Tag: economic crash

Lock down failure

2:05 pm

First we were told that it was necessary to impose “social distancing rules” and shut down the economy for a few weeks in order to prevent the healthcare system from being overwhelmed by a sudden influx of COVID-19 cases, predicted to possibly be in the millions. From a typical panicked news report on March 16:

Health officials take for granted that COVID-19 will continue to infect millions of people around the world over the coming weeks and months. However, as the outbreak in Italy shows, the rate at which a population becomes infected makes all the difference in whether there are enough hospital beds (and doctors, and resources) to treat the sick.

In epidemiology, the idea of slowing a virus’ spread so that fewer people need to seek treatment at any given time is known as “flattening the curve.” It explains why so many countries are implementing “social distancing” guidelines — including a “shelter in place” order that affects 6.7 million people in Northern California, even though COVID-19 outbreaks there might not yet seem severe.

Fortunately, the prediction that millions would become sick was so wrong it is now considered a joke. Moreover, it was quickly obvious that the healthcare system was not going to be overwhelmed.

So of course, we can now end these stringent social distancing rules and the lock downs, right?

Hah. Now we are being told that the new social rules and the government-imposed economic shut downs are necessary to stop the spread of the disease, to protect us from further infection, to make us all safe from coronavirus, forever. And if we do have to ease the lock downs at all, we have to do it as slowly as possible, and to change our behaviors forever. Masks must be worn, businesses can no longer serve as many at a time, and we must change and limit our freedoms, just because we might possibly save one life!

Consider the fascist Democratic governor of Pennsylvania and his demand that the state remain locked down for as long as possible.
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Branson selling 25% of Virgin Galactic shares to save airline business

9:19 am

Capitalism in space:It appears that Richard Branson is selling about 25% of shares in Virgin Galactic in order to prop up his airline and travel businesses that have been crushed by the Wuhan flu panic.

Branson’s Virgin Group may sell as many as 25 million shares in the space-travel firm, with the proceeds going to his leisure and travel businesses, according to a statement on Monday. The 69-year-old Briton is trying to save Virgin Atlantic, which has struggled to qualify for a UK-supported loan program aimed at helping businesses survive the worldwide coronavirus pandemic. He’s seeking outside investors for the airline, while also weighing an infusion of his own funds.

The irony here is that Virgin Galactic has been a big financial money sink since its inception in the mid-2000s, having never flown a single customer in its fifteen-plus year existence. However, Branson has bamboozled a lot of people into buying its stock in the past year, since it went public, causing the stock to rise from its initial price of about $12 to about $18 to $20. This sell-off gives Branson an almost 100% profit on the stock, a good deal indeed for him, even if the company never makes a dime.

He says he is pumping the money back into his other businesses, but we shall see.

What the sale means however is that Branson no longer has a majority share in Virgin Galactic. The biggest shareholder is now Social Capital Hedosophia, created by venture capitalist Chamath Palihapitiya.

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Study: 50% of all small businesses to vanish due to Wuhan lock downs

10:08 pm

The Great Wuhan Depression: According to a new survey, it is predicted that 50% of all small businesses will vanish in the next six months due to losses incurred because of the government-imposed Wuhan flu shut downs.

The study also predicts that another 12% will go bankrupt in the next month. That’s 62% of all small businesses, gone in a flash, leaving their owners and all of their employees jobless. And though it is only implied at the link, the loss of those businesses will ripple outward, causing more businesses to fail. The consequences will be horrifying.

“Before the pandemic, food policy experts say, roughly one out of every eight or nine Americans struggled to stay fed. Now as many as one out of every four are projected to join the ranks of the hungry, said Giridhar Mallya, senior policy officer at the Robert Wood Johnson Foundation for public health,” the AP reported Tuesday.

