Kudlow Explains $800 Billion in Options for Direct Financial Infusion to Middle Class…


National Economic Council (NEC) Director Larry Kudlow held an impromptu press conference to describe what sectors of the U.S. economy may need direct financial assistance to bridge revenue gaps from mandated government policy. The stock market is not the U.S. economy.

Calling this type of financial assistance a “bailout” is not a fair term considering the financial impact was created by government instruction.  Government orders to shut down restaurants creates a financial loss for restaurants who also have bills and payroll obligations to meet.  These types of affected businesses will need immediate assistance.

Airlines, hotels, resorts, private parks, gyms, restaurants and various entertainment companies/industries may also need a direct infusion of cash or deferred tax payment to compensate for financial losses.  Again, these businesses have been impacted by government ordering their closure. Depending on the size of the business, the need for gap funds may be urgent.

Unhappy Meals – McDonalds USA Closes all Dining Rooms and Playgrounds…


The McDonalds USA corporate restaurants, not necessarily all franchises, has announced the closing of all in-house dining and the kids playgrounds.  Approximately eight percent of all “food away from home” comes from McDonalds restaurants.

McDONALDS Press Release – “To align with increasing regulations throughout the country, effective at the close of business today, McDonald’s USA company-owned restaurants will close seating areas, including the use of self-service beverage bars and kiosks, and shift our focus to serving customers through Drive-Thru, walk-in take-out and McDelivery.

This decision allows for customers without access to a Drive-Thru and those unable to use McDelivery to continue to have access to McDonald’s.

Additionally, we have made the decision to close all PlayPlaces at U.S. locations, also effective today.

Our independent franchisees continue to focus on the needs of their local communities and make safe and caring decisions. Franchisees are strongly encouraged to adopt similar operations procedures while keeping the needs of their people and communities at the center of their decisions. This guidance is supported by franchisee leadership and is expected to be adopted by the majority of franchisees.” (more)

This too shall pass

It Begins – San Francisco Initiates Forced Quarantine of all Residents, All Hours, Effective Midnight…


San Francisco has skipped the interim mitigation efforts and has announced a forced quarantine of all residents inside their homes 24-hours-a-day for the next three weeks.

A totalitarian dream.  All residents must remain confined inside their homes or residences and no-one will be permitted outside except for emergency services or monitored visits to the grocery stores.  The order remains in effect until April 7, 2020, and may be extended.

CALIFORNIA – [….] Mayor London Breed announced what she calls a “defining moment” in U.S. response to the pandemic. Beginning at 12 AM, all residents within the city can only leave home for doctor’s appointments or runs to the grocery store.

It’s the strictest new policy enacted in the nation, and matches the current rules in Italy … which has been the 2nd hardest-hit country in the world.

The Mayor says the rule will remain in effect for at least the next 3 weeks.

In addition, to the city shut down, 6 Bay Area counties are telling residents to “shelter in place.” That means … unless your work falls under the list of “essential businesses,” you’ve been ordered to stay home. (read more)

Justin Trudeau Closes Canadian Border to Most Foreign Travelers….


In 2017 Canadian Prime Minister Justin Trudeau famously mocked the U.S. effort to restrict migration by saying Canada welcomes all refugees. However, apparently in 2020 diversity is a Canadian strength, unless there is a possibility a person might be germy.

CANADA – Prime Minister Justin Trudeau announced on Monday that Canada will be closing its borders to foreign travellers in an attempt to limit the spread of the novel coronavirus.

Speaking to reporters from Rideau Cottage in Ottawa, Trudeau said Canada is taking “increasingly aggressive steps” and will be closing its borders to people who are not Canadian citizens or permanent residents of Canada.

“I know that these measures are far-reaching,” Trudeau said. “They are exceptional circumstances calling for exceptional measures.”

Trudeau said the restrictions will come into effect Wednesday but that exceptions will be made for air crews, diplomats, immediate family members and U.S. citizens.

Trudeau said that second, air operators will ban anyone who is showing symptoms of the virus from getting on a plane. (read more)

….’unless you are germy’

 

White House Coronavirus Task Force Press Briefing – 3:30pm ET Livestreams


Vice-President Mike Pence and the COVID-19 task force will be holding a press briefing from the White House at 3:30pm ET.  Livestream Links Below

WH Livestream Link – Fox News Livestream Link – CSPAN Livestream Link

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WH Trade Advisor Peter Navarro Discusses Coronavirus Mitigation on Multiple Fronts…


White House trade advisor Peter Navarro appears on CNBC to discuss the White House’s response to the coronavirus outbreak, and the administration’s plan to help stimulate the economy.

Navarro gives examples of the public-private partnership working together with logistics of getting critical supplies distributed; also Navarro discusses the importance of timely and targeted stimulus measures.   Additionally, Navarro outlines the construct of a likely executive order to shift medical supply manufacturing back to the U.S.

Fed Announcement – Speaking in Tongues


QUESTION: Marty, you recently said that there was a shadow repo market. Nobody has ever heard of this. In the Fed’s statement, there is a curious announcement that’s talking about coordinated swap lines. They also said: ” both a collateralized and uncollateralized basis, to support the provision of liquidity to households and businesses and the general smooth functioning of payment systems.” Is this the commercial paper you are talking about?

