At Least 20% Of Illinois Restaurants Have Succumbed To The Controlavirus

cbslocal |  “The restaurant industry, we’ve kind of alway been up against it anyways,” said Joe Frillman, owner of Daisies Restaurant. “The statistics are never in our favor to begin with.”

Once known for its dine in homemade pastas, the kitchen at Daisies in Logan Square has pivoted to pay the bills.

“It’s all to go now, so the whole business model has changed,” said Frillman.

He debuted a new concept last weekend. In the age of COVID-19, his dining space became a farmer’s market with fresh produce, meal kits and specialty products.

“We had over 150 people come out to support us,” he said. “I was kind of blown away. We didn’t really know what to expect.”

But for every hopeful moment like these, there are thousands of others from restaurants on the brink of closing.

Jeanne Roeser, in business since 1996, was forced to close her two popular brunch destinations, Toast. Each sat only a handful of diners, and an eventual scaled back reopening didn’t add up.

“It felt like a death,” said Roeser, owner of Toast Restaurant. “It felt like going through the grieving process, which I still am. Any time I thought about it, and I looked at the prospects, it just, in my gut, didn’t feel like it was something that would be workable”

According to the Illinois Restaurant Association, in March there were 25,851 restaurants operating in the state. It estimates 20% — nearly 5,200 restaurants — will go out of business in the coming months because of COVID-19.

 

“I think it’s an undercount,” said Roeser.

“I think that’s generous,” said Frillman. “I think would be a best case scenario.”  “Independent restaurants bring wealth to the city, culturally, economically,” said Roeser.

Bring It! Elites Are Ready For You...,

medium |  The American government and the elites who they work for are playing with fire, so no wonder they’ve begun to prepare for the uprising that’s coming.

Lee Fang at The Intercept writes:

“The Federal government has ramped up security and police-related spending in response to the coronavirus pandemic, including issuing contracts for riot gear, disclosures show.

The purchase orders include requests for disposable cuffs, gas masks, ballistic helmets, and riot gloves, along with law enforcement protective equipment for federal police assigned to protect Veterans Affairs facilities. The orders were expedited under a special authorization “in response to Covid-19 outbreak.”

The Veterans Affairs department, which manages nearly 1,500 health care care facilities around the country, has also extended special contracts for coronavirus-related security services.While the pandemic has coincided with a historic drop in violent crime across the country, analysts have expressed concern that the rapid spread of the virus will fuel confrontations.

There have been multiple inmate riots in response to Covid-19 outbreaks in prisons and jails, which have become dangerous hotspots for the disease. The economic upheaval and disagreements over coronavirus-related policy have also fueled demonstrations across the country.

…The federal funding requests contrast sharply with the rosy rhetoric from President Donald Trump, who has lavished himself with praise for his response to the crisis and issued optimistic predictions that recovery is around the corner. Last month, the federal government secured a contract to purchase 100,000 body bags to dispose of deaths related to the Covid-19 outbreak.”

If the elites are beginning to prepare for what they clearly know is coming in response to how this crisis has been handled, then perhaps it’s time for us to get ready as well.

And What's Behind the Touting of Remdesivir?

"Love Passionately." Smaller letters advise: take PrEP, (it might say something about financial assistance available)  The PrEP regimen involves Gilead's drug Truveda.   Gilead has donated thousands of the pills to the federal government, but government pays for the required  prescription/ distribution/ monitoring by physicians, and at a cost multiples of times the cost of the pills.

Gilead encourages risky behavior in its advertising for this drug to curb the effects of that behavior, all at taxpayer expense. Fauci's involvement with HIV AIDS was highly controversial. Same Fauci, in league with Gates, is now behind a lockdown forcing not-sick, not-risk-taking persons to abstain from normal life functions, then advising the use of a drug produced by Gilead to cure "the invisible enemy".

A rising public awareness of the lack of integrity of career officials at yet another 3 letter federal agency. In the short term it serves as yet another excuse for draconian state policies that will result in the destruction of the economy and thus the Republic. Meanwhile there is plenty of money to be made:

NIH evaded disclosure of the massive financial links of its members to Gilead Sciences, the manufacturer of a competing drug remdesivir. Among those who failed to disclose such links are 2 out of 3 of its co-chairs." "Nearly 20% of this panel is employed by or has investment interests in Gilead."

My, imagine that. The NIH Panel on COVID-19 Treatment Guidelines is made up of 50 researchers and physicians. This panel will decide treatment recommendations for Remdesivir.

