Henri de Toulouse-Lautrec Portrait of Vincent van Gogh 1887
Only yesterday I wrote “..at this point it is entirely unclear how countries like the US and Brazil will ever be able to get rid of the virus.” Dr. Fauci, also yesterday, said “We are now having 40-plus thousand new cases a day. I would not be surprised if we go up to 100,000 a day if this does not turn around..”
Turn around? How? CDC principal deputy director Anne Schuchat said the US has “way too much virus” to contain the outbreak.” Scott Gottlieb has even more dire numbers:
"We are probably diagnosing 1 in 10 infections nationally," says @ScottGottliebMD. "The 40-50,000 infections we are diagnosing each day right now really represents 400-500,000 infections…not all those people are symptomatic but probably 200-300,000 of them are symptomatic." pic.twitter.com/evsqAk3ZaQ
— Squawk Box (@SquawkCNBC) July 1, 2020
Things are not looking good at all. But there’s more. The nationwide protests are perceived, presented, played as anti-Trump manifestations. By both political sides, for political gain. And by the media for financial gain. That makes them de facto election rallies. And the pro-Trump side will not accept any more restrictions on their own rallies, which they (will) argue are just as legitimate. Because they have an election to contest.
If the BLM protests can continue, despite virus warnings and limited numbers at gatherings, then the conservatives will gather too, in comparable numbers. And they don’t “believe” in distancing or face masks, they claim they don’t reduce their risks, they reduce their freedom.
“Perfect storm” is an often abused term. But it does come to mind here and now.
And you thought the first half of 2020 was hard.
US has sixth day in a row with over 40,000 new cases
These 12 western and southern states only made up 45% of the test in the US on Tuesday (261,895 of 581,288). 55% of the tests are in the 38 sates where the percentages are falling.
The US has a regional pandemic problem that left uncheck will spread everywhere.
— Jim Bianco (@biancoresearch) July 1, 2020
Over half of US metro areas have just recorded their worst COVID19 spikes yet. Looks like COVID19 just got started in the US. Right now would be a great time to stop traveling, wear a mask and listen to the experts. Source: https://t.co/LiPiUVJC7C pic.twitter.com/3qH2h0sPJd
— Simon Kuestenmacher (@simongerman600) July 1, 2020
Yes, I would think it’s obvious by now.
• US Has “Way Too Much Virus” To Contain Outbreak (Axios)
The novel coronavirus is spreading too widely and quickly to contain, CDC principal deputy director Anne Schuchat told The Journal of the American Medical Association Monday, warning she expects “this virus to continue to circulate.” Per Schuchat, “This is really the beginning, and what we hope is that we can take it seriously and slow the transmission.” Her comments are in contrast to those of senior members of the Trump administration — notably Vice President Mike Pence, who said on Friday “we have made truly remarkable progress.” COVID-19 cases are surging across the U.S., prompting states including Texas, Arizona and New Jersey to pause plans to reopen their economies in recent days.
What else she’s saying: “We have way too much virus across the country for that right now, so it’s very discouraging,” Schuchat said in her interview with the Journal’s Howard Bauchner. She said there was “a lot of wishful thinking around the country” that the pandemic would be over by the summer. “We are not even beginning to be over this,” Schuchat said. “There are a lot of worrisome factors about the last week or so.” “We’re not in the situation of New Zealand or Singapore or Korea, where a new case is rapidly identified and all the contacts are traced and people are isolated who are sick and people who are exposed are quarantined and they can keep things under control.”
If this is a war, as many have labeled it, the US is losing it.
• Fauci Warns Of 100,000 US Cases Per Day (BBC)
Top disease researcher Dr Anthony Fauci has told the US Senate that he “would not be surprised” if new virus cases in the country reach 100,000 per day. “Clearly we are not in control right now,” he testified, warning that not enough Americans are wearing masks or social distancing. During the hearing, he said about half of all new cases come from four states. Earlier, the New York governor said nearly half of all Americans must self-quarantine if they visit the state. On Tuesday, cases rose by more than 40,000 in one day for the fourth time in the past five days. The surge – which is occurring particularly strongly in southern and western states – has forced at least 16 states to pause or reverse their reopening plans, according to CNN.
Florida, Arizona, Texas and California are the four states referenced by Dr Fauci as being most heavily hit currently. For some the new measures come over a month after they first began to reopen their economies. [..] Testifying to a Senate committee on the effort to reopen schools and businesses, the director of the National Institute of Allergy and Infectious Diseases criticised states for “skipping over” benchmarks required for reopening, and said cases will rise as a result. “I can’t make an accurate prediction, but it is going to be very disturbing, I will guarantee you that,” he told Senator Elizabeth Warren. “Because when you have an outbreak in one part of the country even though in other parts of the country they’re doing well, they are vulnerable.”
