investmentwatchblog--2020-05-24--We’re All in This Together (But Not in the Way You Think)

We are all in this together .
No , by that I do not mean what Andrew Horney calls “ all those cloyingly saccharine , feel-good public service announcements being delivered by famous faces on television and social media platforms , telling us “ we ’ re all in this together.
” We are all interdependent through the production of goods and services that constitutes the market order .
Some critics of the current crisis see it as yet another case of the rich getting one over on the rest of us .
I will argue that this can not @ @ @ @ @ @ @ well as the poor ( and the middle class ) depend on the freedom to produce , and are all harmed by the lack of it .
Angelika Albaladejo writes , “ The Rich Are Getting Richer , ” citing a new report that “ shows that some American billionaires are making substantial gains during the global health crisis.
” Wilamette Week asks , “ How Will the Rich Get Richer During the Pandemic-Fueled Economic Collapse ?
“ Israel Shamir in “ Deep Pockets Love Lockdown ” suggests that the rich do not @ @ @ @ @ @ @ The greatest influence on everyone ’ s standard of living is the overall production of the society they live in .
Under the current prohibitions , some businesses gain market share—a larger piece , but sliced from a much smaller pie .
The rich , who enjoy and can afford luxury goods , depend on the productivity of all members of society for these goods .
Those who can afford to fly first class , or perhaps in their own private planes , depend on the engineering advances from the mass production of @ @ @ @ @ @ @ made private jets “ affordable.
” Time-shared private aviation costs in the low six figures .
High-end travelers rely on the proliferation of airports made possible by the masses of middle-class travel worldwide ; on the sizable labor pool of skilled pilots with commercial air travel experience to fly their private planes ; on the development of air traffic control through the management of millions of flights annually ; and on the gradual improvements in air traffic control to improve air travel safety .
Fine hotels where the rich stay in suites exist @ @ @ @ @ @ @ travel .
International brands are able to bring quality hotels online and up to international standards quickly due to experience operating in many global markets , and they are able to staff new hotels with experienced managers from existing properties , where they have honed their skills .
The private chefs that the rich hire to cook for them emerged from a vast food service industry consisting of culinary schools and fine restaurants even in small- to mid-market cities , where chefs learn their craft .
The ingredients are available because of demand @ @ @ @ @ @ @ often funded by investors who either specialize in the restaurant sector or made their money in another business .
The top-tier chefs who work privately for wealthy people have reached the top of a competitive pyramid through years of restaurant experience , travel , studying under other experienced chefs , and trying out different restaurant concepts to develop recipes and techniques .
The Gordon Ramseys of the world stand atop a vast competitive pyramid of chefs .
The writers who suggest that the lockdown is another means for the rich to get richer @ @ @ @ @ @ @ in a financial panic and eventually monopolizing all commerce , lack an understanding of capital markets .
Financier and political advisor Bernard Baruch is reported to have gone to cash , to have shorted the US stock market in the late 1920s leading up to the crash of 1929 , to have advised friends to do the same , and to have made millions on the trade .
Kennedy family patriarch Joseph P. is reported to have done likewise , realizing that the market was at a top when shoeshine boys gave him @ @ @ @ @ @ @ by shorting bubbles before market crashes or buying up assets on the cheap in the aftermath—but does that benefit “ the rich ” ?
This ignores that for every Bernard Baruch who sold millions of dollars in assets there had to be another buyer who bought them near the top and suffered the losses that Baruch avoided .
Those who own most of the assets are by definition “ the rich.
” A rich person is someone whose property consists mostly of capital goods—directly owned , through businesses or through stocks and bonds @ @ @ @ @ @ @ .
When Baruch wishes to sell $ 1 million in assets , which , as Dr .
Evil has observed , used to be a lot of money , there must be a buyer who has that much cash on hand to pay for them .
This buyer can only be another rich person , or an organization that represents a large number of individuals—a pension fund , a life insurance company .
Collectively all assets are at all times owned by someone .
“ The rich ” as a whole can not @ @ @ @ @ @ @ no external population of Martians who will take those assets off their hands ( unless the Fed buys the entire stock and bond market , which I don ’ t rule out , and perhaps the Fed governors are from another planet ) .
Most of the world ’ s wealth is in capital goods ; those who own the most of them are the rich .
When markets are repriced—downward—the rich as a whole suffer most of the market value losses .
Those who cashed out at the top benefit at the @ @ @ @ @ @ @ on the way down .
And anyone , at any size , who has cash finds that the purchasing power of their cash has gone up when measured in terms of assets .
The position of small investors who have cash on hand improves relative to the rich when asset markets crash .
Even those who do not invest in capital goods at all find their position improved in relative terms , because the ability of the rich to bid for consumption goods by offering capital goods has diminished .
At any moment @ @ @ @ @ @ @ price movements in capital markets are a zero-sum game .
But there is a more fundamental way in which we are interdependent .
The capital goods underlying financial assets derive their market value from their role in the production of consumer goods .
The value of a corporation is derived from consumer demand for its products .
Many of the rich became so by starting a business that they still own which grew by satisfying consumer demand .
Others have sold a business or inherited wealth which they try to preserve through the @ @ @ @ @ @ @ capital goods through financial assets .
And from where do consumers derive their ability to demand ?
We know from Say ’ s law that consumers demand by supplying their own production to the market .
Everyone who works and produces a good or a service , by supplying it to the market , demands some other good or service .
In the general glut debate , the proponents of Say ’ s law used it to show that because every instance of supply constitutes a demand , and vice versa , aggregate @ @ @ @ @ @ @ equal , but simply different ways of looking at the totality of transactions that occur in the market as a whole .
The demand that the rich depend on to support the valuation of their assets is largely not from other rich people demanding Cartier jewelry , Rolex watches , yachts , and custom basement wine cellars .
It is largely from the mass market of consumers through division of labor , which provides the goods and services that we all depend on .
The ability of the poor and middle classes to @ @ @ @ @ @ @ which they earn through their contribution to the production of a range of goods and services .
Their supply in turn constitutes the demand for other—different—goods and services , which supports the valuations of businesses , and therefore financial assets .
And although the rich consume higher-quality goods and services than the rest of us , they depend equally on the flow of goods and services , the division of labor , and the development of new products .
Although they may cherry-pick the best off the top , there has to be @ @ @ @ @ @ @ cherry .
Most mass consumer goods start out as luxury goods .
Then , as the manufacturers work out the kinks and capital investment enables production at a larger scale , these goods become mass market goods .
The 1987 movie Wall Street featured actor Michael Douglas in the role as a hedge fund titan .
In one scene he is shown carrying what at the time passed for a mobile phone ( a luxury good only available to the super rich ) about the size of a large brick .
When I @ @ @ @ @ @ @ ( back in the days when we were allowed to travel more than one hundred yards from our residences ) , smartphones were ubiquitous .
While it is true that the middle class and eventually low-income consumers benefit from the adoption of new products by the rich , the fall in these goods ’ costs also makes the rich man ’ s dollar go further .
Improvements in the design and function of the products through generations of products and mass production make better products available to all classes .
Even the government @ @ @ @ @ @ @ progress , and falling costs for its nefarious objectives .
Governments would like to surveil us all—even more than they already do .
According to the BBC News , “ More than a million Australians have downloaded a coronavirus contact tracing app within hours of it being released by the government.
” The plan is clear enough , but if no people can afford a modern mobile phone with GPS any longer and lack the ability to pay for their data plan , this effort might fall a bit short .
The phone @ @ @ @ @ @ @ of either wifi or a mobile signal nearly everywhere are due to carriers ’ vast capital investment and the dramatic fall in these technologies ’ prices .
We can all afford these things because of our participation in the market , producing other goods and services .
I will be the first to say that I do not understand why our insect overlords are attempting to damage social trust ( though “ snitch ” portals ) and to destroy our civilization itself through the prohibition of commerce , education , healthcare , athletics @ @ @ @ @ @ @ and family formation , the arts , music , dining , family gatherings , religious observance , and all other forms of civilized life .
Nor can I explain the “ mask hysteria ” that is spreading like a highly contagious virus on social networking websites such as NextDoor.com .
Without an explanation that makes any sense , where does that leave us ?
What keeps me up at night is that we have not yet seen the end game , and that when we do it may be worse than what anyone @ @ @ @ @ @ @ software engineer and podcast editor .
Send him email .

