The Engineered Stagflationary Collapse Has Arrived – Here’s What Happens Next

By Brandon Smith

Source: Alt-Market.us

In my 16 years as an alternative economist and political writer I have spent around half that time warning that the ultimate outcome of the Federal Reserve’s stimulus model would be a stagflationary collapse. Not a deflationary collapse, or an inflationary collapse, but a stagflationary collapse. The reasons for this were very specific – Mass debt creation was being countered with MORE debt creation while many central banks have been simultaneously devaluing their currencies through QE measures. On top of that, the US is in the unique position of relying on the world reserve status of the dollar and that status is diminishing.

It was only a matter of time before the to forces of deflation and inflation met in the middle to create stagflation. In my article ‘Infrastructure Bills Do Not Lead To Recovery, Only Increased Federal Control’, published in April of 2021, I stated that:

Production of fiat money is not the same as real production within the economy… Trillions of dollars in public works programs might create more jobs, but it will also inflate prices as the dollar goes into decline. So, unless wages are adjusted constantly according to price increases, people will have jobs, but still won’t be able to afford a comfortable standard of living. This leads to stagflation, in which prices continue to rise while wages and consumption stagnate.

Another Catch-22 to consider is that if inflation becomes rampant, the Federal Reserve may be compelled (or claim they are compelled) to raise interest rates significantly in a short span of time. This means an immediate slowdown in the flow of overnight loans to major banks, an immediate slowdown in loans to large and small businesses, an immediate crash in credit options for consumers, and an overall crash in consumer spending. You might recognize this as the recipe that created the 1981-1982 recession, the third-worst in the 20th century.

In other words, the choice is stagflation, or deflationary depression.”

It’s clear today what the Fed has chosen. It’s important to remember that throughout 2020 and 2021 the mainstream media, the central bank and most government officials were telling the public that inflation was “transitory.” Suddenly in the past few months this has changed and now even Janet Yellen has admitted that she was “wrong” on inflation. This is a misdirection, however, because the Fed knows exactly what it is doing and always has. Yellen denied reality, but she knew she was denying reality. In other words, she was not mistaken about the economic crisis, she lied about it.

As I outlined last December in my article ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’:

‘First and foremost, no, the Fed is not motivated by profits, at least not primarily. The Fed is able to print wealth at will, they don’t care about profits – They care about power and centralization. Would they sacrifice “the golden goose” of US markets in order to gain more power and full bore globalism? Absolutely. Would central bankers sacrifice the dollar and blow up the Fed as an institution in order to force a global currency system on the masses? There is no doubt; they’ve put the US economy at risk in the past in order to get more centralization.’

The Fed has known for years that the current path would lead to inflation and then market destruction, and here’s the proof – Fed Chairman Jerome Powell actually warned about this exact outcome in October of 2012:

“I have concerns about more purchases. As others have pointed out, the dealer community is now assuming close to a $4 trillion balance sheet and purchases through the first quarter of 2014. I admit that is a much stronger reaction than I anticipated, and I am uncomfortable with it for a couple of reasons.First, the question, why stop at $4 trillion? The market in most cases will cheer us for doing more. It will never be enough for the market. Our models will always tell us that we are helping the economy, and I will probably always feel that those benefits are overestimated. And we will be able to tell ourselves that market function is not impaired and that inflation expectations are under control. What is to stop us, other than much faster economic growth, which it is probably not in our power to produce?

When it is time for us to sell, or even to stop buying, the response could be quite strong; there is every reason to expect a strong response. So there are a couple of ways to look at it. It is about $1.2 trillion in sales; you take 60 months, you get about $20 billion a month. That is a very doable thing, it sounds like, in a market where the norm by the middle of next year is $80 billion a month. Another way to look at it, though, is that it’s not so much the sale, the duration; it’s also unloading our short volatility position.”

As we all now know, the Fed waited until their balance sheet was far larger and until the economy was MUCH weaker than it was in 2012 to unleash tightening measures. They KNEW the whole time exactly what was going to happen.

It is no coincidence that the culmination of the Fed’s stimulus bonanza has arrived right after the incredible damage done to the economy and the global supply chain by the covid lockdowns. It is no coincidence that these two events work together to create the perfect stagflationary scenario. And, it’s no coincidence that the only people who benefit from these conditions are proponents of the “Great Reset” ideology at the World Economic Forum and other globalist institutions. This is an engineered collapse that has been in the works for many years.

The goal is to “reset” the world, to erase what’s left of free market systems, and to establish what they call the “Shared Economy” system. This system is one in which the people who survive the crash will be made utterly dependent on government through Universal Basic Income and one that will restrict all resource usage in the name of “carbon reduction.” According to the WEF, you will own nothing and you will like it.

The collapse is engineered to create crisis conditions so frightening that they expect the majority of the public to submit to a collectivist hive mind lifestyle with greatly reduced standards. This would be accomplished through UBI, digital currency models, carbon taxation, population reduction, rationing of all commodities and a social credit system. The goal, in other words, is complete control through technocratic authoritarianism.

All of this is dependent on the exploitation of crisis events to create fear in the population. Now that economic destabilization has arrived, what happens next? Here are my predictions…

The Fed Will Hike Interest Rates More Than Expected, But Not Enough To Stop Inflation

Today, we are witnessing the poisonous fruits of a decade-plus of massive fiat money creation and we are now at the stage where the Fed will reveal its true plan. Hiking interest rates fast, or hiking them slow. Fast hikes will mean an almost immediate crash in markets (beyond what we have already seen), slow hikes will mean a drawn out process of price inflation and general uncertainty.

I believe the Fed will hike more than expected, but not enough to actually slow inflation in necessities. There will be an overall decline in luxury items, recreation commerce and non-essentials, but most other goods will continue to climb in cost. It is to the advantage of globalists to keep the inflation train running for another year or longer.

In the end, though, the central bank WILL declare that the pace of interest rates is not enough to stop inflation and they will revert to a Volcker-like strategy, pushing rates up so high that the economy simply stops functioning altogether.

Markets Will Crash And Unemployment Will Abruptly Spike

Stock markets are utterly dependent on Fed stimulus and easy money through low interest rate loans – This is a fact. Without low rates and QE, corporations cannot engage in stock buybacks. Meaning, the tools for artificially inflating equities are disappearing. We are already seeing the effects of this now with markets dropping 20% or more.

The Fed will not capitulate. They will continue to hike regardless of the market reaction.

As far as jobs are concerned, Biden and many mainstream economists constantly applaud the low unemployment rate as proof that the American economy is “strong,” but this is an illusion. Covid stimulus measures temporarily created a dynamic in which businesses needed increased staff to deal with excess retail spending. Now, the covid checks have stopped and Americans have maxed out their credit cards. There is nothing left to keep the system afloat.

Businesses will start making large job cuts throughout the last half of 2022.

Price Controls

I have no doubt that Joe Biden and Democrats will seek to enforce price controls on many goods as inflation continues, and there will be a handful of Republicans that will support the tactic. Price controls actually lead to a reduction in supply because they remove all profits and thus all incentive for manufacturers to keep producing goods. What usually happens at that point is government steps in to nationalize manufacturing, but this will be substandard production and at a much lower yield.

In the end, supplies are reduced even further and prices go even higher on the black market because no one can get their hands on most goods anyway.