Remember in 2014 when Gilead won FDA approval for the drug Harvoni? The price per patient was $94,500 if you wanted your Hepatitis C cured.  Gilead isn’t a charity.  May 4 - Gilead receives $37.5M grant to develop/test Remdesivir—courtesy of US taxpayers. Taxpayer funded study shows small non-mortality benefit. FDA approves Remdesivir

Patient cost: $1000

Remdesivir manufacture cost: $10

Gilead projected 2020 revenue for Remdesivir: $1,000,000,000

Hardly A Whisper Yet About The MASSIVE Restructuring Occurring In The Global Energy Market...,

bloomberg |  The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.  

The remarkable effort to address the turmoil in the oil markets will be critical to oil’s eventual balance — although the past two weeks have shown that its promised production cuts were too slow and insufficient in the face of oil demand’s plunge. The challenges and opportunities that the collapse in the oil market is pushing to the fore are perhaps just the first taste of Covid-19 induced geopolitical crises that world leaders and policy makers will need to grapple with in the coming months and years.

As history has shown, a big change in energy markets often precipitates a big change in geopolitics. For instance, the shift from coal to oil catapulted Middle Eastern countries to strategic significance. And the recent technology-driven boom in shale oil elevated the United States to net oil exporter status, changing its outlook on the importance of oil in global affairs. We now face a disruption of such proportions that it, too, will reorder some power relationships. 

Right now, the focus in Washington is on how to save the U.S. oil industry, much of which is under enormous pressure given the drop in prices. While this is understandable and necessary, Washington needs to make room on its list of priorities for a number of strategic shifts that the crisis has created. For starters, policy makers should consider four challenges and opportunities that are already manifest.  

Prepare for more fragile, or even failed, states and the risks that can accompany them.

For dozens of oil producers, the plunge in oil prices is devastating. No major oil producer can balance its budget at prices below $40; according to the International Monetary Fund, with the exception of Qatar, every country in the Middle East requires at least $60, with Algeria at $157 and Iran at a whopping $390. The average Brent price of oil over the past month has been a hair above $20. 

Of course, fiscal break-even prices are only one factor when gauging which oil producers are the most vulnerable to deep economic dislocation and its accompanying social and political turmoil. Those with (comparatively) more diversified economies — such as the United Arab Emirates, Mexico and Russia — are obviously better off. Countries with fixed exchange rates — like Nigeria and Saudi Arabia — are at a particular disadvantage, as they need to use their precious foreign exchange reserves to prop up their currencies. Some countries have the capacity to cut expenditures, and others to borrow. And some have legitimate political institutions to manage the inevitable hardships as subsidies are slashed, jobs are lost and capital spending is curtailed. 

Why Lil'Fauci An'em Ain't Fund MIT Broad Based Anti-Viral DRACO?

thinkpol  |   “New drug could cure nearly any viral infection,” read the headline on MIT News nine years ago that heralded the arrival of DRACO, a new antiviral approach that vanquished every single virus that it came up against.

Double-stranded RNA Activated Caspase Oligomerizer(DRACO) was promised to do to viruses what antibiotics had done to bacteria — turn life threatening viral infections into easily treatable conditions^[1].

DRACO acts as an antiviral “kill switch” by identifying infected cells and killing those cells to terminate the infection.

The drug’s remarkable success is attributed to its ability to target a type of RNA produced only in cells that have been infected by viruses.

Bioengineer Todd Rider and his team at MIT’s Lincoln Lab tested their drug against 15 viruses, and found it was effective against all of them — including rhinoviruses that cause the common cold, H1N1 influenza, a stomach virus, a polio virus, dengue fever and several other types of hemorrhagic fever^[2].

And some researchers believe that DRACO could take on the SARS-CoV-2, the coronavirus that’s causing the current global COVID-19 pandemic^[3].

You’d think that national health agencies and pharmaceutical companies would be rushing to mass manufacture a DRACO as a weapon against COVID-19. But you’d be wrong.

In fact, the development of DRACO had ground to a halt after falling into the well-known “Valley of Death”, in which many promising new drugs struggle to find funding to bridge the gap between proof-of-concept experiments and later large-scale development and trials.