by Robert Blumen via Mises
We are all in this together. No, by that I do not mean what Andrew Horney calls “all those cloyingly saccharine, feel-good public service announcements being delivered by famous faces on television and social media platforms, telling us “we’re all in this together.” We are all interdependent through the production of goods and services that constitutes the market order. Some critics of the current crisis see it as yet another case of the rich getting one over on the rest of us. I will argue that this cannot be correct, because the rich as well as the poor (and the middle class) depend on the freedom to produce, and are all harmed by the lack of it.
Angelika Albaladejo writes, “The Rich Are Getting Richer,” citing a new report that “shows that some American billionaires are making substantial gains during the global health crisis.” Wilamette Week asks, “How Will the Rich Get Richer During the Pandemic-Fueled Economic Collapse?“
Israel Shamir in “Deep Pockets Love Lockdown” suggests that the rich do not like the widespread availability of travel:
No more travels for us. The very rich folks will regain their solitary possession of Venice, the Côte d’Azur, and all the other elite destinations so recently inundated by mass tourism. Once again they will have it as good as they had it in the 19th century. Travel is a luxury, and ordinary people do not deserve luxury. They tried to keep us away by making travel as unpleasant as possible with body searches, but it didn’t help. If this global pandemic doesn’t stop us, they are simply going to cut us off.
The greatest influence on everyone’s standard of living is the overall production of the society they live in. Under the current prohibitions, some businesses gain market share—a larger piece, but sliced from a much smaller pie. The rich, who enjoy and can afford luxury goods, depend on the productivity of all members of society for these goods. Those who can afford to fly first class, or perhaps in their own private planes, depend on the engineering advances from the mass production of airplanes that have reduced the cost and made private jets “affordable.” Time-shared private aviation costs in the low six figures.
High-end travelers rely on the proliferation of airports made possible by the masses of middle-class travel worldwide; on the sizable labor pool of skilled pilots with commercial air travel experience to fly their private planes; on the development of air traffic control through the management of millions of flights annually; and on the gradual improvements in air traffic control to improve air travel safety.
Fine hotels where the rich stay in suites exist nearly everywhere due to middle-class and business travel. International brands are able to bring quality hotels online and up to international standards quickly due to experience operating in many global markets, and they are able to staff new hotels with experienced managers from existing properties, where they have honed their skills.
The private chefs that the rich hire to cook for them emerged from a vast food service industry consisting of culinary schools and fine restaurants even in small- to mid-market cities, where chefs learn their craft. The ingredients are available because of demand to feed the millions. Restaurants are often funded by investors who either specialize in the restaurant sector or made their money in another business. The top-tier chefs who work privately for wealthy people have reached the top of a competitive pyramid through years of restaurant experience, travel, studying under other experienced chefs, and trying out different restaurant concepts to develop recipes and techniques. The Gordon Ramseys of the world stand atop a vast competitive pyramid of chefs.
The writers who suggest that the lockdown is another means for the rich to get richer, perhaps by buying up discounted assets in a financial panic and eventually monopolizing all commerce, lack an understanding of capital markets.
Financier and political advisor Bernard Baruch is reported to have gone to cash, to have shorted the US stock market in the late 1920s leading up to the crash of 1929, to have advised friends to do the same, and to have made millions on the trade. Kennedy family patriarch Joseph P. is reported to have done likewise, realizing that the market was at a top when shoeshine boys gave him stock tips.
Fortunes have been made by shorting bubbles before market crashes or buying up assets on the cheap in the aftermath—but does that benefit “the rich”? This ignores that for every Bernard Baruch who sold millions of dollars in assets there had to be another buyer who bought them near the top and suffered the losses that Baruch avoided.
Those who own most of the assets are by definition “the rich.” A rich person is someone whose property consists mostly of capital goods—directly owned, through businesses or through stocks and bonds, which are claims on capital goods. When Baruch wishes to sell $1 million in assets, which, as Dr. Evil has observed, used to be a lot of money, there must be a buyer who has that much cash on hand to pay for them. This buyer can only be another rich person, or an organization that represents a large number of individuals—a pension fund, a life insurance company.
We are primarily funded by readers. Please subscribe and donate to support us!
Collectively all assets are at all times owned by someone. “The rich” as a whole can not exit asset ownership, because there is no external population of Martians who will take those assets off their hands (unless the Fed buys the entire stock and bond market, which I don’t rule out, and perhaps the Fed governors are from another planet).
Most of the world’s wealth is in capital goods; those who own the most of them are the rich. When markets are repriced—downward—the rich as a whole suffer most of the market value losses. Those who cashed out at the top benefit at the expense of those who held the assets on the way down. And anyone, at any size, who has cash finds that the purchasing power of their cash has gone up when measured in terms of assets. The position of small investors who have cash on hand improves relative to the rich when asset markets crash. Even those who do not invest in capital goods at all find their position improved in relative terms, because the ability of the rich to bid for consumption goods by offering capital goods has diminished.
At any moment in time, the upward or downward price movements in capital markets are a zero-sum game. But there is a more fundamental way in which we are interdependent. The capital goods underlying financial assets derive their market value from their role in the production of consumer goods. The value of a corporation is derived from consumer demand for its products. Many of the rich became so by starting a business that they still own which grew by satisfying consumer demand. Others have sold a business or inherited wealth which they try to preserve through the ownership (direct or indirect) of capital goods through financial assets.
And from where do consumers derive their ability to demand? We know from Say’s law that consumers demand by supplying their own production to the market. Everyone who works and produces a good or a service, by supplying it to the market, demands some other good or service. In the general glut debate, the proponents of Say’s law used it to show that because every instance of supply constitutes a demand, and vice versa, aggregate supply and aggregate demand are not only equal, but simply different ways of looking at the totality of transactions that occur in the market as a whole.
The demand that the rich depend on to support the valuation of their assets is largely not from other rich people demanding Cartier jewelry, Rolex watches, yachts, and custom basement wine cellars. It is largely from the mass market of consumers through division of labor, which provides the goods and services that we all depend on. The ability of the poor and middle classes to demand comes mostly from their wages, which they earn through their contribution to the production of a range of goods and services. Their supply in turn constitutes the demand for other—different—goods and services, which supports the valuations of businesses, and therefore financial assets.
And although the rich consume higher-quality goods and services than the rest of us, they depend equally on the flow of goods and services, the division of labor, and the development of new products. Although they may cherry-pick the best off the top, there has to be a chocolate sundae underneath to support the cherry.
Most mass consumer goods start out as luxury goods. Then, as the manufacturers work out the kinks and capital investment enables production at a larger scale, these goods become mass market goods. The 1987 movie Wall Street featured actor Michael Douglas in the role as a hedge fund titan. In one scene he is shown carrying what at the time passed for a mobile phone (a luxury good only available to the super rich) about the size of a large brick. When I have traveled in low- to middle-income countries (back in the days when we were allowed to travel more than one hundred yards from our residences), smartphones were ubiquitous. While it is true that the middle class and eventually low-income consumers benefit from the adoption of new products by the rich, the fall in these goods’ costs also makes the rich man’s dollar go further. Improvements in the design and function of the products through generations of products and mass production make better products available to all classes.
Even the government depends on the market, innovation, progress, and falling costs for its nefarious objectives. Governments would like to surveil us all—even more than they already do. According to the BBC News, “More than a million Australians have downloaded a coronavirus contact tracing app within hours of it being released by the government.” The plan is clear enough, but if no people can afford a modern mobile phone with GPS any longer and lack the ability to pay for their data plan, this effort might fall a bit short. The phone, the network, and the existence of either wifi or a mobile signal nearly everywhere are due to carriers’ vast capital investment and the dramatic fall in these technologies’ prices. We can all afford these things because of our participation in the market, producing other goods and services.
I will be the first to say that I do not understand why our insect overlords are attempting to damage social trust (though “snitch” portals) and to destroy our civilization itself through the prohibition of commerce, education, healthcare, athletics, professional sports, entertainment, dating and family formation, the arts, music, dining, family gatherings, religious observance, and all other forms of civilized life. Nor can I explain the “mask hysteria” that is spreading like a highly contagious virus on social networking websites such as NextDoor.com. Without an explanation that makes any sense, where does that leave us? What keeps me up at night is that we have not yet seen the end game, and that when we do it may be worse than what anyone can imagine.
Author:
Contact Robert Blumen
Robert Blumen is a software engineer and podcast editor. Send him email.


