Harris&Ewing War Savings Stamps poster, Washington DC 1917
Worldometer has global new cases for June 8 (midnight to midnight GMT+0) at + 107,270.
My count from about 6 am EDT to 6 am EDT is about + 106,175 cases. If the fall from 130,000 continues, that would be good.
New cases past 24 hours in:
• US + 19,006
• Brazil + 18,925
• Russia + 8,985
• India + 8,442
• Pakistan + 4,646
• Chile + 4,696
• Cases 7,219,187 (+ 106,175 from yesterday’s 7,113,012)
• Deaths 409,108 (+ 2,559 from yesterday’s 406,549)
From Worldometer yesterday evening -before their day’s close-:
Ali at his best. Don’t miss.
The Fed finds yet another way for banks to make money, that can be disguised as helping those in need. Banks get money for virtually free, lend it to small and medium-sized businesses at an elevated rate, pocket the difference, and let the Fed buy up 95% of the loans afterward.
• Fed Eases Terms Of Main Street Loans (R.)
The U.S. Federal Reserve eased the terms of its “Main Street” lending program on Monday, cutting the minimum loan size in half to $250,000 and lengthening the term by a year to encourage more businesses and banks to participate. The central bank also said registration for the program will begin soon and that lenders will be able to start making the loans to small and medium-sized businesses shortly thereafter. The changes, which the Fed said was based on outreach with potential lenders and borrowers, address some of the concerns raised by lenders, lawyers and small business consultants that the previous minimum loan amount of $500,000 was too large to help many businesses affected by the coronavirus pandemic.
“Supporting small and mid-sized businesses so they are ready to reopen and rehire workers will help foster a broad-based economic recovery,” Federal Reserve Chair Jerome Powell said in a statement. The Fed is further minimizing downside risks for banks and credit unions by purchasing 95% of all loans issued through the program, rather than a range of 85% to 95%. The new borrowing minimum may still not be low enough as some businesses need loans smaller than $250,000, Jill Castilla, president and CEO of Citizens Bank of Edmond in Oklahoma said on Twitter after the Fed announced the changes.
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All banks and investors who’ve received bailout packages will now have to repay them, right?
• Nasdaq Ends At Record, Confirms Bull Market On Economic Recovery Hopes (R.)
The Nasdaq posted a record closing high on Monday, becoming the first of the major indexes to confirm a new bull market, while the S&P 500 ended in positive territory for the year as expectations for a swift recovery from a coronavirus-driven downturn increased. Rising technology and communication stocks have driven gains in the Nasdaq, which confirmed a new bull market just 16 weeks after coronavirus fears crushed stocks and pushed the U.S. economy into recession. The Nasdaq has climbed 44.7% from its March 23 bottom. A bull market is confirmed once the index makes a new high and is considered to have begun at the index’s low, according to a widely accepted definition.
The S&P 500 remains about 4.5% below its record high close, while the Dow is about 6.7% below. A closely watched monthly jobs report on Friday showed an unexpected fall in unemployment rate, bolstering views that the worst of the economic damage from the virus outbreak was over. “It’s optimism surrounding the reopening of the global economy, and the likely confirmation that the U.S. economy will experience a V-shaped recovery in the second half,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
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If there is a general second wave, it will hit very hard. Lockdown 2.0 will be difficult to explain, let alone enforce. That’s what you get when you f*ck up 1.0.
• WHO Warns of COVID19 Rebound Risk, Says Pandemic ‘Worsening’ Globally (RT)
Now is not the time to become complacent and drop our guard about the coronavirus as the pandemic is still growing globally, World Health Organization officials have warned. Despite some improvements in infection rates in Europe, the global Covid-19 situation is “worsening” yet again, WHO Director-General Tedros Adhanom Ghebreyesus said on Monday during an online press briefing. Sunday, June 7, had most reported cases in a single day so far of the outbreak, he added. According to Tedros, active surveillance and contact tracing are still essential to ensure the virus doesn’t rebound. “More than six months into the pandemic this is not the time for any country to take its foot off the pedal,” he warned.