And that’s just in the states. On a global level, the United Nations has predicted that hundreds of thousands of children may die before year’s end specifically because of the economic realities being engendered by the current crisis. “Economic hardship experienced by families as a result of the global economic downturn could result in hundreds of thousands of additional child deaths in 2020, reversing the last 2 to 3 years of progress in reducing infant mortality within a single year,” a U.N. report published last month reads. “And this alarming figure does not even take into account services disrupted due to the crisis – it only reflects the current relationship between economies and mortality, so is likely an under-estimate of the impact.” [emphasis mine]

As I have written repeatedly, when you find yourself in this kind of crisis, you need to rationally and calmly do a cost-benefit analysis, figuring out the best solution that will do the least harm, to the most people. In this case a likely smart move would have been to look at the early data, now confirmed, that showed the the disease was only a serious threat to the old and sick, and that to the young and healthy the Wuhan flu was no threat at all. A wise plan then would have focused on protecting the elderly and the sick, while letting the rest of the population not at risk live their lives normally, get infected, and develop antibodies to the disease so that the epidemic would peter out quickly — as has been done with every flu-type epidemic for more than a century.

That would have been a rational approach, reasonable and likely very successful. It would not have prevented all deaths from COVID-19, but then no plan could. What it would have done is minimize the damage as much as possible.

Instead, our politicians, in their never-ending partisan battles, depended not on the data but on faulty computer models, which have been routinely found to be inaccurate and unable to predict anything. Those models, vastly wrong, said that millions would get sick and hundreds of thousands would die, and this would all happen in a matter of weeks. The politicians panicked, and destroyed the economy, even as they enforced policies that actually exposed the elderly and the sick directly to the disease, causing many more to die than was necessary.

The consequences of this madness in the coming years will be hard to measure. We can hope that the economy might recover. We can hope that our government will back off and reinstate its respect for the law, the Constitution, the Bill of Rights, and its citizens.

We can hope. I have no idea however if this is a vain hope. I am not optimistic.

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Pennsylvania: 79 average age of COVID-19 deaths; 67% in nursing homes

11:02 am

What was obvious two months ago has now been confirmed again in Pennsylvania: The average age of those who died from the Wuhan flu was 79, and 67% of the deaths occurred in nursing homes.

Moreover, almost all of those who died also had some underlying other chronic illness.

In other words, the early data that said the disease is really only a threat to the elderly and the ill has been confirmed, again, and that shutting down the whole society and destroying the economy made no sense. If you an ordinary healthy person COVID-19 is not a threat to you. In any way at all.

Meanwhile, what about that worry that the disease’s arrival would overwhelm the healthcare system? Well, this same Pennsylvania report found that, as of yesterday, of the 37,000 hospital beds in the state, only 2,572 were in use, meaning that 93% of the beds were empty.

In other words, we cancelled all other medical procedures, actually causing some people to die because they could not get treatment, and ended up with so much spare hospital capacity that hospitals are going bankrupt because they have no patients.

But don’t worry. Our politicians are godlike and know best. Kneel before them and obey their commands, without question. You will be saved.

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New capacity limits will destroy most remaining restaurants

9:03 am

The beatings will continue until morale improves: The new capacity limits being imposed by state governments due to their panic over the Wuhan flu will likely destroy the bulk of the remaining restaurants that have managed somehow to get through the lock downs.

As some states across the country allow businesses to reopen with limited occupancies, there are still serious obstacles in the paths of restaurant owners. In those Tennessee counties that have already reopened, restaurants can’t exceed 50 percent of their maximum occupancy. Restaurants in most of Iowa will also have the option to reopen at half capacity. Those in Alaska will be limited to 25 percent capacity, and will only seat diners who make reservations in advance.

Ryan Pernice, who owns three restaurants north of Atlanta, didn’t jump with excitement when Georgia Gov. Brian Kemp released a list of 39 guidelines in advance of a push to open certain businesses — including restaurants — on April 27. Most notably for restaurant owners, the guidelines do not allow more than 10 patrons per 500 square feet in dining rooms. After Pernice closed his restaurants on March 17, leaving just one of his restaurant kitchens open for delivery, he sat down to crunch some numbers.

