Feb 162020
 


John Collier Trucks on highway en route to Utica, New York 1941

 

Chinese Doctors Say Wuhan Coronavirus Reinfection Even Deadlier (ZH)
70 More Infections On Diamond Princess Cruise Ship Bring Total To 355 (SCMP)
Cruise Passengers Face 14 More Days In Quarantine On Return To Hong Kong (SCMP)
Quarantined Cruise Ship Passenger Speaks Out Against US Evacuation Plan (Fox)
American From Cruise Ship Docked In Cambodia Tests Positive In Malaysia For Coronavirus (R.)
Cruise Firm Seeks New Virus Test For Passenger From Ship In Cambodia (R.)
New Coronavirus Threatens Meltdown In China’s Economy (SCMP)
Coronavirus Scare Leaves China’s Empty Restaurants Selling Off Stocks (R.)
Chinese Students -Used To- Spend Billions Overseas (CNN)
Fiat Chrysler Suspends 500L Production Over China Supply Disruption (R.)
Looming Hill-Berg: Bloomberg Considering Hillary Clinton As Running Mate (NYP)
TV Execs Celebrate Unprecedented Flood Of Bloomberg Campaign Spending (IC)
Why Wasn’t Andrew McCabe Charged? (NR)

 

 

• Cases: 69,264, up 2,162 from yesterday

• Deaths: 1,669, up 143 from yesterday

 

Cruise ship the Diamond Princess -off Yokohama- has 3,711 people on board. 1,219 have been tested of which 355 have been confirmed positive for the virus. The ship has been in quarantine for 11 days, so capacity for testing is apparently limited to just over 100 per day. Not impressive. And this doesn’t yet tell us how many people have been tested more than once. But that appears to be necessary.

The main development over the past 24 hours concerns the cruise ships and getting infected more than once. The Diamond Princess is turning into one of Dante’s circles of hell -take your pick- just as governments send planes to pick up their citizens aboard the ship. Who will arrive home just in time to start another 14 days of quarantine. Lovely. Hong Kong and Canada have reported this renewed quarantine, the US must follow suit.

The Diamond Princess is also a loud flashing warning sign about the ease with which the virus spreads. Everyone has been isolated in their cabins for 10+ days, yet there are 70 more cases daily. With a 14-day incubation time, less than a third of passengers tested in those 10+ days with a 30% infection rate, and questionable testing quality, what awaits these people? What awaits those who are not at present considered suspect?

Another cruise ship, the Werkendam, finally accepted in Cambodia after being shunned by 4-5 other countries, has let well over 1,000 passengers leave the ship before one was diagnosed positive for COVID19. It arrived on Thursday carrying 1,455 passengers and 802 crew, 236 passengers and 747 crew remain on board.

Potentially even more ominous is Tyler’s piece on re-infection. If people can be infected more than once, that means their immune systems have successfully fought the virus once, only to be weakened by both the fight and the medication applied in that fight. Imagine large scale re-infection. Imagine the hospital accomodation needed. Which country has that kind of spare capacity?

 

 

 

 

A second infection of a recovered patient will hit a body with compromised immunity. Cytokine storms, ACE2.

Chinese Doctors Say Wuhan Coronavirus Reinfection Even Deadlier (ZH)

Doctors working on the front lines of the novel coronavirus (COVID-19) outbreak have told the Taiwan Times that it’s possible to become reinfected by the virus, leading to death from sudden heart failure in some cases. “It’s highly possible to get infected a second time. A few people recovered from the first time by their own immune system, but the meds they use are damaging their heart tissue, and when they get it the second time, the antibody doesn’t help but makes it worse, and they die a sudden death from heart failure,” reads a message forwarded to Taiwan News from a relative of one of the doctors living in the United Kingdom.

“The source also said the virus has “outsmarted all of us,” as it can hide symptoms for up to 24 days. This assertion has been made independently elsewhere, with Chinese pulmonologist Zhong Nanshan saying the average incubation period is three days, but it can take as little as one day and up to 24 days to develop symptoms. Also, the source said that false negative tests for the virus are fairly common. “It can fool the test kit – there were cases that they found, the CT scan shows both lungs are fully infected but the test came back negative four times. The fifth test came back positive.” -Taiwan Times

Notably, one of the ways coronaviruses cripple the immune system is via an HIV-like attachment to white blood cells, which triggers a ‘cytokine storm’ – a term popularized during the avian H5N1 influenza outbreak – in which an uncontrolled release of inflammatory ‘cytokines’ target various organs, often leading to failure and in many cases death. The cytokine storm is best exemplified by severe lung infections, in which local inflammation spills over into the systemic circulation, producing systemic sepsis, as defined by persistent hypotension, hyper- or hypothermia, leukocytosis or leukopenia, and often thrombocytopenia. In addition to lung infections, the cytokine storm is a consequence of severe infections in the gastrointestinal tract, urinary tract, central nervous system, skin, joint spaces, and other sites. (Tisoncik, et. al, Into the Eye of the Cytokine Storm – 2012)

According to the 2012 study, “Cytokine storms are associated with a wide variety of infectious and noninfectious diseases and have even been the unfortunate consequence of attempts at therapeutic intervention.” How do coronaviruses enter the body? With SARS (sudden acute respiratory syndrome), another coronavirus, researchers discovered that one of the ways the disease attaches itself is through an enzyme known as ACE2, a ‘functional receptor’ produced in several organs (oral and nasal mucosa, nasopharynx, lung, stomach, small intestine, colon, skin, lymph nodes, thymus, bone marrow, spleen, liver, kidney, and brain).

ACE2 is also “abundantly present in humans in the epithelia of the lung and small intestine, which might provide possible routes of entry for the SARS-CoV,” while it was also observed “in arterial and venous endothelial cells and arterial smooth muscle cells” – which would include the heart. This has led some to speculate that Asians, who have higher concentrations of ACE2 (per the 1000 genome project) may be affected to a greater degree than those of European ancestry, who produce the least of it – and have largely been the asymptomatic ‘super spreaders’..

Read more …

The Diamond Princess is a mess. But would it have been better to let potentially infected passengers leave and spread the disease? Perhaps this is one of those situations that we don’t have an solution for.

70 More Infections On Diamond Princess Cruise Ship Bring Total To 355 (SCMP)

The number of people who have tested positive for the coronavirus on the Diamond Princess cruise ship, which remains quarantined in a dock in Yokohama, Japan, has risen to 355, up 70 from the last government count, the country’s health minister said on Sunday. “So far, we have conducted tests for 1,219 individuals. Of those, 355 people tested positive. Of those, 73 individuals are not showing symptoms,” Katsunobu Kato told public broadcaster NHK. Canada has chartered a plane to evacuate its citizens from the ship, the Canadian government said in a statement late on Saturday. Canadian passengers who exhibit symptoms of infection will not be allowed to board the flight and will instead be transferred to the Japanese health care system, the government said. Passengers who fly to Canada will enter a 14-day quarantine on arrival.

Read more …

I lost count, which circle of hell is this again?

Cruise Passengers Face 14 More Days In Quarantine On Return To Hong Kong (SCMP)

Hong Kong passengers stranded on the Diamond Princess cruise ship in Japan have baulked at the suggestion they spend another 14 days in quarantine when they return home, even as they welcomed the government’s move to arrange chartered flights to bring them back to the city. The evacuation plan came as 70 new cases of the coronavirus were confirmed by Japanese health officials on Sunday morning, taking the total number of infections aboard the vessel to 355, including at least 11 Hongkongers who have been hospitalised. Among the 330 passengers from Hong Kong who have been held on the ship for 11 days, Young Wo-sang, who was stranded with his wife, welcomed the news, but said he did not understand the need for another two weeks in quarantine.


“We have been placed in quarantine in Japan from February 5, and it has been nearly 14 days already. Why is there a need to quarantine us for another 14 days?” The Hong Kong Immigration Department said the move was to protect against the health risks associated with repatriating the residents, 260 of whom are SAR passport holders, with the remaining 70 travelling on other passports. Young said his wife received text messages from the department in the early hours of Sunday, that said the couple would be notified when they could leave, once Japanese authorities had confirmed the detailed plans for disembarkation.

Read more …

Damned if you do and doomed if you don’t.

Quarantined Cruise Ship Passenger Speaks Out Against US Evacuation Plan (Fox)

A passenger aboard the Diamond Princess cruise ship, which is currently quarantined off the coast of Japan amid a coronavirus outbreak, is speaking out against the United States’ plan to evacuate American passengers. Matthew Smith, who has been quarantined with his wife since Feb. 5, told Fox News’ Neil Cavuto that he prefers to stay on the cruise ship. “Our greatest desire at this point is to maintain the quarantine that the Japanese health officials have established,” Smith said, “then get a test for the virus at the end of that quarantine so we can establish with relative certainty that we are not infected and be free to go. “Unfortunately, the State Department has thrown a monkey wrench into that,” he added.

Approximately 400 Americans and their families on the Diamond Princess will be offered seats on two flights that could arrive at Travis Air Force Base near Sacramento, Calif., as early as Sunday, a CDC official told The Wall Street Journal. A CDC team will screen passengers and those exhibiting symptoms won’t be allowed on the flights. Smith, however, said he’s skeptical about the proposed plan. “I understand getting off the ship to be in another space, but under this circumstance, the offer is we’re going to put you on buses with other people who haven’t completed their quarantines and have not been tested for the virus,” Smith said.


“We’re going to then put you on a plane with all these people and take you back to the United States, and because of the risk you still pose due to that situation we’re going to stick you in another quarantine.” Smith said he would rather stay put on the Diamond Princess ship. While the ship is “getting a bad rap” for its living conditions, Smith said he is content where he is. “We have access to the balcony, we are fed well – three times a day along with excess food — they provide all the necessities we need in there,” he said.

