Watchful Wednesday – China Races to Battle the Delta Virus

Just when we thought we were out….

China has had 483 cases of the Delta Virus in the past 2 weeks – more than they had in the first 5 months of the year.  15 of 31 Chinese provinces are reporting Delta cases.  According to Chen Xi, a professor of Public Health at Yale:

“Once it reaches so many provinces, it’s very hard to mitigate.  I think this would be surprising and shocking to the rest of the world. Such a powerful government has been breached by Delta. This will be a very important lesson — we cannot let our guard down.”

For now, China has stuck to its strict playbook. Across the country, the government has instructed people not to travel unless necessary. In the cities of Zhangjiajie and Zhuzhou, 5.4 million people have been barred from leaving their homes. Roughly 13 million residents in the city of Zhengzhou, the site of deadly floods in July, had to stand in line for virus testing starting last weekend.

US investors are also following the same playbook as last year – ignorning the Delta Varient the same way we ignored Covid-19 (original recipe) back in March of last year.  After all, how could something all the way over in China affect the US markets, right?  

Of course, now we know that, should the market begin to falter – the Government will jump right in and hand us Trillions and Trillions of Dollars and it won’t have any sort of negative repercussions at all – not even inflation!  It is so great to live in this magical land where there are no consequences for our actions, right?  

35% of all the money in the World was printed in 2020.  If there’s 35% more money and the same amount of goods, Econ 101 tells us that the price of goods will tend to INFLATE to match the greater money supply.  So far, in 2021, inflation is running at a 10% pace but the Fed says the inflation is “transitory” and all those stores and…

Provided courtesy of Phil’s Stock World.