Daily Archives: 15 May 2020

Expanding Its Economic War

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The People’s Republic of China is expanding the economic war it’s been waging against the US to include an important American ally and friend in the Pacific: Australia.

China has blacklisted four red-meat-processing plants in Australia, suspending beef imports from them.
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According to one analyst interviewed by national broadcaster ABC, the three plants [in Queensland] combined produce some 35% of beef exports to China, Australia’s largest trading partner.

People’s Republic of China Ambassador to Australia Cheng Jingye, in April:

Maybe the ordinary people will say “Why should we drink Australian wine? Eat Australian beef?”

The move comes as Australia calls for an investigation into the PRC’s role in its Wuhan Virus breakout and rapid spread to the rest of the world.

This is a war that we, and our Aussie friends (and the EU, should that entity find the courage), need to prosecute zealously to a strongly favorable conclusion. Japan and the Republic of Korea need to be ready to join the effort: the PRC will turn on them next.

The PRC, this Warring State, cannot be allowed to succeed in its economic destruction attempts or its threats of same. Crushing the bully also will prove favorable for the Republic of China, and it will prove beneficial for other nations trying to break away from the PRC, including in particular Vietnam.

Economic Recovery Post-Wuhan Virus

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Paul Hannon and Saabira Chaudhuri wonder, in their Wall Street Journal piece, whether we’ll have the V-shaped recovery that President Donald Trump confidently predicts, or whether we’ll have a swoosh-shaped recovery a la the Panic of 2008 recovery. They don’t, though, seem to recognize key differences between the two situations, beginning with the underlying causes of the two dislocations.

The Panic was driven by economics: a credit crunch. The present situation is created by a Government-mandated closure of our economy in response to the rapid spread of the Wuhan Virus and its perceived danger; economics has nothing to do with it.

Recoveries from these also will be driven by entirely differing responses, as well.

The Panic of 2008 had a swoosh-shaped recovery because Obama’s regulatory environment inhibited recovery with its excessive and excessively micromanaging regulations, which produced the slowest post-recession recovery since WWII.

Whether the recovery from the Wuhan Virus situation and its associated government-mandated turnoff of our economy will be V-shaped or swoosh-shaped is yet to be seen, and its shape will be heavily dependent on how timid employees and employers are about reopening and consumers are about going out and…consuming.

The present recovery also will be heavily influenced by Progressive-Democrat governors standing in the way of reopening and recovery with their excessive and excessively long lockdown diktats.