John Wilder has a great post today about the greater lesson (and impact, in all likelihood) of the Kung Flu of 2020.
RTWT.
This has been the greater lesson all along: the problem is not the Kung Flu getting here nearly so much as it’s about the second- and third-order effects, here, of Kung Flu rampaging across China, there.
This is the Mel Brooks Comedy Theory, applied to economics: “Tragedy is me stubbing my toe. Comedy is you falling off a cliff.”
They have 400,000,000 people in China (at last report) on house arrest, most of them in their industrial belt. If you get anything made in China, you won’t be getting it, probably for the rest of 2020.
Period.
No Keebler elves making your crap means no Keebler cookies. Or anything else. Multiply that times the second largest economy on the planet, and we have a problem, Houston.
But the beauty of the Invisible Hand is that (assuming people who aren’t lunchmeat for brains running the show) capitalism starts doing workarounds ASAP for all the things China cannot provide.
Kung Flu is going to be the Third World Full Employment Act of 2020, and entire industries elsewhere are going to reap the windfall.
Eventually.
In the short term, expect scattered PITA, with a chance of disasterpiece theatre.
Bonus: GMTA. Peter adds another 2¢ at Bayou Renaissance Man.
Blogs are on our bloglist for a reason.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
“No Keebler elves making your crap means no Keebler cookies.” I appreciate it when folks speak my language and yet there are those who will still look across the table and say huh? Below reminds me of what is to come as this kung flu gets worse.
Just more symptoms for us to discuss ad nauseam. These things were all war gamed when they were creating the virus.
I need an acronym dictionary:
RTWT ?
PITA ?
GMTA ?
bshj.
RTWT is a link to a site. The essays are short and enjoyable.
Read The Whole Thing. Pain In The Ass. Great Minds Think Alike.
ReTweet?
Pain In The Ass?
Green Mountain Transit Authority?
On another thought…..Iran now has cases……US Senator secretly visited Iran…..did he leave something there? Did he bring something back?
“Disasterpiece theatre.”
Classique.
I also love clear and concise cynicism with a chuckle. Thank you.
I recently mentioned that I am in the process of closing down my business, and that without my assistance transitioning, around 7,000 people would lose there jobs, dozens of companies would go broke, etc.
The outsourcing of what I do would take several months, without my assistance. The companies do not have several months. Some would be broke within a month. And the dominoes would fall rapidly when that happened. One would become three would become 12 etc.
The Coronavirus could indeed cause massive failure of US and Oz business if the supply lines are cut for even a short period of time. Apple could be royally screwed, for instance. Same for automakers who rely on key overseas components.
This could indeed result in many corporate failures, but could also result in significant manufacturing being rebuilt in the US (few jobs would be involved though as new facilities would be highly automated). It would also see a collapse in very large sections of business that export to China, which believe it or not is not inconsequential.
And do not forget the supply of rare earths. Never forget that. If that supply dries up, the US is screwed.
Take it one step beyond job loss to pension belly-up.
Sounds likely. Unintended or unforeseen consequences always pop up at the worst possible time. That is the corollary to Murphy’s law.
Out of curiosity, what things, that I use every day, need rare earths?
I would imagine, phones, computers and even vehicle components?
“That’s a good question, Donkey. Let me put on my patented Stuponitron Helmet. Contact!”
From Al Gore’s Amazing Interweb: https://www.bbc.com/news/world-17357863
———//————-
“Rare earths” are a group of 17 chemically similar elements crucial to the manufacture of many hi-tech products. Despite their name, most are abundant in nature but are hazardous to extract. Most “rare earth” elements have uses in several different fields, as well as those listed below.
Neodymium
This is used to make powerful magnets used in loudspeakers and computer hard drives to enable them to be smaller and more efficient. Magnets containing neodymium are also used in green technologies such as the manufacture of wind turbines and hybrid cars.
Lanthanum
This element is used in camera and telescope lenses. Compounds containing lanthanum are used extensively in carbon lighting applications, such as studio lighting and cinema projection.
Cerium
Used in catalytic converters in cars, enabling them to run at high temperatures and playing a crucial role in the chemical reactions in the converter. Lanthanum and cerium are also used in the process of refining crude oil.
Image caption
Yttrium is used in the process of generating colour displays on devices such as television screens
Praseodymium
Used to create strong metals for use in aircraft engines. Praseodymium is also a component of a special sort of glass, used to make visors to protect welders and glassmakers.
Gadolinium
Used in X-ray and MRI scanning systems, and also in television screens. Research is also being done into its possible use in developing more efficient refrigeration systems.
Yttrium, terbium, europium
Important in making televisions and computer screens and other devices that have visual displays as they are used in making materials that give off different colours. Europium is also used in making control rods in nuclear reactors.
Source: British Geological Survey, Royal Society of Chemistry
——–//———-
Gilbert,
Awesome. Thanks. I take after Mr. Ford.
I’ll let you figure out what I mean by that. 🙂
No need to be coy, Roy. You hate Jews, amairait?
Ohhh, I get it.
Not a Toyota man, huh?
That’s OK, I know they’re not the leader in sales and performance, but doggone, it, they try hard. That’s gotta count for something.
more importantly donkey,what things that you NEED every day need rare earths?
get ready!