ‘Social distancing’ and shutting down most of economy is unworkable over any period longer than a few weeks. Even countries which provide far more generous direct monetary support to their population than USA have been either unable/unwilling to provide full income replacement. Consequently, any shutdown that goes on for more than a few weeks will definitely have very nasty downstream and knock-on economic effects. But why does this matter? Well.. here is why. SARS-2 aka COVID-19 has a maximum fatality rate of about 1.5% in populations which conduct extensive testing + factoring in asymptomatic or very mildly symptomatic patients who recovered (not counted in official positive numbers). Compare this to massive and inevitable job loss in the service sector due to ‘social distancing’ guidelines and the inevitable closure of many small business.Long story short, shutting down economy for more than a few weeks gives results in unemployment rates reaching 30% and beyond. Note that this will be on top of all the other problems caused by many people being unable to pay rent and other bills.

To put it bluntly, the number of severely pissed off people who are unemployed and in poverty will exceed the potential number of who might die by a minimum of over 20 times. Continuing the bullshit charade of ‘social distancing’ and shutdowns until we develop an effective vaccine a year or more from now is not a viable option, regardless of what dumbfucks such as Faucci or Bill Gates want to to believe. We are already seeing lineups of thousands (who own cars) in many american cities to use food banks- and this is just the beginning. Let me remind you that similar combinations of unemployment and non-existent safety nets have, in the past, led to the rise of people such as Mussolini and Hitler. Unless the “credentialed epidemiologists” come up with a viable plan to reopen the economy real soon, things will develop a momentum and direction of their own- in ways that are not controllable.

2] ‘Social distancing’ and ‘flattening the curve’ loses its utility after a few weeks. Slowing the spread of a highly contagious but not-especially-lethal disease (in the absence of effective treatments or vaccines) for more than a couple of months merely prolongs the outbreak. While such measures can buy us a few weeks (at the beginning) to get things in order, find a better protocol for treatment or develop better measures to protect the most vulnerable groups etc- it cannot stop the inevitable. This becomes much more relevant once you understand that excess deaths due to ignoring other diseases and conditions, because of a misguided focus on SARS-2, will keep on increasing and quickly eclipse the extra mortality due to the later. People don’t stop having heart attacks, strokes, needing anti-cancer therapy, requiring elective surgery or receiving treatment for other acute and chronic conditions because there is a moderate pandemic of some sort. Anything which takes resources away from other medical issues will increase total mortality.

To make matters more interesting, most people above 80 who require incubation due to severe presentations of SARS-2 don’t make it- at least with currently used therapeutic interventions. This groups also makes up the majority of deaths due to that disease. At some stage, people will start asking whether intensive therapeutic interventions in severely ill people over a certain age is desirable given that it takes those resources away from people with far more treatable disease conditions. In wretched countries such as USA and India, the loss of income in a system without a decent safety net will cause additional problems such as many people being unable to purchase medications, seek medical help or even buy food. Do not, even for a minute, believe the idiots who are trying to tell you that such deprivations won’t cause widespread and violet social unrest.

Since this post is already close to 1700 words, I will stop now. In the next part we will talk about why legal enforcement of ‘social distancing’ and shutdowns are going to cause far more problems than you realize- especially after next two weeks. Will also go into why the fear of looking bad due to covid-19 deaths after shutdown is lifted might cause decision paralysis among the “credentialed” leading to further collateral damage. Might also go into the scientific and clinical evidence behind using Chloroquine and Hydroxychloroquine to treat SARS-2 in early stages of disease. Here is a quick spoiler, there is considerable evidence that both drugs are very effective at reducing the number of those who require hospitalization and ICU care, but only if given within first few days of initial symptoms- and this actually supports their known mode of action.

What do you think? Comments?

Inept Western Response to COVID-19 Will Result in Public Backlash: 3

April 1, 2020 22 comments

In the previous post, I posted links to two YouTube clips by Kim Iversen in which she makes the point that shutting down economy of most countries for many months, till the COVID-19 virus is contained, is just not feasible. Nor is it possible, without a yet to be developed and efficacious vaccine, to eliminate a highly infectious virus with a low mortality rate which has already spread all around the world. The point she was trying to make is that the bullshit being sold to you as official government response and policies is likely to cause far more collateral socio-economic damage and human deaths than the viral pandemic itself. Some of you might have also noticed that tons of online virtue signalling losers, who have never worked a manual job in their entire life or being anything other than economically secure, were infuriated by her observations and are still busy trying to censor and “de-platform” her.