Lil'Fauci Out'Chere Hustling Hard On Behalf Of Gilead (Remdesivir)

nakedcapitalism |  The Wall Street produced an intriguing piece the other day, “The Secret Group of Scientists and Billionaires Pushing a Manhattan Project for Covid-19,” which while picked up and signal-boosted by other venues — Business Insider, Daily Mail, Newsweek, Beckers Hospital Review (the best) — doesn’t seem to have generated any additional reporting. The scientists, billing themselves as “Scientists to Stop COVID-19,” have produced an oddly untitled deliverable[1] (PDF, seventeen pages) dated March and April 2020. It’s worth a read. (Two hours ago, news came that the administration has initiated “Project Warp Speed,” which seems inspired by this project, but there’s no reporting on personnel, and it’s not clear thei y adopted the recommendations of the scientists. I’m guessing that the issues I am about to raise for the deliverable of the “Secret Group” will also apply to Project Warp Speed[2].)

Given that “personnel is policy,” I’ll first reduce people mentioned in the Wall Street Journal story, and the scientists who signed the March-April deliverable to tabular form. After that, I will take a quick look at the scientists’ deliverable, focusing especially on issues of governance and restoring our economy.

As a sidebar, I must protest at the PR-driven use of “Manhattan Project. The Manhattan Project cost $23 billion in US dollars and employed 130,000 people. I don’t think anything of that scale is being proposed, unfortunately. End sidebar.

Now let’s look at the billionaire and multimillionaire backers of… well, whatever the project is really called; I’ll call it, following the Wall Street Journal, the Secret Group. In addition to backers, there are also fixers, who connect the backers and the scientists to the administration, agencies, and other firms, primarily in Big Pharma. I have ordered the backers and fixers not alphabetically but by net worth.

Having looked at personnel, I’m going to look at two policy recommendations. (I’m skipping over the Committee prioritizing remdesivir[2]; my layperson’s sense is that there are a lot of potentia treatments out there, and it makes more sense to accelerate many rather than one. I also note that the stock market just had a massive pop based on a preliminary remdesivir result from Gilead, and I certainly hope that none of the backers were front-running it.)

Little Man: Why Wall Street Gets A Bailout And You Don't!!!

mattstoller |  Three weeks ago, the government passed a giant multi-trillion dollar bailout. Supposedly, it was money for a host of stakeholders, including hospitals, states, Wall Street banks, big business, the unemployed, and small businesses. Today the Federal Reserve built on top of Congress’s framework, announcing yet another multi-trillion dollar set of facilities, on top of what it already put out, to help cities, states, small businesses, main street businesses, and so on and so forth. 

So what has happened so far? This is today’s change in stock price of a real estate venture run by one of largest private equity funds in the world. 

A thirty five percent jump in a day is… a lot. The reason the stock skyrocketed is because investors believe the new measures from the Federal Reserve will bailout the debt of this private equity fund. There’s a ‘monetary bazooka’ aimed at the economy. And yet there’s a puzzle. If there’s money for the entire economy, why is that normal people and small businesses can’t access unemployment insurance and lending programs? To put it another way, why is the money meant for everyone only showing up in the stock market? 

The reason is because money has to travel through institutions, and right now, the institutions for the powerful function well, and those for the rest of us are rickety and broken. So money gets to the rich first. Eventually, some money will get to the rest of us, but in the interim period before that money fully circulates, the wealthy can use their access to money to buy up physical or financial assets.

An 18th century French banker and philosopher named Richard Cantillon noticed an early version of this phenomenon in a book he wrote called ‘An Essay on Economic Theory.’ His basic theory was that who benefits when the state prints a bunch of money is based on the institutional setup of that state. In the 18th century, this meant that the closer you were to the king and the wealthy, the more you benefitted, and the further away you were, the more you were harmed. Money, in other words, is not neutral. This general observation, that money printing has distributional consequences that operate through the price system, is known as the “Cantillon Effect.”

Rape Culture: $6-10 Trillion Additional Federal Debt Taken On To Bailout Predatory Speculative Parasites

sicsempercomments |  Below is a link to the growth in the Fed's balance sheet over the past few months. You will note that the Fed began expanding its asset purchases by $500 billion in the last quarter of 2019 even before the China virus hit our shores and shutdown our economy. Credit was already leaking and the Fed which has given itself the mandate to backstop financial speculation was already delivering on the Fed put. The China virus has brought out the bazooka adding nearly $2 trillion to their balance sheet just in the last 30 days.

https://fred.stlouisfed.org/graph/fredgraph.png?g=qGqH

The Fed has announced several new programs in addition to the repo program it had already initiated last year for liquidity squeezed banks. One is the purchase of investment grade corporate bonds many trading close to junk. The second announced today is the purchase of junk bonds via ETFs. This allows financial investors holding these credit instruments to sell them to the Fed enabling them to essentially not take or reduce their losses. The Fed will now hold credit instruments that could default. The third is to provide dollar liquidity to foreign banks with dollar liabilities through their central banks. Essentially the Fed is now willing to buy assets no matter how dodgy with significant credit risk.

