“I respectfully submit that it is time for you to engage directly with congressional Democrats on this matter,” McConnell told Biden in his letter, a copy of which POLITICO obtained. “Your lieutenants in Congress must understand that you do not want your unified Democratic government to sleepwalk toward an avoidable catastrophe when they have had nearly three months’ notice to do their job.”
The letter, delivered to the White House on Monday, also cites Biden’s past opposition to debt increases while in the minority. McConnell summarized it this way: “The president’s party had to take responsibility for a policy agenda which you opposed. Your view then is our view now.”
Good Day Sky Dancers!
I’m going to go down a rabbit hole today on findings by journalists on a trove of leaked financial information that shows the financial dealings of current and former world leaders in terms of hiding the loot in the world’s Treasure Islands.
Offshore banking has always frustrated many governments in trying to deal with how the rich and powerful hide wealth. This is from The Guardian on what’s being called the Pandora Papers. There’s an accompanying podcast if you’d rather learn about this important trove of leaked offshore papers. These leaks follow the Panama and Paradise papers leaks.
The financial secrets of some of the world’s most rich and powerful people are revealed following one of the biggest leaks of offshore data. The Pandora papers include 35 current and former world leaders and more than 300 public officials.
The Guardian’s Paul Lewis tells Michael Safi how the project came about and the months of work his investigations team has put into the publication. It is the latest offshore leak following previous global journalistic collaborations on the Panama papers and the Paradise papers.
The Guardian’s deputy business editor, Juliette Garside,explains how former British colonial territories have in recent decades used their legal jurisdictions to attract companies and wealthy individuals to register with them as tax havens.
The editor-in-chief, Katharine Viner, tells Michael that there is a clear public interest in publishing this latest investigation and revealing the secrets of prominent politicians at a time when many governments are raising taxes to fund pandemic recovery efforts.
The Washington Post reports the names and country affiliations of those caught in the leak. It includes Putin and many of his minions, the President of Kenya, and the King of Jordan. Czech Prime Minister Andrej Babis was also caught up in the investigations. This is the lede: “Governments launch investigations after secret papers show how elite shield riches.” The link is constantly updated with new revelations and responses.
Here’s what we know from our collective reporting
There are short profiles of many of the leaders/elite and their offshore financial activities at the WAPO link. There are also several good links to basics on offshore banking and the small countries around the world that sponsor this very dark corner of the financial sector.
I’ve written about offshore “treasure islands” before as it tickles just about all my Nancy Drew and Financial Economist/Banker fancies. My last post came in 2016 when the Panama Papers were leaked. These leaks do pop up but the dynamics of the system are linked to political and political funding elites. It’s hard to get countries to move on the tax evaders and the public treasury looters. As you can see from the names, many are either doing this or getting money from those who use offshore banking.
CNN analysts believe the Jordan, Pakistan and, Russia releases are most significant. Former UK PM Tony Blair has also been named in the release.
Former UK Prime Minister Tony Blair and his wife, Cherie Blair, avoided paying £312,000 ($423,000) in stamp duty — a tax on property purchases — when they bought a townhouse in London, the BBC reported. The building now houses Cherie Blair’s law firm.
The Blairs purchased the townhouse in 2017 by buying the offshore firm that owned the property. When the property was put up for sale, its ultimate owners were a family with political connections in Bahrain, according to the BBC.
The Blairs set up a UK company to purchase the offshore firm. Doing so was legal, but it allowed them to avoid paying stamp duty, according to the BBC, because the tax is not charged when a company owning a property is acquired.
“It is not unusual for a commercial office building to be held in a corporate vehicle or for vendors of such property not to want to dispose of the property separately,” Cherie Blair told the BBC.
Cherie Blair also said her husband’s only involvement in the transaction was that the mortgage for the property used their joint income and capital, according to the BBC.
“All the arrangements were made for the express purpose of bringing the company and the building back into the UK tax and regulatory regime, where it has remained ever since. All taxes have been paid ever since and all accounts openly filed in accordance with the law,” Cherie Blair said, according to The Guardian.
It may not be illegal but it certainly sounds and appears dodgy. The real shocking thing is that these kinds of enterprises are setting up in the United States. Notice this little financial firm harkens from South Dakota a state that lured Citibank with its lax banking laws back in the good ol’ days. WAPO has just put up a more current analysis of the overall use of offshore banking. “FOREIGN MONEY SECRETLY FLOODS U.S. TAX-HAVENS. SOME OF IT IS TAINTED.”
