nCoV-2019 Economic March Around the World

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®

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About the Author: johnyMac

8 Comments

  1. DVM February 20, 2020 at 08:57

    Thank you. This is a good situation report and some good reminders.

    • johnyMac February 20, 2020 at 18:00

      Thank you DVM for reading.

      I am surprised that there is not more scrutiny by the media about the economic side of this devastating virus. I think nCoV-2019 will be reclassified by the end of February from epidemic to pandemic. With the stock market taking a dip today, I am wondering if the investment community is starting to worry. Heck, spot gold was up to $1,619- today up from $1,609- yesterday. Mmmmmm?

      Thanks for playing Brother.

  2. 15Fixer February 20, 2020 at 17:52

    Excellent updating Johnny, keep up the good work. I am reading many authors on several different sites who are pointing out many of the economic things like you are. Many sources, better reliability, turning information into actionable intelligence.

  3. […] posted last Thursday February 20, 2020 titled nCoV-2019 Economic March Around the World, things economically are going […]

  4. Jackalope in TN February 24, 2020 at 12:40

    Thanks Johny for another great article. It’s becoming more obvious, even to the sheeple, that we’re in for a severe economic storm. The stock markets are beginning to sharply fall as the populace begins to recognize that there will be an economic impact. This is going to be a long term event, and there will be repercussions that we can’t even imagine. And when there’s economic turmoil, usually there’s social and political turmoil. We’re in for a rough ride. Stay safe and frosty everyone!

    • johnyMac February 24, 2020 at 15:40

      Jackalope in TN,

      Have you been following the market, PM’s, and exchange rates today. OH My Heavens! I suspect it is more panic selling in the stock market and buying in PM’s and things will flatten out a bit in the coming days; However, if China does not get back to work and we here in the USofA start to see empty shelves then it will hit home and we will see another panic selling and PM climb. The next ceiling or firewall to breakthrough in the gold market at $1,700-. If that happens, the panic charge will be all out lemmings running for the cliff.

      Remember, this pandemic – and it is a pandemic no mater what the WHO reports – is just a cold and at this writing only 2-3% of having the virus results in death. Death in a 2nd or 3rd world medical environment I might add. I am not worried about the virus, I am worried about China getting back to work.

      Thanks for reading and commenting Brother

  5. Ne Mo February 25, 2020 at 09:57

    JM, I strongly agree on the 3 Bs. But also remember the +2. Bullion and Barter.

  6. […] 20200220 – NCoV-2019 Economic March Around the World (1) […]

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