An example is the shale patch debt. Shale companies raised junk bond financing to explore and produce oil & gas. With the crushing of the oil price, much of that debt got downgraded. Investors holding that debt were sitting on significant losses. The Fed will now buy that debt from investors with an opaque pricing essentially making them whole.

This is very similar to what they did during the 2008 mortgage credit crisis when they purchased mortgage-backed securities from investors enabling them to get out from their underwater positions. At that time Bernanke said that it was emergency action to prevent the collapse of the financial system and they would reduce their balance sheet by selling all the securities they acquired when the financial system was able to stand up again. Now they're significantly higher than at the peak of the 2008 crisis.

Chamath and others like Jack are upset because if the Fed really wanted to help the actual economy they could monetize (print money to buy up) infrastructure bonds issued by the various state, and local municipalities that could run various construction projects. They could also monetize Treasury, state and municipal debt that could be used to pay all those locked down and unable to earn a paycheck. What they're doing here as they did in 2008 is to backstop speculative losses of the financial sector.

The other story is that post-2008 it became clear to large speculators that risk taking is rewarded as long as the scale was large enough. The use of debt to buyback stock to the outsized benefit of management was immense in scale. So too was the revived CLO and other structured debt product financings. The impending downgrade of much of this corporate debt to junk meant that all those securities would have to be ejected from the portfolios that could only hold investment grade. Like most pension funds and life insurance portfolios. This was a huge crisis for the massively leveraged funds.

I work at an investment advisory firm providing services to pension funds and insurance companies. The word on the street is to expect the Fed balance sheet to be expanded by $6-$10 trillion.

Unfortunately Mom & Pop businesses most hard hit by the shutdown have no ability to get a Wall St bank to underwrite a junk bond offering that could be sold to the Fed.

Finally, I'd like to leave you with this story. This is why some are getting angry.

https://prospect.org/economy/hospital-bailouts-begin-for-those-owned-by-private-equity-firms/

And Not A Single American Physician In This Bailed-Out Beezie....?

Prospect |  On March 22, the Steward hospital chain sent a letter to Pennsylvania Governor Tom Wolf, saying it would close Easton Hospital, in the state’s Lehigh Valley, on March 27 unless it received a government bailout to keep it operating.

Steward’s letter read: “If the Commonwealth has no interest in assuming all operating expenses and liabilities of Easton Hospital, Steward Health Care will proceed immediately on planning to close the facility.” The threat paid off: On the 27th, the state guaranteed Easton $8 million for April and a likely $24 million through the month of June. The bulk of the funds, Wolf said, would be covered by the federal bailout package that President Trump had signed into law that very day.

How Easton had descended to such dire straits is a good question, inasmuch as its owner—the private equity firm Cerberus Capital Management—is hardly a candidate for taxpayer-funded assistance, and is responsible for loading down the hospital with an unpayable level of debt.

The Easton story is likely to be just the first of many. After compelling hospitals to take on huge piles of debt through leveraged buyouts, private equity firms—currently sitting on $1.5 trillion in uninvested cash from investors—are poised to line up for taxpayer bailouts.

Steward has claimed that Easton Hospital has been financially distressed for months, that competition from other larger hospitals is fierce, and that the postponement of all elective surgeries has further cut into revenues. It had worked out a deal to sell the hospital to St. Luke’s University Network, but the deal has slowed down due to the COVID-19 crisis.

But why is Easton Hospital struggling so much more than other hospitals?

After compelling hospitals to take on huge piles of debt through leveraged buyouts, private equity firms are poised to line up for taxpayer bailouts.

Size matters, but its private equity buyout history matters more. In March 2017, Cerberus acquired Easton, along with seven other hospitals, in a leveraged buyout for an undisclosed amount from Community Health Systems (CHS). While we don’t know how much debt Steward took on in order to buy out Easton, the typical private equity buyout includes debt financing in the range of 50 percent to 70 percent of the purchase price, which the acquisition, in this case Easton Hospital, is expected to repay. We do know that at the time of the sale, Steward sold the property of all eight hospitals to a real-estate investment trust, Medical Properties Trust (MPT), and pocketed $304 million in return.

