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A very sick Black Swan

I’ve been writing posts about the Wuhan virus for the last month here on this blog. The potential for a global pandemic, and possible panic, has been obvious from the beginning.

Here’s the latest:

Health officials in the United States warned Tuesday that the spread of the novel coronavirus in the country appears inevitable, marking a significant change in tone as global travel disruptions continued to worsen, South Korea neared 1,000 cases and Iran reported at least 15 deaths.

China and South Korea announced new cases of the coronavirus, raising concerns in both nations about how long it could take for normal life to return. South Korea confirmed 144 more cases, bringing its total to 977, the most outside China. President Moon Jae-in visited the city of Daegu, where more than half of the country’s confirmed cases have been found, Tuesday afternoon local time.

Travel disruptions continued to spread, with the United Arab Emirates, one of the world’s most critical aviation hubs, saying it would suspend all travel to and from Iran, where authorities confirmed that the death toll has reached at least 15. In Iran, an opposition lawmaker and the deputy health minister tested positive for the virus as the death toll there climbed.

Early Tuesday, global markets appeared to stabilize after Monday’s heavy losses — until the Dow Jones fell 850 points, wiping out a 150-point gain.

Here are the latest developments:

● The Chinese government said Tuesday that there had been 508 new confirmed cases by the end of the previous day, along with 74 deaths, bringing the total number of accumulated infections nationwide to 77,658, with 2,663 deaths.

●“Ultimately, we expect we will see community spread in the United States,” Nancy Messonnier, a top official at the Centers for Disease Control and Prevention, told reporters. “It’s not a question of if this will happen but when this will happen and how many people in this country will have severe illnesses.”

● Iran confirmed 95 cases across the country, with at least 15 deaths, as concerns grew about the outbreak’s spread through the Middle East. Meanwhile, South Korea reported 144 new cases of coronavirus, bringing its national tally to 977.

● A Chinese health official warned that at least 28 days without new cases are needed to be able to say an area is free of the outbreak, raising questions about how long it will take for normal life to resume.

● A fourth former passenger from the Diamond Princess cruise liner has died. Japan says 691 people on the ship tested positive for the virus, although that figure does not include more than 20 people found to have the virus after returning to their home countries.

The US is unprepared:

In 2005, during the H1N5 bird flu scare, the US Agency for International Development ran a program called Predict to identify and research infectious diseases in animal populations in the developing world. Most new viruses that impact humans — apparently including the one causing the Covid-19 disease — emerge through this route, so investing in early research is the kind of thing that, at modest ongoing cost, served to reduce the likelihood of rare but catastrophic events.

The program was initiated under George W. Bush and continued through Barack Obama’s eight years in office; then, last fall the Trump administration shut it down.

That’s part of a broader pattern of actual and potential Trump efforts to shut down America’s ability to respond to pandemic disease.

Trump and his accomplices care nothing about any of this, not really. They are concerned with how it’s affecting markets and his re-election.

President Donald Trump’s top aides faced an increasingly urgent threat Monday with potentially monumental implications: a global outbreak knocking down the U.S. economy and walloping markets in an election year, all against accusations about whether the Trump administration had mismanaged and underfunded a critical response with American lives on the line.

A swift drop in the stock market — the Dow Jones Industrial Average fell more than 1,000 points, its largest slide in two years — jolted officials in the White House and across Washington, delivering implications from the long-simmering coronavirus threat to a wider swath of Americans.

“The view in the White House is that this is one of those classic black swan events, and all we can do is control the health issues in the U.S.,” said Stephen Moore, an informal economic adviser to the Trump team.

With the possibility of a U.S. outbreak growing by the day, Trump allies and advisers have grown increasingly worried that a botched coronavirus response will hit the U.S. economy. Even Donald Trump Jr. has mused to associates he hopes the White House does not screw up the response and put the president’s best reelection message at risk, said two individuals with knowledge of his comments.

The good news is that he can say that everything’s fine and make it so. He’s magical that way:

Well, ok then…

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