Even with the lights and the walk-in refrigerators turned off, running a restaurant remains an expensive endeavor. Pernice decided to continue paying for services, like pest control, that couldn’t just be ignored, as well as major costs like rent and outstanding vendor invoices. To break even and cover expenses at Table and Main, Osteria Mattone, and Coalition — his three restaurants — would cost $4,128 a day. Though he’ll take the measurements and rearrange the tables to see if reopening is feasible, Pernice can’t imagine hitting that number with only half of the seats in his restaurants occupied. “Not having run the numbers, I seriously doubt that in Table and Main, a tiny restaurant of 1,800 square feet, that I could make more doing sit-down dining than I can right now through our takeout … I think there’s very little to be gained by being the first to this party, in terms of opening the dining room again.”

In other words, under these new rules, a large percentage of the remaining restaurants will be unable to make a profit and die.

The lock downs are expected to bankrupt 20% of all restaurants, putting more than 8 million people out of work. These new rules will probably destroy, at a minimum, another 40%, mostly the smaller, independently owned businesses.

And the rules are absurd, on their face. They will not stop the spread of COVID-19, in the slightest. All they will do is destroy the lives of the people who own the restaurants.

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Comparing the Wuhan flu with the 1968 Hong Kong flu

9:20 am

Link here.

The Hong Kong flu killed about twice as many people in the U.S. as COVID-19 has so far, and it did this for a population about a third smaller (200 million vs 328 million), meaning that its deadliness was even worse. Yet:

Nothing closed. Schools stayed open. All businesses did too. You could go to the movies. You could go to bars and restaurants. John Fund has a friend who reports having attended a Grateful Dead concert. In fact, people have no memory or awareness that the famous Woodstock concert of August 1969 – planned in January during the worse period of death – actually occurred during a deadly American flu pandemic that only peaked globally six months later. There was no thought given to the virus which, like ours today, was dangerous mainly for a non-concert-going demographic.

Stock markets didn’t crash. Congress passed no legislation. The Federal Reserve did nothing. Not a single governor acted to enforce social distancing, curve flattening (even though hundreds of thousands of people were hospitalized), or banning of crowds. No mothers were arrested for taking their kids to other homes. No surfers were arrested. No daycares were shut even though there were more infant deaths with this virus than the one we are experiencing now. There were no suicides, no unemployment, no drug overdoses.

Essentially, life went on. Except for a few people who took some precautions, mostly in connection with older and already sick individuals, everyone took little notice, recognizing that — just like COVID-19 — the Hong Kong flu was not threat to them, and that the best way to beat it was to allow the young and healthy to get it, recover, and thus develop an immunity that would limit its spread to the old and vulnerable.

The result was that the Hong Kong was a blip to society, hardly remembered today, and never a problem. Sadly the situation today is different. Because we decided to panic, we have essentially destroyed our economy and our future freedom. Behaviors that are simply absurd (wearing masks all the time and never getting closer than six feet to anyone else) are becoming socially required.

And the idea that a government can bankrupt business and harass women and children, at will, has now become acceptable.

It will be a long time before a people will ever be as free as Americans once were.

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Car sales continue crash in April

9:04 pm

The beatings will continue until morale improves: According to one car industry analysis, the April sales of cars will continue to plummet.

“April auto sales took the biggest hit we’ve seen in decades,” said Jessica Caldwell, Edmunds’ executive director of insights. “These bleak figures aren’t just because consumers are holding back on their purchases — fleet sales are seeing an even more dramatic drop as daily rental business has dried up. Like many other industries, the entire automotive sector is struggling as the coronavirus crisis continues to cripple the economy.”

They hope that the end in May of some of the government shut downs imposed because of the Wuhan flu panic will ease the crash, but recognized that with millions out of work, people may no longer have the crash to buy new cars.

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Ducey extends Arizona shut down two weeks

6:16 pm

Fascist: Republican Arizona governor Doug Ducey today announced a two week extension of his so-called “shelter-in-place” order, what is really a house arrest for the general population and a shut down of business that is putting one quarter of the population out of work.