investmentwatchblog--2020-05-24--CHART OF THE WEEK: The Unemployment Rate Signals The Dow Jones Index To Crash To This Level

Even with the highest unemployment rate in more than 80 years , the U.S. Stock Market continues higher regardless of the lousy economic data and fundamentals .
However , without the massive money printing and liquidity injections by the Federal Reserve , the stock market indexes would be substantially lower .
Unfortunately , the Fed is now forced to prop up the markets because stock markets have now become the economy , instead of the other way around .
With the total U.S. Equity Market Cap to GDP Ratio now nearly 140 % , it is more than double the @ @ @ @ @ @ @ 70 years .
And , if we look at the markets back in the 1950s , it took 24 years for the Dow Jones Index to double from 500 to 1,000 .
Thus , from 1958 to 1982 , the Dow Jones Index traded in that 500-1,000 range .
So , the real driver of the economy before the 1990s was the “ Physical economy , ” not the stock market .
Well , that ’ s all changed today because the Stock Market is now the most important part of the economy @ @ @ @ @ @ @ years for the Dow Jones Index to double from the 14,000 ’ s to 29,500 ( Oct 2019 ) .
Even though the Fed has propped up the markets , it won ’ t last because GRAVITY and FUNDAMENTALS always win out in the end .
One metric that has provided a “ Reliable Indicator ” for Major Corrections in the Dow Jones Index is the Unemployment rate .
THE CHART OF THE WEEK shows that when the U.S. Unemployment rate went above 9 % , the Dow Jones Index fell to the @ @ @ @ @ @ @ that ’ s correct… I stated QUARTERLY .
I decided to upgrade my Stockcharts service to include longer-term charts and more interesting settings .
So , now I can use the Quarterly setting , which represents three months of trading .
When the U.S. Unemployment rate went above 9 % , we can clearly see that the Dow Jones Index fell to the BLUE LINE , which represents the 100 Quarterly Moving Average ( QMA ) .
If we look at the current unemployment rate of 14.7 % for April , the Dow @ @ @ @ @ @ @ QMA of 13,150 .
You can thank the Federal Reserve for keeping most Americans from liquidating their 401K ’ s and retirement plans .
I can assure you if the Dow Jones Index continued to fall below the 18,000 level , the GREAT AMERICAN PANIC SELL-OFF would have gone into OVERDRIVE .
I will do a new video update showing why the 18,000 level was significant .
So , if Americans really started to sell their stocks , it would have created a NASTY FEEDBACK LOOP instigating even more selling .
Again , @ @ @ @ @ @ @ keeping Americans happy , content , and delusional in regards to their 401K ’ s and retirement plans .
With the U.S. Unemployment rate likely to reach 18 % -20 % by May-June , I don ’ t see how the Dow Jones Index doesn ’ t fall to the 13,150 level , or even lower .
At some point , the RUBBER will hit the ROAD as the fundamentals finally kick in… regardless of the money printing .
This is when I believe we will start to see demand for GOLD & @ @ @ @ @ @ @ .
Sure , there ’ s been a great deal of physical buying from precious metals investors , but most Americans are still FAST ASLEEP looking forward to their next cruise on the Diamond Princess .
The world is heading towards a new Economic Paradigm .
A transition from BUILDING WEALTH to PROTECTING WEALTH .
This is all tied to the current ENERGY CLIFF that the U.S. and the global economy has finally reached .