Read more …

Or did she?

American From Cruise Ship Docked In Cambodia Tests Positive In Malaysia For Coronavirus (R.)

An 83-year-old American woman who had been a passenger on a cruise ship that docked in Cambodia has tested positive for the new coronavirus on landing in Malaysia, health authorities said on Saturday. The American woman flew to Malaysia on Friday from Cambodia along with 144 others from the ship, the Malaysian health ministry said in a statement. The woman’s husband had tested negative, it said. The MS Westerdam, operated by Carnival Corp unit Holland America Inc, docked in the Cambodian port of Sihanoukville on Thursday after being shunned by five countries on fears that passengers could be carrying the virus.


The Westerdam, carrying 1,455 passengers and 802 crew, spent two weeks at sea. The passengers were tested regularly on board and Cambodia also tested 20 once it docked. None was found to have the new coronavirus that has killed more than 1,500 people, the vast majority in China. U.S. President Donald Trump has thanked Cambodia for taking in the ship in a rare message to a country that is one of China’s closest allies and has often been at odds with Washington.

Read more …

Holland America Line doesn’t think she was ever really positive.

Cruise Firm Seeks New Virus Test For Passenger From Ship In Cambodia (R.)

More tests are needed to confirm that an American passenger from a cruise ship docked in Cambodia has the new coronavirus after she tested positive in Malaysia, the MS Westerdam’s operator said on Sunday. The 83-year-old woman was the first passenger from the MS Westerdam, operated by Carnival Corp unit Holland America Inc, to test positive for the virus. “While the first results have been reported, they are preliminary at this point and we are awaiting secondary testing for confirmation,” Holland America said in a statement. Cambodian authorities called on Malaysia to review its test results.

Holland America said 236 passengers and 747 crew remained aboard the vessel, which is docked in the Cambodian port of Sihanoukville. It arrived on Thursday carrying 1,455 passengers and 802 crew. It had spent two weeks at sea after being turned away by Japan, Taiwan, Guam, the Philippines and Thailand. The passengers were tested regularly on board and Cambodia also tested 20 once it docked. None was found to have the new coronavirus that has killed more than 1,500 people, the vast majority in China.


The American woman flew to Malaysia on Friday from Cambodia along with 144 others from the ship, the Malaysian health ministry said in a statement, adding that she was in stable condition. The woman’s husband had shown symptoms but tested negative, it said. The couple were the only ones among the 145 to show symptoms, the ministry said. Cambodia’s government said its own tests had been done in collaboration with the World Health Organisation and the U.S. Centers for Disease Control and Prevention. “The Ministry of Health requests the Malaysian authorities to review the results of the test,” Cambodia’s Ministry of Health said in statement.

Read more …

Everything stands still. Nobody believes China’s official numbers anymore. How about 0% GDP growth?

New Coronavirus Threatens Meltdown In China’s Economy (SCMP)

Given the rapid advance of medical science and globalisation of recent decades, the scale, spread and economic costs of human epidemics are rocketing up, even if fatality rates are starting to fall. Never before has China paid such an economic price for an epidemic as it has done already with the coronavirus, which originated in the Chinese city of Wuhan and causes the disease now officially known as Covid-19. And the damage is spreading. It is too soon to assess the full impact of the virus as the data changes day after day and not even the brightest expert can say with any certainty when the outbreak might end. Nevertheless, that has not stopped economists from attempting to forecast the likely economic cost based on precedents such as the 2003 outbreak of severe acute respiratory syndrome, or Sars.

Sars sickened about 8,000 people and killed fewer than 800 and in these terms has already been surpassed by the new coronavirus, though its fatality rate of 9.6 per cent is significantly higher than that of Covid-19, which some estimates put at around 2.4 per cent. Sars cut two percentage points from China’s real GDP growth in the second quarter of 2003 and caused US$50 billion of damage to the global economy. Of course, the economic losses from Covid-19 will depend somewhat on how long the outbreak lasts and on what policy support the Chinese government comes up with to offset the impact. But even at this stage, it is obvious that the economic impact of Covid-19 will be far more severe than that of Sars, or any other previous epidemic, for a number of reasons.


Firstly, the Chinese economy is four times as big as it was in 2003, so its losses and the impact on the global economy are likely to be correspondingly larger. China’s gross domestic product accounted for around 16 per cent of the global total last year while it was just four per cent in 2003. A rough estimate is that Covid-19 will cause at least four times as big a loss as Sars. Secondly, the timing is far worse. The outbreak took place just days before the Lunar New Year holiday, when hundreds of millions of Chinese travel domestically and internationally to attend family reunions and festive events. Sars happened in the second quarter of the year, when there was far less activity to disrupt. [..] Thirdly, China’s rapid urbanisation means Chinese are now much more likely to travel domestically and abroad than two decades ago. This also means that when they stop travelling, the disruption is greater.

Read more …

Not a good time for small business in China.

Coronavirus Scare Leaves China’s Empty Restaurants Selling Off Stocks (R.)

Wang Chuanchao shuttered his restaurant in central Beijing three weeks ago as the scare over the coronavirus epidemic in country kept customers away and now he’s reduced to selling off vegetables on the street outside to cut losses. Anticipating packed tables at his 125-seater restaurant over the Lunar New Year, Wang says he bought in 300,000 yuan (nearly $43,000) worth of ingredients, ranging from celery to ox tripe. Now, he has to find ways to pay the rent, and his staff, so he can re-open for business once his customers find the courage to come back. “We must help ourselves as we can’t count on anything else,” the 32-year-old Wang, standing in front of a stall laden with vegetables that would perish unless they’re sold quickly. “We must try all efforts to cut our losses.”


Most other restaurants have been forced to do the same, as demand has plummeted following the outbreak in the central city of Wuhan in December, with local authorities across the country curbing travel and closing off public areas to prevent the coronavirus spreading. “We purchased stocks of foodstuffs worth 500,000 yuan before the new year, but now the fresh vegetables have started rotting,” said Liu, a young man working at The Cheng’s restaurant in downtown Beijing. “We threw it all away yesterday.” A report published this week by China Cuisine Association said scare over the epidemic has cost the catering sector 500 billion yuan in lost earnings during the week-long Lunar New Year holiday, with 93% restaurants shutting down operations.

Read more …

“In 2017, an estimated 900,000 Chinese tertiary students studied abroad.”

Chinese Students -Used To- Spend Billions Overseas (CNN)

If it weren’t for the novel coronavirus outbreak, Xu Mingxi would have been in class at a prestigious New York university this week. Instead, the 22-year-old has spent the past three weeks confined to his family’s apartment in Wuhan, the Chinese city at the center of the outbreak, which is currently on lockdown to prevent the virus spreading. But even if Xu could leave home, the United States – where he’s studied for the past four-and-a-half years – won’t let him in. Over 1,000 kilometers (620 miles) away in Beijing, Alex – who asked not to use her real name for fear of online retribution – is in a similar situation. She’s spent the past two weeks at home with her mom and grandpa, being delivered groceries by community leaders.

She’s worried she won’t be able to fly to Sydney to study later this month and may have to delay her law degree by a semester. As novel coronavirus spreads, over 60 countries have imposed travel restrictions on Chinese citizens, hoping to limit their exposure to the virus that has killed more than 1,600 people, almost all in mainland China, and infected over 68,000 worldwide. Both Australia and the US have put temporary bans on foreign nationals who visited China in the 14 days prior to their arrival. That has locked Xu and Alex out of their studies — and they are by no means alone. In 2017, an estimated 900,000 Chinese tertiary students studied abroad. Around half of those went to either the United States or Australia, contributing billions of dollars to their economies — money that those countries now stand to lose.


It is not clear how many of the 360,000 Chinese students studying in the US were outside the country when the US travel ban hit on January 31, shortly before many universities were due to resume. But when Australia imposed its restrictions at the start of February, authorities estimated that 56% of Chinese students — about 106,680 people — were still abroad. Term was due to begin in late February or early March. “For Australia, it couldn’t have come at a worse time. It’s exactly the time of the year in which people are coming from China to Australia,” said Andrew Norton, a professor in the practice of higher education policy at the Australian National University. The virus outbreak coincided with the Lunar New Year — the most important holiday in the Chinese calendar, when many students go home to see their family.

Read more …

First of many?

Fiat Chrysler Suspends 500L Production Over China Supply Disruption (R.)

Fiat Chrysler Automobiles said it had temporarily halted production at its Serbian plant due to disruptions related to components sourced from China, where companies have been hampered by the outbreak of a new coronavirus. Planned downtime at the Kragujevac plant in Serbia has been rescheduled, an FCA spokesman said on Friday. Production will restart later this month, the spokesman said, adding that the group did not expect the changes would affect total production forecasts for this month. “We are in the process of securing future supply of the affected parts,” the spokesman said. The automaker builds the 500L in Kragujevac.


The spokesman said the supply of audio system parts had been disrupted. Output at the Kragujevac plant was about 40,000 units last year, Serbian media reported, or a quarter of total capacity. FCA had said on Feb. 6 that it might have to temporarily close a European plant within two to four weeks if the impact of the coronavirus in China created supply line issues. The Kragujevac stoppage marks first time an automaker has had to idle a facility in Europe due to the virus. The next few weeks will be critical for automakers. Parts made in China are used in millions of vehicles assembled around the world. China’s Hubei province, epicenter of the coronavirus outbreak, is a major hub for vehicle parts production and shipments.

Read more …

The ultimate fight for control over the party. How can Bernie, Tulsi and AOC be expected to support the Looming Hill-Berg?