Rationing

Yes, rationing at the manufacturing and distribution level is going to happen, so be sure to buy what you need now before it does. Rationing occurs in the wake of price controls or supply chain disruptions, and usually this coincides with a government propaganda campaign against “hoarders.”

They will hold up a few exaggerated examples of people who buy truckloads of merchandise to scalp prices on the black market. Then, not long after, they will accuse preppers and anyone who bought goods BEFORE the crisis of “hoarding” simply because they planned ahead.

Rationing is not only about controlling the supply of necessities and thus controlling the population by proxy; it is also about creating an atmosphere of blame and suspicion within the public and getting them to snitch on or attack anyone that is prepared. Prepared people represent a threat to the establishment, so expect to be demonized in the media and organize with other prepared people to protect yourself.

Be Ready, It Only Gets Worse From Here On

It might sound like I am predicting success of the Great Reset program, but I actually believe the globalists will fail in the end. That’s not going to stop them from making the attempt. Also, the above scenarios are only predictions for the near term (within the next couple of years). There will be many other problems that stem from these situations.

Naturally, food riots and other mob actions will become more commonplace, perhaps not this year, but by the end of 2023 they will definitely be a problem. This will coincide with the return of political unrest in the US as leftist factions, encouraged by globalist foundations, demand more government intervention in poverty. At the same time, conservatives will demand less government interference and less tyranny.

At bottom, the people who are prepared might be called a lot of mean names, but as long as we organize and work together, we will survive. Many unprepared people will NOT survive. Understand that the economic conditions ahead of us are historically destructive; there is no way that serious consequences can be avoided for a large part of the population, if only because they refuse to listen and to take proper steps to protect themselves.

The denial is over. The crash is here. Time to take action if you have not done so already.

Livelihoods in a Degrowth Economy

By Charles Hugh Smith

Source: Of Two Minds

Let’s consider livelihood options in an unsustainable economy of extremes that are unraveling, an economy that is being forced to transition to Degrowth.

Nassim Taleb’s book Antifragile explains the differences between fragile systems (systems that cannot survive instability), resilient systems (systems that can survive instability and stay the same) and antifragile systems (systems that adapt and emerge stronger).

The ideal way of life is antifragile: resilient enough to survive adversity and adaptable enough to evolve solutions to whatever comes our way.

The key antifragile traits are adaptability and rapid, flexible evolution. Adversity puts selective pressure on organisms: only those organisms which adapt successfully survive.

The more antifragile our livelihood and way of life, the better prepared we will be to recognize and pursue opportunities.

An unsustainable, unstable economy puts a great deal of pressure on its participants. Only those with the skills and agency to move, adapt and experiment will emerge stronger.

Adaptability requires agency. Those without much control are stuck with the consequences of others’ decisions and actions.

In my experience, self-reliance is integral to an antifragile way of life.Self-reliance and self-sufficiency are similar but not identical.

Self-sufficiency means reducing our dependence on resources provided by others: growing our own food, doing our own repairs, etc. Self-sufficiency can also be understood as shortening dependency chains.

Compare being dependent on food shipped thousands of miles to relying mostly on food grown within 50 miles of home. There are so many ways long supply chains can break down because the entire system breaks down if even one link in the dependency chain breaks.

Total self-sufficiency isn’t practical. We all rely on industrial production of metals, tools, plastics, fertilizers, etc. But reducing our dependence on systems that are fragile by consuming less and wasting nothing increases our antifragility.

Self-reliance is being able to take care of oneself, being independent in thought and action, and maintaining control of decision-making–what I’ve been calling agency.

Self-reliance means being able to go against the crowd. This requires independence and confidence in one’s inner compass.

Being able to take care of oneself means drawing upon inner resources, being able to identify the essentials of a situation and coming up with solutions that are within reach.

Since households with multiple incomes are far more resilient than households with all their eggs in one basket, our goal is to develop income streams that we control. The ownership is more important than the scale of the income. A modest income we control is far more antifragile than a larger income we have little control over.

Developing income streams is easier if we approach the task with an entrepreneurial mindset.

This mindset looks at work in terms of markets, unmet demand, pricing power, networks of trustworthy peers, trial and error (experiments), optimizing new skills, seeking mentors, learning to make clear-eyed assessments of what’s working and what isn’t, and then acting decisively on the conclusions.

All these skills can be developed. They are very useful in navigating unstable conditions because they prepare us to act decisively rather than passively await others to decide what happens to us.

Some skills can be applied to virtually every field: project management, bookkeeping, working well with others, computer skills and communicating clearly. Being a fast learner is valuable in every field.

In my books and blog posts, I’ve covered the difference between tradable work–work that can be done anywhere–and untradable work, work that can only be done locally. Having skills that are untradable is advantageous, as the competition is local rather than global.

Skills that can’t be automated are also advantageous. Robots are optimized for repetitive tasks and factory / warehouse floors with sensors. They are not optimized for tasks that must be figured out on the fly and that require multiple skills.

Who fixes the robot when it fails out in the field? Another robot? Who replaces the dead battery in the drone? Another drone? The point is there are real-world limits on robotics, artificial intelligence, machine learning and automation that proponents gloss over or ignore.

Those with multiple skills who can problem-solve on the fly will continue to be valuable.

The models of work are changing, and this offers a wider range of options which is especially valuable to those emerging from burnout.

Combining various kinds and modes of work is called hybrid work. This could be mixing work from home (remote work) with occasional visits to an office, or it could be mixing a part-time job with self-employment.

I’ve written about one example in Japan called Half Farmer, Half X, where young urban knowledge workers move to the countryside to pursue small-scale farming while keeping a part-time, high-pay tech job they do online. Since the cost of living is so much lower in the countryside, these hybrid workers don’t need to work many hours remotely to cover their expenses, nor do they need their small-scale farming to be highly profitable.

Not all work is paid. Indeed, only a slice of human work globally is paid. The work that gives us the greatest fulfillment may well be unpaid or poorly paid. We may have to do some work to pay the bills while looking forward to the work we do that doesn’t earn much money.

Personally, I have always been drawn to both knowledge work and hands-on work. I worked my way through my university with a part-time job in construction. This was the ideal mix for my enthusiasms. Whenever I’ve been limited to one or the other, I feel dissatisfied. For me, hybrid work means having both knowledge work and hands-on physical labor, and having control of both.

Many people believe they need additional credentials to expand their opportunities. The alternative is to accredit yourself.

Since I’m enthusiastic about working with fruit trees and vegetable gardens, let’s say I decide to offer my services to potential customers.

One avenue is to spend money and time to get a certificate in horticulture. Alternatively, I could take photos of my own yard to document the trees I planted and how fast they’ve grown under my care. In other words, I could accredit myself, providing direct evidence of my skills and experience.

Employers have learned that completing a credential doesn’t mean the graduate will be productive. The diploma doesn’t prove the graduate learned much or has what it takes to work well with others.

The diploma actually tells us very little about the graduate. We learn much more from someone who accredits themselves by documenting projects they’ve completed.

The only real source of prosperity is improving productivity: doing more with fewer resources and labor. Economists expected the adoption of computers and the Internet to boost productivity. Instead, productivity gains have been extremely modest, 1% or 2% per year, far lower than the 10% annual gains achieved during industrialization.

