As I posted on February 3, 2020 in the article titled, The Sneeze Heard in Wuhan City China – Felt Economically Around the World nCov-2019 may not affect the USofA medically as spring approaches but it will most likely affect us economically. As predicted things are starting to go sideways,
- Apple just revalued their profits downward,
- Car manufactures like Jaguar/Range Rover reports they only have enough parts on the shelf for two weeks as of this writing,
- Royal Caribbean Cruises have canceled at least three sailings of its Spectrum of the Seas ships. Caribbean reports that 16% of their revenue comes from the Asia-Pacific region. China makes up 6-points of that 16% market,
- Starbucks has closed half of their stores in China,
- …and the list goes on.
Spot gold & silver prices are at $1,609-/$18.37 per ounce respectively at the time of this writing. Back on February 3rd spot gold & silver were $1,581-/$18- an ounce. As I wrote in my earlier article, once gold broke that $1,600- ceiling it will march up to the next ceiling of $1,700- not unlike Sherman’s march through Georgia.
As shelves empty at Wally World, Costco, Dollar Stores, and other retailers’ revenues will by default go down. The first cost cutting that businesses will do is laying people off. Once people get laid off other businesses will suffer too which will lead to more layoffs. And so, the death spiral will continue and pick up momentum towards a worldwide recession or at worse a depression.
When all this is said and done, the world will find itself in a Black Swan economic event. This event could become the presidential election’s October Surprise that could sink President Trump being reelected. Today, Mr. Obama claims he is responsible for today’s great economy – Tomorrow he and Bernie will blame Trump.
Now some other bellwether things to keep a cautious eye towards,
- Stock market declining,
- Fuel prices falling due to curtailed manufacturing and a less need for fuel – Supply and demand,
- Unemployment starting to rise,
- Keep an eye on India’s financial future. India is still in a recession and is linked at the hip with China,
- Some common drugs become scarce, and
- Shelves at your local retailers becoming bare.
To beat a dead horse, I recommend that the AP readership assess their 3-B’s (Beans, Band aides, Bullets) and fill-in where you are deficient. Do not allow Normalcy Bias to rule your current life. To do so your future and your families future could be in jeopardy.
Freedom Through Self-Reliance®