SIOUX FALLS, S.D. — Across from a Holiday Inn, in a red-brick building with a welcome sign that reads “The Heart of America,” a little-known financial firm set up shop seven years ago and extended an invitation to the world’s elite.
Trident Trust promised to protect the fortunes and privacy of its new customers by relying on the laws of a state that had become a global destination for wealth. The company called it “The South Dakota Advantage.”
Among those who answered the call: a Colombian textile magnate caught in a scheme to launder the proceeds of an international drug ring, an orange juice mogul who settled with authorities in Brazil for allegedly colluding to underpay local farmers, and family members of the former president of a sugar producer in the Dominican Republic that has been accused of exploiting laborers and forcibly evicting families from their homes.
The U.S. government has long condemned prominent offshore financial centers, where liberal rules and guarantees of discretion have drawn oligarchs, business tycoons and politicians.
But a burgeoning American trust industry is increasingly sheltering the assets of international millionaires and billionaires by promising levels of protection and secrecy that rival or surpass those offered in overseas tax havens. That shield, which is near-absolute, has insulated the industry from meaningful oversight and allowed it to forge new footholds in U.S. states.
Paging Senator Elizabeth Warren! Clean-up in Aisle South Dakota! And of course, Delaware is also one of the usual suspects too. Just ask Senator MBNA (aka President Joe Biden).
The trust documents come mostly from the Sioux Falls office of Trident Trust, a global provider of offshore services. In a written statement, Trident said it is committed to compliance with all applicable regulations and routinely cooperates with authorities. The company declined to answer questions about its clients.
Other states competing to lure wealth include Alaska, Delaware, Nevada and New Hampshire. In South Dakota, assets in trusts more than quadrupled over the past decade to $360 billion. One of the largest trust companies in the state, the South Dakota Trust Co., boasts a roster of international clients from 54 countries.
The industry’s rapid expansion was led by a group of trust company insiders, who year after year pitched legislative proposals that were highly appealing to customers in the United States and abroad: protecting trusts from creditors, from taxing authorities, from foreign governments.
With little opposition, state legislators turned the proposals into laws — dozens since the late 1990s.
So, not only are we giving these folks lower tax bills than their house staff and employees, we’re letting them dodge even more tax liabilities by just traveling to the usual suspect states.
You may read the original work in the tweet directly above. It’s going to be a week of global intrigue! So, hang on to your best James Bond Villian impression. Mine will continue to be Vladimir Putin who set up a mistress and child to live like Marie Antoinette.
The Debt Ceiling is still in the news too!
Either of these stories could rock the US and Global financial markets! So, I’ll be watching! C’mon Joe! Don’t make me sell the US short to finance my senior days!
Biden did take McConnell to school today. This is from the LA Times.
President Biden on Monday criticized Republicans for not voting to raise the debt ceiling, accusing them of being “reckless and dangerous” in a way that could harm the economy.
“Not only are Republicans refusing to do their job, they’re threatening to use [the filibuster] to prevent us from doing our job — saving the economy from a catastrophic event,” Biden said during a speech at the White House.
The Democrat-controlled House last week passed legislation that temporarily suspends the debt ceiling. Senate Republicans, however, have said they will not vote to approve such a measure. Biden said the Republicans’ stance is “hypocritical, dangerous and disgraceful.”
“Especially as we’re clawing our way out of this pandemic,” Biden said.
Once the Treasury Department runs out of cash, payments to government workers, including military personnel, veterans and Social Security recipients would likely be delayed. A default would also affect taxpayers.
“Savings in your pocketbook could be directly impacted by this Republican stunt,” Biden said.
Treasury Secretary Janet Yellen previously said the department would run out of “emergency measures” to pay the nation’s debts on Oct. 18. The limit on federal borrowing is currently $28.4 trillion.
McConnell told Biden to find a Democratic Party-based solution in a Dear Joe letter. So, there’s your countdown to doomsday. This is from Politico.
So, Republicans continue to obfuscate the debt ceiling. It’s basically got to be increased because of the last 4 years and all years before. There’s very little Biden spending to this point and his budget is not even in effect at this point.
Don’t let your eyes glaze over on this stuff! This is a shit list of how they’re stealing from us!
What’s on your reading and global intrigue list today?
