Tag Archives: Covid

Just say ‘BANG!’

We all laugh and we all seem to point fingers, we all seem to endure the blame game. How governments are bowing to the bully (President Trump) and convict without evidence a corporation and a nation (Huawei and China), yet at the core of it all, we are merely sheep, we bask in the sun as the wolves take one or two sheep, and as long it is not us, we merely watch and remain basking in inaction. The media helps here by trivialising news, by basking in inaction on matters that are reported on, without the need for evidence by howling ‘This was what was told to us, we merely report’. So where are the questions on President Trump, who once claimed that it would merely impact 1.5%? Now that 1.5 million Americans have the disease and 92,000 died of it, where is that 1.5% when it is already at 400% of what was expected, what do we get to see? A president blaming the WHO, stating that China is in its back pocket. Even when we realise that the WHO has no legal rights in any nation, realising that the EU has a massive reporting problem that affects thousands, nope, it is all about the blame game. It worked for Senator McCarthy in 1953-1955, it will work for President Trump too and so far, it seems to work. Yet the problem is expanding more and more. Now we see how people are more often in jeopardy. We see hackers and scammers with Covid-19 agendas, we see 5G blamed by short minded people and again we see EasyJet getting hacked and 9 million people just lost their credit card privacy, but there are voices that are trying to calm us “There is no evidence that any personal information has been misused”, yet they are doing more! “We are communicating with the approximately 9 million customers to advise them of protective steps”, yes how about one singular step? “We have instigated a death squad to hunt down the hackers and put them to death!” Not accepting any excuse from parents that their 17 year old did not know what he/she was doing, not some excuse that it was their first time. Nope, we set a gunto their temple and blow the brains out and televise the event so that others know, their time for cheap thrills is over, they become the cheap thrill. And we will all get notified by the media that this is too harsh, too inhumane, yet that is not the real deal is it? The shareholders and stakeholders pushing the media know that at some point THEY become the sought targets and they fear this.

When there are no targets, transgressors fear what will come and that is the fear they have and we need to drive the dagger home, drive it towards the targets that matter.

Politicians will shout ‘terrorism’ at any event, the media will report that, but they will not report and investigate the proper format of accusations, just like they refused to investigate the accusers of Saudi Arabia. First on a missing journalist no one cared about, after that on a mobile phone of a person who was too rich for his own good and no one properly vetted the evidence, they merely dropped it on the desk of a UN essay writer. The Guardian (and many others) hid behind ‘high confidence’ mentions and other media did similar actions, yet they never investigated it, did they? It was a week of jabs and then it quietly went away, that is what we signed up for and I for one have had enough of this media driven BS.

If we can’t direct them, we can tell them to be quiet whilst we fix things and the benefit of my approach is that in a depression, hackers and abusers don’t really get to have any voice in the matter. Hackers and profiteers in a stage where there are 320,000 dead people, it implies that well over 500,000 are affected and they do not really care about the life of a hacker (well their mommies and daddies do), who cares about them?

That is the stage that is in question, the stage where governments will not set a proper stage, where too many industries abused the situation towards their bottom dollar and in all this a new stage of McCarthyism is created by the current administration, all whilst the media reacts towards shareholders, stakeholders and advertisers. In this the public have had enough and they want to see real action, not what the media and politicians call actions, but something tangible and that stage is now out in the open. 

And whilst the news is all about the Covid fears, we get to see how people like Morgan Wright, a former senior adviser to the US State department as a member of the anti-terrorism assistance program, sees similar issues, he reported yesterday “He is seeing the exploitation of human behaviour on the dark web, mainly through the TOR browser, which allows pwople to obscure their identity, it is a privacy driven status now used by criminals to do with impunity” and in all this it is clear that normal jurisprudential methods are not working, so a death squad is what we need. Perhaps you like the original term better “a CIA wet team” a wet team because of all that blood, and the amount of people demanding this solution is increasing by thousands on a daily basis, this is the result when there is no longer some form of balance, when the checks and balances are taken away and the people are settled unjustly with the invoice that should have been properly taken care of. As such we are bound to see a much less appreciated group of people demanding solutions. This is what the politicians and governments are now facing, a new form of terrorism and it is based on the lack of actions by too many. 