The alarming comments by Tedros come as many countries are lifting their Covid-19 lockdowns after reporting success in containing the spread of disease. Businesses are reopening and people are starting to return to offices, with timelines for the resumption of international air travel also being announced. But the WHO has been warning that easing restrictions will inevitably lead to a ‘second wave’ of the coronavirus, with the disease making a comeback in a different part of the population after an initial decline in cases. [..] Worldwide, more than 7 million people have been infected with the novel coronavirus and 403,000 have died since the pandemic was first reported in China’s Wuhan in December 2019.
The US remains the worst-hit country with almost 2 million confirmed cases and a death toll of over 110,000, according to figures compiled by Johns Hopkins University. It’s followed by Brazil which has more than 691,000 infections and some 36,400 fatalities. Russia, which has been one of the world leaders in Covid-19 testing, has recorded 476,000 confirmed cases, with almost 6,000 people succumbing to the disease. The WHO has been heavily criticized over its initial response to the Covid-19 outbreak. The UN health agency held off calling the spreading coronavirus a “pandemic,” despite it being found in Asia, North America, Europe and the Middle East, until March, 11.
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More on that WHO briefing.
• WHO Says Pandemic ‘Far From Over’ As Daily Cases Hit Record High (R.)
New coronavirus cases had their biggest daily increase ever as the pandemic worsens globally and has yet to peak in central America, the World Health Organization (WHO) said on Monday, urging countries to press on with efforts to contains the virus. “More than six months into the pandemic, this is not the time for any country to take its foot off the pedal,” WHO Director General Tedros Adhanom Ghebreyesus told an online briefing. More than 136,000 new cases were reported worldwide on Sunday, the most in a single day so far, he said. Nearly 75% of them were reported from 10 countries, mostly in the Americas and South Asia. In response to a question on China, WHO’s top emergencies expert, Dr. Mike Ryan, said retrospective studies of how the outbreak has been addressed could wait, adding: “We need to focus now on what we are doing today to prevent second peaks.”
Ryan also said infections in central American countries including Guatemala were still on the rise, and that they were “complex” epidemics. “I think this is a time of great concern,” he said, calling for strong government leadership and international support for the region. Brazil is now one of the hotspots of the pandemic, with the second highest number of confirmed cases, behind only the United States, and a death toll that last week surpassed Italy’s. After removing cumulative numbers for coronavirus deaths in Brazil from a national website, the Health Ministry sowed further confusion and controversy by releasing two contradictory sets of figures for the latest tally of infection cases and fatalities.
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Very curious statement. And they don’t provide the sources it’s based on.
• Asymptomatic Spread Of Coronavirus Is ‘Very Rare’ – WHO (CNBC)
Coronavirus patients without symptoms aren’t driving the spread of the virus, World Health Organization officials said Monday, casting doubt on concerns by some researchers that the disease could be difficult to contain due to asymptomatic infections. Some people, particularly young and otherwise healthy individuals, who are infected by the coronavirus never develop symptoms or only develop mild symptoms. Others might not develop symptoms until days after they were actually infected. Preliminary evidence from the earliest outbreaks indicated that the virus could spread from person-to-person contact, even if the carrier didn’t have symptoms. But WHO officials now say that while asymptomatic spread can occur, it is not the main way it’s being transmitted.
“From the data we have, it still seems to be rare that an asymptomatic person actually transmits onward to a secondary individual,” Dr. Maria Van Kerkhove, head of WHO’s emerging diseases and zoonosis unit, said at a news briefing from the United Nations agency’s Geneva headquarters. “It’s very rare.” [..] To be sure, asymptomatic and presymptomatic spread of the virus appears to still be happening, Van Kerkhove said but remains rare. That finding has important implications for how to screen for the virus and limit its spread. “What we really want to be focused on is following the symptomatic cases,” Van Kerkhove said. “If we actually followed all of the symptomatic cases, isolated those cases, followed the contacts and quarantined those contacts, we would drastically reduce” the outbreak.