It is telling that the so-called “left” in western countries is as intellectually bankrupt as the right-wing nutcases they pretend to oppose and claim moral superiority over. This similarity between supporters of the two alleged political extremes will, however, not be surprising to some readers. As you might have also read in some of my other previous posts on this topic (link 1, link 2) the governmental response to this pandemic in most western countries has so far heavily favored corporations and very rich over the majority of their citizens. Even western European countries, who have so far done more for their citizens than USA, have still not formulated an effective response. Now.. I am not saying that they won’t get their shit together eventually, but they have not shown any signs of doing that- so far. Confused at what I am talking about? Let me explain..

1] Let me ask you a series of simple questions. What percentage of all paid jobs in the west are not in the ‘essential’ category AND cannot be performed from home? You know the answer to this one- the majority. Now let us follow on to the related question. How many jobs in these sectors pay more than what you can get on unemployment insurance? The answer tro this one is that a large percentage do pay more than even the generous unemployment insurance paid in west European countries today. Things might have been different decades ago, when it was higher in those countries- but that is a topic for another post. Now, some of you might counter by pointing out the governments in many west European countries are willing to cover 75-80% of the pay (upto a certain amount) of employees for a few months, if their employer does not lay them off. Well.. the key words here are ‘if their employer does not lay them off’.

The point I am trying to make is that even if you assume this economic disruption will not extend past a few weeks, affected employers (aka corporations) will lay off a significant percentage of their employees. In other words, a shutdown which lasts more than a few weeks is going to put a massive number of people on relatively stingy unemployment insurance. This problem is hard to solve in so-called “liberal democracies” where interests and needs of corporations and capitalists always outweigh those of the majority. See.. the government of one-party states such as China can simply order its corporations to keep paying their employees at an acceptable rate, because those corporations know that they will be refunded by government and have no option other than accepting the government’s order. Even other supposedly democratic east Asian countries such as Japan and South Korea can make their corporations and businesses retain employees in ways than supposedly “liberal democracies” cannot or don’t want to.

And the situation get even more dismal once you consider things such as residential and small business rent, auto insurance, utilities and other forms of economic rents on the majority. Do you really think voluntary guidelines and suggestions to postpone rent and similar payments is going to cut it? Do you really think that people on significantly reduced income who don’t have much money saved because they were paid so poorly even before this crisis can afford the upcoming balloon payments on rent, utilities etc while being able to afford all essentials and have enough leftover to to stimulate the depressed economy by spending like they used to? And let us clear about something else, most of the trillions being given to corporations right now are going to end up in secret bank accounts in oversea tax havens- one way or the other. And this holds for large corporations that are based in west Europe as much as those based in USA.

2] No western country (which I am aware of) has thus far implemented a freeze on financial rents of any type. To put it bluntly, most of the paltry unemployment insurance payments (to those who ‘qualify’) are just going to end up in the pockets of those collect rents, credit card payments, auto loans payments etc. In other words, many large corporations will receive government money twice- once directly to “save” jobs and then indirectly as people who could barely afford these rent payments in past have to pass an even larger portion of their income onto those corporations. Now imagine what this will do for the disposable income and ability of those people to support business which do not collect such rents. And this not a trivial question as businesses which do not collect such rents employ many times the number of those that do collect rent. Imagine the effect of such an economic contraction on all those retail stores in malls and other business which depend on them. And it gets worse.

Have you seriously considered the impact of this pandemic on the financial situation of those who work in airlines, airports, tourism, hotels and restaurants. What about those who livelihood is connected to running music concerts and other large cultural gatherings? You do realize that most people working in those sectors aren’t well-paid in the best of times.. right? Have all those idiots who incessantly talk about shutting down the economy indefinitely “until the pandemic is over” understand the ramifications of such actions on the livelihood of a substantial minority of the population? Given that most western countries have still not offered to replace income of their working citizens and small businesses in addition to freezing rents, where do they think all that money necessary for restarting the economy is going to come from? Then again, virtue signalers are not known for their ability to think through their actions.

To make matters more interesting, the mortality rate of COVID-19 (once you factor in people who don’t develop symptoms and recover uneventfully) is less than 1%. And ya.. I am basing that number on countries such as South Korea and Germany who have done a much better job of extensive testing of their population than others such as Italy and Spain. Did I mention that majority of those who die will be more than 80 years old? The point I am trying to make is as follows: At some stage relatively soon (not more than four weeks from now) a lot of people who are younger and not well-paid or compensated for this shutdown will start asking questions about whether ineffectual attempts to stop a disease that kills mostly very old people is worth them losing their livelihoods and future. To make matters worse, if that is possible, the pig-headed response of bureaucrats to such concerns will only inflame this situation further. And it is going to cause far more problems in countries such as USA and UK than Italy or Spain who have the social structure necessary to deal with prolonged economic adversity.

In the next part, I will write about how the lack of realistic plans for controlling this virus or mitigating its effect and reopening economy will make the situation far worse than it has to be. Might also write about how this pandemic will diminish the already decreasing the direct and indirect power of USA (and west in general) outside their borders.

What do you think? Comments?