This productivity paradox has puzzled economists for decades. One reason why the productivity of knowledge work ((white-collar work) has barely improved when compared to factory productivity (blue-collar work) is the methodical optimization of tasks is more difficult to apply to knowledge work. Much of this work is done by rule of thumb and what was passed down by senior workers.

There are a number of reasons for this. One is it’s easier to study the assembly of products than it is to break down the production of services.

Another is that many fields of knowledge work are so new that it’s difficult to optimize tasks because they’re constantly changing.

A third factor is that we’ve been wealthy enough to waste labor and capital on unproductive bureaucratic friction. Just as we waste water when it’s abundant and free, we also waste energy and money when they’re abundant.

In Global Crisis, National Renewal I describe the changes in the process of obtaining a building permit in the past 40 years.

In the early 1980s, I could submit a set of plans for a modest house in the morning and pick up the approved plans and building permit that afternoon. Now the process takes many months, even though the house being built hasn’t changed much at all. What changed was the permit approval process became terribly inefficient.

Since there’s few incentives to improve efficiencies in bureaucracies, it now takes a decade or longer to approve a bridge or landfill While the number of professors and doctors has increased modestly, the number of university and hospital administrators has soared.

Now that energy will no longer be cheap over the long term, incentives to improve the productivity of knowledge work will increase.

Unsustainable economies are prone to sudden changes in finance and the availability of essentials. We’re accustomed to predictable stability, and so few are prepared to respond effectively to instability.

If our lives only work when things are stable, our way of life is fragile. Recall Sun Tzu’s advice: “If a battle cannot be won, do not fight it.” If we’re only prepared for everything to stay the same, we’re fighting a battle we can’t win. We want to be prepared for sudden changes and scarcities by planning ahead and being flexible, nimble and responsive.

One facet of being antifragile is having a buffer or cushion against sudden shocks. In a 2018 interview, Nassim Taleb said, “Money can’t buy happiness, but the absence of money can cause unhappiness. Money buys freedom… to choose what you want to do professionally.”

Taleb went on to note that it takes great discipline to keep enough money stashed to give us the freedom to maintain our agency when faced with adversity. Self-reliance requires a buffer so we have time to figure out solutions and the means to pursue them.

In my experience, our willingness to consider all options, our ability to make careful decisions and take decisive action are just as important as a cushion of cash. Cash widens our options, but if we’re frozen by inexperience and fear then our options are severely limited.

The wider our range of skills, the greater our opportunities to add value. The basic needs of human life must be met and so those who can meet those needs will always be valued. This range of skills is also a buffer because it gives us more options in adversity.

How much money do we need as a cushion? The less we need, the lighter our expenses and the more options we have. If we need $10,000 a month just to pay our basic expenses, that demands a large cushion. If we’ve simplified and downsized our way of life so $1,000 a month is enough to keep us going, our cushion can be much smaller.

In other words, frugality, self-reliance and simplicity are key parts of antifragility, for they lower the cost of freedom. Money can lose its value in crisis, but our buffer of skills and self-reliance cannot be taken from us or devalued by a global crisis.

One final consideration is timing. The sooner we start preparing for degrowth, the better off we’ll be. A Chinese proverb captures this succinctly: By the time you’re thirsty, it’s too late to dig a well.

The Long Cycles Have All Turned: Look Out Below

By Charles Hugh Smith

Source: Of Two Minds

Long cycles operate at such a glacial pace they’re easily dismissed as either figments of fevered imagination or this time it’s different.

But since Nature and human nature remain stubbornly grounded by the same old dynamics, cycles eventually turn and the world changes dramatically. Nobody thinks the cyclical turn is possible until it’s already well underway.

Multiple long cycles are turning in unison:

1. The cycle of interest rates: down for 40+ years (last turn, 1981), now up for an unknown but consequential period of time.

2. The cycle of inflation / deflation: the 40-year period of low real-world inflation and rip-roaring speculative debt-asset inflation has ended and now an era of scarcity, real-world inflation and speculative debt-asset deflation begins.

3. The cycle of capital-labor balance: capital has dominated labor for 40+ years, siphoning $50 trillion from labor. This cycle has now turned and the rebalancing is underway: it’s capital’s turn to surrender gains and power.

4. The cycle of social order-disorder: as documented by historian Peter Turchin and others, social order (in Turchin’s phrase, the integrative phase) holds sway for about 50 years and then it gives way to an era of social disorder (the disintegrative phase). This phase doesn’t end with mild reforms nobody even notices, it ends with a rebalancing of social, political and economic power.

5. The cycle of wealth/power inequality: wealth–and the political power it buys–becomes increasingly concentrated in the hands of the few at the expense of the many. This feeds economic and political dysfunction and exploitation that must be remedied by reducing extremes of wealth-power inequality.

6. The cycle of speculative excess: those in power protect their wealth and the wealth of their cronies by instituting moral hazard, the disconnect of risk and consequence: the central state and central bank backstop and bail out the most egregious big speculators, who keep all their gains and transfer their losses to the public.

The public concludes the only way to get ahead in such a rigged financial system is to belly up to the gaming tables and gamble that the next bubble will never pop because those in power won’t ever let it pop.

But alas, humans do not possess god-like powers, they only possess hubris, and so all bubbles pop: the more extreme the bubble, the more devastating the pop. The faint cries that fade to silence are: but this time it’s different! and the Fed will save us! That’s not how cycles work: all the god-like powers are revealed as hubris, which arouses the fatal ire of Nemesis.

Flattening the curve or flattening the global poor? How Covid lockdowns obliterate human rights and crush the most vulnerable

By Stavroula Pabst and Max Blumenthal

Source: The Grayzone

Marketed as life-saving public health measures, lockdowns triggered death and economic devastation on a global scale while doing little to slow the spread of Covid-19. Now, they’re back with a vengeance.

In October 2021, it seemed as though the lockdowns that still paralyzed societies from Australia to New Zealand and Singapore were coming to an end, as these countries threw in the “Zero-COVID” towel following a year and a half of rolling restrictions and closures.

But with COVID-19 cases rising in Europe, several countries are implementing lockdowns all over again, often with clearly punitive motivations. 

This November, Austria’s government announced that police would enforce a lockdown exclusively against unvaccinated citizens. Following days of massive protests, the policy was extended to everyone, with steep fines and even prison sentences to be imposed on those who refuse to comply, and a compulsory vaccination requirement tacked on for good measure.

Next door in Germany, where a new lockdown was announced this December for unvaccinated people, barring them from almost all public places except for pharmacies and supermarkets, Berlin is also weighing a vaccination mandate for all. One German constitutional lawyer has even proposed that refusers of the jab “be brought before the vaccinator by the police.”

Though statewide lockdowns have eased in Australia, the country is constructing internment camps for those who test positive for Covid, along with their Covid-negative “close contacts.” Harley Hodgson, an Australian held for 14 days in one such camp despite repeatedly testing negative for Covid, said of her experience: “You feel like you’re in prison. You feel like you’ve done something wrong. It’s inhumane what they’re doing.”

Initially marketed to the public as a means to “flatten the curve” and “slow the spread,” lockdowns now represent one of the most draconian aspects of the perverse New Normal that has metastasized amid an atmosphere of seemingly endless emergency. 