Looming Hill-Berg: Bloomberg Considering Hillary Clinton As Running Mate (NYP)

He’s with her? Mike Bloomberg could team up with Hillary Clinton to try to take down President Trump in November — by making her his running mate. Bloomberg’s internal polling found the combo “would be a formidable force,” sources close to the campaign told the Drudge Report Saturday. Bloomberg’s communications director did not deny the rumored matchmaking effort. “We are focused on the primary and the debate, not VP speculation,” Jason Schechter said in a statement. But minutes after Drudge broke the news, Bloomberg himself posted a coy message about working with female colleagues. “I would not be where I am today without the talented women around me,” he tweeted. “I’ve depended on their leadership, their advice and their contributions.”

A Bloomberg campaign insider told The Post that the two have long been simpatico – going back to the days when she represented New York in the U.S. Senate and he was Gotham’s mayor. “I am sure that they polled it, just because you would be dumb not to wonder,” the insider said. “You want to see what a match-up might look like.” But the pairing is a “net negative” for Bloomberg, a Democratic strategist said. “It doesn’t make any sense to me,” said Brad Bannon, a consultant not affiliated with any presidential campaign. “If he wins the nomination, there’s going to be a lot of unhappiness in the progressive wing of the party,” Bannon explained. “You can’t afford to have them sit on their hands in November.”


[..] Asked about the looming Hill-Berg, Rep. Alexandria Ocasio-Cortez, who has endorsed Sanders, deflected. “I would hope [Bloomberg] would not be in a position to be choosing a running mate at all,” she told The Post during her Queens campaign office opening Saturday. “I think Bloomberg’s past on stop and frisk, on harassment of women— all of these claims are huge red flags.” Clinton and Bloomberg were spotted together in December at Orso in the Theatre District, where they dined with daughter Chelsea, Barry Diller, Diane von Furstenberg, and others, Page Six reported – supposedly to celebrate the birthday of socialite Annette de la Renta. “From what I have seen they have always been friendly,” the campaign insider said.

Read more …

Trump draws the viewers, Bloomberg pays for them.

TV Execs Celebrate Unprecedented Flood Of Bloomberg Campaign Spending (IC)

Fox news hosts regularly bash former New York City Mayor Mike Bloomberg as a globalist demagogue intent on seizing Americans’ firearms and big gulp sodas. High-level executives at the company, however, are much more enthusiastic about the billionaire politician and Democratic presidential candidate. Lachlan Murdoch, the chief executive of Fox Corp., the parent company of Fox News, is one of several media executives to welcome Bloomberg’s unprecedented spending spree on television advertisements. In a February 5 briefing for investors, Murdoch noted that he had heard “the Bloomberg campaign has expected to sort of double its advertising spend earlier this week.” The billionaire’s campaign, Murdoch noted, makes purchases on a week-to-week basis, making it difficult to project the ultimate benefit for his company.

“But obviously,” he added, “we expect it to be very strong and particularly, as I mentioned, in the markets of our local TV stations.” Bloomberg, the ninth wealthiest person in the world, with a fortune estimated at almost $62 billion, has upended the Democratic presidential primary with an infusion of cash that has smashed through historical records in a matter of weeks. Advertising Analytics, which tracks campaign spending, reported Thursday that Bloomberg has already spent $363 million on cable, broadcast, and radio advertisements alone. The 2020 campaign is shaping up to be an incredible financial opportunity for media companies, with one market research firm recently estimating that nearly $7 billion of paid advertising be spent this year, up over 60 percent since the 2016 presidential race.


Bloomberg alone has enticed media executives to see the race as a golden opportunity. “The political is going to be huge this year,” boasted Christopher Ripley, president and chief executive of Sinclair Broadcast Group, one of the largest owners of television stations in the country, speaking last month at the Citi 2020 Global TMT West conference in Las Vegas. “The amount of fundraising that’s happened through this year has broken all records. And the good news about politicians is they never return the money, they spend it,” Ripley quipped.

Read more …

Well, it’s going to be an election like never before.

Why Wasn’t Andrew McCabe Charged? (NR)

The Justice Department announced Friday that it is closing its investigation of Andrew McCabe, the FBI’s former deputy director, over his false statements to investigators probing an unauthorized leak that McCabe had orchestrated. McCabe was fired in March 2018, shortly after a blistering Justice Department inspector general (IG) report concluded that he repeatedly and blatantly lied — or, as the Bureau lexicon puts it, “lacked candor” — when questioned, including under oath. Why not indict McCabe on felony false-statements charges? That is the question being pressed by incensed Trump supporters.

After all, the constitutional guarantee of equal justice under the law is supposed to mean that McCabe gets the same quality of justice afforded to the sad sacks pursued with unseemly zeal by McCabe’s FBI and Robert Mueller’s prosecutors. George Papadopoulos was convicted of making a trivial false statement about the date of a meeting. Roger Stone was convicted of obstruction long after the special counsel knew there was no Trump–Russia conspiracy, even though his meanderings did not impede the investigation in any meaningful way. And in the case of Michael Flynn’s false-statements conviction, as McCabe himself acknowledged to the House Intelligence Committee, even the agents who interviewed him did not believe he intentionally misled them.

I emphasize Flynn’s intent because purported lack of intent is McCabe’s principal defense, too. Even McCabe himself, to say nothing of his lawyers and his apologists in the anti-Trump network of bureaucrats-turned-pundits, cannot deny that he made false statements to FBI agents and the IG. Rather, they argue that the 21-year senior law-enforcement official did not mean to lie, that he was too distracted by his high-level responsibilities to focus on anything as mundane as a leak — even though he seemed pretty damned focused on the leak while he was orchestrating it. The “he did not believe he intentionally misled them” defense is not just implausible; it proved unavailing on McCabe’s watch, at least in General Flynn’s case.

Hence, McCabe has a back-up plan: To argue that it would be extraordinary — and thus unconstitutionally selective and retaliatory — for the Justice Department to prosecute a former official for false statements in a “mere” administrative inquiry (which the leak probe was), as opposed to a criminal investigation. Again, tell that to Flynn, with whom the FBI conducted a brace-style interview — at the White House, without his counsel present, and in blithe disregard of procedures for FBI interviews of the president’s staff — despite the absence of a sound investigative basis for doing so, and whom Mueller’s maulers squeezed into a guilty plea anyway.

Read more …

 

Don’t ask.

 

 

 

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Feb 132020
 


Saul Leiter 463 1956

 

Hubei’s Coronavirus Cases Rise 10-Fold After Change In Diagnostic Criteria (SCMP)
COVID-19 Coronavirus Cases (Worldometer)
Novel Coronavirus (COVID-19) Mortality Rate (Worldometer)
44 More Cases On Diamond Princess Cruise Ship Anchored Off Japan (SCMP)
WHO Team Arrives In China As Wuhan Coronavirus Deaths Top SARS (CNN)
Beijing’s Purge Over Virus Takes Down Top Communist Party Officials In Hubei (SCMP)
Botched Wuhan Quarantine Left Dead Bodies In The Street (ZH)
What Happened After One Chinese Company Reopened After The Corona-Chaos (ZH)
China Struggles To Balance Coronavirus Containment With Economic Cost (SCMP)
Protecting The US From Global Pandemics (Scott Gottlieb)
South Korea’s Moon Says Virus Epidemic To End Soon (YNA)
Epidemics Are Tough To Turn Into Profit (R.)

 

 

Major developments today (overnight for many) with regards to the COVID19 coronavirus. Probably not so much in infections or deaths per se (at least not that we know), but in the way(s) cases are reported. Or, if a spade is called a spade, the way they have been severely underreported so far.

What happened is Hubei’s health commission changed the diagnostic criteria used to confirm cases. And that looks something like this:

 

 

Which leads to this global picture:

 

 

What it comes down to is Hubei used to count cases according to “the old method”, which required clinical diagnosis PLUS testing, and has now switched to “the new method”, in which clinical diagnosis suffices. “Clinically diagnosed cases” here means those cases that show up positive on a CT scan (CT: computed tomography, a way to “look at” internal organs). The changes are in red in the doc:

 

 

Basically, “showing up positive on a CT scan” refers to the detection of pneumonia. For weeks, officials maintained that in an area under heavy siege of a disease for which pneumonia is one of the main symptoms, additional testing was mandatory to confirm a case as COVID19. Yeah, that’s a little crazy.

Ironically, the WHO went along with these counts based on “the old method”, with its chief effusively praising China for its efforts to combat the virus, but the switch to “the new method” comes just two days after a first team of WHO specialists arrived in China, which will “lay the groundwork for a larger international team.” Looks like Beijing has lost control.

The Party understood that it would no longer be able to keep up appearances, so it fired a whole bunch of politicians (Wuhan Party Chief et al) and other functionaries, appointed others in their place, and now vows a fresh start without the Party being blamed for a thing. And it can say nothing really changed, there is no large amount of additional cases, it’s all just a diagnostic ”tweak”.

Still, this hides the reasons behind the diagnostic changes: China either doesn’t have enough testing kits, or can’t get them out -and used- in the field fast enough. And that means too many potentially infectious patients are out there able to spread the virus. Add the WHO team of specialists to the mix and they chose to do damage control.

 

 

All of which leads to these provisionary official numbers:

 

 

Obviously, this has blown all previously referenced models out of the water.

Even JPMorgan’s most pessimistic case can’t keep up. Everybody needs to go back to the drawing board. And will do so, much more suspicious of anything China says from here on in. Tomorrow’s official numbers are likely to “normalize” again, 2,000 new cases, 90 deaths, that sort of thing. But they will now be reported with big question marks. Still, politicians and media alike, whether in the west or in China, will tell you things are improving. They can’t help themselves. But you can.

 

 

Here are some of the relevant news stories. Regular news in the Automatic Earth Debt Rattle will follow later today.