Ducey’s new edicts call for some businesses to begin opening sooner, but with many restrictions. Restaurants however will be locked down until May 12. The edict also said that “no county, city, or town may issue orders, rules, or regulations that conflict with the executive order.”

I wonder if there might be some pushback from local authorities in some areas, as has been seen in other states, especially because of this minor detail:

One in four small businesses in Phoenix could be gone for good, according to the city’s economic director. It could take six years to recover all the jobs that have been lost. “Seeing that 20% to 25% of our small businesses won’t be here when this is over is terrifying for me,” said Christine Mackay, Director of Community and Economic Development for the City of Phoenix.

What does Ducey care if one in four people are out of work? He made himself look good, and now can preen himself as a hero.

To me, he looks like a jackbooted thug. May he roast in hell.

And I dare him to send some police storm troopers to my house to arrest me for saying so.

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US 1st quarter GDP crashes

8:53 am

Are you enraged yet? Due to the government-imposed shutdowns due to the Wuhan panic, the gross domestic product (GDP) shrank 4.8% in the first quarter of 2020, the most since 2008.

Consumer expenditures, which comprise 67% of total GDP, plunged 7.6% in the quarter as all nonessential stores were closed and the cornerstone of the U.S. economy was taken almost completely out of commission. Durable goods spending tumbled 16.1% while expenditures on services were down 10.2%.

Exports dropped 8.7% while imports fell 15.3%, including a 30% drop in services.

The count of all goods and services produced in the U.S. shows that even though the first quarter saw only two weeks of shutdown, the impact was pronounced and set the stage for a second-quarter picture will be the worst in the post-World War II era.

As the article notes, we ain’t seen nothing yet. And it will only get even worse should our all-wise supreme leaders continue to stretch out this shut down, initially imposed under the big lie that it was merely intended to “flatten the curve” during the epidemic’s onset so that the healthcare system would not be overwhelmed.

It was not overwhelmed. In fact, it never would have been overwhelmed. As I said, it was a big lie.

Now the big lie is that these fascist government lock downs must be maintained in order to prevent the spread of the disease, a goal that is infinitely impossible but if accepted by the public will allow these petty dictators to keep their jackboots on our necks for the rest of time.

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The most tragic case of governmental, medical, and media malpractice in the history of the world

8:51 am

Link here. The author takes a blunt look at the Wuhan panic, and finds the actions of our leaders to be very wanting, to put it mildly.

I will keep asking this question until the groupthink-thought-police come to arrest me: “When has it ever been sound medical or governmental practice to sacrifice – and destroy – the economic, mental, and physical well-being of the 99 percent to MAYBE protect and save the one percent…or less? When?”

This same doctor I spoke with also stressed to me that the “experts” our nation and the world relied upon to shut it down, could not answer one simple question. That being: Is COVID-19 less or more lethal than the Hong Kong flu pandemic (H3N2) of 1968? A pandemic that mirrored COVID-19 in that it was highly infectious and was primarily lethal to those over 65 with pre-existing conditions. A pandemic that infected millions of Americans and killed approximately 100,000 out of a then population of about 200 million. A pandemic which worldwide, killed upwards of 4 million people.

He then outlines in detail the corruption of the data in the U.S., which appears strongly to be padding the numbers of deaths from the Wuhan flu for political reasons. Or as he says,

How could we possibly account for one-quarter of all the COVID-19 deaths in the entire world?

Easy, if say, you start counting pianos falling out windows and dropping on people as COVID-19 related deaths.

And we have plenty of evidence that this corrupt practice is exactly what government officials are doing.

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Arizona Governor Ducey to delay end of lockdown?

3:28 pm

According to this article, Republican governor Doug Ducey is delaying any action relating to ending his “shelter-in-place” order that is bankrupting one quarter of Arizona’s industries and putting that many people out of work.

