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(Part II) – Coronavirus as a Global Economic Reset…

…there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here

We now look forward, and consider the question: How would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) if the U.S. stock market was ever forced to re-value economic nationalism over multinational globalism?

To first answer the “how” question, we must visit the “why” question. Why would the multinational financial underwriters want to reset their valuations?

Obviously, the global financial system does not act altruistically. What would motivate the global wealth valuation authority (various market investment indexes) to want, or need, a reset.

The answer to the “why” question might not be as challenging as it appears.

First, there has been a seismic shift in how the world looks at the economic exploitation of multinational systems, or globalism.  See Bernie Sanders?  See those yellow vests in France?  See what happened with the U.K. Brexit referendum?  See the shrinking EU influence?  See the open/public confrontation and push-back against China? See Trump? All examples are consequences of the rise of economic nationalism.

Secondly, the original Wall Street corporate motive (during decades of mergers and acquisitions) to shift product manufacturing to Southeast Asia (ASEAN nations) was driven by a lower cost of overall business, higher profit margins and greed.

As a direct outcome economic wealth was shifted from the U.S. to ASEAN nations, and particularly China. Low wages, low regulation, cheap operational costs, incentives and subsidies from Asia equals cheap TV’s, sneakers, furniture and durable goods.

Even with high fuel prices and overseas shipping costs, there was a big difference between U.S. and ASEAN manufacturing costs.  As hundreds of U.S. Wall Street multinationals chased profits the rust-belt was created.

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(Part I) – Coronavirus as a Global Economic Reset…

A very big picture discussion requires a considerable baseline.

The stock market is not the U.S. economy; the stock market is an investment instrument that determines valuations of economic activity company by company. The valuation is considerably arbitrary, based on the determinations of the arbiters (investors). This is empirically true.

However, that said, how would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) …if the U.S. stock market was every forced to re-value economic nationalism over multinational globalism?    Enter “Coronavirus”.

Four years ago CTH first explained a new way to look at the U.S. economic system and how Main Street was/is disconnected from Wall Street.  We presented a metaphor to explain. Before going deeper into the discussion of tomorrow; and at the request of several people who now accept the era of “deglobalization” is upon us,  I first present that prior reference & then will use this as the baseline to describe what could come next.

There is a key phrase at the fulcrum of everything past:

…there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

What we are going to outline in part II is the possibility what happens when this natural truism is reversed.  The objective is to answer: How, specifically would Wall Street reset its evaluative systems if Main Street once again emerged as the priority?

But first, a baseline revisit is needed.

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President Trump Leads Daily Coronavirus Task Force Briefing – Video

President Trump and Vice-President Mike Pence lead the daily briefing of the coronavirus task force from the White House briefing room. [Video Below – Transcript ADDED]

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[Transcript] –  THE PRESIDENT: Thank you very much. I would like to begin by announcing some important developments in our war against the Chinese virus.

We’ll be invoking the Defense Production Act, just in case we need it. In other words, I think you all know what it is, and it can do a lot of good things if we need it. And we will — we will have it all completed, signing it in just a little while. Right after I’m finished with this conference, I’ll be signing it. It’s prepared to go. So we will be invoking the Defense Production Act.

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Mike Pence: “Now is the Time To Pull Together”…

A message from Vice President Mike Pence…

Mike Pence: In the fight against the coronavirus, the Trump administration is not just taking a whole of government approach, but a whole of America approach.

We’ve worked seamlessly with state and local leaders from both political parties. Since January, we’ve held 36 briefings with more than 15,000 state, local and tribal leaders from every state and territory in America. And that is in addition to thousands of individual conversations with state, local, and tribal officials.

A vaccine for the coronavirus has already begun a phase 1 clinical trial. The president has dramatically expanded access to telemedicine for seniors on Medicare. And the Health and Human Services Department is collaborating with Johnson & Johnson to develop treatments for coronavirus infections, while actively soliciting proposals for other medical products to help combat the virus.

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U.S. Auto Industry Shuts Down Amid Coronavirus Struggle…

This is a big sector hit to the U.S. economy.  All of the major U.S. auto manufacturers have agreed to shut down all production facilities, through March 30th, in the latest thunder-shock to the economy.