So whilst the media is all about privacy whilst we know we do not have any, we see the larger picture, we demand to see factual evidence, we demand repercussions for the transgressors, a stage we haven’t faced ever before, those who put us in this situations forgot that checks and balances requires some sort of balance, and as that was taken away from too many, we demand evidence on the validity of gravy trains and in that absence these people better show long term results, or a lynch mob is all that remains, McCarthy never learned that lesson, in 1950 6,000 miles was a lifetime away, now it is merely a click and nothing more than a few mere seconds. That will become clear soon enough, it comes with every additional Covid death and every lockdown hindering us, the media forgot about that too, in all this the forgotten parts will weigh against them all, and something will have to give, especially with the US in a $25 trillion debt and one in four Americans out of work, it is a situation that is worse than the combined negativity that the great depression and 2008 meltdown showed, but both together will force a new reality, it is in this setting that a loud mouthed republican was possibly the worst of the worst scenarios that the US has to content with, I am not stating that Russia and China are in better positions, but they can sit on the sidelines whilst the US and partially the EU burns down, their inactions allow for all this, there is no enemy to smite and Saudi Arabia was never an enemy, and the people love a real enemy and as such the hackers will have to do. I think that none of us saw this coming, it was never in the books, but ‘New Terrorism’ will soon become very real and the media is out of bounds on this one, their inactions helped create it. 

 

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Nature of the beast

There was news on how Samsung failed the net mobile options, the news was given ‘Exynos 990-powered Galaxy S20+ flops hard in gaming’ what I read came from NotebookCheck, and it is important that even as I am no friend of Samsung (due to their own doing in 1985), I tend to not be a Samsung hater. Let us not forget that I love Nintendo and I personally hated the WiiU, I also accept that sometimes a failure precedes a success like the Nintendo Switch, so Samsung might optionally be down,but they are not out. In the end the article lets out that it is basically not the fault of Samsung, but the chip (and its makers) is the cause of all the viewed hardship. The Exynos 990 seems to be below par on a few fields as such depending on that chip caused the project to go pear shaped. This is the direct result of choices, sometimes they blow back on us (WiiU anyone?). Yet in the field the hidden message is often missed. As stated ‘after 10 minutes of running PUBG Mobile, the galaxy S20+ was dropping frames to 50fps (something some recent consoles could not maintain), and as low as 40fps by the 20 minute mark’ the story is nowhere near over and Samsung has time to get up to speed in more than one way.

The writer goes on stating how it is that a $200 solution called Redmi Note 8 Pro did so much better. It is interesting that merely one example was matched. Still it is a mark on the status list of Samsung for now, yet a firm that is in the top 5 of most registered patents in the last years does not have merely one push towards the top and even as (for now) the S20+ is not likely to be a pushing power to the top, Samsng has had its share of true innovative successes and as such it will bounce back, it has done that a few times, and I have no doubt it will do so again.

They are not alone, even as Apple has no recorded future failure yet, it seems that not unlike the time of the PowerMac, they face a new chiprace. The news is that Intel just cannot get their response rate right and as we see that, Apple is considering a new path, one that is RISC or ARM, if it is the RISC, we see a return to happy times (ME: happy happy joy joy), yet that is because I am not a chip man and I know little of the ARM, I merely remember the good times of the RISC (I still have my RISC G5), that systems outdid anything available in those days and made no noise. Still that is not enough for you to rely on. In my mind I see another field starting up, all the APP developers relying on little INTEL options to get whatever they made go faster will have to rethink their options, there will be a weeding in the ranks of APP developers soon enough at that point, not to mention the people making PC games and including Apple as an option, it sets the optional parameters that the design for Apple needs to be truly for Apple. These two matters are a larger stage, last year the Irish Times reported on the collaboration between the two in regards to the iTunes movies, but I wonder if it stops there, Samsung has a much stronger infrastructure, Apple has a few unique designs and a following of millions, I wonder if there is not a larger space for more between the two, they must realise that the changed setting of Covid requires a different stage of thinking for the near future, their approach to almost unaffordable phones is nice, but millions of people are getting laid off, people who used to buy their products and that is off the table for the next two years, if not even longer. 