While much of the public accepted such restrictions during the early days of the pandemic, they are now met with increasing resistance by citizens around the world who have suffered from economic devastation, homelessness, suicidal ideation, social isolation, domestic violence, addiction and the cancellation of routine medical procedures as a result of lockdowns.  

The public health justification for these non-pharmaceutical interventions has not only been discredited in the eyes of millions across the globe, but by an array of scientific studies and data demonstrating that they likely caused more deaths than they prevented.

The lethal impact of lockdowns was particularly pernicious in the Global South, where hundreds of millions of the world’s most vulnerable people were driven into a cascading humanitarian crisis. As the World Food Program warned in 2020, “135 million people on earth are marching towards the brink of starvation” as a result of their economies shutting down to supposedly inhibit the spread of COVID-19.

In his book, The Covid Consensus, professor of African history at King’s College Toby Green chronicled the misery, migration outflow and mass death spawned by lockdowns imposed on populations from Africa to Latin America.

“Lockdowns were not a policy that made any sense in societies where many people live largely outside, and SARS-CoV-2 is a virus that circulates inside,” Green told The Grayzone. “Moreover, they made no sense in regions such as Africa where the population is much younger than in rich countries – they merely saw a massive shift of health burden from the global rich to the global young and poor.”

For most people on the planet, the economic and psychological harm experienced during the past 19 months was not the result of the pandemic per se, but of emergency-order restrictions governments imposed on them and justified as public health measures. In the Global North, such costly efforts did little more than delay the inevitable spread of COVID-19 while transferring wealth into the hands of Big Tech oligarchs who constitute the pandemic’s real “winners.” 

Though public health scholars and some officials warned that lockdowns would do possibly irreparable damage to the global economy while only deepening the public health crisis, the politics of the Trump era enabled supporters of harsh restrictions to caricature critics as dangerous right-wing extremists.

“Discussion of the inevitable harm of lockdowns has been almost totally forbidden by most of the mainstream media and academia, while the left followed the lead of the Democratic Party, doing all it could to marginalize any discussion of the collateral damage of these measures,” Christian Parenti, professor of economics at the City University of New York and author of several books about policing and mass surveillance, commented to The Grayzone. “Any questioning of lockdown measures was cast as right wing, even fascist. But mostly the left just ignored the emerging facts, particularly regarding the carnage caused in the Global South.”

One of the most outspoken among the public health scholars sounding the alarm about the social cost of sweeping restrictions was Dr. Jay Bhattacharya, a professor of medicine at  Stanford University. As a co-author of the Great Barrington Declaration, which advocated a strategy of focused protection instead of hard lockdown, Bhattacharya and his colleagues were subjected to social media censorship and mainstream media attacks.

“Lockdowns provided the illusion of control over a virus that was present in parts of the world and spreading far earlier than most officials believed,” Bhattacharya told The Grayzone. He added, “Much of the evidence that people have developed to argue that lockdowns work come from modelling studies that have proved incredibly inaccurate.” 

Indeed, the initial inspiration for locking down the UK and parts of the US derived from a bunk model of projected fatalities that has since been discredited. 

Lockdowns were inspired by bogus modelling by unqualified academics

On March 16, 2020, as the global consensus formed around implementing restrictions in some form, a professor from London’s Imperial College delivered a presentation to the British government that would prove pivotal. That academic, Neil Ferguson, introduced a model asserting that if the UK did not impose a harsh lockdown, 500,000 citizens would die of Covid-19 that year; and if it took only moderate steps to restrict public life, as Prime Minister Boris Johnson planned, 260,000 would die. 

In either case, Ferguson insisted, the national healthcare system would be overwhelmed and the economy irreparably damaged. Within a week, Johnson’s government accepted Ferguson’s fatalistic model and locked down hard. 

Around the same time, the Trump White House received a paper from Ferguson that envisioned a catastrophic death toll. His model predicted fatalities at a 25% higher rate than the CDC’s already stark projection: 2.2 million dead in the first year unless the US instituted lockdowns. 

“What had the biggest impact in the model is social distancing, small groups, not going in public in large groups,” Dr. Deborah Birx, a leader of Trump’s coronavirus task force, referring to the Imperial College projection. The New York Times reported on March 16, the day the Trump administration received Ferguson’s paper: “White House Takes New Line After Dire Report On Death Toll.”

While Ferguson’s modelling succeeded in inspiring harsh lockdowns, it ultimately brought him public embarrassment. First, the professor was caught breaking the quarantine he personally inspired to enjoy a tryst with his lover – a married woman who complained that the lockdown “strained” her relationship with the professor. Then, as time went on, it became clear that Ferguson’s models had exaggerated the Covid-19 fatality rate by a factor of at least four. 

“Yes, my prediction was off,” he admitted to the Times of London in August 2021. But by then, the damage was done.

This was not the first time Ferguson’s numbers had proven to be wildly off the mark. Back in 2001, Ferguson projected that as many as 50,000 could die from Mad Cow Disease. After a panicked government slaughter of some 6.5 million cattle, the mass death failed to come to fruition. (Only about 2,800 have died from Mad Cow in three decades). 

In 2005, Ferguson was at it again, predicting up to 200 million global deaths from the bird flu. In the end, only a few hundred people died. Then in 2009, Ferguson warned that 65,000 could die from the swine flu in the UK alone. But when the dust cleared, he and his team were off by a factor of over 1000

So why did governments across the Atlantic trust a serial exaggerator who appeared to have no formal training in epidemiology or computer modelling, and whose codes were buggier than a locust infestation

Before briefings from Ferguson, leaders from Whitehall to Washington were already in a panic over the onset of the novel coronavirus. A haze of reporting in early 2020 made the coronavirus appear more deadly than it turned out to be, with some reports suggesting the fatality rate could rise to as high as seven percent

Although it is now known that COVID-19 does not kill the vast majority of people it infects, with Infection Fatality Rates (IFR) of .15 percent overall and .05 percent for persons under 70, the confusion and uncertainty led many public health officials to act quickly. In reality, the coronavirus is a less lethal disease that spreads easily, making it harder to contain with human interventions.

Further, according to Toby Green of King’s College in London, British public health officials were easily seduced by the tech-centric presentation of academics like Ferguson.

“Let’s remember that in the UK, where Ferguson’s model first had its influence, Dominic Cummings, Boris Johnson’s advisor on Covid-19, had already written about the importance of a data-driven approach to policy,” Green explained. “Matt Hancock, the health minister, was also highly integrated into the tech sector through his family, which runs a tech business. So a computer-driven model [like Ferguson’s] was appealing.” 

Somehow, the technocrats placed in charge of Covid-19 policy across the Atlantic demonstrated little concern for how the lockdowns they suddenly imposed would impact the economic and social wellbeing of the citizens they were supposed to protect.

A bonanza for tech oligarchs, “the equivalent of smoking 15 cigarettes a day” for the less fortunate

In the United States, lockdowns and various rolling restrictions triggered an economic catastrophe for working and poor people across the country, pushing those already on the financial precipice over the brink.