It’s difficult to believe, but today is kind of slow news day, compared to most of the days we’ve lived through in the past four years. Naturally, what news there is today is mostly awful.
The story getting the most attention right now is the bomb blast in Nashville. Here’s the latest:
Nashville police officers were first called to a report of shots fired, police said. There was no evidence of shots fired, but “there were announcements coming” from an RV saying a potential bomb would detonate within 15 minutes, police said.
The recording only began playing a short time after police reported to the scene, a law enforcement official told ABC News.
Officers were working to evacuate nearby buildings when, around 6:30 a.m., the RV exploded, blowing out the windows of nearby buildings.
Human remains have been found at the scene of the explosion in downtown Nashville, multiple law enforcement sources told ABC News.
The remains have not been identified and it’s unclear whether they’re identifiable.
“We found tissue that we believe could be human remains,” Metro Nashville Police Chief John Drake said at a press conference Friday evening. “We’ll have that examined and we’ll be able to tell you from that point.”
A woman’s voice warned downtown residents to evacuate before the Christmas morning explosion that rocked Nashville, according to witness who described hearing the chilling message before fleeing with her family.
Betsy Williams, who owns the Melting Pot building on Second Avenue, lived in a loft apartment on the third floor of the building near the center of the blast.
Williams said she left the area after she heard the recording play a countdown to the explosion.
At least three people were injured in the explosion, according to authorities. A police officer in the area, who was responding to reports of suspicious activity in the area, was knocked to the ground by the blast.
Police said the explosion came from an RV that was parked on Second Avenue, in the midst of a business and entertainment district. Police spokesman Don Aaron confirmed the warning came from the RV.
The blast sent black smoke and flames billowing from the heart of downtown Nashville’s tourist scene, an area packed with honky-tonks, restaurants and shops. Buildings shook and windows shattered streets away from the explosion near a building owned by AT&T that lies one block from the company’s office tower, a landmark in downtown.
“We do not know if that was a coincidence, or if that was the intention,” police spokesman Don Aaron said. He said earlier that some people were taken to the department’s central precinct for questioning but declined to give details.
AT&T said the affected building is the central office of a telephone exchange, with network equipment in it. The blast interrupted service, but the company declined to say how widespread outages were.
The AT&T outages site showed service issues in middle Tennessee and Kentucky. Several police agencies reported that their 911 systems were down because of the outage, including Knox County, home to Knoxville about 180 miles (290 kilometers) east of Nashville.
AT&T said that it was bringing in portable cell sites and was working with law enforcement to get access to make repairs to its equipment. The company noted that “power is essential to restoring” service.
The Federal Aviation Administration temporarily halted flights out of Nashville International Airport because of telecommunications issues associated with the explosion. Later Friday, the Metropolitan Nashville Airport Authority said most flights were resuming but advised passengers to check with their airline for updates due to possible delays.
The FBI will be taking the lead in the investigation, agency spokesman Joel Siskovic said. Federal investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives were also on the scene. The FBI is the primary law enforcement agency responsible for investigating federal crimes, such as explosives violations and acts of terrorism.
Trump is busy shirking his responsibilities, playing golf and tweeting as Americans die or go hungry and jobless, while facing evictions.
Expanded unemployment benefits were set to lapse for millions of struggling Americans on Saturday, a day after President Trump expressed more criticism of a $900 billion pandemic relief bill that was awaiting his signature and would extend them.
The sprawling economic relief package that Congress passed with overwhelming bipartisan support would extend the amount of time that people can collect unemployment benefits until March and revive supplemental unemployment benefits for millions of Americans at $300 a week on top of the usual state benefit.
If Mr. Trump signs the bill on Saturday, states will still need time to reprogram their computer systems to account for the new law, according to Michele Evermore of the National Employment Law Project, but unemployed workers would still be able to claim the benefits.
Further delays could prove more costly. States cannot pay out benefits for weeks that begin before the bill is signed, meaning that if the president does not sign the bill by Saturday, benefits will not restart until the first week of January. But they will still end in mid-March, effectively trimming the extension to 10 weeks from 11.
Mr. Trump blindsided lawmakers on Tuesday when he hinted he may veto the measure, which he decided at the last minute was unsatisfactory. The most pressing issue prompted by the president’s delay was the fate of unemployment benefits. At least a temporary lapse in those benefits is now inevitable.
The country is also facing a looming government shutdown on Tuesday and the expiration of a moratorium on evictions at the end of the year because of the president’s refusal to sign the bill.