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With Wuhan, the worst hit place on earth. But 57% still doesn’t appear enough for herd immunity.
Testing for antibodies is still shaky, and so is its effect on the disease.
• 57% of People Tested In Italy’s Bergamo Have COVID19 Antibodies (R.)
More than half the residents tested in Italy’s northern province of Bergamo have COVID-19 antibodies, health authorities said on Monday, citing a sample survey. Of 9,965 residents who had blood tests between April 23 and June 3, 57% had antibodies indicating they had come into contact with the coronavirus, the survey showed. Health authorities in Bergamo said the results were based on a “random” sample which was “sufficiently broad” to be a reliable indicator of how many people had been infected in the province, which became the epicentre of Italy’s outbreak. In a separate statement issued later, the Bergamo health agency said that most of those in the sample were residents of the worst-hit areas.
Many had already been put under quarantine, the statement added. Antibodies were found in just over 30% of the 10,404 health operators tested although they are generally considered more at risk than other people. In a report released in early May, national statistics institute ISTAT said the number of deaths in Bergamo was up 568% in March compared with the 2015-2019 average, making it Italy’s worst-hit city in terms of deaths. Its hospitals were overwhelmed by infected people and, with morgues unable to keep up, convoys of army trucks carrying away the dead became a chilling symbol of the global pandemic.
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Now we’re just throwing numbers around. They “estimated on Monday that 145,728 people could die of COVID-19 in the United States by August”. Not 145,729.
• University of Washington Forecasts 145,000 US Covid-19 Deaths By August (R.)
University of Washington researchers estimated on Monday that 145,728 people could die of COVID-19 in the United States by August, raising their grim forecast by more than 5,000 fatalities in a matter of days. On Friday, the widely cited Institute for Health Metrics and evaluation at the university projected 140,496 deaths by August from COVID-19, the respiratory illness caused by the coronavirus. Researchers did not give a reason for the abrupt revision. The new estimate came on the same day that Texas reported its highest number of hospitalizations so far in the pandemic and 22 U.S. states showed at least a small uptick in the number of new confirmed cases, according to a count kept by Johns Hopkins University.
Among the states with the sharpest increases were Michigan and Arizona, according to Johns Hopkins, while Virginia, Rhode Island and Nebraska showed the greatest decreases. Infectious disease experts have said that large street protests held in major U.S. cities after the death of a black man, George Floyd, in Minneapolis police custody, could touch off a new outbreak of the disease. A total of more than 1.9 million cases of COVID-19, the respiratory illness caused by the coronavirus, have been reported in the United States, according to a Reuters tally, which has confirmed 110,000 deaths.
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Or could not. Could be half, could be twice as much. Who has faith in the Imperial College?
• Lockdowns Could Have Saved Three Million Lives Across Europe – Study (Ind.)
Europe’s lockdowns over coronavirus may have saved around three million lives, according to a new study. Imperial College London scientists found restrictions had a “substantial effect” in reducing transmission levels of the virus in a modelling study involving data from 11 countries from the continent up to early May. European nations began implementing social distancing, school closures and national lockdowns in March, with the UK going into lockdown on 23 March. The Imperial researchers estimate across the countries looked at – including France, Germany, Italy and Spain – between 12 and 15 million people were infected with Covid-19 up to 4 May, representing between 3.2 per cent and 4.0 per cent of the population. Scientists also studied data from the UK, Austria, Belgium, Denmark, Norway, Spain, Sweden and Switzerland.