Since then, Easton Hospital has had to pay rent on property it had owned for the 127 years of its existence. How much of Easton’s revenues have been used to pay down debt Steward incurred to acquire it and to pay rent on its facilities—revenues that could have been used to financially stabilize the hospital?

How Private Equity Drives Surprise Billing

Prospect |  Surprise medical billing has quickly become a small but critical flashpoint in health care reform. Because doctors and hospitals negotiate separately with insurance companies over reimbursement rates, it's possible for a patient's insurance to cover hospital charges while failing to cover the fees of some doctors in the hospital who are “out of network.” Patients who visit an emergency room (ER) or are admitted to an in-network hospital by an in-network doctor may find that some of the professionals who treat them are not covered by their insurance. That is because hospitals have outsourced ER, anesthesiology, radiology, or other specialized services to outside physician practices or staffing firms. Patients often find themselves on the hook for thousands, or even tens of thousands of dollars in surprise medical bills.

Twenty-five states have passed laws with limited protection for patients from out-of-network bills, usually for emergency room or urgent-care services; 20 more states are considering legislation. But these laws do not cover self-insured employer plans, which can only be regulated by the federal government. These plans cover an estimated 61 percent of workers who have private insurance, up from 44 percent 20 years ago. That means Congress must step in to protect insured patients from unfair and unexpected medical charges.

And that puts lawmakers up against the powerful and influential private equity industry, which plays a major role in supplying hospitals with physicians. They have aggressively bought up large national staffing firms or “physician practice management” (PPM) companies, as well as emergency providers that hospitals and other health organizations have outsourced, such as ground and air ambulance companies. And they are using the typical tools to protect their investments from a legislative onslaught: lobbying cash, dark-money front groups, and allies in Congress pushing loopholes and half measures.

The Role of Private Equity: Driving Market Concentration

Private equity funds use substantial debt to acquire doctors' practices through leveraged buyouts, and to finance mergers of practices into large staffing firms. Emergency medical and specialist practices are a prime buyout target, because patients who need emergency care cannot haggle over price, and third-party payers guarantee payment. This satisfies the private equity business model of promising “outsized returns” to investors.

Private equity firms buy up small specialty physician practices that have begun to consolidate and “roll them up” into umbrella organizations to gain local, regional, and ultimately national market power. Researchers at the Kellogg School of Management found that most individual acquisitions were below the dollar threshold that would have required the transaction to be reported to antitrust regulators.

Do Healthcare Professional Staffing Firms Specialize In Pimping H1-B Replacement Negroe Physicians?

laprogressive |  About a third of hospital emergency rooms are staffed by doctors on the payrolls of two physician staffing companies—TeamHealth and Envision Health—owned by Wall Street investment firms. Envision Healthcare employs 69,000 healthcare workers nationwide while TeamHealth employs 20,000. Private equity firm Blackstone Group owns TeamHealth, Kravis Kohlberg Roberts (KKR) owns Envision.

Care of the sick is not the mission of these companies; their mission is to make outsized profits for the private equity firms and its investors. Overcharging patients and insurance companies for providing urgent and desperately needed emergency medical care is bad enough. But it is unconscionable to muzzle doctors who speak out to advocate for the health of their patients and co-workers during the global pandemic that is rapidly spreading across the US.

Yet, that is what Blackstone-owned TeamHealth just did. Why would an experienced ER doctor be fired in the middle of a pandemic? One clue may be that Blackstone’s CEO, Stephen A. Schwarzman, is part of President Trump’s inner circle. He may not want to risk that relationship by allowing TeamHealth’s doctors to inform the public about Washington’s mishandling of the allocation of supplies and protective gear. The President might conclude that TeamHealth doctors didn’t appreciate him enough, and where would that leave Schwartzman?

PeaceHealth St. Joseph Medical Center may have the distinction of being the first hospital to have a doctor outsourced from a physician staffing firm unceremoniously fired for telling the public the truth. But it won’t be the last. Hospitals are now telling doctors treating coronavirus patients they will be fired if they speak to the press.

No Corporate Bailouts: In The Land Of Opportunity, If You Struggle, You Can Make It!

St. Louis Fed Calls For $2.5 Trillion Fiat Stimulus To Offset Controlavirus Lockdown

bloomberg |  Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in gross domestic product.

Bullard called for a powerful fiscal response to replace the $2.5 trillion in lost income that quarter to ensure a strong eventual U.S. recovery, adding the Fed would be poised to do more to ensure markets function during a period of high volatility.