Here’s what Trump is stewing about at the moment. Raw Story: Trump buried for whining Melania didn’t get enough fashion magazine covers — as he sits on COVID aid bill.
With all that is going on in the U.S. during Christmas week — COVID-19 infections on the rise, a desperately needed COVID-related aid package being held hostage by the president, extended unemployment insurance about to run out, families facing evictions — Donald Trump took time out from his busy holiday vacation at Mar-a-Lago to complain that his wife Melania didn’t get fashion magazine cover stories he feels she deserves.
Linking to a tweet from right-wing Breitbart, that read, “The elitist snobs in the fashion press have kept the most elegant First Lady in American history off the covers of their magazines for 4 consecutive years,” the preside t added “The greatest of all time” by which he presumably meant the first lady, before adding the requisite “Fake news!”
Commenters who were already criticizing the president for two days of golfing while they hunker down in their homes over fears of the spreading pandemic, piled on the president for his bizarre sense of priorities.
Maybe it’s because Melania is ugly inside and out? Click the link to read sample tweets.
Trump is also planning to try to pardon himself and push for inappropriate investigations, according to The Guardian:
William Barr’s abrupt move to leave his post as attorney general this week has spurred fears among Department of Justice veterans that Donald Trump will put new pressures on Barr’s successor to do him big and potentially risky political and legal favors.
Former justice department officials say they are worried Trump will lean on Barr’s less experienced successor, the acting attorney general, Jeffrey Rosen, to push policies which Trump has suggested he backs, including naming special counsels to investigate President-elect Joe Biden’s son, Hunter Biden, and using the DoJ to investigate Trump’s baseless charges of widespread election fraud.
Critics also fear Rosen could face pressure from Trump to help obtain a legal opinion that would allow Trump to pardon himself by reversing a justice department opinion that dates back to the Nixon era and bars a presidential self-pardon. Such a move would probably trigger widespread outrage.
Mounting concerns that Trump will try to squeeze favors from Rosen, who became Barr’s deputy AG in early 2019 without previous DoJ experience, stem partly from Trump’s post-election anger at Barr, despite being arguably his strongest cabinet ally in the run-up to the November election.
And what if Trump tries to stay in the White House after Biden’s inauguration? Eric Lutz at Vanity Fair: No One Knows How to Get Trump to Leave the White House in January.
Donald Trump was soundly defeated by Joe Biden, his efforts to overturn the results have been wildly unsuccessful, and the electoral college has made his loss official. In two weeks, lawmakers will meet to certify Biden’s win—and a longshot challenge Trump’s allies in the House are planning is unlikely to stop the inevitable. Constitutionally and legally, Trump will have no constitutional or legal claim to the White House.
But what if, after all that, he just…refuses to leave? What if he refuses to pack his shit and go back to Mar-a-Lago? What if he chains himself to the Resolute Desk? That prospect may sound comically outlandish, and is indeed unlikely to come to pass. But it’s hardly as far-fetched as it might seem, as Trump refuses to concede and continues to insist he won last month’s election in a “landslide.” In fact, he has actually raised the idea with aides recently, as CNN reported. And while few advisers think he’ll actually go through with it, no one really knows what would happen if he does try to overstay his welcome.
According to the Daily Beast on Wednesday, the Secret Service isn’t so sure what it would do, either. One former agent suggested he’d get dragged out like any other civilian would be if they were in the Oval Office unauthorized. “I guess by law he would be a trespasser,” the former agent told the outlet. “We’d have to escort him out.” But the Secret Service and the military may be reluctant to take part in what would be such a dramatic scene, and could take more subtle action, like pressing his inner circle or Republican officials and family members to make him leave. “The Service and the military would just not want to get involved,” another former official said. “It’s not our role.” It could also simply do the equivalent of changing the locks: “When the staff leaves on January 19, don’t let them back into the complex the next day,” an ex-agent said. “He can’t do anything without his staff.”
Again, this is all (thankfully) hypothetical at this point, and the chances of it becoming more than that are still likely remote. But it’s hard to avoid engaging with the prospect as Trump goes to greater and greater lengths in his effort to remain in power, even though a record number of American voters told him to get lost and the electoral college formalized his loss. “It’s scary,” an administration official told CNN.
More at the link.
A few more reads to check out:
Ed Pilkington at The Guardian: How real is the threat of prosecution for Donald Trump post-presidency?