In their paper, published in the Nature journal, they said the results show that major non-pharmaceutical interventions and lockdown in particular have had a “large effect on reducing transmission”. The researchers estimated 3.1 million deaths had been prevented across the 11 countries due to interventions since the beginning of the pandemic. They came up with the figure after comparing the deaths predicted under a model with no interventions to the deaths predicted in an intervention model. The paper says: “Continued intervention should be considered to keep transmission of SARS-CoV-2 under control.”
Meanwhile, a second study from the University of California, looking at China, South Korea, Italy, Iran, France, and the United States, has estimated interventions in those countries prevented or delayed around 530 million cases. The paper, also published in Nature, said: “In the absence of policy actions, we estimate that early infections of Covid-19 exhibit exponential growth rates of roughly 38% per day.” Researchers said they found that anti-contagion policies “significantly and substantially” slowed this growth, adding: “Some policies have different impacts on different populations, but we obtain consistent evidence that the policy packages now deployed are achieving large, beneficial, and measurable health outcomes.”
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Several states need to watch out.
• Arizona State Health Director: Hospitals Must Activate Emergency Plan (ABC15)
The Arizona Department of Health Services director sent out a letter this weekend, informing hospitals in our state to “fully activate” their facility emergency plans. In doing so, the hospitals are going to be preparing surge beds, cross-training staff, and possibly reducing or suspending elective surgeries to “ensure adequate bed capacity for both COVID and non-COVID admissions.” The Saturday letter states the hospitals need to identify additional ICU and inpatient beds to meet the 50 percent additional bed increase. The state’s hospitals now must determine whether or not to move their facilities from conventional care to contingency care, and also prepare for crisis care.
The letter was dated the same day that ADHS director Dr. Cara Christ told ABC15 that her department’s staff had made errors and reported incorrect hospitalization numbers since April on the Arizona Department of Health Services coronavirus dashboard. ADHS miscalculated the number of hospital beds currently available and in use in Arizona, due to staff members’ confusion about the hospitals’ licensed bed capacity and surge capacity.
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The quarantine comes at the wrong end of the lockdown. They should have isolated the 100,000 they let in during the lockdown, but instead never even tested them, as a matter of policy.
• EasyJet CEO Says Legal Case Against UK Quarantine Is Strong (R.)
Britain’s quarantine plan was rushed into existence, is out of proportion and should be challenged in the courts, according to the head of easyJet which has joined rivals in threatening legal proceedings. Chief Executive Johan Lundgren said he believed easyJet, Ryanair and British Airways had a good chance of winning any legal battle and warned that if the measure stayed in place for a long time he could have to make further job cuts. Britain on Monday introduced a 14-day quarantine for international arrivals despite the threat of legal action. “We think that there’s enough evidence and there’s a strong case here that this should be challenged by the courts. This is something that has been rushed through. It’s not in proportion,” Lundgren told Sky News on Monday.
EasyJet is already planning to cut 4,500 jobs or 30% of its workforce because of the coronavirus crisis, and Lundgren said quarantine would make the situation even worse. He said he hoped the threat of legal action would push the government to replace the measure with “a targeted approach that is based on the solutions of air bridges”, which allow people to travel freely between countries with low infection rates. When asked if the quarantine could lead to more job losses, he said, “I fear so…I think and I fear unless there is a change to this (the quarantine rule), that the aviation industry as we know it here in the UK will not be in tact.”
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Fun with Musk.
• Tesla’s Double-WTF Chart of the Year (WS)
Tesla’s shares closed at a new closing high today of $949.92. This beat the prior closing high of February 19 of $917.42. But it remains a tad below the intraday high of 968.99 of February 4. So let me walk you through this in chronological order because it’s just too juicy to pass up. On February 4, 2020, when Tesla’s shares hit $968.99, I posted the “WTF chart of the year,” calling Tesla a “Supernatural Phenomenon.” The shares had surged 170% from mid-December. And Tesla’s market cap had skyrocketed during the less than two-month period by over $110 billion:
Then it came unglued. On the way down, on February 13, Tesla sold new shares at $767 a share and collected over $2 billion in cash from investors. This was a wise move for Tesla. Perhaps Musk saw that the pandemic might be shutting down the factory in Fremont, after it had already shut down the factory in Shanghai, and perhaps he saw that Tesla would burn through cash a lot faster during the pandemic than before, and it was a lightning-fast drive-by share sale.