In the US in 2020, 40 percent of people making under $40,000 annually lost work, and almost three million women were driven out of the workforce due to an inability to balance work and caregiving and virtual learning obligations for children who could no longer attend in-person school or daycare. Dozens of airlines failed, and at least 200,000 small-businesses were shuttered

Increased unemployment benefits and stimulus checks had a salutary effect on the economic well-being of average Americans, seeing personal savings rise 8 percent between 2019 and summer of 2021. But even if American poverty did not immediately surge, it may yet do so, now that stimulus checks, generous unemployment benefits, and the eviction moratorium have all been terminated by the administration of President Joe Biden. 

As lockdowns drove inequality in the US, millions skipped routine medical care such as childhood vaccinations and cancer screenings, because the Centers for Disease Control (CDC) recommended that hospitals suspend non-essential and elective procedures. In May 2021, almost ten million routine screenings were missed in the United States, while other preventative health visits declined on a mass scale due to elective procedure suspensions, which may also lead to worsening public health problems in the long-term.

Due to the CDC’s recommendations, 1.4 million medical workers lost their jobs in April 2020. One medical record company estimated that screening for breast, colorectal, and cervical cancers dropped by 80% to 90% during March and April of 2020 compared to the same months in 2019. Now, the US is struggling with a surge of cancers and other ailments that went undetected because of overzealous and overly broad lockdowns. 

While average Americans paid a heavy price for the restrictions, Big Tech oligarchs quickly emerged as the pandemic’s winners. In 2020, billionaires increased their wealth by 54 percent. In fact, the top 1% of U.S. households now officially control more money than the entire middle class, or the middle 60 percent of households by income, in the US. 

While the pandemic response has adversely affected working people and small businesses worldwide, lifting restrictions is in fact against major corporate interests: Amazon’s stock even fell seven percent in July as re-openings stalled pandemic-related online buying. 

As lockdowns took their psychological toll on the US population, opioid-related deaths surged to record levels – up 30% from the previous year across the country and up 40% in 10 states. The sharpest rise in deaths occurred in Black Americans, along with those aged 35 to 44. 

Lockdowns and excessive closures have also contributed to an international rise in domestic violence

Despair rose in a significant way with the crisis: according to the CDC, 25.5 percent of survey respondents aged 18-24 reported seriously considering suicide within the previous 30 days by the end of June 2020. The same study indicated adults were more than twice as likely to report considering suicide when compared to those surveyed before the onset of coronavirus.

Professor Stephen Reicher, a behavioral scientist who advised the UK government on Covid policy, commented: “The problem with lockdown is isolation; being cut off from people is bad for you psychologically and physically. It is the equivalent of smoking 15 cigarettes a day.”

The impact of restrictions on young people, adolescents and babies who are at very little risk of illness with serious COVID-19, with a one in 50,000 chance of hospitalization and a two in one million chance of death for children, cannot be overstated. Babies and young infants, after all, require regular socialization and interaction for healthy development. Many of them, however, were only able to visit their closest family members over the past year and a half. Ultimately, extended periods of social isolation or loneliness can negatively impact a young individual’s health even decades later.

The overall outlook for young people, as suggested by the 2020 CDC study referenced above, is and remains grim. In Las Vegas, Nevada, schools opened in December of 2020 after an unprecedented 18 adolescent suicides were recorded in the district since March of the same year. And in the state of Victoria, Australia, about 340 teenagers each week were hospitalized due to mental health emergencies as of August 2021.

For many among the urban laptop class, including a large swath of the hyper-online Western left which still clamors for national school closures and demands lockdowns in the face of a handful of new cases (while crudely painting critics of official Covid policy as Nazis), quarantine orders merely enforced an already sedentary lifestyle that revolves around Zoom meetings, ordered food and Amazon deliveries. The restrictions further eliminated tedious commutes to work while providing those able to work remotely with the satisfying sense that staying home was a bold act of social solidarity.  

Under this spectacular arrangement, which assumed individual behavior could slow down or contribute to the spread of a virus, isolation was framed as a moral choice that led many of those willingly confined to their homes to fear or vilify a working class that frequently provided them with vital services. And while non-pharmaceutical interventions have generally proven futile against COVID-19, the stentorian demands to socially distance and attendant shaming of those who fail to obey has done little more than generate hostility between friends, families, and communities.

“Lockdowns are a luxury of the rich,” Bhattacharya said, “and affect a certain class of people at the expense of others. A lockdown doesn’t mean all of society stops and we all sit in cages alone while we wait for the fires to go away. The poor and working class, many of them vulnerable and older, are asked to risk themselves, while another class of people stays at home protected.”

This was particularly true in the Global South, where class divisions are clearly drawn and most people live dangerously close to the poverty line.

Lockdowns drive debt, dependency and death across the Global South

The legacy of colonialism and imperialism has split the world economy into a “core” of wealthy economies and a periphery of poor economies that are largely dependent on exporting cheap raw materials and low-value added manufactured goods. When the wealthy core economies locked down in 2020, international trade contracted, triggering a violent economic whiplash in developing countries as their earnings from exports and tourism suddenly collapsed. 

As a result, developing country debt has risen from an average of about 40 percent of overall GDP to over 60 percent. Throughout 2020, developing economies were forced to pay out 194 billion to their creditors, even as their economies contracted dramatically. This forced poor countries to cut deeply into social spending to maintain debt servicing from institutions like the International Monetary Fund (IMF). 

Since the COVID-19 pandemic was declared, the IMF has doled out “Covid funds” to 85 countries around the world. An analysis by Oxfam found that 85% of the 107 loans provided to these countries require them to impose austerity until well into the future to pay them back. Now, devastating impacts on future health and social spending in poor countries is practically inevitable.

With surging unemployment, reduced incomes, and fewer social services, the populations of poor countries in the Global South have experienced massive increases in hunger.

As early as July 2020, the Associated Press reported that an additional 10,000 children were dying of hunger every month “due to the virus.” In fact, the deaths were the result of governments’ choice to lock down. Indeed, the coronavirus has had very little effect on the health of children, except indirectly through bad policy. Thus, millions of children across the Global South who were not hungry in 2019 are hungry today because of the lockdowns.

In all, about 2.37 billion people – or about 30 percent of the world population and 320 million more people than in the previous year – did not have access to adequate food at some point during 2020. 

As Nash Landesman reported for The Grayzone, extensive lockdowns with little social support by the US-backed government of Colombia led to mass unemployment, evictions, and widespread hunger throughout 2020, especially in working class neighborhoods of Bogotá, where residents placed red flags outside their homes to signal their sense of despair. 

Mexicans similarly protested lockdown measures, with one vendor affixing a sign to her stall reading: “Mexico is NOT Europe. If you don’t work, you don’t eat.”

And in Honduras, which has been ruled for over a decade by a corrupt US-backed government installed through a military coup, citizens facing food and water shortages due to lockdown took to the streets in protest in March 2020, encountering heavy police repression. The protests continued into September, with drivers blocking roads to demand compensation for wages lost during the forced quarantine. 

In India, meanwhile, where GDP shrank a record 7.3 percent from March 2020 to March 2021, a study of Uttar Pradesh state households found incomes contracting about 75 percent. Anthropologist Dr. Chandana Mathur of Maynooth University reported that the strict, yet poorly planned lockdowns in India kept millions of migrant workers away from income sources, forcing them into homes that were thousands of kilometers away from work or simply non-existent

Just two days before the March 2020 lockdown, many transportation services in India ground to a halt, stranding and starving thousands of people at a time when strict stay-at-home rules were declared. To enforce the orders, police brutally beat those considered insufficiently compliant. One estimate found that about 1,000 people died from March to July 2020 due to the displacement.

