Real ‘China virus’ killed us years ago, by Tony Abbott.
Australia has traded off long-term national security for short term economic gain. If good is to come from this crisis, it must focus countries’ minds on the need to be self-reliant as well as rich. …
Once the danger became apparent, democratic governments would much rather be accused of doing too much too soon, than too little too late.
Note the passive voice above, “Once the danger became apparent.” To whom, Tony? It was apparent to some a lot earlier than others. A slow political class failed because it did not see the danger soon enough. Even though we were shown it in graphic terms by China, for anyone paying attention. Questions need to be asked.
Understandably, no one wanted to single-out visitors from China, but the later countries started to respond, the harder it’s been to contain. And the more drastic the isolation measures, the more grave the subsequent economic crisis.
This already looks much worse than the economic shock of 2008, which didn’t close borders, banish crowds, and curtail social life. At some point, the economic costs will start to outweigh the health risks; but that’s months away, and in the meantime, all the businesses and workers whose cash flow has dried up need economic life support.
Hence, for all governments, while the crisis lasts, everything else, at least temporarily, has had to be postponed. …
The challenge here: is not to let the health emergency produce an economic emergency that’s even more harmful in the long-run.
If the virus and the current frenzied money printing trigger a landslide in this graph, the Great Depression might look like a walk in the park (graph to Q3 2019):
By the way, you cannot buy gold and silver at the moment. All over the Western world, all shops and mints that sell coins and bars are out of stock. The gold “price” is set by trading paper representing future gold deliveries in New York, but it is only very weakly connected to the physical gold market and it is heavily manipulated by agents of the central banks.
Hence we get this situation — impossible in a free market — where the central banks are desperate to keep gold and silver off the investment radar so their price is falling, yet at these prices you cannot buy any.
The central banks print massive amounts of money and the price of gold goes down? The financial press mutters about “margin calls”, which is clearly true but only a minuscule part of the reason. They won’t go near the real reason. Maybe “who let in the virus” will be like that too — no one asks in the mainstream world. Reasons. Might upset powerful people, or their messengers.
hat-tip Stephen Neil