The reason? He apparently has a financial interest in keeping the emergency going for as long as possible.

Insiders tell NATIONAL FILE that Ducey might not be a trustworthy leader in the cause of re-opening the state economy. Ducey is delaying setting a firm date on re-opening the state, citing safety concerns while testing is underway. Ducey presides over legislature-approved state emergency spending and also a portion of his state’s $1.5 billion from the federal government.

Ducey also…

…sits on the Board of Governors for an institute that is accepting state health department funding to conduct Coronavirus testing in the state of Arizona. That institute happens to be an affiliate of a nonprofit that is working to develop a Coronavirus vaccine that is not expected to begin clinical trials until late 2020.

In other words, as long as the emergency lockdown is maintained, Ducey is in a position to funnel money to this institute that he also is on the Board of Governors.

This is unconscionable, especially because the shut down is bankrupting private businesses across the state. Worse, it is par for the course.

When I called the local Republican office here in Tucson, they told me that Ducey is working closely with Senator Martha McSally (R-Arizona), which might also explain his position. One of the reasons McSally lost to Democratic Senator Kyrsten Sinema in 2018 is because the two are both pretty liberal. For conservatives there really wasn’t any point in voting for McSally, so many stayed home. This is also why she is presently trailing in polls to Mark Kelly, her Democratic opponent for the 2020 election. McSally doesn’t offer an alternative to the big government, Washington swamp politics that now dominate. She is part of it, as is Kelly and Sinema.

As apparently is Ducey as well. I have made several calls to his office, expressing my outrage over the shut down, all to no avail. They say they will call back, but never do.

And our political class wonders why they got Trump. This is why, and if they don’t change their behavior we will get more, and it will be far worse than Trump ever was.

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Researchers: Miami COVID-19 infections could be 20x higher than estimated

11:44 am

Researchers at the University of Miami now estimate that the number of COVID-19 infections in Miami-Dade County could be twenty times higher than presently estimated, thus driving down the disease’s fatality rate to no different than the flu.

Scientists from the Sylvester Comprehensive Cancer Center at the university’s Miller School of Medicine revealed in a virtual meeting on Friday that a county-wide COVID-19 survey, which followed 1,400 participants over a two-week period, indicated that at least 4.4 percent, and as much as 7.9 percent of the county, could have already contracted the coronavirus.

That is a substantially larger number than the official data set logged by the state of Florida, which on Saturday afternoon had recorded just over 11,000 infections in Miami-Dade County, far and away the most out of any county in the state. Miami-Dade is the most populous county in Florida, with over 2.6 million residents.

The new numbers would also significantly drive down the county’s COVID-19 fatality rate, which with 295 deaths officially stands at around two percent. At the upper bound of the researchers’ new estimates, the death rate would fall to around 0.1 percent, roughly in line with that of the seasonal flu. [emphasis mine]

In other words, what was clearly obvious more than a month ago, the entire Wuhan flu panic was entirely unnecessary. And even if coronavirus returns next year, it still appears it will be comparable to the flu in its impact.

We have never bankrupted our society and nullified the Bill of Rights for past flu seasons, some of which were far worse than this year’s COVID-19 season. But then, we have never had such a bankrupt, idiotic, and brainless intellectual and political class as we do now. The left is driven by hate, hate of whites, hate of America, hate of Trump, while the right is driven by fear, fear of minorities, fear of the press, fear of themselves. None of them have the courage to be intellectually honest, to follow the facts where they go, and to determine their actions based on reality, not emotion, fear, hate, and passion.

Thus, welcome to the Great Wuhan Depression, brought to you by our elected leaders. I hope you have some financial cushion to weather the storm. And whether you do or not, is it not time to fire them all?

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Another 4.4 million are out of work this week

10:08 pm

Are you enraged yet? Another 4.4 million applied for unemployment benefits this week, bringing the total of new unemployed since the Wuhan flu panic began in March to about 26 million, and raising the unemployment rate to about 16%.

