Impure Thoughts
What if the Corona virus turns out to be a genuine pandemic with legs, not some punk-ass, flash-in-the-pan bug like SARS… and infects hundreds of millions around the world…? And what if it happens to go logarithmic in the USA, as in China now…? And what if takes a few months, or half a year, to do that…? And what if Americans will not get on airplanes when that happens…? Or gather together in large numbers…? Or if government imposes quarantines …? Will the parties hold their nominating conventions? Might the November election have to be postponed?
Just sayin’… since nobody else seems to be talking about it. A few months ago, nobody was thinking about a disease that would virtually lock-down China’s economy, either… and now here we are. Speaking of which, that lock-down of China’s economy is already generating serious damage to global GDP, after only a few weeks. But nothing shows our detachment from reality like the recent surge in financial market indexes while the Chinese economy was busy shutting down. In particular, one must wonder: What supports the global daisy-chain of debt obligations while all this is going on?
After all, companies doing business need a revenue stream to service their revolving debts. They have to make stuff, and move stuff, and get paid for it. What happens when there is no revenue stream? The workings of this hyper-complex financial system depend utterly on the velocity of these revenue streams. They can’t just… stop! Everybody who follows these things understands that China’s banking system is 1) a hot mess of confabulated public and private lending relationships, 2) completely opaque as regards the true workings of its operations, and 3) shot through with fraud, swindling, and Ponzis. Did China’s ruling party just put its banking system in an induced coma while Corona virus plays out? How can that possibly not affect the rest of global finance, which is plenty janky, too?
…click on the above link to read the rest of the article…