The Daily Beast: Three Paths This Coronavirus Nightmare Could Take.
The New York Times: One Vaccine Side Effect: Global Economic Inequality.
The New York Times: A ‘Great Cultural Depression’ Looms for Legions of Unemployed Performers
That’s all I have for you today. I hope you had a nice, relaxing day yesterday. Take care and stay safe!
As of this morning, the U.S. has 19,000 Covid-19 cases and 247 deaths. The NIH director says we could have 70,000 reported cases by the end of next week. Meanwhile, the federal government is basically doing nothing. We have an utterly incompetent failed real estate tycoon and reality TV clown as “president.” We have known for years now that this man is completely unfit to lead. In just three years he has crippled our most important institutions and we are now on our own, hoping that state and local governments can take up the slack.
Trump had plenty of warnings about the nature of the threat that was bearing down on our country. Just as before 9/11, when George W. Bush ignored the August 6, 2001 PDB titled “Bin Laden Determined to Strike in U.S.,” the “system has been blinking red for months” and Trump sat around watching TV and tweeting insults to his “enemies,” ignoring the threat to our country.
The Washington Post: U.S. intelligence reports from January and February warned about a likely pandemic.
U.S. intelligence agencies were issuing ominous, classified warnings in January and February about the global danger posed by the coronavirus while President Trump and lawmakers played down the threat and failed to take action that might have slowed the spread of the pathogen, according to U.S. officials familiar with spy agency reporting.
The intelligence reports didn’t predict when the virus might land on U.S. shores or recommend particular steps that public health officials should take, issues outside the purview of the intelligence agencies. But they did track the spread of the virus in China, and later in other countries, and warned that Chinese officials appeared to be minimizing the severity of the outbreak.
Taken together, the reports and warnings painted an early picture of a virus that showed the characteristics of a globe-encircling pandemic that could require governments to take swift actions to contain it. But despite that constant flow of reporting, Trump continued publicly and privately to play down the threat the virus posed to Americans. Lawmakers, too, did not grapple with the virus in earnest until this month, as officials scrambled to keep citizens in their homes and hospitals braced for a surge in patients suffering from covid-19, the disease caused by the coronavirus.
Intelligence agencies “have been warning on this since January,” said a U.S. official who had access to intelligence reporting that was disseminated to members of Congress and their staffs as well as to officials in the Trump administration, and who, along with others, spoke on the condition of anonymity to describe sensitive information.
“Donald Trump may not have been expecting this, but a lot of other people in the government were — they just couldn’t get him to do anything about it,” this official said. “The system was blinking red.”
Of course, as we all know, Trump doesn’t like to read and he doesn’t listen to intelligence briefings. He thinks he’s “a smart guy” and that his gut feelings are more accurate than the actual knowledge and experience of experts. And he’s still doing almost nothing. He just holds a daily press conference instead of his hate rallies and claims he’s doing things that either aren’t happening or can’t happen.
As hospitals across the country face drastic shortages of masks, respirators and other vital equipment, the White House has sent out a plea for donations that’s left many recipients confused and full of questions.
In at least one instance this week, Vice President Mike Pence, who heads the Trump administration’s coronavirus task force, blindsided private industry by requesting that construction companies donate face masks to hospitals. The White House then failed to provide guidance when directly asked.
Pence asked builders on Tuesday to donate the N95 masks used at many construction sites to local hospitals and refrain from ordering more. Within minutes, Stephen Sandherr, chief executive officer of the trade group Associated General Contractors of America, contacted the White House for more details, said Brian Turmail, a group spokesman.
After receiving no reply from the White House, Sandherr sent an email to AGC’s local chapters on Tuesday telling them that Pence’s statement had taken the group by surprise.
“As we received no advance notice of this announcement and we have received no additional guidance from the Administration, it is our view that this should be considered as a voluntary gesture and not a mandate,” Sandherr wrote. Turmail said several AGC members have donated equipment to their local hospitals.
On Thursday, Sandherr finally heard back from the Department of Health and Human Services, speaking on behalf of the White House, and his group’s members were asked not to donate equipment to hospitals, as Pence had instructed. Instead, he was told the group should collect an inventory of available equipment from members, including masks, booties and protective suits, and share it with the administration.
So instead of cutting red tape, the administration is adding more red tape while more people get sick and more people die.