 

 

“Hubei’s new confirmed cases pegged at 14,840, nearly 10 times more than the previous day, while deaths more than doubled to 242.”

Note: that may look like a mortality rate of 20%, but that is far too high. Then again, 2% max doesn’t look tenable anymore either. More on that below.

Hubei’s Coronavirus Cases Rise 10-Fold After Change In Diagnostic Criteria (SCMP)

Health authorities in China’s Hubei province – the epicentre of the coronavirus epidemic – reported on Thursday 14,840 new confirmed cases, almost 10 times the number reported a day earlier, and new deaths attributable to the contagion rose to 242, more than double on the day. This brings the totals announced by the province’s health commission to 48,206 and 1,310, respectively, as of Wednesday. Officials in Hubei had reported 94 fatalities and 1,638 newly confirmed cases a day earlier. Hubei’s health commission said in its daily statement that it had changed the diagnostic criteria used to confirm cases, effective Thursday, meaning that doctors have broader discretion to determine which patients are infected.

“From today on, we will include the number of clinically diagnosed cases into the number of confirmed cases so that patients could receive timely treatment,” the health authority said. Previously, patients could only be diagnosed by test kits, which has seen a shortage of supply across the country. Tong Zhaohui, an expert in the central guidance group and vice-president of Beijing Chaoyang Hospital, said the move was in line with the National Health Commission’s latest diagnostic guidelines to include clinical diagnosis, using CT scans and other tests. “When doctors diagnose pneumonia, they can only get the etiology of the disease 20 to 30 per cent of the time. We have to rely on clinical diagnosis 70 to 80 per cent of the time. Increasing the diagnosis of clinical cases will help us make an additional judgment on the disease,” he told state broadcaster CCTV in an exclusive interview.

[..] Some 13,436 of the new cases announced on Thursday were confirmed in Hubei’s capital of Wuhan …

Read more …

The mortality rate looks bad. See more in next article. (h/t Doc Robinson)

COVID-19 Coronavirus Cases (Worldometer)

There are currently 60,373 confirmed cases and 1,369 deaths from the Wuhan Novel Coronavirus (2019-nCoV) outbreak as of February 13, 2020, 05:20 GMT. The condition of patients, according to the World Health Organization (Feb. 7 press conference) and based on 17,000 cases in China, are: • 82% mild •15% severe •3% critical


“Total Cases” = total cumulative count (60,373). This figure therefore includes deaths and recovered/discharged patients (cases with an outcome). By removing these from the “total cases” figure, we get “currently infected cases” (cases still awaiting for an outcome). The charts include provisional data and values for Feb. 12 that are the result, for the most part, of a change in diagnosis classification, for which an additional 13,332 cases and 107 deaths were counted on Feb. 12..

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Mortality rate in Hubei/mainland China looks awful at 18%. Is that just because no “light” cases are counted, which the world outside China does seem to do?

Novel Coronavirus (COVID-19) Mortality Rate (Worldometer)

Let’s take, for example, the data at the end of February 8, 2020: 813 deaths (cumulative total) and 37,552 cases (cumulative total) worldwide. If we use the formula (deaths / cases) we get: 813 / 37,552 = 2.2% CFR (flawed formula). With a conservative estimate of T(ime) = 7 days as the average period from case confirmation to death, we would correct the above formula by using February 1 cumulative cases, which were 14,381, in the denominator: Feb. 8 deaths / Feb. 1 cases = 813 / 14,381 = 5.7% CFR (correct formula, and estimating T=7).

T could be estimated by simply looking at the value of (current total deaths + current total recovered) and pair it with a case total in the past that has the same value. For the above formula, the matching dates would be January 26/27, providing an estimate for T of 12 to 13 days. This method of estimating T uses the same logic of the following method, and therefore will yield the same result. An alternative method, which has the advantage of not having to estimate a variable, and that is mentioned in the American Journal of Epidemiology study cited previously as a simple method that nevertheless could work reasonably well if the hazards of death and recovery at any time t measured from admission to the hospital, conditional on an event occurring at time t, are proportional, would be to use the formula:

CFR (case fatality rate)= deaths / (deaths + recovered) which, with the latest data available, would be equal to: 1,369 / (1,369 + 6,032) = 18% CFR (worldwide) If we now exclude cases in mainland China, using current data on deaths and recovered cases, we get: 2 / (2 + 76) = 2.6% CFR (outside of mainland China) The sample size above is extremely limited, but this discrepancy in mortality rates, if confirmed as the sample grows in size, could be explained with a higher case detection rate outside of China especially with respect to Wuhan, where priority had to be initially placed on severe and critical cases, given the ongoing emergency.

Unreported cases would have the effect of decreasing the denominator and inflating the CFR above its real value. For example, assuming 10,000 total unreported cases in Wuhan and adding them back to the formula, we would get a CFR of 7.9% (quite different from the CFR of 18% based strictly on confirmed cases). Neil Ferguson, a public health expert at Imperial College in the UK, said his “best guess” was that there were 100,000 affected by the virus even though there were only 2,000 confirmed cases at the time. [11] Without going that far, the possibility of a non negligible number of unreported cases in the initial stages of the crisis should be taken into account when trying to calculate the case fatally rate.

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Ship has 2,600 passengers, 1,100 crew. Only a few hundred have been tested. And we get it, it’s very hard to isolate that many untested people off the ship, where do you get the accomodation.

Now crew members are increasingly getting infected, while attending to the passengers. A crew member told CNN the quality of meals is getting real good, children get new toys every day etc.

The same crew member said she herself waited for 2 days to see a doctor. Crew also don’t have private rooms. They must be very anxious.

44 More Cases On Diamond Princess Cruise Ship Anchored Off Japan (SCMP)

Another 44 people on board a cruise ship moored off Japan’s coast have tested positive for the novel coronavirus, the country’s health minister said on Thursday. Health Minister Katsunobu Kato said the 44 new cases were detected from another 221 new tests. They raise the number of infections detected on the Diamond Princess to 218, in addition to a quarantine officer who also tested positive for the virus. Kato said authorities now want to move elderly people off the ship if they test negative for the virus, offering to put them in government-designated lodging. “We wish to start the operation from tomorrow or later,” Kato told reporters.


Of the newly diagnosed infections, 43 are passengers, and one a member of the crew. The Diamond Princess set off from Hong Kong on January 25 for a trip scheduled to end on February 4. Instead, it has been moored off Japan since February 3, after it emerged that a former passenger who disembarked in Hong Kong last month had tested positive for the virus now named Covid-19.

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At the WHO, the administrative leadership is miles apart from the medical specialists. The latter are now taking over.

WHO Team Arrives In China As Wuhan Coronavirus Deaths Top SARS (CNN)

The number of deaths from the Wuhan coronavirus had risen to over 1,000 by Tuesday morning, as experts from the World Health Organization (WHO) arrived in China to assist with controlling the epidemic. Chinese health authorities said 108 people died from the virus in mainland China on Monday, with the majority of those deaths occurring in Hubei province, the capital of which is Wuhan – the city where the virus was first found. The total number of deaths stands at 1,018, all but two of those in mainland China. Globally, 43,114 have now been diagnosed with the virus, again with the majority in China. Around 4,000 patients have been treated and released from hospital in China since late December.


A team of World Health Organization (WHO) experts landed in China on Monday. The organization’s director general, Tedros Adhanom Ghebreyesus, said they will “lay the groundwork for a larger international team,” which will join them “as soon as possible.” The WHO group in China is led by Bruce Aylward, who helmed the body’s response to Ebola, as well as initiatives for immunization, communicable diseases control and polio eradication. Their arrival comes as the WHO is facing increasing criticism for its initial decision not to declare a global health emergency, and for officials’ effusive praise of China’s handling of the crisis, even as Beijing faces outrage domestically for, among other things, the death of whistleblower doctor Li Wenliang, and the subsequent censorship of that news.

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Spring cleaning.

Beijing’s Purge Over Virus Takes Down Top Communist Party Officials In Hubei (SCMP)

Beijing’s purge of officials in Hubei province picked up pace with the removal of the top Communist Party leaders in the region as the central government responded to public anger over what is seen as a botched response to the deadly coronavirus outbreak in the region. China’s official Xinhua news agency reported that Hubei party secretary Jiang Chaoliang will be replaced by Shanghai Mayor Ying Yong, 61, a close ally of Chinese President Xi Jinping. The Communist Party leader of Wuhan city Ma Guoqiang, 56, is also set to be dismissed, according to a person familiar with the development who was not authorised to speak on the issue. Ma will be replaced by Wang Zhonglin, 57, party secretary of Shandong’s provincial capital Jinan.


Jiang, 61, is the highest-ranking political casualty so far in the outbreak, which has killed more than 1,100 people in mainland China, the vast majority in Hubei and its capital, Wuhan city. As details have trickled out on how local officials mismanaged the outbreak, public anger has swelled on social media. Academics have also signed a public petition to demand free speech after the police punished doctors who raised the early alarm about the outbreak. “Sending Ying Yong and Wang Zhonglin to Hubei shows the central government is determined to fix Hubei and give people answers. The cadres there have been really disappointing,” the unnamed person said. “The outbreak cost the party dearly. Those who are responsible will be held accountable.”

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“Then on day 8, the reporters saw their first dead body in the street. He’s a man, in his sixties, who is lying on his back in front of a closed furniture store. Officials in hazard suits slowly approach the body, taking every conceivable precaution.”

