The global economy may be heading for some sort of "sudden stop" in supply chains, trade flows and tourism more akin to the outbreak of the First World War than the Lehman or dotcom crises.

Covid-19 is self-evidently beyond the point of meaningful containment.

What happens or does not happen in Wuhan has been overtaken by events in Iran, Italy, the Pacific Rim and no doubt Africa as well if there were surveillance data.

The danger in any case is that the coronavirus epidemic not only spreads to Europe and the US but also that it lasts long enough to set in motion a contractionary chain-reaction, ending in a worldwide deflationary bust.


Ambrose Evans-Pritchard, Telegraph 25 February 2020


We are in an unprecedented global situation more akin to the outbreak of war than any episode in collective economic memory. 

“Everyone believes it’s going to be a V-shaped recession, but people don’t know what they are talking about. They prefer to believe in miracles,” said Nouriel Roubini, the Dr Doom of the 2008 saga. “This crisis is a supply shock that you can’t fight with monetary or fiscal policy.”

Ambrose Evans-Pritchard, Telegraph 28 February 2020

Cataclysm








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