The changes that we are seeing will demand the largest players to find symphony and chorus between them instead of relying on the powerful solo acts that no one can afford. As such we will see a few more surprises in 2020 and 2021. Some might think that the markets will settle again, but they all forgot that to appease Wall Street too many companies were on a 90% stage with no reserves, now it shows as the bankruptcy numbers are going through the roof, even smaller players like Virgin are running for their life laying off thousands of people, without reserves there is no continuance for any of them, they ignored the common setting for keeping reserves and a 2 month shutdown was enough to make most of them buckle and it will get worse, the EU (those pulling the strings) have achieved in delaying Basel III for another year due to Covid implications. The FSB stated in one of their reports “Funding markets have been under strain amid extreme demand for cash and near-cash assets” it is a stage that is escalating, mainly because of a lack of reserves and it hits back at Samsung as well. This one failure is optionally no biggie, but when you consider that the next two years will be washed from larger revenue and profit in a stage where the time was not great to get a failure to deal with is not great, it is all about the reserves and to appease the markets too many players left ‘margin’ on the side for good reporting, it stands to reason that bad news will rule the news on several fields and it seems that Samsung will join that group that ends up having not great news, and optionally they have marginally good news that will get a downward revision up to 60-120 days later, can’t have the current quarter down, can we?

We can look and see how separate events do not add up and that would be fair, there is however a much larger field in sight and in that field the S20+ failure comes at a bad time, yet they are not alone Apple is in a similar place and forgoing individuality for 2-3 years and set combined products might be the good path for those two players. Samsung could revert to another path but overall they are not in charge, their shareholders are and they fear recession like the black plague. This is merely because 2-3 years could result in a stage of no reserves with a much stronger push towards a 3-5 year stage of no consumers and the shareholders fear that much more than anything. 

Is it not interesting how shareholders make a large company much easier to anticipate?

I have no doubt that Samsung will survive this era, just like it did in 1985, so far history has proven me right again and again, yet the entire Corona escalation is new to too many players and to me too, as such there is a lot we cannot see in a stage of feigned ‘non-panic’, even as these people have no idea just how bad things can get, and they need their shareholders to have faith, as such there remains an unknown. 

Time and profit are the ruling elements of the beast that devours, for the most it devours profit, yet what will it resort to when there is no profit?

 

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When walls close in

I had an interesting day, my mind designed another game, I dreamt of a new movie and I considered what comes next in the entire Covid mess. I will say upfront that it is all speculation, the issues skating close to the truth usually are. It all started with the news. The BBC gives us ‘Trump: A safe gradual and phased opening’, which might be nice and OK, yet the people who actually know about sickness and disease think it is a bad idea. With 2,347,887 sick and 161,138 dead people some will get to say ‘I see dead people’, and they might be telling the truth. I will not waste your time to consider the 739K sick people in the US and the connected 39K dead people, the math there does not hold up completely because of the timeline and the speed at which it pushes through due to large cities like New York. And what do hundreds of Americans do, people without any level of medical education mind you? They protest against the Covid rules, they are the source of propagating the disease and that is good. You see Wall Street and its vassals need to learn the one lesson they forgot about, if you bank on a consumer based wealth cuve, you need actual consumers and the US lost over 39K consumers. Their debts cannot be collected and the curve changes. Even as some Texans push to reopen to open their business, we will see that the rents are due but a lot of customers will stay away. Open business without mindful consumers spending money. Yes it is the time for Amazon to really reel in the cash, but in the end, the shops still lose. And remember resident Trump making some waves in proclaiming against all evidence that the mortality rate of Covid would be no more than 1.8%? It is over 5% in the US at present. No one seems to be asking the right questions. The economic model must be adhered to and the EU is starting to realise that it is a mere tool in the needs of the US, AUS has not figured that out yet, but they will, or perhaps AUS will become the 53rd state of the US. All speculative options at present,something that will be merketter as the A state of the US.