“Everything is on the table” for the Fed as far as additional lending programs, Bullard said in a telephone interview Sunday from St. Louis. “There is more that we can do if necessary” with existing emergency authority. “There is probably much more in the months ahead depending on where Congress wants to go.”

Bullard’s grave assessment of the world’s largest economy underscores the critical need for Congress and the White House to quickly find agreement on a massive aid program. The Fed last week restarted financial crisis-era programs to help the commercial paper and money markets, after cutting interest rates to near zero and pledging to boost its holdings of Treasuries by at least $500 billion and of mortgage securities by at least $200 billion.

 “This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said. “The overall goal is to keep everyone, households and businesses, whole” with government support. “It is a huge shock and we are trying to cope with it and keep it under control.”

The U.S. central bank bought $272 billion of government debt last week, of the more than $500 billion authorized, which Bullard emphasized should not be seen as a limit.

The Controlavirus Corporate Coup

mattstoller | Welcome to BIG, a newsletter about the politics of monopoly. This is a special edition. I need you to take this newsletter and repost it, forward it, and contact anyone you know in politics. Here’s why.

Congressional leaders are likely to put a very ugly deal in front of the American people, and if it passes, America may be unrecognizable after this pandemic. But there is a way to stop it, if people on the populist left and people on the populist right work together.

Here's the situation. Mitch McConnell, Chuck Schumer, and the Trump administration is negotiating a bailout package to address the coronavirus crisis. There's been a lot of chatter about the need to support workers as the economy goes into a freeze. This is happening around the world; the British government, for instance, is willing to pay 80% of worker wages during this downturn for those affected by the crisis. 

But in the U.S., our leaders seem to be falling prey to what can only be called a corporate frenzy of favor-seeking. “Any time there is a crisis and Washington is in the middle of it is an opportunity for guys like me," said one lobbyist. 

Now first I should say that I don’t know exactly what is going to be in the final bill, because the whole process is opaque and being negotiated right now by some untrustworthy political leaders. We will only find out the details at the last minute. So all I have to go off is rumor and reporting. But if we wait until we know the full contours, it will likely be too late to act. I hope I’m wrong, but the list of what lobbyists are asking for is long, and ugly, and often the requests for money or legislative favors are done to cover up mistakes made before the coronavirus hit. 

Take Boeing. The aerospace giant of course wants a $60 billion bailout. Financial problems for this corporation predated the crisis, with the mismanagement that led to the 737 Max as well as defense and space products that don't work (I noted last July a bailout was coming). The corporation paid out $65 billion in stock buybacks and dividends over the last ten years, and it was drawing down credit lines before this crisis hit. It is highly politically connected; the board of the corporation includes Caroline Kennedy, Ronald Reagan’s Chief of Staff Ken Duberstein, three Fortune 100 CEOs, a former US Trade Representative, and two Admirals, one of whom is the board’s only engineer. Using the excuse of the coronavirus, Boeing is trying to get the taxpayer to foot the bill for its errors, so it can go back to making more of them. 

But that's not all. Defense contractors want their payments sped up, and I've heard they want to widen a giant loophole called 'other transaction authority' to get around restrictions on profiteering. Elon Musk and Jeff Bezo want "$5 billion in grants or loans to keep commercial space company employees on the job and launch facilities open." They also want the IRS to give them cash for R&D tax credits.  

CNBC reported that hotels want $150 billion, restaurants want $145 billion, and manufacturers wants $1.4 trillion. And the International Council of Shopping Centers wants a guarantee of up to $1 trillion. The beer industry wants $5B. Candy industry wants $500M. The New York Times reported that "Adidas is seeking support for a long-sought provision allowing people to use pretax money to pay for gym memberships and fitness equipment." Gyms are of course closed. Meatpackers want special visas so they can undercut wages of their workers, and importers want to stop paying duties they incurred for harming domestic industries for illegally dumping products into the U.S.

Controlavirus As A Global Economic Reset

CTH | …there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here

We now look forward, and consider the question: How would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) if the U.S. stock market was ever forced to re-value economic nationalism over multinational globalism?

To first answer the “how” question, we must visit the “why” question. Why would the multinational financial underwriters want to reset their valuations?

Obviously, the global financial system does not act altruistically. What would motivate the global wealth valuation authority (various market investment indexes) to want, or need, a reset.

The answer to the “why” question might not be as challenging as it appears.