In fact, mass suffering was anticipated by some governments and experts when the restrictions began. In March 2020, a cost-benefit analysis by the Dutch government’s Ministry of Economic Affairs and Climate Policy concluded health damage from lockdown would be six times greater than the benefit. Similarly, a 2020 Actuarial Society of South Africa model posited that a lockdown in the country may lead to 29 times more deaths than the restrictions can prevent

And indeed, when lockdowns and other stringent interventions were applied in South Africa, many suffered enormously. Researchers estimate that 47 percent of South Africans ran out of money for food in April 2020. While rates of deprivation have decreased, estimates of hunger in the country remained steady at 17 percent of households throughout April and May 2021. 

South Africans also faced a decrease in overall life expectancy due to other restriction-perpetuated factors, such as an increase in HIV and tuberculosis related health issues thanks to treatment stoppages, outbreaks of other infectious diseases especially associated with malnutrition, poverty and suspension of relevant vaccination programs, and interruptions in maternal and infant care.

Despite such excessive restrictions in the country, which previously included a curfew, a ban on gatherings and even on alcohol sales, some estimates found that 80 percent of South Africans were still infected with COVID-19

A recently published study by researchers at the University of Johannesburg and the University of the Free State, COVID-19 in South Africa, found that “no changes in the shape of the [epidemiological] curve can be attributed to the introduction or easing of any regulation at [the current time].”

Instead of flattening the proverbial curve, restrictions induced economic and social deterioration which killed millions in the name of public health, while depriving an entire generation of the global poor of the right to education.

Lockdowns brutalized the world’s poor while depriving generations of education

For governments across the world, Covid provided an opportunity to pummel their most vulnerable residents, as well as those who dissented from the official order. As Amnesty International’s European bureau stated in a detailed but under-acknowledged June 2020 report, “The police enforcement of lockdowns disproportionately impacted poorer areas, which often have a higher proportion of residents from minority ethnic groups.” 

Among Amnesty’s most disturbing findings was that police searches of Black Britons rose by a full third in the first month of the pandemic; Roma populations across Eastern Europe were placed under militarized quarantines and cut off from food supplies, causing deprivation on a mass scale; homelessness surged across the continent, and refugees and minority residents were subjected to police brutality on a regular basis. 

Throughout 2020 in New York City, Black and Latino residents received a whopping 80% of police summonses for supposedly violating social distancing measures, leading civil rights groups including a local chapter of Black Lives Matter to complain that Covid restrictions were being exploited to bring back dreaded “stop and frisk” policies.

In Greece, such measures have been exploited to target refugees, migrants, and others living on the margins of society. Greek authorities have even fined refugees arriving by boat to Chios island 5000 euros each for not providing proof of negative coronavirus tests in late August 2021.

Many refugees that I, Stavroula, am personally acquainted with in Greece avoided spending time outside during the country’s six month lockdown from November 2020 to May 2021 out of fear of arrest and deportation. The lockdowns, which often confined people to a few miles from their home, and which imposed curfews as early as 6pm, required everyone to possess a government-issued identification and a text message or written note explaining their reason for being in public. 

Penalties for violating the restrictions could mean fines of 300 euros, about half a monthly salary in the country, which could financially ruin many Greeks. For those in the country without papers, not having the required documentation during an encounter with police could even lead to deportation. 

Across the globe, tens of thousands of people, mostly poor and working class, have been arrested for violating quarantine and been locked up in crowded unsanitary jails where Covid infections run rampant. 

In Washington DC’s municipal jail, 1500 inmates were held in de facto solitary confinement for over 400 days without basic services throughout 2020 and early 2021. Though most inmates had already contracted COVID-19, developing durable natural immunity to the virus, the lockdown was justified on the grounds of “slowing the spread.” 

“An overwhelming majority of the jail’s inmates are Black, and many have not yet been found guilty of the crimes for which they were arrested,” the Washington Post noted.

Similarly, St Louis city jail was the site of four prisoner uprisings since December 2020, with inmates forced into de facto solitary confinement for over a year with no trials. “People currently incarcerated…are tired of living in fear of COVID-19 and not being brought to trial,” one prisoner stated.

School-aged children and students around the world also suffered enormously under the weight of closures, particularly those in impoverished communities. In Uganda, citizens have spent large parts of the past two year under various forms of lockdown, with schools and recreation centers closed under orders of the US-backed leader Gen. Yoweri Museveni. 

“An entire generation of our children is being plunged into the bottomless abyss of illiteracy and ignorance. I saw a docile wasted generation of young defenseless victims of Gen. Museveni’s warped COVID-19 directives loitering about and dwindling in hopelessness,” wrote dissident Kakwenza Bashaija after a visit to eastern Uganda.

The New York Times reported this November that Uganda’s ongoing school closures have consigned the county’s youth to possibly lifelong poverty. With educational institutions still off limits, the Times wrote, “young women, abandoning hopes of going to school, are getting married and starting families instead. School buildings are being converted into businesses or health clinics. Teachers are quitting, and disillusioned students are taking menial jobs like selling fruit or mining for gold.”

Poor and working class youth across the United States experienced similar educational setbacks as closures forced them out of the classroom. In the state of Virginia, for example, math achievement scores in 2021 were down by over 40% for eighth graders in comparison to 2018-19. Less than half of Black students from third to sixth grade were able to pass reading tests, while the math scores of disabled youth declined precipitously. 

Glen Youngkin, a Republican who ran for governor in Virginia this year, highlighted these dismaying figures and slammed school closures in his closing campaign message. By capitalizing on the pent-up anger of parents in the state’s swing districts, Youngkin scored a surprise victory against a seasoned and well-funded opponent in a heavily Democratic state. 

Meanwhile, in the Democratic bastion of New Jersey, incumbent Governor Phil Murphy nearly lost to a lesser known Republican challenger who hammered him over his support for some of the most stringent lockdown measures in the country. Murphy was walloped in Atlantic County, home of the Atlantic City resort and casino city where lockdowns pushed one third of small businesses into permanent collapse. 

As the Biden administration considers new restrictions for US travelers, including placing the unvaccinated on a domestic no-fly list, the impact of lockdown policies has helped disrupt the international supply chain, driving inflation and shortages in suppliesgasoline, and even certain food items

With the US government collaborating desperately with major corporations and retailers to repair the existing supply bottlenecks, some in the media class have urged convenience-accustomed Americans to simply lower their expectations.

While these lockdowns were implemented to supposedly blunt the impact of a public health danger, mainstream media have generally avoided a discussion of how well they mitigated the perceived crisis or of the severe social and economic harm they did to working people. 

Despite the mass job loss, economic destruction, and increased hunger that non-pharmaceutical interventions have inflicted on the global population, the effectiveness of efforts such as lockdownscurfewsschool closures, and the constant PCR testing of healthy people are dubious at best.

Unpacking the misconception lockdowns work against COVID-19

Many credited lockdowns in ChinaGreeceVietnam, and Australia with early COVID successes, contributing to a widespread perception that lockdowns are vital to saving lives, and, therefore, a compassionate choice. Such reasoning has led governments internationally to proceed with lengthy closures of daily life.

