China’s in trouble. And that means our supply chains are in trouble. Even if they they get a handle on COVID-19 (coronavirus disease), the impact it’s already had will have a bad effect on our economy.
Will the voters blame President Trump for it and elect a socialist in November? That would be unthinkably, incredibly stupid, but there’s some chance it’ll happen.
With every passing day that its economic disintegration is not reversed, China inches closer to what may be a very violent tipping point, one which sets billions of angry, starving, broke and quarantined citizens against the communist party oligarchy. As China's economic output remains literally frozen, a new report suggests that many Chinese companies - which never factored for this type of calamity - don't have enough capital to cover wages, or have delayed or stopped paying workers, suggesting that the Covid-19 outbreak has left businesses on the brink of disaster. While Beijing has been scrambling to give the impression that its economy is back up and running ... The second problem, now outlined by Bloomberg, is that companies which do restart production don't have enough money to cover labor expenses, to wit: "across china, companies are telling workers that there's no money for them -- or that they shouldn't have to pay full salaries to quarantined employees who don't come to work."