Botched Wuhan Quarantine Left Dead Bodies In The Street (ZH)

[..] few have captured the atmosphere of the situation quite like a team of AFP journalists who lingered in Wuhan after the lockdown, and have detailed their experiences in diary format. The diary begins on Jan. 23, the day Wuhan was placed under lockdown. It starts as one might expect: Though the news was a shock, few tried to escape the city before the lockdown officially went into effect. Police chase the last travelers out of the railroad station. But the situation doesn’t really start to escalate until Jan. 25, or New Year’s Day in China. Those who went to worship at the city’s Guiyan temple, normally packed this time of year, found it empty: nobody was allowed inside.

“No-one is allowed inside in order to prevent the virus spreading,” a uniformed man – who is not wearing the compulsory mask – tells AFP. On the fourth day of the crackdown, conditions in Wuhan really started to deteriorate. This marked the beginning of hard times for Wuhan. Overwhelmed hospitals arbitrarily turned people away if their swab tests came back negative for the virus. One man told an AFP reporter that he had been turned away by four hospitals, despite being seriously ill. “I haven’t slept,” he said. He was getting ready to wait in line all night to hopefully be admitted to another hospital. For the first in their memory, the AFP reporters said Chinese out on the streets approached them to complain about the government’s handling of the lockdown.

“Like a horror film,” says one witness, who tells AFP bodies were left unattended for hours. [..] On day 6, the AFP spoke to a French doctor who had decided to stay in Wuhan, a Dr. Philippe Klein. “It’s not an act of heroism,” he said. “It’s been well thought out, it’s my job.” More signs of the government crackdown are beginning to appear: Guards take the temperature of customers at supermarkets and other stores hawking essential goods. Then on day 8, the reporters saw their first dead body in the street. He’s a man, in his sixties, who is lying on his back in front of a closed furniture store. Officials in hazard suits slowly approach the body, taking every conceivable precaution.

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Well, you can’t say I didn’t warn you. This is precisely what I warned about. And the new numbers will do nothing to restore any confidence at all.

What Happened After One Chinese Company Reopened After The Corona-Chaos (ZH)

Today, two days after China officially returned to work, we got the first confirmation of just how catastrophic Beijing’s order to local enterprises and businesses to rush back reboot the economy could be, when Jennifer Zeng reported that a company in Suzhou reopened, and immediately at least one CoVid2019 case found. As a result, the company’s 200+ employees couldn’t go home and were immediately placed under quarantine. At least the workers managed to “organize” quilts for themselves. This is just the first such case. Expect many more – especially across Hubei and its neighboring provinces – as latent cases of Coronavirus which were never caught and cured spark new infections and mini epidemics, all of which dutifully captured on a smartphone clip for everyone in China to watch and freak out even more.

Which reminds us of another comment from Rabobank, which last week explained why the dilemma facing China is “truly awful”: The quandary for China between releasing the quarantine straitjacket in days to stop its economy from getting truly sick, and allowing a virus like this to spread further as people start to mingle again is truly awful. There are no good options. For a world with a serious lack of final end-demand, and which has been relying on China, along with increasingly “Chinese” central banks, this is going to be a nasty shock either way that Mr Market is treating like he is Mr Magoo.

And since Beijing has no way out, especially since the epidemic is still raging despite Beijing’s “doctored”, no pun intended, infection and death numbers, expect China to unleash the most draconian censorship crackdown on any reports Covid-2019 has not only not been purged but is making unwelcome appearances across China’s enterprises, which will be quietly put under blanket quarantine even as Beijing pretends that all is well and its economy is once again humming on all cylinders until eventually the epidemic reaches a critical mass and China has no choice but to once again admit the full extent of the social and economic fallout. And just like in the case of SARS, don’t expect such “honesty” to emerge for at least several weeks if not months.

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“The city governments of Zhongshan and Foshan in Guangzhou province have postponed the resumption of work until March 1, while companies must apply for special permission in Hangzhou, the capital of Zhejiang province. The local administration has so far only given the green light to 1,462 out of nearly 30,000 companies based in the city”

Will these party officials be fired for being too strict?

China Struggles To Balance Coronavirus Containment With Economic Cost (SCMP)

To work or not to work – that is proving a crucial question for Chinese officials, companies and employees as the world’s second largest economy struggles to balance the risk of the deadly coronavirus with the need to resume business. Most provinces across China restarted operations on Monday after an extended Lunar New Year holiday, but an influx of workers returning from their hometowns is posing a headache for authorities. The coronavirus, which has killed more than 1,100 people and infected nearly 45,000, shows few signs of being contained, stoking fears of a potential spike in infections as people return to work. While the central government has made it clear that containing the outbreak is an overriding priority, Communist Party leaders know they cannot afford to freeze industrial production indefinitely, especially as China’s economy grows at its slowest pace in decades.

[..] As the virus has spread from Hubei’s provincial capital Wuhan, authorities across China have imposed travel restrictions, cancelled public events and locked down neighbourhoods. Last week, the government of Suzhou, a major manufacturing hub in Jiangsu province, which is known for its silk products, asked local communities to tell workers from Hubei and Zhejiang provinces not to return until further notice. This employee “blacklisting” was echoed by other cities, including Wuxi in the south of Jiangsu, which banned migrant workers from at least seven provinces. While most provincial level governments have urged companies to resume operations this week, officials at local levels are dragging their feet.

The city governments of Zhongshan and Foshan in Guangzhou province have postponed the resumption of work until March 1, while companies must apply for special permission in Hangzhou, the capital of Zhejiang province. Once approved, employees are required to report their body temperatures to local authorities daily. The local administration has so far only given the green light to 1,462 out of nearly 30,000 companies based in the city, an approval rate below 5 per cent. Small and medium-sized enterprises in China, which are a cornerstone for employment and social stability, are at most risk from the efforts to contain the outbreak. A recent survey conducted by researchers from Tsinghua and Peking universities in Beijing, two of China’s top institutions of higher learning, found that 67.1 per cent of small and medium-sized enterprises had only enough financial reserves to sustain operations for two months if revenues dried up. The survey of 995 companies also found that 30 per cent expected revenues to shrink by at least half from 2019.

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In case the virus didn’t scare you enough:

“80 percent of the U.S. supply of antibiotics are made in China…”

Protecting The US From Global Pandemics (Scott Gottlieb)

About 40 percent of generic drugs sold in the U.S. have only a single manufacturer. A significant supply chain disruption could cause shortages for some or many of these products. Last year, manufacturing of intermediate or finished goods in China, as well as pharmaceutical source material, accounted for 95 percent of U.S. imports of ibuprofen, 91 percent of U.S. imports of hydrocortisone, 70 percent of U.S. imports of acetaminophen, 40 to 45 percent of U.S. imports of penicillin, and 40 percent of U.S. imports of heparin, according to the Commerce Department. In total, 80 percent of the U.S. supply of antibiotics are made in China.

While much of the fill finishing work (the actual formulation of finished drug capsules and tablets) is done outside China (and often in India) the starting and intermediate chemicals are often sourced in China. Moreover, the U.S. generic drug industry can no longer produce certain critical medicines such as penicillin and doxycycline without these chemical components.iv According to a report from the US-China Economic and Security Review Commission, China’s chemical industry, which accounts for 40 percent of global chemical industry revenue, provides a large number of ingredients for drug products.

It’s these source materials – where in many cases China is the exclusive source of the chemical ingredients used for the manufacture of a drug product – that create choke points in the global supply chain for critical medicines. Moreover, when it comes to starting material for the manufacture of pharmaceutical ingredients, a lot of this production is centered in China’s Hubei Provence, the epicenter of coronavirus. Most drug makers have a one to three-months of inventory of drug ingredients on hand. But these supplies are already being drawn down. Among big API makers in Wuhan are Wuhan Shiji Pharmaceutical, Chemwerth, Hubei Biocause, Wuhan Calmland Pharmaceuticals.

[..] We’re facing the potential for unprecedented supply chain disruptions. You can’t easily switch component part suppliers — either starter material for the manufacture of drugs or components for device devices. You have to qualify those alternative sources, make sure they meet regulatory standards for Good Manufacturing Practices (GMPs), and meet the conditions set by those incorporating these materials into their finished goods. Even if FDA is able to offer manufacturers flexibility in making these component changes, substitutions are often complex.

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Some people are just not all that smart.

South Korea’s Moon Says Virus Epidemic To End Soon (YNA)

President Moon Jae-in expressed confidence Thursday that South Korea will soon bring the novel coronavirus pandemic under control and stressed it is time to resume full-scale efforts to revitalize the economy, meeting with a group of local business leaders. “COVID-19 will be terminated (in South Korea) before long,” he said, using the official name of the disease, during the session held at the Korea Chamber of Commerce and Industry (KCCI) in Seoul. Fortunately, he said, domestic quarantine management “appears to have entered a stable stage to some extent,” although it is still too early to be complacent. He emphasized that quarantine authorities here would continue their efforts “until the end” to contain the virus.


The president voiced regret once again over the outbreak’s negative impact on the country’s economy, which he said had been showing clear indications of recovery. “It’s very regrettable that the ankle of the economy has been seized by the occurrence of the COVID-19 incident,” Moon told the attendees including Samsung Electronics Vice Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, CJ Group Chairman Lee Jae-hyun and Park Yong-maan, chairman of the KCCI. “Now, it’s time for the government and business circles to join forces and revive the recovery trend of the economy,” Moon said. He reaffirmed the government’s resolve to ramp up its bid to create more jobs with massive investment projects and support private firms with “bold” tax incentives and regulatory reform.

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And here’s for the morally challenged. If it won’t make us rich, we should we develop a vaccine?

Epidemics Are Tough To Turn Into Profit (R.)