First, there has been a seismic shift in how the world looks at the economic exploitation of multinational systems, or globalism.  See Bernie Sanders?  See those yellow vests in France?  See what happened with the U.K. Brexit referendum?  See the shrinking EU influence?  See the open/public confrontation and push-back against China? See Trump? All examples are consequences of the rise of economic nationalism.

Secondly, the original Wall Street corporate motive (during decades of mergers and acquisitions) to shift product manufacturing to Southeast Asia (ASEAN nations) was driven by a lower cost of overall business, higher profit margins and greed.

As a direct outcome economic wealth was shifted from the U.S. to ASEAN nations, and particularly China. Low wages, low regulation, cheap operational costs, incentives and subsidies from Asia equals cheap TV’s, sneakers, furniture and durable goods.

Even with high fuel prices and overseas shipping costs, there was a big difference between U.S. and ASEAN manufacturing costs.  As hundreds of U.S. Wall Street multinationals chased profits the rust-belt was created.

KU and UMKC Got ZERO Coronavirus Phuggs For Its Students/Communities

bizjournal |  The University of Missouri-Columbia will suspend in-person classes and move to online instruction starting 5 p.m. Wednesday until March 30 in an effort to stem the growing coronavirus outbreak, the university announced.

In-person classes will resume March 30, after spring break, which is set for March 21-29.

An official with the University of Missouri-Kansas City said in an email Wednesday that classes would continue as scheduled and are not being moved online.

"Under the circumstances, however, making preparations to do so if necessary is the prudent course," John Martellaro, UMKC's director of media relations, said in the email. "We are providing instruction and resources to our faculty on how to change in-person courses to online courses if that becomes necessary at some point."

Effective immediately, all MU-related domestic and international travel is suspended until April 12, including previously approved travel, according to a university statement. That travel is canceled regardless of how it was to be funded.

All nonessential university events will be canceled until March 29. Small meetings and athletic events still will be held, and the school will be thoroughly cleaned and disinfected, the statement said.

There are no confirmed cases of coronavirus at MU. Last weekend, several MU students and faculty attended a journalism conference in New Orleans where another attendee tested positive for the virus. 

The positive case was not part of the MU group, the university announced Wednesday. MU students and faculty who attended the conference are staying home, and none have shown symptoms, the university said in a Wednesday statement. The risk of those people developing the virus is low, the statement said.

As of Wednesday afternoon, the University of Kansas had not announced any changes to in-person instruction.

The state of Missouri has one confirmed case of COVID-19, the disease caused by the new coronavirus. A St. Louis woman tested positive after returning from a study abroad trip in Italy.

Washington University and Webster University, both in St. Louis, also announced they would move to online classes starting this month, according to the St. Louis Post-Dispatch.

Should the Rentier Class Pay the Costs to Control SARS-CoV2?

taxresearch |  I have already discussed the potential economic implications of coronavirus this morning. The purpose of this blog is to summarise the underlying economic logic of what I have said.

We will have an economic crisis in 2020 as a result of coronavirus. There can now be no doubt of that; the likelihood that this epidemic can now be contained seems to be very low indeed. The evidence from China is that the impact on productivity and the economy at large is enormous. Whether we can survive the impact of this epidemic without major economic consequences arising is largely dependent upon the effectiveness of the planning that the government undertakes now. What is apparent is that at present there are a few signs that this planning is taking place. We can hope for it in the forthcoming budget, but the signs are, so far, not good.

The key issue that the government has to decide upon is who will bear the economic consequences of what is to happen. I have already indicated in my first post on this issue that I think that the consequences of this epidemic will fall upon three clearly identifiable groups, which are individuals, businesses and government. However, when appraising who will bear the cost the criteria are slightly different.

It is unacceptable that individuals bear the cost of this crisis. There is simply too little economic resilience within the population as a whole for that to be the case. Far too many people have too few savings to survive major periods of economic inactivity without massive prejudice to their short-term and long-term well-being.

In addition, it is unacceptable that many businesses should fail through no fault of their own but that is what will happen unless the government steps in to prevent the major economic downturn that might happen this year. Cash flow issues will cripple many companies.

In that case it would seem that consequences of what might happen will fall, in the first instance, on the government.

Yet Another Reason Donny and Mike So Tight-Lipped About SARS-CoV2?