BY SRSROCCO
Even with the highest unemployment rate in more than 80 years, the U.S. Stock Market continues higher regardless of the lousy economic data and fundamentals. However, without the massive money printing and liquidity injections by the Federal Reserve, the stock market indexes would be substantially lower.
Unfortunately, the Fed is now forced to prop up the markets because stock markets have now become the economy, instead of the other way around. With the total U.S. Equity Market Cap to GDP Ratio now nearly 140%, it is more than double the 68% mean average for the past 70 years. And, if we look at the markets back in the 1950s, it took 24 years for the Dow Jones Index to double from 500 to 1,000.
Thus, from 1958 to 1982, the Dow Jones Index traded in that 500-1,000 range. So, the real driver of the economy before the 1990s was the “Physical economy,” not the stock market. Well, that’s all changed today because the Stock Market is now the most important part of the economy. Interestingly, it only took seven years for the Dow Jones Index to double from the 14,000’s to 29,500 (Oct 2019).
Even though the Fed has propped up the markets, it won’t last because GRAVITY and FUNDAMENTALS always win out in the end. One metric that has provided a “Reliable Indicator” for Major Corrections in the Dow Jones Index is the Unemployment rate.
THE CHART OF THE WEEK shows that when the U.S. Unemployment rate went above 9%, the Dow Jones Index fell to the 100 Quarterly Moving Average. Yes, that’s correct… I stated QUARTERLY. I decided to upgrade my Stockcharts service to include longer-term charts and more interesting settings. So, now I can use the Quarterly setting, which represents three months of trading.
We are primarily funded by readers. Please subscribe and donate to support us!
When the U.S. Unemployment rate went above 9%, we can clearly see that the Dow Jones Index fell to the BLUE LINE, which represents the 100 Quarterly Moving Average (QMA). If we look at the current unemployment rate of 14.7% for April, the Dow Jones Index is nowhere near the 100 QMA of 13,150. You can thank the Federal Reserve for keeping most Americans from liquidating their 401K’s and retirement plans.
I can assure you if the Dow Jones Index continued to fall below the 18,000 level, the GREAT AMERICAN PANIC SELL-OFF would have gone into OVERDRIVE. I will do a new video update showing why the 18,000 level was significant. So, if Americans really started to sell their stocks, it would have created a NASTY FEEDBACK LOOP instigating even more selling. Again, you can thank the Fed and for keeping Americans happy, content, and delusional in regards to their 401K’s and retirement plans.
With the U.S. Unemployment rate likely to reach 18%-20% by May-June, I don’t see how the Dow Jones Index doesn’t fall to the 13,150 level, or even lower.
At some point, the RUBBER will hit the ROAD as the fundamentals finally kick in… regardless of the money printing. This is when I believe we will start to see demand for GOLD & SILVER like we have never witnessed before. Sure, there’s been a great deal of physical buying from precious metals investors, but most Americans are still FAST ASLEEP looking forward to their next cruise on the Diamond Princess.
The world is heading towards a new Economic Paradigm. A transition from BUILDING WEALTH to PROTECTING WEALTH. This is all tied to the current ENERGY CLIFF that the U.S. and the global economy has finally reached.


investmentwatchblog--2020-05-24--Buffett Sold All Airlines in Advance?

Buffett Sold All Airlines in Advance?

Buffet did not sell all airlines BEFORE the COVID Crisis for even he is too smart to do that , @ @ @ @ @ resigned prior to the March 23rd low by more than 10 days from both Microsoft @ @ @ @ @ try to disassociate himself from the pending crash .
Buffet sold all airline stocks by @ @ @ @ @ taken stakes in Apple and Amazon , and Buffett has praised both companies repeatedly despite @ @ @ @ @ long stated he didn ’ t like tech .

by Martin Armstrong
We are primarily funded by readers. Please subscribe and donate to support us!
Buffet did not sell all airlines BEFORE the COVID Crisis for even he is too smart to do that, despite the fact that Gates resigned prior to the March 23rd low by more than 10 days from both Microsoft and Berkshire no doubt to try to disassociate himself from the pending crash. Buffet sold all airline stocks by May 4th. Berkshire has taken stakes in Apple and Amazon, and Buffett has praised both companies repeatedly despite the fact that he had long stated he didn’t like tech.


investmentwatchblog--2020-05-24--Peter Schiff: Inflationary Depression Coming. Buy Gold and Silver Now before It’s Too Late.

Money printing by the Fed and Congress is off the charts .
This is why money manager Peter Schiff thinks precious metals are a no-brainer investment .
Schiff says , “ It ’ s not that gold is gaining in value , it ’ s that fiat currencies are all losing value .
Gold is the one stable factor .
It ’ s the one thing governments can ’ t create out of thin air .
Every currency in the world , except the dollar , are hitting new record lows against gold .
You need more Euros , Rands @ @ @ @ @ @ @ of gold .
.
.
.
The U.S. dollar is losing value more slowly , but this is going to change .
We are going to win the race to the bottom .
.
.
.
People need to convert their dollars now into gold or silver .
If you think the price of gold is going up now , wait til the dollar is the weakest of the currencies .
.
.
.
That ’ s going to accelerate the appreciation of gold .
.
.
and that ’ s going to @ @ @ @ @ @ @ replacement to the U.S. dollar as the main reserve asset for global central banks .
”

Money printing by the Fed and Congress is off the charts. This is why money manager Peter Schiff thinks precious metals are a no-brainer investment. Schiff says, “It’s not that gold is gaining in value, it’s that fiat currencies are all losing value. Gold is the one stable factor. It’s the one thing governments can’t create out of thin air. Every currency in the world, except the dollar, are hitting new record lows against gold. You need more Euros, Rands or Aussie dollars to buy an ounce of gold. . . . The U.S. dollar is losing value more slowly, but this is going to change. We are going to win the race to the bottom. . . . People need to convert their dollars now into gold or silver. If you think the price of gold is going up now, wait til the dollar is the weakest of the currencies. . . . That’s going to accelerate the appreciation of gold . . . and that’s going to put gold in the spotlight as the replacement to the U.S. dollar as the main reserve asset for global central banks.”
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investmentwatchblog--2020-05-24--Rob Kirby: There Is No Escape – Dollar Will Lose Its Position As World Reserve Currency

Breakthrough Analysis : the Fed and UST are re-running the 2009 Global Financial Collapse playbook at hyper-scale.. New forensic analysis of the officially released financial record from the Office of the Controller General during the epicenter of the 2008-2009 global financial collapse reveals inexplicably massive $ 10T capital flows into the bankrupt Morgan Stanley , in stunning contrast to the collapse and absorption of Bear Stearns .
According to widely followed proprietary analyst and founder of KirbyAnalytics , Rob Kirby , the cake is already in the oven , and the resulting destruction is inescapable .
In the face of @ @ @ @ @ @ @ person do to forestall personal financial disaster , and emerge intact ?
Rob Kirby is a financial commentator and former broker who worked on an institutional trading desk for most of the 1980s and right up until 1996 .
He also worked for 11 years at Prebon Yamane , an international inter-dealer broker of foreign exchange and interest rate products .
He spent an additional year at another money/bond broker called Freedom Bond Brokers , then spent two years at Garban Inc. , another inter dealer bond brokerage in Toronto – and left @ @ @ @ @ @ @ writing in 1997 , and was involved in a number of entrepreneurial pursuits from marketing Buffalo meat to a part time stint in the giftware business .
In 2002 , he went to work for Investor ’ s Group , the largest Mutual Fund Company in Canada .
He worked there up until September ’ 04 when he resigned to write about the markets – and his book – from a “ gold bug ’ s ” point of view .
His website is called Kirby Analytics .