Epidemics are catastrophic for humans, and it turns out they aren’t much better for healthcare companies. The number of confirmed cases of the new coronavirus has multiplied more than 80-fold over three weeks despite measures such as travel bans, and exceeded 45,000 across 26 countries on Wednesday, according to researchers at Johns Hopkins University. Tests and treatments are in demand. Yet past events like SARS show slow research, high production costs and political pressure on pricing often add up to disappointing returns. Tests for the virus now called SARS-CoV-2 are here. These are vital for diagnosing, isolating carriers, and tracking exposure.

Meridian Bioscience saw its stock pop on news it had developed a test, but the shares then dropped as investors realized Roche, Qiagen and others would all fight for thin margins. So far, none of the stocks has moved much. A treatment has better profit potential, as competition probably will be limited. The snag is, proving a drug’s effectiveness typically takes years. There are already multiple trials started using existing anti-viral treatments, and potential new drugs by Gilead Sciences and Regeneron Pharmaceuticals have begun testing, or will soon. Even if one company hits the jackpot, production can be a problem. Flu fears in 2009 made Roche’s Tamiflu a blockbuster. But securing enough production of spice star anise to make the drug proved troublesome.

The best long-term hope for coronavirus control is a vaccine. Old-school giant Novartis, biotechnology outfit Moderna and others want to make one. But drug development is hard, and vaccines can be particularly tricky due to viral mutation. World Health Organization chief Tedros Adhanom Ghebreyesus said on Tuesday a vaccine might be available in 18 months, a long way off even assuming no hiccups. Vaccines can be profitable for endemic diseases – Pfizer sold $1.6 billion of a pneumonia vaccine last year. But the outbreak of Severe Acute Respiratory Syndrome in 2003 flared up and hasn’t been seen in humans since. SARS-CoV-2 might follow the same path.

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Feb 122020
 


Dorothea Lange Daughter of white tobacco sharecropper at country store. Person County, North Carolina 1939

 

China Reports 97 New Deaths, 2,059 New Cases Confirmed (SCMP)
Coronavirus Cases Fall, Experts Disagree Over Whether Peak Is Near (R.)
Japan Cruise Ship Virus Cases Jump To 175 (R.)
At Least 500 Wuhan Medical Staff Infected With Coronavirus (SCMP)
China’s Banks Face $6 Trillion Coronavirus Cataclysm (ZH)
China Home Sales Crash In First Week Of February ‘Worse Than SARS’ (ZH)
Trump Swipes At Resigned Prosecutors, Judge In Roger Stone Case (Hill)
Despite Iowa Fiasco, Nevada Democrats Plan to Use New Software “Tool” (Webb)
Executive Order (Kunstler)
Third Whistle-Blower Comes Forward To Corroborate Complaints About OPCW (RT)
Subprime Auto Loans, Serious Delinquencies Soar. These Are the Good Times (WS)
Job Openings Plunge the Most Since the Great Recession (WS)
How Unfunded Pensions Will Destroy Your Retirement (Raoul Pal)
Volkswagen and Daimler Push For More ‘Sustainable’ Chile Lithium (R.)

 

 

And there we go once more with the Covid19 statistics (will that new name ever stick?):

 

• Deaths: 1,115, up 97 from yesterday’s 1,108


• Cases: 45,171, up 2059 from yesterday’s 43,112

 

“Everyone” is saying the numbers are going down, and that must mean we’re over the peak, or something.

But I quoted Ben Hunt yesterday in Corona Cartoon Numbers as saying the numbers conformed to a simple quadratic function, and speaking in the “voice” of Xi Jinping:

Yesterday we told everyone that 500 people have died since the outbreak. That’s a made-up number, of course, but that’s what we told everyone. Today let’s tell everyone that an additional 15% of that number died yesterday, so 75 new deaths for 575 total dead. And tomorrow let’s tell everyone that 14% of that total number died, and the day after 13%, and then 12% and then 11%. Clear progress!

That was in reaction to this predicted sequence Hunt saw presented by Antimonic:

 

 

My updated interpretation of this was:

Today according to “official” numbers we have 43,103 cases and 1,018 fatalities, which is up 108 from yesterday’s 910. What’s that, 10.5%? Close enough for discomfort.

And sure enough, today’s 97 deaths constitute 9.5% of yesterday’s 1,108. If this sequence holds (note that it was never meant as anything precise, just a trend), tomorrow’s new added deaths should be around 8.5% of 1,115, or 93-96 deaths. Let’s see. If that is correct, we know Beijing has been reporting false deaths numbers according to that quadratic “formula” -we already know, really.

 

 

 

You wait 2,5 months to name the thing, and then expect everyone to use that name?

China Reports 97 New Deaths, 2,059 New Cases Confirmed (SCMP)

China’s health authority reported 97 new deaths attributable to the Covid-19 outbreak and 2,015 newly-confirmed cases as of Tuesday. This brings the national totals to 1,113 and 44,653, respectively. As of yesterday, 744 recovered patients have been discharged, while the total number of recovery cases stands at 4,740. Outside Hubei province – epicentre of the Covid-19 epidemic – new infections on the mainland fell for the eighth consecutive day. Health authorities in Hubei reported 94 new deaths attributable to the contagion, and 1,638 newly confirmed cases as of Tuesday. This brings the totals announced by the province’s health commission to 1,068 and 33,366, respectively.


Officials in Hubei had reported 103 fatalities and 2,097 newly confirmed cases a day earlier. Some 1,104 of the new cases announced were confirmed in Hubei’s capital of Wuhan, where the virus is believed to have originated at a seafood and meat market. The figures from Hubei on Tuesday mark the lowest number of newly confirmed cases since the beginning of February. It is also the first time that Hubei has reported fewer than 2,000 new daily cases since February 2. Michael Ryan, the World Health Organisation’s head of emergency programmes, said on Tuesday in Geneva that Covid-19 had the potential to spread faster than either the Ebola or Sars viruses. Earlier this week, Covid-19 exceeded the Sars outbreak of 2002-03 in terms of deaths attributed to it.

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“China’s foremost medical adviser on the outbreak, Zhong Nanshan..” Who said two weeks ago it would all be over within a week or ten days. “China’s foremost medical adviser on the outbreak”. Zhong now says: “I hope this outbreak or this event may be over in something like April..”

Coronavirus Cases Fall, Experts Disagree Over Whether Peak Is Near (R.)

China on Wednesday reported its lowest number of new coronavirus cases since late January, lending weight to a prediction from its senior medical adviser that the outbreak could be over by April. Global markets took heart from the outlook but other international experts remain alarmed by the spread of the flu-like virus, which has killed more than 1,100 people, all but two in mainland China, and said optimism could be premature. China’s foremost medical adviser on the outbreak, Zhong Nanshan, said the numbers of new cases were falling in some provinces, and forecast the epidemic would peak this month.

“I hope this outbreak or this event may be over in something like April,” Zhong, an epidemiologist whose previous forecast of an earlier peak turned out to be premature, told Reuters on Tuesday. Total cases of the new coronavirus in China have hit 44,653, according to health officials, including 2,015 new confirmed cases on Tuesday. That was the lowest daily rise in new cases since Jan. 30. China last week amended its guidelines on prevention and control of the coronavirus, saying that only when asymptomatic cases show clinical signs should they be recorded as a confirmed case. However, it is not clear if the government data previously included asymptomatic cases. The number of deaths on the mainland rose by 97 to 1,113 by the end of Tuesday.

While Chinese officials said the situation was under control, the World Health Organization (WHO) warned the epidemic posed a global threat potentially worse than terrorism. The world must “wake up and consider this enemy virus as public enemy number one”, WHO chief Tedros Adhanom Ghebreyesus said on Tuesday, adding the first vaccine was 18 months away. Asked about Zhong’s prediction, Australia’s chief medical officer, Brendan Murphy, said: “I think it’s far too premature to say that.” “We’ve just got to watch the data very closely over the coming weeks before we make any predictions,” he told the Australian Broadcasting Corp, while praising China’s “Herculean efforts” to contain the virus.

[..] Even if the epidemic ends soon, it has already taken a toll on China’s economy, with companies laying off workers and other firms needing loans running into billions of dollars to stay afloat. Supply chains for car manufacturers to smartphone makers have broken down. Wu Chaoming, chief economist at Fortune Securities, wrote in a report that the impact on China’s labor market would be far greater than that of a 2002-2003 outbreak of another coronavirus that caused Severe Acute Respiratory Syndrome. About 24% of the labor force, or 186 million people, “could face some risks in salary reduction or even being laid off”, he said. ANZ bank said China’s first-quarter growth would likely slow to 3.2-4.0% compared with an earlier projection of 5.0%. China’s aviation regulator urged countries to lift virus-related travel restrictions as soon as possible, but airlines showed no sign of easing their curbs on flights.

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Highest concentration of infections outside of China.

Japan Cruise Ship Virus Cases Jump To 175 (R.)

Another 39 people have tested positive for the coronavirus on the quarantined Diamond Princess cruise ship in Japan as well as one quarantine officer, bringing the total to 175, the health ministry said on Wednesday. The Diamond Princess was placed in quarantine for two weeks upon arriving in Yokohama, south of Tokyo, on Feb. 3, after a man who disembarked in Hong Kong was diagnosed with the virus. About 3,700 people are aboard the ship, which usually has a crew of 1,100 and a passenger capacity of 2,670. The ministry said tests are being conducted for others who are deemed to need them and it will announce the results later.


The U.K.-flagged Diamond Princess is managed by Princess Cruise Lines, one of the world’s largest cruise lines and a unit of Carnival Corp. The government was considering allowing elderly and those with chronic illnesses to disembark before the Feb. 19 target date for ending the quarantine, some media reported, but added it would take time to figure out where they could be sent. As of last week, about 80% of the passengers were aged 60 or over, with 215 in their 80s and 11 in the 90s, the English-language Japan Times newspaper reported.