The acronym for the day is NDMS. Once (if?) the President declares a public health emergency, Uncle Sam is on the hook for out-of-pocket medical costs via the National Disaster Medical System. https://t.co/rVfYOf26FY pic.twitter.com/2PPwerteuQ

— Carlos Mucha (@mucha_carlos) February 29, 2020

Remember Americans - Body Count Doesn't Matter Until/Unless It Effects the Economy

China took and is taking massive economic hits in its drastic martial/medieval response to the SARS-CoV2 outbreak. 

China reacted to this like it was a bio-weapons attack. (not saying that it was, but we've established to an acceptable level of confidence that it was at the very least a "gain of function" accident.)

Neither wing of the one party American system is psychologically capable of conceiving the kinds of measures the situation may demand. The U.S. is grossly under prepared on any level to deal with either an objective biological threat, or, the mass hysterical infodemic threat that SARS-CoV2 has already clearly demonstrated itself to be.

Ensuring profit is the one and only goal of any response American governance is capable of mustering. So what it comes down to is this. American political leadership MUST pretend that this outbreak is nothing worse than a bad strain of the cold or flu, period. 

Now, we've already established in Washington state and in Illinois - that community spread with no known travel is underway. So it's here and it's propagating. 

Knowing America as you do, do you expect American infection rates to mirror cruise ship levels ~20% or Korean Tard levels ~80% infection rates?

If you get 50% of the population infected all at once, we're done.

We don't have the means to do bulk testing.

We have limited capacity to treat people who go past flu-like symptoms.

If you try and force everybody to stay at home you may as well just switch off the lights. The real problem - however - will be the number of poor people still well enough to crawl to work.

For tens of millions it is show up for work or sleep in the car. 

Not to mention the ones who show up for work everyday but are still forced to sleep in the car. 

If the most severe aspects of the outbreak run like wildfire through the elderly, poor, and homeless demographics - American elites will consider this an unanticipated windfall and begin proclaiming their exceptionalism. 

It would be too sweet if the rich, elderly attendees of an elite cocktail/dinner party came in contact with servant peasants infected with SARS-CoV2  and they spread it around to all the sleek party attendees.  A fair number of the rich and affluent getting sick and/or dying might shake things up a bit.

So the trick now is to try and draw out the process.

Though it will be a hard slog, if you can keep the infection rate below 5% - you may have the resources to manage care rationing and prevent more massive outbreak and economic disruption.

We shall all soon see. The chickens have surely come home to roost!

We Wuz BadMuhhukkahs Till We Got Hoodwinked, Bamboozled, Raped, and Pillaged Like Little Bishes..,.,

Full Paper

NAP |  The academic research community in the United States is heading toward an era of unparalleled discovery, productivity, and excitement. In fields as diverse as computing and materials science, high-energy physics and psychology, cosmology and the neurosciences, university-based research will open new worlds of knowledge and make possible innovations not yet imagined. The research enterprise holds great promise for advancing social, health, and economic goals into the next century.

The academic research community in the United States is heading toward an era of unparalleled discovery, productivity, and excitement. In fields as diverse as computing and materials science, high-energy physics and psychology, cosmology and the neurosciences, university-based research will open new worlds of knowledge and make possible innovations not yet imagined.

This hopeful vision for the U.S. academic research enterprise motivated the working group's deliberations and analyses. To achieve this vision, the enterprise must be guided wisely by current and future generations of investigators, university administrators, the sponsors of research, and the broader public. The working group's strong and positive presentation of this vision assumes that such guidance will prevail.

Dynamic change is a central component of this vision. The research enterprise of the future will be unlike the one of today. Significant opportunities and challenges can be expected in the decades ahead.

A GLOBAL RESEARCH SYSTEM

International research cooperation will become a pervasive feature of the U.S. academic research enterprise in the next century. Multinational research arrangements will be essential for studying such phenomena as large-scale environmental effects and the most demanding experimental problems in the physical and biological sciences. The research communities of both industrialized and developing countries will rely more and more on cooperative ventures to address these and other research problems. Just as foreign-based companies now support research in U.S. universities, in the future more governments and industries are likely to support the research activities of other nations.

Over the next few decades, the number of nations with highly effective research systems will grow. Their university, government, and industry laboratories will collaborate in novel, imaginative, and effective ways. Global competition in science and technology will require that the United States pay close attention to the research activities of other countries, especially those targeting economic growth as their primary research goal. This will be particularly true for the Western European and Pacific Rim countries, which have become fierce competitors in the knowledge-intensive global marketplace. Several of the newly democratized nations of Eastern

International research cooperation will become a pervasive feature of the U.S. academic research enterprise in the next century.