In my view there is a lot of overreaction regarding the flu, yet I am willing to accept that it is done to lower the curve and to keep casualties down, OK, I get it. I might not like it, but I get it and that feeling remains absent for a lot in the US.

Andin all this as we see the reactions to investigations on the World Health Organisation, I am content to write those names down, the pretentious Marise Payne who is all about bi-partisanship. The interesting thing is that this all happened right after the accusations by President D. Trump, yet not unlike the Huawei situation no evidence of any kind was ever produced, and again the A state of the US is following. It is one of those times when ‘bipartisan’ seems to meen, ‘a tool for the US’. 

Why am I here?

You see a flu this amazing where mortality rate is in the sewers and all over the place, jumping from 2% to 10% whilst there are over 100K patients in that country is not natural. There can always be some fluctuation, but if you merely look at Germany and France, where the amount of dead people are apart by almost 500%, there is a larger issue, that issue is that there is more to the disease and nations are in denial of that part, yet blaming China makes it all OK, or so they think.

Let’s make sure that I am not stating that they are innocent, I am stating that so far we see no evidence of any kind and the open hostilities of the US towards China are not set in any light in the media. That too is a piece of evidence that needs to be illuminated.

The stage where Marise Payne is stating that the WHO should not run the investigation and that she is stating that China should allow for transparency whilst she herself is in a doubtful stage is unmentioned. I agree that the coronavirus needs to be investigated, yet it needs to be done by the right people, the fact that she wants to invalidate the WHO from the get go is weird to say the least. In all this the first station of the flu is healthcare and they have been underfunded for over a decade, the health of consumers was overplayed and the effects underestimated. This is visible in AUS, the UK, many nations in the EU and the US. I know too little of Japan to add them to the list. 

THese consumers are adamant and directly involved, because without them the Wall Street formula fails and someone is finally realising it. Forbes stated on April 13th (a Monday) ‘Wall street Wobbles as investors ignore the science of Covid-19’ and there we see “its transmissibility and mortality rate are known to health officials. All of this information has been communicated publicly” yet there are clear open souces out there as well as the numbers in Germany,Spain, Italy and China that makes for a shoddy case in both matters and the people are just ignoring it. The article shows a few other parts and also the fact that when it comes to Wall Street, it is erratic, especially when the numbers go down and that is what will happen, as the US surpasses a mortality numbers of 50K, we will see panic by investors, especially as the disease does not differentiate between the rich and the poor, the worker and the abuser, a flu that merely kills. And when they realise that the death rate in the US is five times that of Germany, we will see initial inklings that there is a larger play and it is not seen in the death numbers, it will be seen in the stage where economies cannot get started because it requires consumers and they are dead. Yet the total deaths is lower than those in Syria and Yemen, so why bother now?

Because now they are consumers that these companies vie for and they no longer answer their phones, and for the most the health officials are ignored to avoid the danger that the message is too negative. As we see in the UK that the NHS people are wearing aprons instead of gowns. As they are on life support, we see a much larger danger. A nation where health care falls away, it took 114K patients and 15K deaths to pull that off, so when will Americans realise that their numbers are a lot worse and their levels of inequality. The Guardian gave us ‘Profit over people, cost over care: America’s broken healthcare’, and no one in the US is actively investigating that part? Australia is almost in a similar place. 

It is not the beginning or the middle, this is the beginning of the beginning and things will get worse. I wonder how many people realise that, even as we see all kinds of numbers, when we do get sick and healthcare falls away, the world has a problem and the US will be one of the first ones to learn what happens when the Wall Street formula cannot be matched. For them profit is everything, lives are not.

So whilst you are in lockdown, consider the fact that when the walls fall in, it is not a case of the walls falling in, but you have been placed in a coffin and you are a number on the covid stats, no matter where you live. And optionally, you will be one of the forgotten, especially as the BBC and others are stating that these numbers are so much higher than expected. In the UK has 2,000 home care locations with the Coronavirus, yet ABC claims that their numbers are not to be found, so how high is the problem and what else is unknown at present. So whilst we are not in possession of the numbers, some are still willing to blame China, all whilst for too long too many places left the border open until specifics were known, that failing in foresight is also unmentioned in many places, I wonder what that investigation will bring to the table of Marie Payne, if she looks at it at all.