And shares swooned. Then on March 18, Tesla shares plunged another 16% to $361.22, amid allegations that it was flouting the lockdown order of Alameda County, by running two full shifts at its Fremont factory. This was a confusing story with allegations and counter-allegations, that then threatened to spiral out of control, and we won’t get into it. Nevertheless, that fateful March 18, I posted the new version of the WTF chart of the year, one of the most majestic double-sided spikes:
And then the whole circus started all over again. Since March 18, the stock has re-skyrocketed 163%, and Tesla’s market capitalization has re-skyrocket by $110 billion, which brings us to the new-and-improved Double-WTF chart of the year.
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Is it mainly coal?
• Chinese Investment In 2019 In Australia Down 60% To Lowest Since 2007 (G.)
Chinese investment in Australia has fallen by almost 60% as Beijing shifts its focus towards developing nations that have signed up for its Belt and Road Initiative. Despite record trade between the two nations, Chinese investment in Australia fell from $8.2bn in 2018 to $3.4bn in 2019, with 43% fewer deals struck. A new report puts the plunge down to tighter Chinese regulations, a negative perception of Australia’s investment rules, and a shift towards Latin America and Belt and Road projects in developing countries. The KPMG and University of Sydney study found new Chinese investment in Australia had plunged to its lowest level since 2007.
Hans Hendrischke, one of the report’s authors, said the decline mirrored similar patterns in other western countries. But he said Chinese investment into Australia had fallen at a faster rate than other nations including the United States. Australian food and agricultural businesses were the biggest recipients of Chinese investment, with 44% of the total funding flowing into the sector. The result was largely driven by the acquisition of the Bellamy’s dairy company. The commercial real estate sector was the second largest recipient despite an annual decline of 51%.
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Apparently CBS cut out all sorts of things Barr said.
• Barr: Clearing Of Lafayette Park Was Unrelated To Church Photo Op (Turley)
Margaret Brennan just completed an interview with Attorney General Bill Barr on CBS Face the Nation. For days, the allegation from politicians, the press, protesters, and pundits has been that the Park was cleared for the purpose of the widely criticized photo op held by Trump in front of St. John’s Church. [..] The photo op allegation continues to be repeated on the Internet despite various media reports debunking it. This morning Barr confirmed the details in those reports and offered some new details. Barr however continues to support the level of force used in the Park and the decision to go forward with the clearing of the Park. Barr confirmed that the plan to clear the park came from the Park Police, which asked for the expansion of the perimeter on Sunday night. He reviewed the plan Monday morning and, with others, approved the plan. The order was transmitted to Park Police at 2 pm.
[..] Brennan does challenge what she said was Barr’s assertion that the Secretary Mark Esper did not rule out the use of the Insurrection Act. This may have been a lost in legal translation moment. It think Barr was making a narrower legal point while Brennan thought it was a more general statement. Here is what Barr said: “The option to use active duty forces in a law enforcement role should only be used as a matter of last resort, and only in the most urgent and dire of situations. We are not in one of those situations now. I do not support invoking the Insurrection Act.” Esper was not saying that the Act could not be used but should only be used as a “last resort.”
Neither Barr not Esper supported invoking the Act, i.e., ordering deployments under the Act. Both however agreed it could be used as a legal matter if circumstances warranted. Here is what Barr said: MARGARET BRENNAN: So in this Monday meeting with the president, when the Defense Secretary, who has now publicly said that he opposed using the Insurrection Act, you said what to the president? BARR: I don’t think the Secretary of Defense said he opposed it. I think he said that it was a last resort and he didn’t think it was necessary. I think we all agree that it’s a last resort, but it’s ultimately the president’s decision. The- the reporting is completely false on this. Both Esper and Barr seem to agree that the Act is available but that current circumstances do not warrant their use. Both agree it should be used as a “last resort.”