Liberty and Finance, Released on 5/22/20
Breakthrough Analysis: the Fed and UST are re-running the 2009 Global Financial Collapse playbook at hyper-scale..
New forensic analysis of the officially released financial record from the Office of the Controller General during the epicenter of the 2008-2009 global financial collapse reveals inexplicably massive $10T capital flows into the bankrupt Morgan Stanley, in stunning contrast to the collapse and absorption of Bear Stearns.
We are primarily funded by readers. Please subscribe and donate to support us!
According to widely followed proprietary analyst and founder of KirbyAnalytics, Rob Kirby, the cake is already in the oven, and the resulting destruction is inescapable. In the face of overwhelming forces, what can the ordinary person do to forestall personal financial disaster, and emerge intact?
Rob Kirby is a financial commentator and former broker who worked on an institutional trading desk for most of the 1980s and right up until 1996. He also worked for 11 years at Prebon Yamane, an international inter-dealer broker of foreign exchange and interest rate products. He spent an additional year at another money/bond broker called Freedom Bond Brokers, then spent two years at Garban Inc., another inter dealer bond brokerage in Toronto – and left the industry in 1996. He started writing in 1997, and was involved in a number of entrepreneurial pursuits from marketing Buffalo meat to a part time stint in the giftware business. In 2002, he went to work for Investor’s Group, the largest Mutual Fund Company in Canada. He worked there up until September ’04 when he resigned to write about the markets – and his book – from a “gold bug’s” point of view. His website is called Kirby Analytics.


investmentwatchblog--2020-05-24--Judge Sullivan has hired a lawyer after being ordered to explain why he is still going after General

Judge Sullivan has hired a lawyer after being ordered to explain why he is still going after General Flynn

Judge Sullivan – ordered to explain his reasons for not granting the DOJ motion to dismiss – has hired a @ @ @ @ @ work for him .

Techno Fog
@Techno_Fog
Flynn update via WaPo:
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Judge Sullivan – ordered to explain his reasons for not
granting the DOJ motion to dismiss – has hired a lawyer to
apparently do his work for him.
Flynn update via WaPo: Judge Sullivan – ordered to explain his reasons for not granting the DOJ motion to dismiss – has hired a lawyer to apparently do his work for him. pic.twitter.com/7kGeolVRn4 — Techno Fog (@Techno_Fog) May 23, 2020
h/t dr0id


investmentwatchblog--2020-05-24--President Trump’s Latest Web Site: YouAintBlack.com

This follows his last hit : TheTruthOverFacts.com Trump MOST EPIC Troll Ever “ Truth Over Facts ” Exposed The press @ @ @ @ @ Biden

President Trump’s Latest Web Site: YouAintBlack.com
www.youaintblack.com/
This follows his last hit: TheTruthOverFacts.com
We are primarily funded by readers. Please subscribe and donate to support us!
www.thetruthoverfacts.com/
Trump MOST EPIC Troll Ever “Truth Over Facts” Exposed The
press And Tricked Them Into Mocking Biden
h/t dr0id


investmentwatchblog--2020-05-26--67,000 Criminals Released from Jail “Because of Corona,” NYC Shootings Up 21%, Break-Ins Up 38%

Is this the country for which our soldiers sacrificed their lives ?
By now , most Americans are familiar with the shocking stories of everyday Americans getting arrested for simply opening businesses that don ’ t even attract large crowds .
However , fewer are aware of the other side of this dystopian and tyrannical equation .
As salt-of-the-earth small business owners are being marched into the jails , career dangerous criminals are being marched out of the jails and prisons in astounding numbers .
According to UCLA , which is tracking this data , 67,000 criminals have been released @ @ @ @ @ @ @ of the criminals , 43,000 of them , have been released from the nation ’ s jails , and 24,356 were released from prisons .
Consequently , given that we know the shocking degree of recidivism even among criminals more carefully selected for release , we can add victims of crime due to coronavirus jailbreak as the latest long-term death toll from COVID-19 , or at least from the governmental reaction to it .
Remember , this has nothing to do with fear of prisoners dying of coronavirus .
Just a few hundred @ @ @ @ @ @ @ population of 2.2 million inmates , lower than that of the general population .
In most prisons , the overwhelming majority of those who got the virus have been asymptomatic and are now already immune and have been for quite some time .
Thus , there is no reason to release large numbers of convicted criminals , most of whom are young and healthy .
This has everything to do with accelerating an already dangerous de-incarceration movement , which is why you shouldn ’ t hold your breath and wait for them to @ @ @ @ @ @ @ .
… The recidivism of these people is unbelievable .
According to the New York Post , out of the 276 shooting incidents in New York City so far this year , 19 percent of suspected or arrested gunmen having been released this year .
Also , 13 % of the incidents ’ more than 315 victims were also out on parole .
Thus , we have created a shooting war among released criminals .
Ironically , they are much more likely to die from homicide than from the virus .
Overall , @ @ @ @ @ @ @ % in the city and break-ins have jumped 38 % .
As of just the first few weeks of the epidemic , the city released more than 1,500 criminals .
It ’ s not just other criminals who are victims of those released from prison .
In Washington State , a career felon who was just released was arrested after allegedly attacking a woman on a hiking trail and nearly choking her to death .
A man convicted of armed robbery was released early in Denver and is now accused of murdering a @ @ @ @ @ @ @ his coronavirus jailbreak .