We’ve been hearing for awhile now that we could be like Italy. I think it’s likely we’ll soon be worse off than Italy, because we our health care system is already breaking down and it looks like Mitch McConnell is determined not to help the people who need it most.
There was talk of sending checks to most Americans immediately; now it turns out the GOP plan is to use tax rebates, so the poorest people would get little or nothing (for example, people like me who live on Social Security don’t file taxes) and people who pay more taxes would get more. That makes no sense economically when millions of people have been thrown out of work and won’t be able to pay rent or eat, but Republicans apparently just don’t care.
Senate Republicans unveiled their proposal for sending out cash to Americans amid the COVID-19 coronavirus outbreak, but as is, a large number wouldn’t receive the full amounts.
Under the economic stimulus plan released Thursday, payments of up to $1,200 would be sent out to individuals and $2,400 to married couples, though the amount phases out for single filers making $75,000 a year and joint filers making $150,000 a year. But The Wall Street Journal notes that “individuals need to have qualifying income of at least $2,500 or income tax liability to get the minimum payment of $600.” This is based on their 2018 tax return.
Looking at IRS data, economist Kyle Pomerleau estimates that about 64 million filers who earn less than $50,000 won’t get the full rebate amount of $1,200 or $2,400, as “for a single filer, income must be at least about $23k to get the full $1,200,” and “for married couple filing jointly, AGI must be about $47k to get the full $2,400,” he writes.
Again, the poorest people don’t even file taxes, so they would be shit out of luck too. Furthermore, the amounts they are talking about wouldn’t even cover a month’s rent in the Boston area or other large cities. Right now I’m very grateful that I live on a fixed income in subsidized housing. But even I have had and will continue to have extra expenses and hardships.
Senate Republicans have now released their hotly anticipated proposal to send families direct cash payments, as part of a wider economic aid package aimed at combating the coronavirus crisis. And hoo boy is it disappointing.
Under the plan, the government would provide households an early tax rebate worth up to $1,200 for an individual or $2,400 for a married couple, with an extra $500 for each of their children. (So far, so good). The payments will be based on a household’s 2018 tax return, or if it didn’t submit one, their 2019 filing.
But the checks will shrink for both low and high earners. Americans with little to no tax liability (aka, poor folks) will only receive a minimum payment of $600, unless they earned less than $2,500, in which case they get zilch. Low-wage workers who don’t have a federal tax return for 2018 or 2019—adults generally aren’t required to file one they if earn less than the standard deduction—also won’t qualify for the early rebate. (They could still get it next year if they file taxes for 2020, but by that time it will be a bit late.) Meanwhile, the payments phase down for workers who make more than $75,000 and drop to zero for those making $99,000 and above (double those numbers for joint filers).
Limiting these payments for the upper middle class and up is defensible, even if it irritates commentators who’d prefer a more comprehensive approach that mimics a universal basic income. Penalizing the poor during a pandemic, however, is beyond the pale. We’re in the midst of a planned shutdown of the economy that will disproportionately harm low-wage service workers, yet Republicans are concerned about properly rewarding people for work. It is a crass joke.
It’s worth emphasizing that the GOP’s new plan only calls for a single payment. The M
New York City, Seattle, Boston and parts of California already have such large outbreaks that they will probably see significant growth even after taking extraordinary measures over the past week, the researchers say. New York City’s outbreak, the nation’s largest, grew to more than 4,000 known cases on Friday and is likely to increase many times over even in a favorable scenario.
But cases will continue to mount and millions of people will run out of food. We can only hope that Congress wakes up to reality. Here’s what’s really happening:
The U.S. economy is deteriorating more quickly than was expected just days ago as extraordinary measures designed to curb the coronavirus keep 84 million Americans penned in their homes and cause the near-total shutdown of most businesses.
In a single 24-hour period, governors of three of the largest states — California, New York and Illinois — ordered residents to stay home except to buy food and medicine, while the governor of Pennsylvania ordered the closure of nonessential businesses. Across the globe, health officials are struggling to cope with the growing number of patients, with the World Health Organization noting that while it required three months to reach 100,000 cases, it took only 12 days to hit another 100,000.
The resulting economic meltdown, which is sending several million workers streaming into the unemployment line, is outpacing the federal government’s efforts to respond. As the Senate on Friday raced to complete work on a financial rescue package, the White House and key lawmakers were dramatically expanding its scope, pushing the legislation far beyond the original $1 trillion price tag.
