Thursday, April 02, 2020

COTW: Devil in the Details

Look, as everyone is wont to say nowadays, at these charts, especially you Ann Coulter since you got it wrong again:


It shows that COVID-10 is deadlier than the flu for all age categories.  The COVID data is based on the Chinese experience with the disease.  The influenza numbers come from our own CDC.  The corona virus is as much as ten times deadlier than flu viruses.  In January China informed the WHO of an outbreak of a novel repiratory disease and released the SERS CoV-2 genome to the world.  South Korea heeded the warning, and missed the bullet thanks to comprehensive and swift testing that allowed isolation of infected individuals.

The US never had a chance to emulate the Korean performance because socialism, and because it never had enough working testing equipment to begin with.  That's just the facts, m'am.  It does not have enough spare hospital capacity, either.  According to the OECD the US has 2.8 beds per 1000 compared to Germany's 8 and China's 4.3.  We also do not have enough medical equipment to contain a pandemic.  When Russia has to airlift to the US medical supplies, something is amiss in the system.  As Norm Chomsky said in an interview, "...there is no profit in preventing a future catastrophe."  The US has passed 200,000 confirmed infections, the most on Earth.


Now here is the economic flip side of this catastrophe.  It is pretty clear that a near national shutdown will cost US a recession.  The economic signals are flashing red, and the stock market tanked 800 points when Don Douche and his red state side-kicks stopped denying pandemic reality this week.  This chart is from the great state of Texas, a bastion of free market ju-ju (keep in mind the service sector comprises 70% of the GDP):


The chart shows an all-time low. Figures for the Texas retail sector are similar.  No light at the end of this tunnel.  The impact on Texas employment figures is equally catastrophic.  Now why should commie hot-head US Person care about the collapse of the capitalists?  Because the plutocrats are being hoisted out of their own "sh*thole" again by that most reliable handmaiden, Uncle Samuel.  This final chart tells the tale:

Since 2012 says Wolf Richter, corps have bought back $4.6 trillion worth of their own shares.  This financial activity, which does not benefit the larger economy but does enrich corporate executives, is what has driven the bull market since the Great Recession.  It boggles the mind to think that until 1982, stock buybacks were considered illegal manipulation of the market when the SEC issued Rule 10b-18.  Thank you, Ronald Regan.  This money was literally burned to enrich the 1% instead of paying down debt in the companies they own to keep people working in bad times, like now.  Instead they run to their overindulgent Uncle, crying "Mana, Mana".  Because the latest emergency bailout was passed in a hurry, no one will be able to know how the latest half trillion in free money will be spent.  US Person thinks it is almost certain it will not be spent to help the rest of US.