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Yup. Poor hygiene.

At Least 500 Wuhan Medical Staff Infected With Coronavirus (SCMP)

At least 500 hospital staff in Wuhan had been infected with the deadly new strain of coronavirus by mid January, multiple medical sources have confirmed, leaving hospitals short-staffed and causing deep concern among health care workers. While the government has reported individual cases of health care workers becoming infected, it has not provided the full picture, and the sources said doctors and nurses had been told not to make the total public.
The reason for this edict was not explained, but the authorities have been trying to boost morale among frontline medical staff, especially following the death of Li Wenliang, who was killed by the disease weeks after being reprimanded by police for warning colleagues about the new virus.


A slide circulating online, however, reveals the scale of infections among medical workers in Wuhan. It said that by mid-January there had been about 500 confirmed cases among hospital staff with a further 600 suspected ones. A source from a major hospital in Wuhan with knowledge of the situation confirmed that the slide was authentic. The figures shown on the slide were also in line with the figures given by two other doctors from major hospitals in Wuhan.

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How many businesses and banks can the PBOC save if the virus lasts into April or beyond?

China’s Banks Face $6 Trillion Coronavirus Cataclysm (ZH)

In a little noticed post back in November, we reported that as part of a stress test conducted by China’s central bank in the first half of 2019, 30 medium- and large-sized banks were tested; In the base-case scenario, assuming GDP growth dropped to 5.3% – nine out of 30 major banks failed and saw their capital adequacy ratio drop to 13.47% from 14.43%. In the worst-case scenario, assuming GDP growth dropped to 4.15%, some 2% below the latest official GDP print, more than half of China’s banks, or 17 out of the 30 major banks failed the test. Needless to say, the implications for a Chinese financial system – whose size is roughly $41 trillion – having over $20 trillion in “problematic” bank assets, would be dire.

Why do we bring this up now? Because according to many Wall Street estimates, as a result of the slowdown resulting from the Coronavirus pandemic, China’s economic growth is set to slow sharply, with some banks such as JPMorgan now expecting as little as 1% GDP growth in Q1 assuming the epidemic is contained in the next few weeks; if it isn’t, Chinese Q1 GDP growth may print negative for the first time on record. This is a big problem, because as noted above if the PBOC’s 2019 stress test is credible, more than half of China’s banks would fail the “stress test” should GDP drop to just 4.15%; and one can only imagine what happens to China’s banks if GDP prints negative.

Or, alternatively, one can read the fine print, where we find that among the immediate first order consequences of a GDP crunch is that the bad loan ratio at the nation’s 30 biggest banks would rise five-fold, flooding the country with trillions in non-performing loans, and potentially unleashing a tsunami of bank defaults. [..] “The banking industry is taking a big hit,” You Chun, a Shanghai-based analyst at National Institution for Finance & Development told Bloomberg. “The outbreak has already damaged China’s most vibrant small businesses and if it prolongs, many firms will go under and be unable to repay their loans.” [..] .. a recent nationwide survey showed that about 30% [of small businesses] expect to see revenue plunge more than 50% this year because of the virus and 85% said they are unable to maintain operations for more than three months with cash currently available.

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“..new apartment sales crashed 90% in the first week of February..[..] .. Sales of existing homes in 8 cities plunged 91% over the same period..”

That can’t last long, but: “Real estate transactions have been forbidden in many cities.”

Seen more reports on that seconnd pic: the virus spreading through pipes in buildings.

China Home Sales Crash In First Week Of February ‘Worse Than SARS’ (ZH)

Bloomberg cited a new report via China Merchants Securities (CMSC) that said new apartment sales crashed 90% in the first week of February over the same period last year. Sales of existing homes in 8 cities plunged 91% over the same period. “The sector is bracing for a worse impact than the 2003 SARS pandemic,” said Bai Yanjun, an analyst at property-consulting firm China Index Holdings Ltd. “In 2003, the home market was on a cyclical rise. Now, it’s already reeling from an adjustment.” Long before the coronavirus outbreak, China’s housing market has been on shaky grounds amid declining demand, stricter mortgage requirements, and price discounts.

The latest shock: two-thirds of China’s economy has come to a standstill, could generate enough pessimism to pop the country’s massive housing bubble. After all, coronavirus is a mass distraction from the overall domestic problems the Communist Party of China (CPC) faces. The CPC failed to stimulate the economy last year, with credit impulse not turning up as expected. The virus outbreak has allowed the CPC to scapegoat the slowdown and the inevitable crash. “…China’s ability to stimulate its economy is now virtually nil, since China’s record debt load has now made it virtually impossible to push the country’s credit impulse higher,” we noted last week. Real estate transactions have been forbidden in many cities. This means fire sales could be seen once selling restrictions end.

E-House China Enterprise Holdings Ltd.’s research institute said four units per day were being sold in Beijing last week, and this is down from several hundred per day during the same period in the previous year. China International Capital Corp. analyst Eric Zhang said demand could pick back up in April, assuming the virus outbreak is under control.

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The 4 prosecutors in the Roger Stone case should be investigated. They won’t be, if only because they’re not independent. But this feels like sour grapes for the Mueller report failure.

Stone is a dirty trickster, but he’s been that for decades, and he’s only one of many in DC, on both sides. You can’t be locked up for that. Stone faces two main allegations, IIRC:

1) Lying about his link to WIkiLeaks/Russia. But we know Stone never had any such links. He lied to the Trump campaign about having them though, and then to the DOJ about that. But in essence, he was lying about something that never existed.

Sentencing him for that serves only to keep the illusion alive (just like the coward Rober Mueller did), that WikiLeaks had Russia links, and it’s high time to get rid of that ridiculous notion once and for all.

2) Stone is accused of threatening Randy Credico, his friend who testified to the DOJ. Or more specifically, he’s accused of threatening to kill Credico’s dog, Bianca. Credico wrote to Judge Amy Berman last month pleading with her NOT to send Stone to prison, and saying neither the threats against him or Bianca were serious.

Summarized, there are (were) 4 prosecutors who wanted to send Stone to prison for 9 years for threatening a dog, which according to the dog’s owner wasn’t even a real threat. And if the DOJ or Barr or Trump criticize this, they become the accused, “lawless”, parties.

Trump Swipes At Resigned Prosecutors, Judge In Roger Stone Case (Hill)

President Trump on Tuesday swiped at the prosecutors and judge in the case of longtime confidant Roger Stone amid the fallout of the Justice Department’s decision to intervene in Stone’s sentencing recommendation. Trump weighed in on the sentencing late Tuesday even as Democrats and critics expressed alarm that the president seemed to be blurring the line between the executive branch and the Department of Justice (DOJ). “Who are the four prosecutors (Mueller people?) who cut and ran after being exposed for recommending a ridiculous 9 year prison sentence to a man that got caught up in an investigation that was illegal, the Mueller Scam, and shouldn’t ever even have started? 13 Angry Democrats?” Trump tweeted.

All four prosecutors who worked on Stone’s case resigned Tuesday after the DOJ asked a federal court to reduce the seven- to nine-year prison sentence they had originally recommended. One prosecutor, Aaron Zelinsky, worked on former special counsel Robert Mueller’s team. Stone, a 67-year-old right-wing provocateur, was found guilty in November of lying to Congress and witness tampering related to his efforts to provide the Trump campaign inside information about WikiLeaks in 2016. The timing of the DOJ’s involvement raised questions given that it came hours after Trump ridiculed the initial recommendation as a “miscarriage of justice” and previous accusations from Democrats that Attorney General William Barr has interceded at times in the president’s favor.

The president later told reporters he had not spoken with DOJ officials about Stone’s case but insisted he had the right to do so. He declined to say whether he was considering commuting Stone’s eventual sentence. “All starting to unravel with the ridiculous 9 year sentence recommendation!” Trump tweeted Tuesday night. Trump late Tuesday also swiped at D.C. District Judge Amy Berman Jackson, who is overseeing the Stone case, implying she had treated his former campaign chairman unfairly. “Is this the Judge that put Paul Manafort in SOLITARY CONFINEMENT, something that not even mobster Al Capone had to endure? How did she treat Crooked Hillary Clinton? Just asking!” Trump tweeted.

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The most boring show on TV. If you watch it or g-d forbid write about it, I feel for you.

Iowa: screwed up app, and ButtGeek gets bought into contention.

New Hampshire: Klobuchar gets bought into contention.

All of a sudden Warren and Biden are gone, and two no-no’s are Sanders’ only rivals left?

Despite Iowa Fiasco, Nevada Democrats Plan to Use New Software “Tool” (Webb)

Even while the chaos of the recent Iowa Caucus remains fresh in voters’ minds, the Nevada State Democratic Party is setting itself up for more of the same by using a new software application for reporting results that is set to be coded and tested in less than a month. The application, still currently under development, will come preloaded onto iPads that will be distributed to precinct chairs during Nevada’s upcoming caucus, scheduled for February 22. The scramble to create this new application followed revelations that the same company that had developed the software largely blamed for the Iowa debacle – known as Shadow Inc. – had also developed the two applications that Nevada Democrats had planned to use both for early voting and for Caucus Day.

[..] .. the Shadow Inc. app was reported to have been developed over a period of roughly two months, though the company’s CEO, Gerard Niemira, has since claimed that the app’s creation began last August. In contrast, Nevada Democrats are now slated to use a software application developed in less than half that time [..] Another issue is the fact that Nevada Democrats decided to go this route after consulting “a group of tech and security folks” whose names and affiliations were not provided. As previously mentioned, after the Iowa debacle, several media reports quoted technology and cybersecurity experts as well as software developers who had cited the rushed development of the Shadow Inc. app as having largely led to the app’s failure and the resulting chaos in Iowa.