Read the rest at the WaPo.
The Washington Post: Coronavirus-scarred cities need ‘something bigger than the New Deal’ just to cope.
The coronavirus outbreak is forcing every state, city and county to execute a plan of attack for confronting the global pandemic. It’s a process that Sarah Eckhardt, the top official in Texas’s Travis County, likened to “building the plane while in the air.”
But the virus — and the extraordinarily costly response to it — is also putting enormous pressure on all the normal stuff: the criminal justice, sanitation, transit, emergency response and other systems that residents expect from their state and local governments.
Although the nation is just in the first stages of what is likely to be a prolonged struggle to suppress covid-19, the strain on public services is already beginning to show. First responders are stretched thin. Courts are paralyzed. And everywhere, money for basic public services is running out, fast.
“We have to manage beyond the scope of anything one city has prepared for or can handle,” said Seattle Mayor Jenny Durkan, whose city is among the worst-hit in America. “We’re spending all our reserves right now, but we won’t make it if the federal government doesn’t step up and step up big.”
Read more at the link.
This post is getting too long, so I’ll have to wrap it up. There are so many other stories I’d like to share with you. It’s overwhelming. Please take care and stay healthy, Sky Dancers. This is an open thread.
Yesterday the fake “president” tried to calm fears about the growing threat of a coronavirus pandemic by contradicting experts, hyping the stock market, and repeatedly lying about the administration’s preparedness. As health professionals tried to educate Americans about the possible dangers, Trump contradicted them and claimed he has everything under control, even though he has cut funds for the CDC and fired National Security Council staff who were in charge of global pandemic preparedness.
Trump was reportedly angry about the CDC briefing yesterday.
Here’s what Messonnier said:
“We expect we will see community spread in this country,” said Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases. “It’s not so much a question of if this will happen anymore, but rather more a question of exactly when this will happen and how many people in this country will have severe illness.”
The agency tweeted Tuesday evening that Americans should think about getting ready.
“Now is the time for US businesses, hospitals, and communities to begin preparing for the possible spread of #COVID19,” it wrote, referring to the name the World Health Organization has given the novel coronavirus. “CDC continues to work with business, education & healthcare sectors, encouraging employers to be prepared.”
“We are asking the American public to work with us to prepare in the expectation that this could be bad,” she said.
She said CDC officials have been saying for weeks that while they hope the spread won’t be severe in the United States, they are planning as if it could be.
“The data over the last week, and the spread in other countries, has certainly raised our level of concern and raised our level of expectation” of community spread, she said.
The CDC still doesn’t know what that will look like, she added. Community spread could be reasonably mild or very severe.
Off with her head! How long before Trump starts purging the CDC of people who know anything about viruses and pandemics and replacing them with Trump loyalists who will pretend nothing is happening?
Stephen Collins analyzes Trump’s press conference at CNN: Trump takes a victory lap early on in the coronavirus fight.
The President spoke at a news conference on Wednesday about the worldwide health emergency that has seen the virus sweep into South Korea, Italy and every continent but Antarctica, sounding as if the danger had already passed rather than was yet to arrive.
“The risk to the American people remains very low,” Trump said, as he unveiled his big announcement: Vice President Mike Pence will head the government effort.
The President’s optimistic performance came hours before the Centers for Disease Control and Prevention said a patient in California who has the novel coronavirus might be the first person to be infected who did not travel to an afflicted region and was not exposed to another known carrier. The case raises the ominous possibility that the virus is already moving through the community….
His upbeat, election-year tone contrasted sharply with predictions from his government experts, who are warning of possible severe disruption to American life if the outbreak swells into a pandemic.
Here’s what two experts had to say when they were allowed to speak for a couple of minutes each:
“Our aggressive containment strategy here in the United States has been working and is responsible for the low levels of cases that we have so far. However, we do expect more cases, and this is a good time to prepare,” said Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention.
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, delivered the sobering news that even with an unusually accelerated process of development and testing, it could be a year to a year-and-a-half before a vaccine becomes available. His assessment contrasts with Trump’s hints that inoculations are just around the corner.
Without warning HHS Secretary Alex Azar, Trump put Mike Pence in charge of dealing with a coronavirus outbreak in the U.S.–the same Mike Pence who enabled an HIV outbreak in Indiana when he was Governor by refusing to allow clean needle exchanges for opiate users. The Washington Post reports:
“We’ve had tremendous success, tremendous success beyond what many people would’ve thought,” the president said during a White House news conference that followed days of mixed messages, tumbling stocks and rising death tolls abroad driven by the coronavirus. “We’re very, very ready for this.”