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I know this is Fox, and only one black voice (many more have spoken), but this must be one of the most racist things I’ve seen in a long time.
I was wondering at what point in the carefully planned spin doctor meeting, was the suggestion voted down to go in blackface.
• Ex-Warren Surrogate Blasts White Dems For Kneeling In African Cloth (Fox)
A former national surrogate for Sen. Elizabeth Warren, D-Mass., ripped into white congressional Democrats on Monday after they wore African-patterned garb and knelt in a demonstration against racism and police brutality. “I still can’t wrap my mind around the fact that they draped these white people in kente cloth to ‘honor’ him. This has to be hell,” author Frederick Joseph tweeted, also arguing that black Americans are “being pandered to, and ultimately, disrespected.” In a tweet thread, he argued that Democrats were failing in their attempts to be helpful amid ongoing strife surrounding George Floyd’s death.
He specifically took aim at House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., who joined other Democrats in kneeling inside of the Capitol Visitor Center on Thursday. Democratic members of both the House and Senate knelt for 8 minutes and 46 seconds to honor Floyd, representing the amount of time he was pinned down by former Minneapolis police officer Derek Chauvin. The kneeling also touched on an ongoing protest trend harkening back to former NFL player Colin Kaepernick and demonstrations during the national anthem. Pelosi said on Monday that members of Congress would be kneeling in a place where they typically recited the Pledge of Allegiance.
“This is a mess,” Joseph said in one tweet. In another, he added: “If anyone can’t understand why Nancy Pelosi, Chuck Schumer, and them dressed up like they’re trying to sneak into Wakanda is disrespectful and appropriative you have a great deal to learn.” Wakanda is the fictional land in Africa associated with the Marvel superhero Black Panther.
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Very long from Steve on the nonsense most economists spout about the role of energy in an economy. They basically treat it as if it doesn’t play any role, much in the same way that people like Paul Krigmen deny the role that banks play.
• The Appallingly Bad Neoclassical Economics of Climate Change (Steve Keen)
Nordhaus justified the assumption that 87% of GDP will be unaffected by climate change on the basis that: “..for the bulk of the economy—manufacturing, mining, utilities, finance, trade, and most service industries—it is difficult to find major direct impacts of the projected climate changes over the next 50 to 75 years”. (Nordhaus 1991, p. 932) In fact, a direct effect can easily be identified by surmounting the failure of economists in general—not just Neoclassicals—to appreciate the role of energy in production. Almost all economic models use production functions that assume that “Labour” and “Capital” are all that are needed to produce “Output”.
However, neither Labour nor Capital can function without energy inputs: “to coin a phrase, labour without energy is a corpse, while capital without energy is a sculpture” (Keen, Ayres et al. 2019, p. 41). Energy is directly needed to produce GDP, and therefore if energy production has to fall because of global warming, then so will GDP. [..] if climatic changes caused by the increase in global temperature persuade the public and policymakers that we must stop adding CO2 to the atmosphere “now”, whenever “now” may be, then global GDP will fall roughly proportionately to the ratio of fossil-fuel energy production to total energy production at that time.
As of 2020, fossil fuels provided roughly 85% of energy production. So, if 2020 were the year humanity decided that the growth in CO2 had to stop, GDP would fall by of the order of 85%. Even if the very high rate of growth of renewables in 2015 were maintained—when the ratio of renewables to total energy production was growing at about 3% per annum—renewables would still yield less than 40% of total energy production in 2050—see Figure 8. This implies a drop in GDP of about 50% at that time. The decision by Neoclassical climate change economists to exclude “manufacturing, mining, utilities, finance, trade, and most service industries” from any consequences from climate change is thus utterly unjustified.
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