 

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Insensitive Me

Yes, at times I tend to be truly absent of empathy, especially when I see small items like ‘as companies struggle with debt‘, so as I am given ‘Experts warn companies that have gorged on cheap money for the past decade face going out of business‘, some of them relied on the famous sales quote ‘Fake it till you make it’, and now we see the ‘warning’ sign “A worldwide credit crunch triggered by the coronavirus will set in motion a wave of corporate bankruptcies that will make the global financial crisis look like “child’s play”, investors have warned.” In this my sober response would be ‘And? Why (the eff) would I care?‘, these people relied on the debt, money they never had to get beyond the point of faking it till they made it and one small flu event is now driving them out of business. So as the world is throwing trillions against it all, I wonder just how short sighted they are. The EU spent 3 trillion on an economy to start it and it never did. As such there will be a much larger toll to everyone involved. There is no upside in “The sudden loss of revenue faced by airlines, tourism-related businesses and carmakers make them extremely vulnerable” OK, we get it, it is not their fault, but we have seen an economy giving out ebts, loans and cheap travels all over the world. Now that there will be an actual cost, there is always an impact we did not see coming. And as we are treated to: “many companies will struggle to refinance debt due to a repeat of the sudden change in credit conditions that sparked the 2007 credit crunch, banking collapses and then the GFC. The prospect of no revenue for months meant creditworthiness had plummeted in exposed sectors and cut off access to funding” we see the shortsigted issues that not having reserves bring. There is now a larger cost to rolling over debts and the stage that zero revenue brings will kill off the smaller players, those players thinking that they were in the same league of the big boys and the big boys are indeed wondering if they survive this age, as such the small fishes have almost no chance. 

As such as we consider the impact of “$2 trillion worth of corporate debt is due to be rolled over this year” all whilst we see no validation of debt rolling over, and the absence of paid off debts, we see a much larger field and everyone is in a stage ‘but why me?‘, as I personally see it, it will affect everyone who did not take the option to reduce their debts. I get it, some will be in a shabby situation and none of this is on them, but to give a rise to 5 out of 500 is a little shallow, is it not? It is the station that we see with “Lindsay David, of independent consultancy LF Economics, said the coronavirus shutdown had exposed longstanding imbalances in the financial system that had been disguised by more than a decade of ultra-low interest rates and trillions of dollars from quantitative easing schemes in the major economies“, we see the stupidity of ‘longstanding imbalances in the financial system‘ and the question attached to that ‘Why was it unattended for so long?‘ is a station that no one wants to be at, no one wants to answer that part of the equation. 

As such, the quote “We know everyone is overleveraged, full-bore, full-risk,” he said. “All we were waiting for was a trigger and unfortunately that has come in the form of a health crisis.” As such it is not the fault of the Coronavirus, any trigger would have sufficed, as such being the one adhering to some Wall Street need, is set to zero and the house will take it all, it is in that light that some see players like Virgin Australia who needs to roll over $5 billion whilst it is in a stage where it cannot bring more than $500 million to the table, a mere 10%, even in the better stage where it would have been double that, rolling over is a doubtful stage for a few lenders, yet this health trigger is not the one anyone hoped or even wished for, it is a stage that was well over 10 years in the making and greed driven people filled their pockets and walked away with a multi million bonus, enough to live in luxury for the next 10 years. After which the market will resettle and their stage of profit comes again, that is what we have catered to.

So as we are introduced to “A full repeat of the post-Lehman Brothers crisis was on the cards, he said, as banks scrambled to hold on to liquidity” a lot of people have not considered the stage we see where the panic driven people first bought out all the pasta they could and after that take out their ATM and saving balance before the bank runs out, at that stage the initial point leading to the worst of the worst will be a much larger stage for everyone.