Meanwhile, evidence continues to mount that the Wuhan flu is probably no more dangerous that the flu, thus making this entire government-imposed shutdown and resulting Great Wuhan Depression entirely uncalled for.

Worse, that any governor in any state is still refusing to end their lock downs at this point tells us that they goal was never to fight the epidemic, but to acquire unjustified power to rule us like dictators. If the voters don’t fire these people wholesale come November than the voters deserve the hell they are about to get.

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8 million restaurant workers unemployed due to government-imposed shutdowns

9:41 pm

The beatings will continue until morale improves: Eight million restaurant workers out of work due to due to Wuhan panic and government-imposed shut downs.

In addition, the restaurant industry is predicting $240 billion (with a “b”) in losses by the end of the year. Moreover,

…roughly 3% of the restaurants in the US — or 30,000 restaurants — have already shuttered. In the early April survey, an additional 5% of operators said they anticipated closing in the next 30 days, meaning that more than 50,000 restaurants could shut down permanently.

In early April, UBS said that up to one in five restaurants in the US could close due to the coronavirus pandemic. Experts say that independent restaurants are particularly at risk, with many small businesses struggling to access PPP loans.

In my own neighborhood, I have already seen one restaurant go out of business, and another apparently destroyed just as it was about to open. Through the winter a new Indian restaurant was being built nearby, with signs saying it would soon open. Unfortunately the house arrest imposed by our fearless leader Governor Doug Ducey prevented them from opening as planned. Though the restaurant had signs up offering take-out this week, when Diane tried to pick up a menu so we could give them some business. the place was shut. I suspect they are out of business, a dream destroyed before it could even be born.

But hey, we can’t risk having anyone die from COVID-19, no matter how many other lives we destroy.

Are you enraged yet?

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Clean energy industry faces loss of a half million jobs

9:23 pm

The beatings will continue until morale improves: The clean energy sector faces the loss of a half million jobs due to Wuhan panic and government-imposed shut downs.

The coronavirus crisis is cutting a savage swath through the U.S. clean energy industry – some 106,000 jobs in the sector vanished in the month of March alone as demand evaporated amid nationwide stay-at-home orders Moreover, that one-month job loss was greater than what the industry gained in jobs in all of 2019.

By June of this year, the clean energy sector may lose up to 500,000 jobs – or 15% of the country’s entire clean energy workforce — according to a study by clean energy advocacy group E2 (Environmental Entrepreneurs), in cooperation with the American Council on Renewable Energy, E4TheFuture and BW Research Partnership.

Let me repeat: More jobs vanished in just March than were created in all of last year.

If the states don’t start reopening soon, this will just be the beginning.

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100K airline jobs facing elimination due to Wuhan panic shut downs

3:44 pm

The beatings will continue until morale improves: Because of the panic over the Wuhan flu, the airlines are contemplating eliminating more than hundred thousand jobs as well as shrinking their fleets.

Unable to cut jobs or salaries while receiving grants to cover payroll, airlines will staff their typical summer peak largely as usual, even with millions of fewer travelers. But come fall, it could get ugly for employees. “We’re going to be smaller coming out of this,” Delta Chief Financial Officer Paul Jacobson told employees last month. “Certainly quite a bit smaller than when we went into it.”

The reversal of fortune comes as a shock for an industry that just last year was breaking passenger traffic records. Last week, the average number of U.S. daily passengers declined 96%, to 95,531, compared with 2.39 million last year, according to Transportation Security Administration data compiled by Bloomberg. United shares fell Monday after it gave a snapshot of the industry bloodbath triggered by the pandemic, projecting a $2.1 billion loss in the first quarter. Delta, American and Southwest Airlines Co. will release their earnings in the coming days.

Such anemic demand means that anything less than a robust rebound over the coming months will prompt airlines to cut more employees, jettison older aircraft and cut more salaries, which in turn could persuade more workers to depart. During the past two months, at least 87,000 employees—more than one quarter of the Big Three airlines’ workforce—have taken voluntary leaves, early retirement or reduced work hours.