by Venus230
Is this the country for which our soldiers sacrificed their lives?
By now, most Americans are familiar with the shocking stories of everyday Americans getting arrested for simply opening businesses that don’t even attract large crowds. However, fewer are aware of the other side of this dystopian and tyrannical equation. As salt-of-the-earth small business owners are being marched into the jails, career dangerous criminals are being marched out of the jails and prisons in astounding numbers.
According to UCLA, which is tracking this data, 67,000 criminals have been released throughout the 50 states. The majority of the criminals, 43,000 of them, have been released from the nation’s jails, and 24,356 were released from prisons.
We are primarily funded by readers. Please subscribe and donate to support us!
Consequently, given that we know the shocking degree of recidivism even among criminals more carefully selected for release, we can add victims of crime due to coronavirus jailbreak as the latest long-term death toll from COVID-19, or at least from the governmental reaction to it.
Remember, this has nothing to do with fear of prisoners dying of coronavirus. Just a few hundred deaths have been recorded out of a population of 2.2 million inmates, lower than that of the general population. In most prisons, the overwhelming majority of those who got the virus have been asymptomatic and are now already immune and have been for quite some time. Thus, there is no reason to release large numbers of convicted criminals, most of whom are young and healthy.
This has everything to do with accelerating an already dangerous de-incarceration movement, which is why you shouldn’t hold your breath and wait for them to be re-apprehended after the virus burns out.
…
The recidivism of these people is unbelievable. According to the New York Post, out of the 276 shooting incidents in New York City so far this year, 19 percent of suspected or arrested gunmen having been released this year. Also, 13% of the incidents’ more than 315 victims were also out on parole. Thus, we have created a shooting war among released criminals. Ironically, they are much more likely to die from homicide than from the virus.
Overall, this year, shootings are up 21% in the city and break-ins have jumped 38%. As of just the first few weeks of the epidemic, the city released more than 1,500 criminals.
It’s not just other criminals who are victims of those released from prison. In Washington State, a career felon who was just released was arrested after allegedly attacking a woman on a hiking trail and nearly choking her to death. A man convicted of armed robbery was released early in Denver and is now accused of murdering a young woman less than a month after his coronavirus jailbreak.
www.conservativereview.com/news/horowitz-67k-criminals-released-far-coronavirus-jailbreak-crime-keeps-rising/


investmentwatchblog--2020-05-26--Oil Hedging Leaves Traders Dangerously Exposed

Hedging is a popular trading strategy frequently used by oil and gas producers , airlines , and other heavy consumers of energy commodities to protect themselves against market fluctuations .
During times of falling crude prices , oil producers normally use a short hedge to lock in oil prices if they believe prices are likely to go even lower in the future .
However , hedging is far from being a silver bullet that is guaranteed to protect oil producers from volatile markets , something U.S. shale producers understand only too well .
Indeed , many are now unwilling to @ @ @ @ @ @ @ hefty premiums thanks to hedging strategies that recently went awry .
Unfortunately , this also leaves them fully exposed to the risk of ultra-low prices in the future .
Bloomberg has reported that only 50 % of shale producers have hedged 2021 production compared to 60 % that had done so at a comparable point last year .
Many producers are finding themselves trapped in a Catch 22 situation .
The current WTI price of $ 32/barrel is still way off the ~ $ 50/barrel that many shale producers require to turn a @ @ @ @ @ @ @ effectively mean foregoing any future price gains and guaranteeing yourself a loss .
With production cuts so far working nicely , the recent storage crunch now in the back mirror and economies gradually emerging from lockdown , that appears like a rushed decision .
On the other hand , this oil price rally appears to be running on fumes , and failing to hedge means risking even lower prices in the future .
For instance , whereas the WTI June contract has rallied some 75 % this month , WTI swap for 2021 @ @ @ @ @ @ @ essentially means that traders are very unsure whether the gains being made in the crude markets are here to stay .
The fact that half of U.S. shale producers have actually hedged 2021 production means that they consider there ’ s a high likelihood of prices sliding lower than current levels .
However , they really don ’ t have much of a choice given that hedging is largely systemic in a bid to satisfy bank requirements coupled with their already high debt levels .
That said , U.S. shale producers are partly @ @ @ @ @ @ @ overly ambitious hedging strategy .
At the heart of the quagmire is a hedging strategy favored by U.S. producers known as three-way collars .
These options tend to be a relatively cheap way to hedge against price fluctuations as long as prices remain range-bound .
Indeed , collars are essentially costless , a big consideration at a time when expenses are being cut to the bone in a bid to survive .
In theory , hedging allows producers to lock-in a certain price for their oil .
The simplest way to do this @ @ @ @ @ @ @ price using a put option then offsetting this cost by selling a ceiling using a call option .
To trim costs even further , producers can sell what is commonly referred to as a subfloor , which is essentially a put option much lower than current oil prices .
This is the three-way collar hedging strategy .
Three-way collars tend to work well when oil prices are moving sideways ; however , they can leave traders exposed when prices fall too much as they recently did .
Indeed , this strategy fell out @ @ @ @ @ @ @ of 2014 when prices fell too low , leaving shale producers counting heavy losses .
Most producers turned back to the relatively safe fixed-price swaps but have increasingly been returning to three-way collars .
Pioneer Natural Resources Co. ( NYSE : PXD ) is one such company .
The company converted 85 % of its crude derivatives into fixed-price swaps in the aftermath of the 2014 crash but started loading up on three-ways again in 2019 .
Over the last two years , Texas-based Denbury Resources Inc. ( NYSE : DNR ) has @ @ @ @ @ @ @ favor of three-way collars .
Others that favor this strategy are Parsley Energy Inc. ( NYSE : PE ) and Occidental Corp. ( NYSE : OXY ) .
Three-ways are a calculated bet that oil will only fall so low but not any further .
The last tranche of three-ways mostly employed $ 45 a barrel was a popular strike level , below which producers became fully exposed .
Obviously , this level was breached months ago .
As Michael Tran , director of global energy strategy at RBC Capital Market , warned @ @ @ @ @ @ @ “ When you look at three-way collars , given the volatile nature of this market , being knocked out of the market is always a viable threat depending on how quickly prices move .
This is an insurance policy that isn ’ t always guaranteed.
” Even more worrying is the fact that 2021 hedges are likely to reflect current market conditions , meaning producers will be lucky to get anywhere near $ 45/barrel .
This means the vast majority of shale producers could start to feel a really huge liquidity squeeze in @ @ @ @ @ @ @ a strong recovery this year .

