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Subscribe Login Welcome, -- -- Home '); Home › [KR1511] Keiser Report | Painting Pandemic with Alex Schaefer [KR1511] Keiser Report | Painting Pandemic with Alex Schaefer Posted on March 7, 2020 by Stacy Herbert — 7 Comments ↓ In this episode of Keiser Report from Los Angeles, Max and Stacy discuss deglobalization as supply shocks hit the world in the midst of a pandemic… even if the WHO won’t call it that. They talk about an opinion piece suggesting the Covid-19 pandemic will end the age of ‘affluence politics’ as supply shortages will reveal our inability to make and distribute the things people need. In the second half, Max paints with artist Alex Schaefer while they discuss printing money to fight viruses, and why he paints banks on fire as the economy burns. [KR1503] Keiser Report: #CoronaVirus Rally Posted on February 19, 2020 by Stacy Herbert In this episode of Keiser Report from Mexico City, Max and Stacy discuss the markets rallying on horrible coronavirus news as bad news continues to be the greatest news of all as investors bet that the central bank will come to the rescue with more free cash. They also look at the state of Utah sending employees all the way to Mexico in order to benefit from the lower pharmaceutical prices that the Mexican state negotiates with Big Pharma. In the second half, Max interviews Jose Rodriguez of Talent-Land.mx about the gathering of 70,000 people in Guadalajara to change the world with talent. Did Covid-19 Just Pop All the Global Financial Bubbles? Posted on March 5, 2020 by Charles Hugh Smith — 1 Comment ↓ Even though the first-order effects of the Covid-19 pandemic are still impossible to predict, it’s already possible to ask: did the pandemic pop all the global financial bubbles? The reason we can ask this question is the entire bull mania of the 21st century has been based on a permanently high rate of expansion of leverage and debt. The lesson of the 2008-09 Global Financial meltdown was clear: any decline in the rate of debt/leverage expansion is enough to threaten financial bubbles, and any absolute decline in debt and leverage will unleash a cascade that collapses all the speculative bubbles in stocks, real estate, collectibles, etc. What’s the connection between Covid-19 and the rate of debt/leverage expansion? Confidence and certainty: people will make bets on future growth and take on additional debt and leverage when they feel confident and have a high degree of certainty that the trends are running their way. Read more › Tagged with: bubble , Covid-19 , market crash , pandemic The Limits of Force: A Bayonet in the Back Will Not Restore China’s Economy Posted on March 5, 2020 by Charles Hugh Smith — No Comments ↓ The Chinese authorities threatening to punish workers who refuse to return to work are getting a lesson in the limits of force in an unprecedented national trauma: a bayonet in the back will not restore the legitimacy and confidence that have been lost. There are two enormous blind spots in conventional media coverage of the pandemic: 1. The limits of force in restoring China’s economy to pre-pandemic levels. 2. The longer term (i.e. second-order) consequences of the immense trauma experienced by the Chinese people. While the media focuses on questionable statistics and economic claims–factories are already back to 60% capacity, etc.– little attention has been paid to the tremendous losses. For me, a photo of a young woman weeping inconsolably as the body of her mother was unceremoniously hauled away to the crematorium crystallized the cost, the losses and the national trauma. For this was not the first tragedy of the pandemic to befall this young person; her father had also died 20 days earlier of the coronavirus. This young person lost both parents in the space of a month to the pandemic. Everyone knows the Chinese government uses statistics to fashion positive political optics of the Chinese Communist Party (CCP). But for secrets and lies in service of political optics to have unleashed the virus on the entire nation–that is beyond the usual official rigging of statistics to serve Party optics. It is a complete betrayal of the Chinese people, and betrayal has long-lasting consequences. Read more › Tagged with: betrayal , china , Covid-19 , limits of force Could the Covid-19 Pandemic Collapse the U.S. Healthcare System? Posted on February 28, 2020 by Charles Hugh Smith — 1 Comment ↓ A great many systems that are assumed to be robust are actually fragile. Exhibit #1 is the global financial system, of course, but Exhibit #2 may well be the healthcare system globally and in the U.S. Observers have noted that the number of available beds in U.S. hospitals is modest compared to the potential demands of a pandemic, and others have wondered who will pay the astronomical bills that will be presented to those who are treated for severe cases of Covid-19, as the U.S. system routinely generates bills of $100,000 and up for a few days in a hospital. Costs of $250,000 or more per patient for weeks of intensive care treating Covid-19 cannot be dismissed as “impossible.” Beyond the possibility that the logistics and costs of care will overwhelm the system, there are numerous and highly consequential second-order effects to consider. As you may recall from recent posts here: first order, every action has a consequence. Second order, every consequence has its own consequence. Second-Order Effects: The Unexpectedly Slippery Path to Dow 10,000 January 31, 2020 Could the Coronavirus Epidemic Be the Tipping Point in the Supply Chain Leaving China? January 28, 2020 Second-order effects of the pandemic colliding with America’s dysfunctional healthcare system include: Read more › Tagged with: coronavirus , Covid-19 , healthcare , second-order effects The Economic Cataclysm Ahead Posted on February 28, 2020 by Charles Hugh Smith — No Comments ↓ To understand the economic cataclysm ahead, do the math . Those expecting the Covid-19 pandemic to leave the U.S. economy untouched are implicitly making these preposterously unlikely claims: 1. China will resume full pre-pandemic production and shipping within the next two weeks. 2. Chinese consumers will resume borrowing and spending at pre-pandemic rates in a few weeks. 3. Every factory and every worker in China will resume full pre-pandemic production without any permanent closures or disruptions. 4. Corporate America’s just-in-time inventories will magically expand to cover weeks or months of supply chain disruption. 5. Not a single one of the thousands of people who flew direct from Wuhan to the U.S. in January is an asymptomatic carrier of the coronavirus who escaped detection at the airport. 6. Not a single one of the thousands of people who flew from China to the U.S. in February is an asymptomatic carrier of the coronavirus. 7. Not a single one of the thousands of people who are in self-quarantine broke the quarantine to go to Safeway for milk and eggs. 8. Not a single person who came down with Covid-19 after arriving in the U.S. feared being deported so they did not go to a hospital and are therefore unknown to authorities. 9. Even though U.S. officials have only tested a relative handful of the thousands of people who came from Covid-19 hotspots in China, they caught every single asymptomatic carrier. 10. Not a single asymptomatic carrier caught a flight from China to Southeast Asia and then promptly boarded a flight for the U.S. Read more › Tagged with: coronavirus , Covid-19 , crash , pandemic How Many Cases of Covid-19 Will It Take For You to Decide Not to Frequent Public Places? Posted on February 27, 2020 by Charles Hugh Smith — No Comments ↓ How many cases of Covid-19 in your community will it take for you to decide not to frequent public places such as cafes, restaurants, theaters, concerts, etc? How many cases in your community will it take for you to decide not to take public transit, Uber/Lyft rides, etc.? How many cases in your community will it ...