Carriers face “the worst cash crisis in the history of flight,” with booked revenues down 103% year over year, according to industry lobby Airlines for America. Domestic flights are averaging just 10 passengers while international flights average 24, the group said. “We could see the airlines look to shed 800 to 1,000 aircraft, which could result in a reduction of 95,000 to 105,000 airline jobs.”

In this case, the government shut downs only have had an indirect effect. By panicking and overstating the threat from COVID-19, the authorities and the press have made people terrified of flying. Even if the shutdowns end, the airlines will not recover until the public decides it is safe to fly again.

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Rural hospitals in eastern Washington state face bankruptcy

3:14 pm

The beatings will continue until morale improves: Because the state government’s panicked reaction to the Wuhan virus resulting in a banning of almost all procedures, rural hospitals in eastern Washington state now face financial collapse, bankruptcy, and possible closure.

With the state’s support, federal aid and advanced Medicare loans, the critical access hospital will be able to stay afloat – for now. But the financial impact of COVID-19 on Washington state’s rural hospitals cannot be understated. “This is unprecedented. There’s no way you could be financially prepared for this,” Jacqueline Barton True, vice president of rural health programs at the Washington State Hospital Association, said. “This sort of financial devastation is not something that we could have prepared for, and I have a lot of concerns about what happens if help doesn’t come soon enough.”

Some rural hospitals have received their first installment of funds from the federal CARES Act. Those payments are about $400,000 to $600,000 on average for smaller hospitals, according to WSHA.

Despite having a robust way for most rural hospitals to access community taxpayer support through the public hospital district model, rural hospitals in Eastern Washington are losing money on a daily basis as they balance pandemic preparations with canceled elective surgeries, primary care or patient therapy.

The article is long, outlining in frightening detail the impending collapse of the entire rural hospital network. The bottom line however remains the same: The state government arbitrarily decided that most medical procedures were “non-essential” and banned them so that the hospital would not be overwhelmed by Wuhan flu patients.

Those patients have never arrived in the feared numbers however. Instead we are looking at a normal flu season, when you combine coronavirus with flu cases. Lacking the revenue stream from all other cases, the hospitals are losing money and face bankruptcy.

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Price of oil crashes, goes negative

1:31 pm

The beatings will continue until morale improves: Due to the crash in demand due to the government-imposed Wuhan panic shutdowns, oil producers, who can’t turn off their oil wells, have run out of storage space and are now forced to pay others to take the oil off their hands, thus sending the price of oil into negative numbers.

Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus. West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel.

Meanwhile, international benchmark, Brent crude, which has already rolled to the June contract, traded 8.9% lower at $25.58 per barrel.

While this crash is indicative of the entire crash of the economy, in the near long term it might be a good thing. If the government ever decides to release us from house arrest and people decide it is time to go back to normal, the low price of oil will help stricken businesses get back on their feet.

Then again, there is a very big “if” in that last sentence. I see no indication that our fascist state governors, especially in states run by Democrat governors, have the slightest interest in ending the shut downs. They like the almost absolute power it has given them over everyone, and that absolute power is corrupting them quite effectively. They might be making noises about “easing” the restrictions, but that is only political dishonesty. The bottom line will remain: They are now in control of everything everyone does, and have the right to give or take, as they please, whenever they please.

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Social distancing and lockdowns killing craft beer industry

10:46 am

The beating will continue until morale improves: The new normal of “social distancing”, combined with the government-imposed lock downs, threatens to bankrupt the craft beer industry nationwide.

As much as 15% of craft breweries expect to close by the end of the month if social distancing remains in place, according to a national survey from the Boulder-based Brewers Association, and more than 60% don’t expect to survive beyond June.

If applied to Colorado — which now counts about 420 breweries — the projections suggest 250 would close by summer. That would represent a huge dent for an industry woven into the state’s identity and one that contributes more than $3 billion a year to the state’s economy.