DETROIT – Ford Motor Co., General Motors and Fiat-Chrysler will close their plants due to the coronavirus (COVID-19) outbreak.

Ford said in a statement Wednesday that its U.S., Canadian and Mexican manufacturing facilities will be halted after Thursday evening’s shifts through March 30 to “thoroughly clean and sanitize the company’s plants.”

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White House Trade/Manufacturing Adviser Peter Navarro Discusses COVID-19 Supply Chain Initiatives….

White House trade adviser Peter Navarro outlines some of the ongoing supply chain initiatives to meet ongoing demands of the corovirus effort.  Navarro highlights the cooperation between US government and private enterprise.  WATCH:

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President Trump Meets With Tourism Industry to Discuss COVID-19 Issues – Video and Transcript…

Earlier today President Trump met with executives from the U.S. tourism industry to discuss how their operation are impacted by the various COVID-19 mitigation efforts.

Participants included: Roger Dow, President & CEO, Travel Association; Chip Rogers, President & CEO, American Hotel & Lodging Association (AHLA); Jon Bortz, President and CEO, Pebblebrook Hotel Trust and AHLA Chairman; Elie Maalouf, President, The Americas, Intercontinental Hotels Group (IHG); Christopher Nassetta, President & CEO, Hilton; Arne Sorenson, President & CEO, Marriott International; Richard Bates, EVP, Disney; Mark Hoplamazian, President & CEO, Hyatt Hotels Corporation; John Sprouls, Chief Administrative Officer, Universal Parks and Resorts; Patrick Pacious, President and CEO, Choice Hotels International; David Kong, CEO, Best Western Hotels and Resorts; Jim Murren, President & CEO, MGM  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you very much. We have the tourism industry executives, the biggest anywhere in the world. These are the great ones, and they’re going to say a couple of little words pretty soon, I think. We’ll talk about their company quickly and the number of employees and what’s happened since the Chinese virus came about. And they’ll be discussing that.

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President Trump White House Coronavirus Task Force Briefing – Video and Transcript

President Trump, Vice-President Pence and Treasury Secretary Steven Mnuchin lead the daily coronavirus briefing on COVID-19 mitigation efforts from the White House.

[Video Below – Transcript Added]

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[Transcript] – THE PRESIDENT: Thank you very much, everyone. Thank you. Progress being made. And I appreciate you all joining us.

Last night, the FDA announced groundbreaking new policies to further increase testing very substantially so. All states can now authorize tests developed and used within their borders, in addition to the FDA. So the states are very much involved. They have been involved from the beginning. But we’re stepping it up as much as we can, and the testing procedures are going well.

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Dr. Fauci’s Mysterious Math – The Quantifying Today Reflects Where We Were A Week Ago – Today Cannot Be Quantified Until Next Week…

Let me say up front, there’s something very sketchy about the wordy explanations provided by National Institute of Allergy and Infections Diseases (NIAID) Director Dr. Anthony Fauci.  Listen/watch or read what he says below.

Encapsulating Dr. Fauci’s position:  Data on the coronavirus assembled today doesn’t reflect what is actually taking place today, but rather reflects where we were several days ago…. OK, that part makes sense (there’s a lag).

He then goes on to say what is actually happening today will not be included in data until we arrive at a place a few days from now when today’s reality is quantified.  Again, that reasonably makes sense…  However….

The media is/are reporting on coronavirus impacts in real time.  There is no delay in what the media are reporting from various places around the nation.  The media reporting reflects what is taking place today; right now… and what the media is reporting today is not worse than the data Fauci is explaining.

Meaning if Dr. Fauci was correct, and if the coronavirus data (the reports of spread) was behind by several days from the reality of today; then what the media would be reporting (the on the ground reality of the spread today) would be significantly worse (higher incidents) than Fauci’s data, which he claims is lagging several days behind….

The problem with that supposition – The media ground reports do not reflect a higher incidence of coronavirus spread than Fauci’s data today.

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NEC Director Larry Kudlow Discusses Economic Impact of Coronavirus…

National Economic Council Director Larry Kudlow discusses what economic options the U.S. government has to mitigate and assist businesses and individuals dealing with the financial impacts of coronavirus.

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Note to Mr. Kudlow: Do not trust Dr. Anthony Fauci.

Fauci is a purposeful panic seller. His goals are not the administrations goals.

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