According to Dr. Bhattacharya, these policies might be appropriate to halt the spread of a given virus depending on its profile and status. “There are diseases that are incredibly deadly, but not particularly infectious, where quarantining and sharp lockdowns locally can be quite effective,” Bhattacharya explained. “For instance, we limited the Ebola [virus] outbreaks in this way.”

Could COVID-19 have been addressed through sharp interventions as Ebola was? The answer depends in part on the properties of the virus, such as how deadly it is and how and how easily it spreads. Oftentimes, more lethal diseases spread less easily than their weaker counterparts, and that’s because the host will either die or know what they have and isolate themselves accordingly, thus halting transmission. Despite significantly higher fatality rates (25-90%, depending on the outbreak) in relation to COVID-19, Ebola is less infectious than other diseases and does not spread through the air: in fact, it typically dies within thirty seconds outside bodily fluids. 

In contrast, COVID-19 is a respiratory virus that likely spreads through aerosol transmission. Echoing the now-discredited modelling from the Imperial College of London, media coverage from early 2020 made the coronavirus appear more deadly than it turned out to be, with some reports suggesting the fatality rate could rise to as high as seven percent. In reality, the coronavirus is a less lethal disease that spreads easily, making it harder to contain with human interventions.

Because COVID-19 is a seasonal virus that tends to flourish in winter, much like the flu, early COVID “victors” like New Zealand and Australia were fortunate to get hit with it during their respective summers. They also are geographically isolated. The rest of the world was not so lucky.  

Drawing on studies of virus prevalence in California urban areas in March 2020, for example, Bhattacharya concluded it was “too late” for the coronavirus measures that state officials issued to help eliminate the virus, with about 3-4% of survey respondents reporting they already had COVID-19 antibodies.

Such numbers suggest that the virus was present much earlier in many parts of the world than originally believed, rendering subsequent preventive pandemic measures futile in eliminating or slowing the virus despite their stringency. In other words, based on the nature of its spread and its widespread establishment in many communities, the virus had already taken root in an irreversible way.

“You don’t get up to 2 to 4 percent disease spread [of COVID-19] unless you’ve had it spreading for a while,” Bhattacharya said in reference to the California seroprevalence study. “That means 96 percent of the population [at the time was] still susceptible to the virus, and far from endemic. But way too far gone to actually have hope that any lockdowns will stop the disease.”

Despite the tendency to resort to them when cases rise, the evidence of lockdowns’ effectiveness in inhibiting the spread of coronavirus is threadbare. 

Peru, which boasts the world’s highest COVID-19 death rate despite imposing hard lockdowns, was a case in point. Meanwhile, Greece locked down in November 2020 at around 2,500-3,000 cases daily, only to open again for tourism six months later with similar case numbers. Then there was Belarus, a country of over 9 million which did not lock down or introduce a mask mandate, and boasted one of Europe’s lowest COVID death rates all the way up to the Delta surge in Eastern Europe. 

The International Monetary Fund, or IMF, reportedly offered Belarusian President Aleksandr Lukashenko $940 million in COVID assistance on the condition that he imposed harsh pandemic restrictions. Lukashenko said he refused, proclaiming, “the IMF continues to demand from us quarantine measures, isolation, and a curfew. This is nonsense. We will not dance to anyone’s tune.”

By June 2021, only a minority of Belarusian citizens told pollsters they favored more COVID-19 restrictions.

Despite their widespread utilization as a non-pharmaceutical intervention against COVID-19, the shaky evidence for lockdowns does not end with anecdotes and country-specific strategies: dozens of academic and scientific studies call into question their efficacy or otherwise argue that the social, economic, and health related harms they pose significantly outweigh the risks. Their conclusions include the following (thread compiled by twitter user @the_brumby):

  • In Did Lockdown Work? An Economist’s Cross-Country Comparison, Aarhus University Economics Professor Christian Bjørnskov writes that after “[u]sing two indices from the Blavatnik Centre’s Covid 19 policy measures and comparing weekly mortality rates from 24 European countries in the first halves of 2017-2020, and addressing policy endogeneity in two different ways, I find no clear association between lockdown policies and mortality development.”
  • Medical researchers and doctors Rabail Chaudhry, MD, Justyna Bartoszko, MD and Sheila Riazi, MD (University of Toronto Department of Anesthesiology and Pain Medicine), George Dranitsaris, MD (University of Ioannina Department of Hematology) and Talha Mubashir, MD (previously University of Toronto Department of Anesthesiology and Pain Medicine, now at the University of Texas McGovern Medical School Department of Anesthesiology) write in A country level analysis measuring the impact of government actions, country preparedness and socioeconomic factors on COVID-19 mortality and related health outcomes that “government actions such as border closures, full lockdowns, and a high rate of COVID-19 testing were not associated with statistically significant reductions in the number of critical cases or overall mortality.”
  • In Stay-at-home policy is a case of exception fallacy: an internet-based ecological study, academics and researchers at Brazil-based institutions, including the Federal University of Rio Grande do Sul, R. F. Savaris, G. Pumi, J. Dalzochio & R. Kunst address early data favoring lockdowns and stay-at-home policies through an analysis of mathematical models and data from 87 regions worldwide. In “yielding 3,741 pairwise comparisons for linear regression analysis[they] were not able to explain if COVID-19 mortality is reduced by staying at home in ~ 98% of the comparisons.”
  • In Covid-19 Mortality: A Matter of Vulnerability Among Nations Facing Limited Margins of Adaptation, French medical researchers Quentin De Larochelambert, Andy Marc, Juliana Antero, Eric Le Bourg and University of Paris Professor of Physiology Jean-François Toussaint write that the “[s]tringency of the measures settled to fight pandemia, including lockdown, did not appear to be linked with death rate.” Instead, they conclude that nations with stagnating life expectancies and high rates of income and non-communicable disease —in other words, existing characteristics of a nation’s demographics— faced higher mortality rates regardless of government interventions.
  • And in Government mandated lockdowns do not reduce Covid-19 deaths: implications for evaluating the stringent New Zealand response, University of Waikato Economics Professor John Gibson concludes that “Lockdowns do not reduce Covid-19 deaths…[t]he apparent ineffectiveness of lockdowns suggests that New Zealand suffered large economic costs for little benefit in terms of lives saved.”

These dozens of studies are consistent with pre-COVID-19 pandemic literature emphasizing the ineffectiveness of non-pharmaceutical interventions like lockdowns. 

“Almost all [pre-pandemic planning guides before the coronavirus] emphasized respect for civil rights, disrupting societies as little as possible, protecting the vulnerable, and not spreading panic,” said Dr. Bhattacharya. “The lockdowns and the media narrative and the public health narrative of March 2020 violated all those principles.”

In a 2006 paper, Disease Mitigation Measures in the Control of Pandemic Influenza, academics at the Center for Biosecurity of the University of Pittsburgh Medical Center (now known as the John Hopkins Center for Health Security) in Baltimore, Maryland, wrote: “Experience has shown that communities faced with epidemics or other adverse events respond best and with the least anxiety when the normal social functioning of the community is least disrupted.”