Our society, our culture, our economy, and even the human race itself cannot survive if we accept the premise that no one can ever be closer than six feet to another. It isn’t practical, and it certainly isn’t sane.

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Disney to furlough 100K employees because of government-imposed shut downs

10:47 pm

The beatings will continue until morale improves: Disney is stopping the salaries of hundred thousand employees this week due to the shut downs imposed upon it by our panicked government over COVID-19.

The company says it will still provide full healthcare benefits for those employees, for the moment.

Once again, the shuttering of the Disney theme parks ripples out into the entire local economy. It isn’t just these employees who are now out of work, it is the hotel, transportation, and restaurant employees whose businesses served the same tourist customers.

Will the theme park entertainment come back? Unknown, I’d say, because the fear being pounded into everyone to “social distance,” to an absurd level, might mean that tourists will no longer feel comfortable visiting such venues.

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Bankruptcy for Neiman Marcus because of government-imposed shutdown

3:05 pm

The beatings will continue until morale improves: Neiman Marcus to file for bankruptcy, furlough 14,000, due to government-imposed shutdown because of the Wuhan panic.

Neiman Marcus Group, one of the largest retailers in the United States, is reportedly ready to file bankruptcy amid the COVD-19 pandemic after defaulting millions in bond payments last week and furloughing 14,000 employees.

Neiman Marcus would become the first major US department store to crumble amidst the economic set backs from the coronavirus outbreak. Reuters reported the company had few options after the coronavirus spurred lockdowns that shuttered non-essential businesses, including all 43 of their stores. This includes Last Call stores and its two New York City Bergdorf Goodman department stores.

And yes, I know it was already struggling, as are many brick-and-mortar department stores because of the shift to online shopping. The government over-reaction to the Wuhan virus however has done a great job of pushing the company over the edge, killing it.

As with any failure like this, the consequences will ripple outward far beyond the loss of this one company. The lost jobs will mean people will not have money to spend, so other businesses will suffer. The downward spiral will only get worse.

Want to know what it was like to live in failing socialist societies like the Soviet Union and Venezuela? You are now getting the chance. In our case the government has apparently bypassed the direct takeover of industry and the economy where it would over a few years run the society into bankruptcy. Instead, it decided to destroy everything by edict, all in one blow.

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More economic disasters due to government imposed shut downs

10:05 pm

The beatings will continue until morale improves: Below are some stories I found today describing the on-going the collapse of the economy due to the nationwide lock downs imposed by state and local governments because of their panic over the Wuhan flu.

Note how the first two stories are about the sufferings of state employees, whether in government or academia. Note too how these stories only mention as an aside the collapse of the real economy. Who cares if millions of private businesses are going under? What’s really important is that we won’t be able to grab their profits and the government will have to shrink! Horrors!

Only the last two stories are about the real crash, with only the last, buried among many other stories on RealClearPolitics, telling the true tale:

The Commerce Department said on Thursday business applications dropped 21.4% in the week ending April 11, compared with the same period last year.

…The slump in business applications comes as states and local governments have issued “stay-at-home” or “shelter-in-place” orders affecting more than 90% of Americans to control the spread of COVID-19, the potentially lethal respiratory illness caused by the virus, and abruptly halting economic activity.

At least 22 million people have filed for unemployment benefits in the last four weeks. Retail sales suffered a record drop in March and output at factories declined by the most since 1946. Homebuilding crumbled in March at a speed not seen in 36 years. Economists believe the economy contracted at its steepest pace since World War Two in the first quarter. [emphasis mine]

A 21% drop in new businesses tells us that the economy will not recover from this madness very quickly. Money is drying up, the banks are under a strain, and the economy is shrinking like a burst balloon.

The middle paragraph in the quote above is intended to justify this crash and government abuse of power by the use of the word “lethal,” thus playing up danger of the Wuhan flu, even though the evidence still shows it to be, like the flu, only a threat to the old and the sick. Like the flu, most everyone else simply fights it off with no long term consequences.

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