By Alex Kimani
Hedging is a popular trading strategy frequently used by oil and gas producers, airlines, and other heavy consumers of energy commodities to protect themselves against market fluctuations. During times of falling crude prices, oil producers normally use a short hedge to lock in oil prices if they believe prices are likely to go even lower in the future. However, hedging is far from being a silver bullet that is guaranteed to protect oil producers from volatile markets, something U.S. shale producers understand only too well.
Indeed, many are now unwilling to use this insurance after being slapped with hefty premiums thanks to hedging strategies that recently went awry.
Unfortunately, this also leaves them fully exposed to the risk of ultra-low prices in the future.
Market Uncertainty
Bloomberg has reported that only 50% of shale producers have hedged 2021 production compared to 60% that had done so at a comparable point last year.
Many producers are finding themselves trapped in a Catch 22 situation.
The current WTI price of $32/barrel is still way off the ~$50/barrel that many shale producers require to turn a profit. Hedging at this point would effectively mean foregoing any future price gains and guaranteeing yourself a loss. With production cuts so far working nicely, the recent storage crunch now in the back mirror and economies gradually emerging from lockdown, that appears like a rushed decision.
On the other hand, this oil price rally appears to be running on fumes, and failing to hedge means risking even lower prices in the future. For instance, whereas the WTI June contract has rallied some 75% this month, WTI swap for 2021 has only climbed 10%. This essentially means that traders are very unsure whether the gains being made in the crude markets are here to stay.
The fact that half of U.S. shale producers have actually hedged 2021 production means that they consider there’s a high likelihood of prices sliding lower than current levels. However, they really don’t have much of a choice given that hedging is largely systemic in a bid to satisfy bank requirements coupled with their already high debt levels.
That said, U.S. shale producers are partly to blame for their love for an overly ambitious hedging strategy.
Three-Way Collars
At the heart of the quagmire is a hedging strategy favored by U.S. producers known as three-way collars. These options tend to be a relatively cheap way to hedge against price fluctuations as long as prices remain range-bound. Indeed, collars are essentially costless, a big consideration at a time when expenses are being cut to the bone in a bid to survive.
We are primarily funded by readers. Please subscribe and donate to support us!
In theory, hedging allows producers to lock-in a certain price for their oil. The simplest way to do this is by buying a floor on the price using a put option then offsetting this cost by selling a ceiling using a call option. To trim costs even further, producers can sell what is commonly referred to as a subfloor, which is essentially a put option much lower than current oil prices. This is the three-way collar hedging strategy.
Source: Economic Times
Three-way collars tend to work well when oil prices are moving sideways; however, they can leave traders exposed when prices fall too much as they recently did. Indeed, this strategy fell out of favor during the last oil crash of 2014 when prices fell too low, leaving shale producers counting heavy losses. Most producers turned back to the relatively safe fixed-price swaps but have increasingly been returning to three-way collars.
Pioneer Natural Resources Co. (NYSE:PXD) is one such company. The company converted 85% of its crude derivatives into fixed-price swaps in the aftermath of the 2014 crash but started loading up on three-ways again in 2019.
Over the last two years, Texas-based Denbury Resources Inc.(NYSE:DNR) has also been easing its swap positions in favor of three-way collars. Others that favor this strategy are Parsley Energy Inc. (NYSE:PE) and Occidental Corp. (NYSE:OXY).
Huge Liquidity Squeeze
Three-ways are a calculated bet that oil will only fall so low but not any further. The last tranche of three-ways mostly employed $45 a barrel was a popular strike level, below which producers became fully exposed.
Obviously, this level was breached months ago.
As Michael Tran, director of global energy strategy at RBC Capital Market, warned back in March, via Bloomberg:
“When you look at three-way collars, given the volatile nature of this market, being knocked out of the market is always a viable threat depending on how quickly prices move. This is an insurance policy that isn’t always guaranteed.”
Even more worrying is the fact that 2021 hedges are likely to reflect current market conditions, meaning producers will be lucky to get anywhere near $45/barrel. This means the vast majority of shale producers could start to feel a really huge liquidity squeeze in the coming year unless oil prices stage a strong recovery this year.
By Alex Kimani for Oilprice.com


investmentwatchblog--2020-05-26--[Editorial] Brazil Is Starting to Lose the Fight Against Coronavirus—and Its President Is Looking th

[Editorial] Brazil Is Starting to Lose the Fight Against Coronavirus—and Its President Is Looking the Other Way

On May 9 , Brazil ’ s death toll from the coronavirus topped 10,000 .
Instead of marking the grim milestone with an address or a sign of respect for the victims , President Jair Bolsonarotook a spin on a jet ski .
Video footagewidely circulated on social media shows Brazil ’ s far-right leader grinning as he pulls up to a boat on Brasília ’ s Paranoá Lake where supporters are having a cookout .
As he grips onto their boat , Bolsonaro jokes about the “ neurosis ” of Brazilians worried about the virus .
“ There ’ @ @ @ @ @ @ @ it ] , ” he shrugs .
“ It ’ s madness.
” Even by the standards of other right-wing populists who have sought to downplay the COVID-19 pandemic , Bolsonaro ’ s defiance of reality was shocking .
From the favelas of densely packed cities like Rio de Janeiro to the remote indigenous communities of the Amazon rain forest , Brazil has emerged as the new global epicenter of the pandemic , with the world ’ s highest rate of transmission and a health system now teetering on the brink of collapse @ @ @ @ @ @ @ – Italy , Spain and the U.S. – Brazil is an emerging economy , with a weaker social safety net that makes it harder for local authorities to persuade people to stay home , and an underfunded health care system .
When a particularly severe outbreak struck the city of Manaus , in the Amazon , in late April , hospitals were quickly overrun , leading to a shortage of coffins .
On May 17 , the mayor of São Paulo , Latin America ’ s largest city , warned that hospitals there @ @ @ @ @ @ @ infection rate continued to rise .
The country has confirmed almost 18,000 deaths as of May 19 , with a record 1,179 people dying in the preceding 24 hours–the world ’ s second highest daily fatality rate .
Epidemiologists say the peak is still weeks away .

On May 9, Brazil’s death toll from the coronavirus topped 10,000. Instead of marking the grim milestone with an address or a sign of respect for the victims, President Jair Bolsonarotook a spin on a jet ski. Video footagewidely circulated on social media shows Brazil’s far-right leader grinning as he pulls up to a boat on Brasília’s Paranoá Lake where supporters are having a cookout. As he grips onto their boat, Bolsonaro jokes about the “neurosis” of Brazilians worried about the virus. “There’s nothing to be done [about it],” he shrugs. “It’s madness.”
Even by the standards of other right-wing populists who have sought to downplay the COVID-19 pandemic, Bolsonaro’s defiance of reality was shocking. From the favelas of densely packed cities like Rio de Janeiro to the remote indigenous communities of the Amazon rain forest, Brazil has emerged as the new global epicenter of the pandemic, with the world’s highest rate of transmission and a health system now teetering on the brink of collapse.
Unlike the previous global hot spots – Italy, Spain and the U.S. – Brazil is an emerging economy, with a weaker social safety net that makes it harder for local authorities to persuade people to stay home, and an underfunded health care system. When a particularly severe outbreak struck the city of Manaus, in the Amazon, in late April, hospitals were quickly overrun, leading to a shortage of coffins. On May 17, the mayor of São Paulo, Latin America’s largest city, warned that hospitals there would collapse within two weeks if the infection rate continued to rise. The country has confirmed almost 18,000 deaths as of May 19, with a record 1,179 people dying in the preceding 24 hours–the world’s second highest daily fatality rate. Epidemiologists say the peak is still weeks away.
time.com/5840208/brazil-coronavirus/?


investmentwatchblog--2020-05-26--[USA] CORONAVIRUS Thousands Of Nurses Say They Still Have To Reuse Masks While Treating Coronavirus

[USA] CORONAVIRUS Thousands Of Nurses Say They Still Have To Reuse Masks While Treating Coronavirus Patients – “We’ve been taught all our lives good infection control, and this isn’t it.”