“We can’t just focus on those areas that are having the surge. It puts the entire country at risk,” he added. Dr Fauci also called on the US government to produce face masks to be distributed for free to all Americans, and condemned the “all or none phenomenon” of some people who have completely disregarded social distancing measures.
As someone said today: late-stage capitalism. Meanwhile, the UK wants to restart its HCQ testing program.
• US Buys Almost Entire World’s Supply Of Coronavirus Drug (Ind.)
The US has effectively secured the world’s supply of one of only two drugs proven to help treat coronavirus. Remdesivir, which has previously been used to fight Ebola but has now been found to reduce recovery times among Covid-19 patients, is exclusively manufactured by pharmaceutical giant Gilead Sciences. The US Department of Health and Human Services (HSS) has announced it has bought up more than 500,000 doses of the drug. The figure equates to Gilead’s entire production for July, as well as 90 per cent of its production in both August and September. The US’s decision to stockpile the drug means there will likely be little supply in the rest of the world for several months.
HSS secretary Alex Azar, hailed the move, saying president Donald Trump had struck an “amazing deal”. “To the extent possible, we want to ensure that any American patient who needs remdesivir can get it,” Mr Azar added. “The Trump Administration is doing everything in our power to learn more about life-saving therapeutics for Covid-19 and secure access to these options for the American people.”
It took about a month?!
• People In Their 20s Largest Age Group Of New COVID-19 Cases In Minnesota (MPR)
More than 100 cases of COVID-19 have been reported among Minnesotans in their 20s in the Mankato area who said they went to bars on June 12 and 13 — the first weekend bars and restaurants were allowed to serve indoors. Two Mankato bars — Rounders and The 507 — were the focal points of that young adult outbreak, Ehresmann said Friday. Officials were also following up on a cluster of 30 cases at two Minneapolis bars — Cowboy Jack’s and Kollege Klub. Social media from those bars shows they were crowded, with no room for social distancing, and people who were standing and not masked, so not following the state guidance, Ehresmann said.
“It’s not that you can’t socialize. It’s not that you can’t have fun,” she said. “But you need to do in a manner that’s safe for you and the people around you.” Friday’s Health Department data showed that Minnesotans in their 20s now make up the largest age group of confirmed cases in Minnesota — 7,045 people infected, with two deaths. While those young people may be less likely to suffer complications from COVID-19, officials say the concern is that they may be unknowingly spreading the disease to grandparents or other potentially vulnerable populations.The median age of confirmed cases in Minnesota has been dipping and is now just under 40 years old.
Stephanie Kelton is on an MMT mission. It’s not an easy one. It goes against everything we think we know about economics.
• The Biggest Myths About The National Deficit (Alt.)
What drives the biggest misunderstandings about government debt in our national conversation? Stephanie Kelton: Everything is wrong. The way we talk about federal government debt is, from my perspective, we say things like we’re borrowing from China and foreigners. Hillary Clinton said when she was secretary of State that it’s a national security threat. People talk about it representing a liability to all of us, so we hear people talk about “your share [of the national debt],” a burden on future generations, that it ultimately has to be paid back, that it’s going to require higher taxes in the future. I could keep going.
So what connects all these misunderstandings? Are we thinking of the government too much like a household or a business? Yes, of course. We think that the government has borrowed, and we think that this is real debt. And neither of those things is correct. I say in the book that if I walk into a bank and borrow money, I’m borrowing money because I don’t have it. Right? That’s why I got to the bank to take out a loan. The federal government is not borrowing money because it needs money. It’s not borrowing because it doesn’t have the capacity to finance whatever it wants to spend money on. It has the fiscal capacity; it can just spend. And not only that, the government sells the bonds.
And by the time the government sells the bonds, the spending has already taken place. So the bonds cannot possibly be the tool with which the government raises money in order to spend. It’s selling the bonds after the spending had already taken place. Why does it do that? It doesn’t need to borrow, it has already financed the spending. So we don’t really understand — the public and most economists get this wrong — we don’t even understand what the purpose of selling bonds is. We treat it as a borrowing operation. It’s not. The purpose of selling the bonds is to drain off the reserves, the dollars, to remove some of the dollars the government has spent into the economy and replace them with treasuries. It’s a subsidy to the rich, is what it is.
We try to run the Automatic Earth on donations. Since their revenue has collapsed, ads no longer pay for all you read, and your support is now an integral part of the interaction.
Henry David Thoreau:
Support the Automatic Earth in virustime.
Home › Forums › Debt Rattle July 1 2020