It thus seems odd that a group of “tech and security folks” are urging Nevada Democrats to pay for the development of a new program in an even shorter time frame as a way to prevent Nevada’s caucus from repeating Iowa’s failures. Though the identity of this group remains unknown, concerns have been raised that some may have links to the 2020 presidential campaign of Pete Buttigieg, given that the Shadow Inc.-developed app used in Iowa was found to have ties to the Buttigieg campaign and the Iowa caucus chaos clearly benefited the Buttigieg campaign. Concerns about possible connections between these tech and security consultants and the Buttigieg campaign have only grown since it was revealed that Nevada Democrats recently hired an organizer for Pete Buttigieg’s 2020 presidential campaign, Emily Goldman, as the Caucus’ Voter Protection Director, just weeks before the caucus is set to take place.

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I felt a song coming on. From one of my favorite albums.

Executive Order (Kunstler)

In this pause between past and future Deep State seditions, and the full-blown advent of Corona Virus in every region of the world, we pause to consider Mr. Trump’s executive order requiring new federal buildings to be designed in the classical style. The directive has caused heads to explode in the cultural wing of Progressive Wokesterdom, since the worship of government power has replaced religion for them and federal buildings are their churches — the places from which encyclicals are hurled at the masses on such matters as who gets to think and say what, who gets to use which bathroom, and especially whose life and livelihood can be destroyed for being branded a heretic.

[..] A virtue of classicism is that it employs structural devices that allow buildings to stand up: arches, columns, colonnades. These are replicable in modules or bays along scales from small to large. These devices honestly express the tectonic sturdiness of a building within the realities of gravity. A hidden virtue of classicism is that it is based on the three-part representation of the human figure: the whole and all the parts within it exist in nested hierarchies of base-shaft-and-head. This is true of columns with capitols set on a base, of windows with their sills, sashes, and lintels, and the whole building from base to roof. Classical architecture follows proportioning systems universally found in nature, such as the Fibonacci series of ratios, which are seen in everything from the self-assembly of seashells to the growth of tree branches.

Thus, classicism links us to nature and to our own humanity. Classical ornaments — the swags, moldings, entablatures, cartouches, corbels, festoons, and what-have-you — are not mandatory, but, of course, they also provide a way of expressing our place in nature, which is a pathway to expressing truth and beauty.

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Just disband the thing alright. And defund Bellingcat.

Third Whistle-Blower Comes Forward To Corroborate Complaints About OPCW (RT)

A third whistle-blower has come forward to corroborate the previous complaints that the Organization for the Prohibition of Chemical Weapons (OPCW) tried to suppress evidence-gathering in the Douma probe, a report says. The alleged new whistleblower, whose redacted email was shared by the Grayzone Project on Tuesday, backed the complaints made by two former OPCW employees — South African engineer and organization’s veteran Ian Henderson, and another whistleblower known as ‘Alex.’ OPCW Director-General Fernando Arias had earlier dismissed the pair — dubbed Inspector A and Inspector B in the organization’s inquiry into their claims — as low-level rogue employees who conducted field work without proper authorization and which simply “could not accept that their views were not backed by evidence.”

However, the person, described by Grayzone as a former senior official with the OPCW, stood by Henderson and ‘Alex,’ writing that his time with the organization was “the most stressful and unpleasant” one in his life. “I feel ashamed for the Organization and I am glad I left it. “I fear those behind the crimes that have been perpetrated in the name of ‘humanity and democracy,’ they will not hesitate to do harm to me and my family,” the person wrote, explaining the decision to remain anonymous. Henderson was deployed with the fact-finding mission to Syria shortly after the alleged chemical attack in Douma. The inspector concluded that the cylinders, supposedly containing chlorine, were more likely manually placed on the ground rather than dropped from planes.

According to him, the higher-ups discarded his findings without explanation, and sidelined him from the rest of the mission. Its final report was later used by the US and some European countries to implicate the Syrian government of Bashar Assad in conducting the attack, which the Syrian authorities vehemently deny.

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What keeps America motoring.

Subprime Auto Loans, Serious Delinquencies Soar. These Are the Good Times (WS)

Auto loan and lease balances have surged to a new record of $1.33 trillion. Delinquencies of auto loans to borrowers with prime credit rates hover near historic lows. But subprime loans (borrowers with a credit score below 620) are exploding at a breath-taking rate, and they’re driving up the overall delinquency rates to Financial Crisis levels. Yet, these are the good times, and there is no employment crisis where millions of people have lost their jobs. All combined, prime and subprime auto-loan delinquencies that are 90 days or more past due – “serious” delinquencies – in the fourth quarter 2019, surged by 15.5% from a year ago to a breath-taking historic high of $66 billion, according to data from the New York Fed released today:

Loan delinquencies are a flow. Fresh delinquencies that hit lenders go into the 30-day basket, then a month later into the 60-day basket, and then into the 90-day basket, and as they move from one stage to the next, more delinquencies come in behind them. When the delinquency cannot be cured, lenders hire a company to repossess the vehicle. Finding the vehicle is generally a breeze with modern technology. The vehicle is then sold at auction, a fluid and routine process.[..] Seriously delinquent auto loans jumped to 4.94% of the $1.33 trillion in total loans and leases outstanding, above where the delinquency rate had been in Q3 2010 as the auto industry was collapsing, with GM and Chrysler already in bankruptcy, and with the worst unemployment crisis since the Great Depression approaching its peak. But this time, there is no unemployment crisis; these are the good times:

About 22% of the $1.33 trillion in auto loans outstanding are subprime, so about $293 billion are subprime. Of them, $68 billion are 90+ days delinquent. This means that about 23% of all subprime auto loans are seriously delinquent. Nearly a quarter!

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The biggest threat vs Trump’s re-election. Will the Dems weaponize it?

Job Openings Plunge the Most Since the Great Recession (WS)

The number of job openings in December dropped by 364,000 from November (seasonally adjusted), after having already plunged by 574,000 in November, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). This two-month plunge of 938,000 job openings came after a series of ups and downs with downward trend starting after the peak in January 2019. It brought the number of job openings in December to 6.42 million (seasonally adjusted), same level as in October 2017. Since the peak in January 2019, over 1.2 million job openings have dissolved into ambient air (November and December in red).

On a not-seasonally adjusted basis, job openings in December plunged by 14.9% from December 2018, the steepest since the Great Recession. In total, 1.05 million job openings have disappeared over the period. This was the seventh month in a row of year-over-year declines. Year-over-year comparisons eliminate seasonal fluctuations. And the fact that this year-over-year drop of 14.9% in December occurred in the not-seasonally adjusted data shows that the drop to 6.42 million job openings was not due to seasonal adjustments gone berserk. It was due to other reasons. There had been a minuscule dip into the negative in January 2013, and then the more visible dip into the negative in late 2016 and early 2017. What we’re seeing now is in an entirely different ballpark:

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I haven’t watched the entire video, but this is a topic that warrants much more scrutiny.

How Unfunded Pensions Will Destroy Your Retirement (Raoul Pal)

How can ordinary people behaving rationally create a generational threat? Raoul Pal, in his role as CEO and co-founder of Global Macro Investor, joins Real Vision to explain the interconnected problem of the everything bubble and the coming retirement crisis to answer the question, “why do we invest?” He explains in detail how the baby boomer generation, through the rational and reasonable behavior of seeking to live and retire comfortably, has fueled the creation of a massive financial bubble that touches nearly every corner of the economy as pensions take more and more risk. Pal breaks down the crucial demographic, economic, and political trends that have combined to create the problem and suggests potential solutions for Baby Boomers, Millennials, and Gen Xers to get out door before the fire of the coming recession. Filmed on February 4, 2020 in Grand Cayman.

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Now taking bets on when the term “sustainable” loses the last bit of its meaning. And no, electric cars don’t solve single problem. They create plenty new ones, though, so if problems are your thing…

Volkswagen and Daimler Push For More ‘Sustainable’ Chile Lithium (R.)

German automakers Volkswagen and Daimler have launched a study to push for more “sustainable” lithium mining in Chile, according to lobbyist filings reviewed by Reuters, a sign of growing supply chain concerns ahead of an expected electric vehicle boom. Chile’s Atacama salt flat is by far the biggest source of supply of the ultralight battery metal in South America’s so-called “lithium triangle.” The region, whose fragile ecosystem relies on a limited water supply, is home to the globe’s top two producers, U.S.-based Albemarle and Chile’s SQM. But concerns over sustainability have long plagued Atacama’s miners, which extract the metal from pools of brine beneath the world’s driest desert.

Residents and environmental groups worry about potential damage to a regional ecosystem home to an ancient indigenous culture, lagoons inhabited with rare flamingos and a booming tourism industry. Lobbying records show a team from German development agency GIZ and the public-private Fundacion Chile met with Cristóbal De La Maza, chief of top Chilean environmental regulator SMA, early this year to formally present plans for the “feasibility study.” “This project is driven by the Volkswagen and Daimler companies,” the filings read. “The growing importance of batteries has made the sustainability of lithium a key priority for these companies.”

Pressure is mounting on German carmakers to fast-track production of electric vehicles to meet increasingly stringent European Union anti-pollution rules. Volkswagen alone has staked its future on a $91 billion plan to profitably mass-producing zero-emission vehicles. That push has prompted beefed-up scrutiny of mining practices around key metals such as cobalt, copper and lithium, all of which are predicted to see a spike in demand in coming years. [..] Australia, the world’s No. 1 producer of the white metal, mines its lithium from hard rock, not brine.

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Joseph Shabalala died this week. He was the founder -and “father”- of Ladysmith Black Mambazo, the South African vocal group that accompanied Paul Simon on his Graceland album and tour.

 

 

 

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