Months into the coronavirus pandemic , thousands of nurses say they still don ’ t have adequate protective gear and have had to reuse masks and respirators while treating COVID-19 patients , according to a new survey .
Of the nearly 23,000 nurses who responded to the survey conducted by the union National Nurses United between April 15 and May 10 , 87 % reported that they ’ ve had to reuse what should be single-use , disposable N95 respirators or surgical masks when treating a COVID-19 patient due to ongoing mass shortages of personal protective equipment .
Meanwhile , @ @ @ @ @ @ @ patients who tested positive for the disease while they didn ’ t have appropriate PPE .
And , the nurses said , they still had to return to work within 14 days of their exposure .
“ This new survey shows that nurses are still fighting today for optimal personal protective equipment ( PPE ) , fighting to get tested , and fighting for their own lives , and their patients ’ lives , ” NNU executive director Bonnie Castillo said in a statement .
As of Tuesday , there have been more @ @ @ @ @ @ @ in the US , and more than 90,000 people have died from the disease .
According to the union ’ s internal tracking , the deaths include more than 100 nurses , however , the true impact healthcare workers is likely more devastating due to inconsistent testing and tracking .
“ We are left to conclude that what we are worried about , what we are concerned about in our nonprotection is ultimately hurting and killing us , ” NNU co-president Jean Ross told BuzzFeed News .
N95 respirators and surgical masks should @ @ @ @ @ @ @ their manufacturers , but the CDC has said that due to the shortages , hospitals may have to consider reusing gear as a crisis strategy to conserve supplies .

via buzzfeednews
Months into the coronavirus pandemic, thousands of nurses say they still don’t have adequate protective gear and have had to reuse masks and respirators while treating COVID-19 patients, according to a new survey.
Of the nearly 23,000 nurses who responded to the survey conducted by the union National Nurses United between April 15 and May 10, 87% reported that they’ve had to reuse what should be single-use, disposable N95 respirators or surgical masks when treating a COVID-19 patient due to ongoing mass shortages of personal protective equipment. Meanwhile, 27% said they were exposed to patients who tested positive for the disease while they didn’t have appropriate PPE. And, the nurses said, they still had to return to work within 14 days of their exposure.
“This new survey shows that nurses are still fighting today for optimal personal protective equipment (PPE), fighting to get tested, and fighting for their own lives, and their patients’ lives,” NNU executive director Bonnie Castillo said in a statement.
As of Tuesday, there have been more than 1.5 million confirmed cases of COVID-19 in the US, and more than 90,000 people have died from the disease. According to the union’s internal tracking, the deaths include more than 100 nurses, however, the true impact healthcare workers is likely more devastating due to inconsistent testing and tracking.
“We are left to conclude that what we are worried about, what we are concerned about in our nonprotection is ultimately hurting and killing us,” NNU co-president Jean Ross told BuzzFeed News.
N95 respirators and surgical masks should only be used once, according to their manufacturers, but the CDC has said that due to the shortages, hospitals may have to consider reusing gear as a crisis strategy to conserve supplies.


investmentwatchblog--2020-05-26--Doctors face pay cuts, furloughs and supply shortages as coronavirus pushes primary care to the brin

Doctors face pay cuts, furloughs and supply shortages as coronavirus pushes primary care to the brink

• In 2016 , primary-care physicians fielded 54 % of all patient visits to doctors ’ offices .
• Primary care receives less than 7 % of total U.S. health-care expenditures .
• The coronavirus pandemic is now threatening to push already tight budgets into the red .
Dr. Rafael Guillen spends a lot of time on the phone these days .
His practice in the Bronx closed its doors in mid-March to protect staff and patients as the coronavirus pandemic escalated in New York City .
He calls patients with the virus morning and night to monitor their condition @ @ @ @ @ @ @ Guillen ’ s small internal medicine practice has struggled not only to keep up with the virus , but also to make ends meet financially .
Many primary-care practices were already operating on tight budgets , and the pandemic now threatens to push some of them out of business entirely .
Guillen said revenue at his practice is down about 50 % from March through May compared with last year as his patient volume has fallen during the pandemic .
Many people are simply avoiding the doctor because they fear catching Covid-19 if @ @ @ @ @ @ @ Guillen said .
Insurers in the U.S. primarily pay physician practices by office visit — fewer appointments means dwindling revenue .
His transition to telemedicine hasn ’ t been able to make up for the shortfall .
If a swath of primary-care physicians close their doors for good , communities would be left poorly equipped to contain a second coronavirus outbreak that could come in the fall , which would coincide with flu season .
Shrinking and disappearing doctors ’ offices could lead to future epidemics as sick patients go untreated and children @ @ @ @ @ @ @ warns of a looming mental health crisis as isolated patients express feelings of helplessness , anxiety and despair .

In 2016, primary-care physicians fielded 54% of all patient visits to doctors’ offices.
Primary care receives less than 7% of total U.S. health-care expenditures.
The coronavirus pandemic is now threatening to push already tight budgets into the red.
Dr. Rafael Guillen spends a lot of time on the phone these days. His practice in the Bronx closed its doors in mid-March to protect staff and patients as the coronavirus pandemic escalated in New York City. He calls patients with the virus morning and night to monitor their condition, about 60 people so far.
Guillen’s small internal medicine practice has struggled not only to keep up with the virus, but also to make ends meet financially. Many primary-care practices were already operating on tight budgets, and the pandemic now threatens to push some of them out of business entirely.
Guillen said revenue at his practice is down about 50% from March through May compared with last year as his patient volume has fallen during the pandemic. Many people are simply avoiding the doctor because they fear catching Covid-19 if they need treatment at a hospital, Guillen said. Insurers in the U.S. primarily pay physician practices by office visit — fewer appointments means dwindling revenue. His transition to telemedicine hasn’t been able to make up for the shortfall.
We are primarily funded by readers. Please subscribe and donate to support us!
If a swath of primary-care physicians close their doors for good, communities would be left poorly equipped to contain a second coronavirus outbreak that could come in the fall, which would coincide with flu season. Shrinking and disappearing doctors’ offices could lead to future epidemics as sick patients go untreated and children do not receive important vaccines. Guillen warns of a looming mental health crisis as isolated patients express feelings of helplessness, anxiety and despair.
www.cnbc.com/2020/05/25/coronavirus-family-doctors-face-pay-cuts-furloughs-and-supply-shortages.html