It appears that the realization the coronavirus is more a threat biologically and economically is just now penetrating the business media, investors, financial markets, and institutions. The media spin, that the virus was being contained and would result only in a contraction in China, and that would be ‘V-Shape’ recovery this spring, is breaking down.
Listen to my Alternative Visions radio show of friday, February 21, for my analysis of the 6 economic contagion channels that will propagate the contagion economically from China to the rest of the global economy.
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TO LISTEN GO TO:
http://alternativevisions.podbean.com
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SHOW ANNOUNCEMENT
Dr. Rasmus provides an update on latest developments of past week on the Coronavirus and its growing impact on China’s economy, and the contagion channels to the rest of the global economy. Media and business ‘consensus’ that effect and recovery will be ‘V-shape’ in China is now collapsing. Ditto that the economic effects will be largely contained to China itself. Multiple sources of evidence emerging the virus is spreading faster, and outside China now. Five channels of economic contagion are discussed: trade/supply chain channel; currency channel; commodities and commodity futures channel, financial asset market channel, consumption channel (tourism & luxury goods). Why Japan (and So. Korea) economy is most fragile and susceptible to China contagion. Other Asian economies at risK: Honk Kong, Singapore, Thailand, Australia. (Why no reporting coming from Taiwan?). Goldman Sachs, IMF, S&P forecasts. Review of Japan’s current recession underway and deepening due to sales tax hike, Trump trade war, China-Japan supply chain & tourism impacts. Why monetary and fiscal stimulus won’t work. The show concludes with brief analysis of the recent Democrat party candidates debate and why the ‘traditional middle’ of the party is collapsing in favor of Sanders & Bloomberg.
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