ML

ANSWER: Yes. They call this “coordinated swap lines” between central banks. It is the shadow uncollateralized Repo Market. They are now coordinating this with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank. In other words, the Fed is providing liquidity to other central banks. I have said before. They actually had red phones connecting the central banks after the Plaza Accord. I was sitting there in the room when one of those red phones started to ring. I just call it the shadow Repo Market.

The “uncollateralized” loans mean commercial paper other than government treasuries

Never Let a Good Crisis Go to Waste


QUESTION: Do you think there is some single plot behind this Coronavirus scare?

SH

ANSWER: No. It seems that there are a lot of people using this Coronavirus for personal political agendas. Illinois Tollway is now using it to implement All-Electronic Tolling as Precaution Against Spread of Coronavirus. You have others in Europe saying they should be nationalizing companies since they cannot be bailout under EU rules. Others are using it and blaming Trump as if any government can really prevent such a pandemic.

I do not think this is a single-minded plot. However, history also demonstrates that they will always take advantage of a good crisis. In Europe, the central bank is already at negative rates. There is nothing left for them to do. This is now turning to emergency political measures. The drive to use this as the excuse to eliminate paper currency is a side-benefit on their wish list and this does provide the excuse to justify that action.

Whatever measures you see, they rarely ever reverse. They tend to be permanent.

Germany Closing its Borders


GERMANY has just closed its borders within Europe and that includes France. The free movement of goods should remain secured. Commuters can also continue to cross the borders, but they are also trying to stop panic buying which actually is the first step in reigniting inflation.

Will Coronavirus Alter the Economy Forever?


I have been doing my own investigation using REAL DIRECT sources who do suggest that the death rate caused by the flu is higher than reported and in that case, the numbers may be understated, but that does involve the elderly in particular. Hence, the death rate here with the Coronavirus may really be on par. That is just a numbers game that is not substantially different.

While the conspiracy people love to paint everything as the end of the world, the threat has nothing to do with the mortality rate of the Coronavirus. It may be slightly higher, but it is in the 1-3% range and this comes from people on the front line. The real problem is that there was not enough testing available and it was restricted to those who traveled. That is what Trump addressed to expand the ability to test based upon symptoms rather than limited to travel.

After speaking to friends in the infectious disease specialty, they explained that the real problem created by this panic is that they make people who have only the flu think they are going to die and then they rush to urgent care centers or doctors unnecessarily. That overburdens the system which only makes things worse. Only if you have a fever should you go! Otherwise, stay at home for 2 weeks.

Americans tend to go to work even when they are sick. It is a cultural thing. That you should not do. This is teaching people more about being able to work from home. Universities are switching to online classes and this may actually be an event that furthers that trend long-term.

The primary issue is that this is a parallel outbreak that is similar to the flu but different. This tends to require respirators and hospitalization at a higher rate than the flu. The real crisis is just that there can be a shortage of beds. One healthcare provider questioned if these conspiracy people are deliberately trying to reduce the population for climate change. I suppose that is yet another counter-conspiracy, conspiracy.

Anyone with young children knows when they are under the age of 10, they tend to bring home every possible version of whatever is running around. Parents will go through those years that often seem as if they have a cold that never goes away. It may make sense to keep the little ones home if you can.

Consequently, these people who are spreading such absolute panic are the very people who are endangering lives. They are sending people into doctors who should not be there worried that they are going to die. These people are the real threat to society for they are acting unprofessionally for some personal issues. They have done everything possible to claim the numbers are fake, 50% will die, it is laced with aids, a biological weapon unleashed by China or by the US on China. The spin seems to be endless. If if it was a biological weapon, it is a dud on that score and it has subsided in China and South Korea showing it is just a virus. So what’s the difference?

We have staff in China. It has subsided there as any normal virus does. We were in direct contact with our hotel in Shanghai since we had planned to have a WEC there in May. There is always a peak and then it fades away. However, it may reappear in a slightly different version 2.0 for the next flu season, unlike SARS, etc. This is because it spreads differently. We will cross that bridge when it comes. If this mutates into a flu-like disease that reappears each year in parallel, that will put a lot of strain on the entire system.

The economic impact of this panic fueled by these individuals is amazing. In Canada, a coffee shop refuses to accept paper money. We have Apple and Nike closing stores. This all seems to be overkill since they do not do that for the flu. But these types of actions will send the economic numbers down very hard for the first quarter and our model shows the low will not come until the early second quarter.

The conspiracy people who have been using this in their hatred of Trump desperate to overthrow him are unleashing a surge in authoritarianism never witnessed in modern history. Spain has issued a curfew people cannot leave their homes. Economically, the damage is profound. The German finance minister has already proposed just NATIONALIZING companies. That means investors lose everything. I can’t think of another reason for a dollar panic high better than that as all investment capital flees to the dollar.

Using this panic to justifying nationalizing companies is precisely the agenda of Greenpeace. This does not seem to be a coincidence. The conspirators behind this Coronavirus are on this same agenda, are either too stupid or they are using this for the same end goal. Some of the proposals being floated are strangely the same as Greenpeace – seize industry to save the planet. Anyone pushing this panic, I suggest you investigate their connections. They are either fools, or this is yet another clever ploy like using a 16-year-old girl as a climate expert. They seem to be cheering on millions of people who will die like they can’t wait. The 1968 flu did kill 3 million. That must be their dream-like Greenpeace – reduce the population.