The president declared that the risk to America was “very low” and predicted a swift end to the outbreak….
“We could be just one or two people over the next short period of time,” Trump said of the virus’s impact in the United States.
Minutes later, Health and Human Services Secretary Alex Azar and CDC Principal Deputy Director Anne Schuchat warned Americans to prepare for the number of cases to grow.
“We can expect to see more cases in the United States,” Azar said.
“We do expect more cases,” Schuchat said.
The case confirmed Wednesday in California brought the total in the United States to 60.
During the press conference, CNN’s Dr. Sanjay Gupta tried to ask Trump a question and Trump repeatedly interrupted and corrected him.
Trump’s main concern is calming the markets, because if the economy tanks he probably won’t be reelected. But what he’s doing is likely to make things worse. NPR this morning: Stocks Tumble Into Correction Territory On Coronavirus Fears.
Stocks continued their downward slide on Thursday, with major indexes falling into correction territory. Investors are worried about the economic toll of a widening coronavirus epidemic.
The Dow Jones Industrial Average tumbled more than 500 points in the opening minutes of trading. The blue chip index is down more than 10% from its recent peak on Feb. 12. The broader S&P 500 index has also lost more than 10% of its value in just over a week.
President Trump tried to project a note of calm in a news conference Wednesday evening, stressing that the United States is well prepared for any health crisis and predicting the stock market will recover, thanks in part to robust consumer spending. But investors were not immediately reassured….
A poll by Morning Consult this week found that 69% of U.S. adults are either “very” or “somewhat” concerned about the domestic economic impact of the epidemic, a 14 point increase from a few weeks ago.
Trump won’t be happy to see this headline at Bloomberg: Yellen Says Coronavirus Could Throw U.S. Economy Into Recession.
“We could see a significant impact on Europe, which has been weak to start with, and it’s just conceivable that it could throw the United States into a recession,” Yellen said Wednesday at an event in Michigan. “If it doesn’t hit in a substantial way in the United States, that’s less likely. We had a pretty solid outlook before this happened — and there is some risk, but basically I think the U.S. outlook looks pretty good.”
The global economy was weak but starting to recover before the virus hit, Yellen said. The shutdown of factories due to the outbreak in China will impact supply chains and cause a drop in consumer spending as people have been quarantined or cease traveling.
Yellen, who spoke about the economy at an event held by the Brookings Institution in Clinton Township, Michigan, also commented on the decline in the 10-year Treasury yield this week to historic lows. Yields have plunged as fears about the spreading coronavirus have rocked global financial markets.
The newly diagnosed Coronaviris patient in California was in the hospital for several days before the CDC agreed to allow a test for the virus. The New York Times:
A California coronavirus patient had to wait days to be tested because of restrictive federal criteria, despite doctors’ requests. The patient, who has tested positive, may be the first person to be infected through community spread in the United States, the Centers for Disease Control and Prevention said Wednesday.
C.D.C. officials said it was possible the patient was exposed to a returning traveler who was infected. At the moment, however, the new case appears to be one in which the source of infection is unknown, suggesting that the virus may be transmitted within the community.
Doctors at the University of California, Davis Medical Center considered the novel pathogen a possible diagnosis when the patient was first admitted last week.
But the federal agency that conducts the testing did not administer the test until days later because the case did not fit the agency’s narrow testing criteria, university officials said in a letter to the campus community late Wednesday.
The C.D.C. has restricted testing to patients who either traveled to China recently or who know they had contact with someone infected with the coronavirus….
The C.D.C. could not be immediately reached for comment.
The patient was transferred to the medical center from another hospital in Northern California with a suspected viral infection, and was already on a ventilator upon arrival, according to the university’s letter.
“Upon admission, our team asked public health officials if this case could be Covid-19,” the letter said. The medical center requested testing from the C.D.C. “Since the patient did not fit the existing C.D.C. criteria for Covid-19, a test was not immediately administered. U.C. Davis Health does not control the testing process.”
So it looks like we have the first coronavirus case that may have been passed from person to person in the U.S., and we have a president and an administration in denial and woefully unprepared to deal with a health crisis.
I’ll add more stories in the comment thread. As always, this is an open thread.