And the larger issue is seen at the end of the article with: “Let’s say you are a pension fund in Canada and six years ago you gave a bank $1bn. Every year you roll over that bond and the deal remains in place. But now you’re saying, ‘you know what, can I have that money back now?’. So the problem for the company is, where will I find $1bn? Not from its deposits or its liquidity because it’s now got more money going out than coming in.” and that is not where it ends, in October 2019 we saw “regulators should be ensuring the strength of the financial sector to withstand future risks, not weaken it, but that is not what is happening in the U.S.  Recent moves to ease regulations suggest financial stability risks are at an inflection point. Incentives to leverage will continue to rise as interest rates remain low amid a global search for yield.  Vulnerabilities that have been “moderate” could escalate quickly to “elevated”, as they did in the lead up to the 2007 – 2008 crisis“, as such some tried to ‘ease’ the Basel 3 regulations as fast as their greedy needs required, as such, we see “Phase-in arrangements for the leverage ratio were announced in the 26 July 2010 press release of the Group of Governors and Heads of Supervision. That is, the supervisory monitoring period will commence 1 January 2011; the parallel run period will commence 1 January 2013 and run until 1 January 2017; and disclosure of the leverage ratio and its components will start 1 January 2015. Based on the results of the parallel run period, any final adjustments will be carried out in the first half of 2017 with a view to migrating to a Pillar 1 treatment on 1 January 2018 based on appropriate review and calibration” (at https://www.bis.org/press/p100912.pdf), now that was then and it got a little more time “The leverage ratio1 and the Net Stable Funding Ratio (NSFR), which took effect in January 2018, and the supervisory framework for measuring and controlling large exposures, which took effect in January 2019, have yet to be adopted by all jurisdictions (Graph 1). The leverage ratio is now in force in 16 jurisdictions (one more since 2018), while 11 jurisdictions have final rules in force for the NSFR (unchanged since 2018). Only 10 jurisdictions have final rules in force for the large exposures framework.” (at https://www.fsb.org/work-of-the-fsb/implementation-monitoring/monitoring-of-priority-areas/basel-iii/) as such it is not required until 1 January 2022 (as some stated), and now that it is too late, we will get the larger impact. So how happy are you with those people making 6 figure numbers and delaying it all again and again? You will feel that part soon enough when internal systems start to buckle. We might think that President Trump $1 trillion dollar bailout is a good thing, but when that money dries up (and it will dry up a lot faster than you think) he will a scared little mouse, as he will see firsthand what 300 million angry Americans look like and corporations will see the impact of their delay and rollover tactics. Even now as we are told ‘Trump administration is asking states to hold off on releasing unemployment figures as economy plummets‘, we might start to see a much larger failing. We are in a stage where we set ourselves up for a much larger stage, one that outstages the great depression of the 30’s, it merely took a case of the flu to get us there.

Should you think I am exaggerating, consider the Bloomberg headline (at https://www.bloomberg.com/news/articles/2020-03-19/goldman-sees-deepest-australian-downturn-since-great-depression) a mere 2 hours ago. It might have the sobering ‘Goldman Sees Deepest Australian Downturn Since Great Depression‘ headline, but in part the overp[aid delaying factors are to some degree cause of it all and they are hiding behind “Most of the contraction is expected to be driven by a collapse in ‘social’ consumption“, the essential part of ‘the stage of reserves is not what it needed to be‘ is not mentioned anywhere, you have to distill that from other parts and read through the emptiness of what they claim, they might claim facts, yet they do not give any part of the whole story and it will hit the US, Australia, the UK, France, Spain, Italy and to some degree even Germany. That is what we have to look forward to, at least as the Covid panic continues. It seems to me that the makers of pasta and pantry items are in a much better position. Until a month ago, the idea that San Remo ends up being one of the richest companies in Australia would have been laughed at, when you look at the empty shelves almost everywhere last week, that stage is a lot less laughable at present, I wonder in all this whether the new economic superpower will include San Remo and/or Barilla, as there is a chance that the seat of Virgin Australia on that board will be up for grabs soon enough.

 

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