Documents as recent as the 2019 World Health Organization (WHO) guide, Non-pharmaceutical public health measures for mitigating the risk and impact of epidemic and pandemic influenza, furthermore, state that the “evidence base on the effectiveness of [Non-Pharmaceutical Interventions] in community settings is limited, and the overall quality of evidence was very low for most interventions.”

While already-existing pandemic literature naturally could not make COVID-19 specific recommendations, a well-established understanding of the general ineffectiveness of non-pharmaceutical interventions for respiratory viruses largely went unheeded as media and government-driven fear gripped the population in early 2020. Everyday people paid and continue to pay the price.

“Making poor people a lot poorer” and shortening life spans

While they may not be effective at limiting the spread of coronavirus, lockdowns are effective at destroying the economy, people’s livelihoods, and perhaps the social fabric itself as individuals grow used to remaining distant from friends, coworkers, family and community.

And while income and education losses, extensive isolation, and other COVID-related disruptions are devastating in the short-term, they also can inflict long-term adverse impacts on the length and quality of life, even decades later. 

Childhood years are vital to shaping an adult’s overall well being, and adverse events that elicit extended stress responses throughout one’s youth can have significant impacts on lifespan, and risk of mental health issues and chronic physical health issues in the long term. 

Long-term unemployment, a common phenomenon during COVID-19, can also shorten life expectancy, with Daniel Sullivan and Till von Wachter concluding in 2009 that mortality rates are 50 to 100 percent higher for individuals the year after involuntary income loss, and 10 to 15 percent higher overall for the next 20 years of life. 

Consistent stress itself, certainly exacerbated by ongoing coronavirus restrictions, can also trigger or exacerbate long-term health problems. Highlighting such issues in detail in COVID-19: Rethinking the Lockdown Groupthink, University of Alberta Clinical Professor in the Department of Pediatrics Dr. Ari Joffe concluded that aggressive interventions such as lockdowns will cost society far more WELLBY, or Well-Being-Years, than foregoing them over time.

Generally, extreme restrictions hit marginalized populations and working class people the hardest, especially in places where many were employed informally, and must therefore leave their homes illegally to work during stay-at-home orders. Fines for breaking restrictions and curfews are often prohibitive, moreover, and fail to address that many people are inadequately housed and cannot consistently follow such rules. 

Even the WHO has appealed against lockdowns, acknowledging the strain lockdowns place on the disadvantaged. “We really do appeal to all world leaders, stop using lockdown as your primary method of control,” WHO COVID-19 envoy Dr. David Nabarro told British broadcaster Andrew Neil. “Lockdowns have just one consequence that you must never ever belittle, and that is making poor people an awful lot poorer.”

As the logic behind “stopping the spread” through indefinite lockdowns is questioned even by top public health authorities, the policy has reappeared with a vengeance in Europe, where it has been weaponized against non-compliant populations and to intimidate citizens into line with government policy. A winter of lockdowns, coercion and threats begins

The government of Austria triggered waves of national protest this November when it became the first in the world to announce a lockdown exclusively imposed on unvaccinated people. Just days before resigning, then-Austrian Chancellor Alexander Schallenberg said he aimed to establish a “threatening backdrop” for those who refused to take the jab, promising that “Christmas will be uncomfortable” for them.

Days later, Schallenberg extended the lockdown to all citizens, imposing fines of up to $1660 for anyone who violates the restriction, per violation, and announced a policy of compulsory vaccination for all. For those unable to pay fines for remaining unvaccinated, their refusal “can be converted into a prison sentence,” as The Guardian reported. Those who did not take the jab by December 12 would remain under lockdown, underscoring the punitive agenda behind the policy.

Slovakia followed Austria’s lead, imposing a lockdown on unvaccinated citizens on November 18 before it expanded the policy to the entire population. The next country to impose an unvaccinated-only lockdown is Germany, where public health officials blame a “pandemic of the unvaccinated” for the fourth wave of COVID-19 cases. “Probably by the end of this winter, as is sometimes cynically said, pretty much everyone in Germany will be vaccinated, cured or dead,” remarked German Minister of Health Jens Spahn.

However, in Portugal, which has run out of people to vaccinate due to the country’s near-total uptake, infections are also surging, prompting the government to declare a state of emergency and impose a new bevy of restrictions. And in Gibraltar, officially the most jabbed place on the planet, with a 99% vaccination rate, authorities cancelled official Christmas festivities following a surge of COVID-19 cases. The news confirmed a November 2021 study from the US CDC that found that vaccinated people are “no less infectious” than those who are unvaccinated.

Just as the failure of vaccines to prevent the spread of COVID-19 became apparent, international media began filling up with panicked headlines about a terrifying new variant. Labeled “Omicron” by the World Health Organization on November 26, 2021, the variant reportedly originated in southern Africa. The doctor who discovered the variant has said all cases tend to be mild so far. According to the government of Botswana, it arrived thanks to four fully vaccinated travelers

Among the first prominent public health pundits to hype the supposed danger of Omicron was Tom Peacock, a virologist from the Imperial College of London’s department of infectious diseases – a wing of the same Bill Gates-sponsored institution responsible for the discredited models that influenced the UK and US government’s first lockdowns by grossly overestimating the death toll from COVID-19.

Even before the threat from the so-called Omicron variant is known, the US and EU have enacted new restrictions which are certain to ravage the already weathered economies of southern Africa. On November 26, the Biden administration issued a ban on flights from South Africa, Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique, and Malawi. (At the time of publication, several of these countries have yet to register a single Omicron case).

“We are now entering a world where borders close for every variant,” Toby Green, author of The Covid Consensus, commented to The Grayzone. “It’s quite clear that Western governments and media don’t care at all about lives and livelihoods in poor countries. Tour guides, hotel porters, restaurateurs, those who depend on international conferences and study abroad visits – a large proportion of service industries in the Global South – will be devastated. And who benefits? Service industries in rich countries, where the profiteering of the last 20 months will get spent.”

For millions at the mercy of the new wave of restrictions, a dark winter has just begun.

America’s Bottom 50% Have Nowhere To Go But Down

By Charles Hugh Smith

Source: Of Two Minds

One might anticipate that the bottom 50%’s meager share of the nation’s exploding wealth would have increased as smartly as the wealth of the billionaires, but alas, no.

America’s economy has changed in ways few of the winners seem to notice, as they’re too busy cheerleading their own brilliance and success. In the view of the winners, who just so happen to occupy all the seats at the media-punditry-Federal Reserve, etc. table–the rising tide of stock, bond and real estate bubbles are raising all boats. What’s left unsaid is except for the 50% of boats with gaping holes below the waterline, i.e. stagnant wages and a fast-rising cost of living.

The truth the self-satisfied winners don’t include in their self-congratulatory rah-rah is there’s no place for the bottom 50% of American households to go but down. All the winnings flow to those who already owned assets back when they were affordable– the already-wealthy–whose wealth has soared as assets have shot to the moon while the the burdens of inflation and debt service hit the bottom 50% the hardest.

Meanwhile, the Federal Reserve is whining that inflation isn’t high enough yet for their refined tastes. Boo-hoo, how sad for the Fed–inflation isn’t yet high enough. Oh wait–didn’t they each mint millions by front-running their own policies? No wonder they’re not worried about inflation.

The reality few acknowledge is that globalization and financialization have stripped the American economy of low-skilled jobs that don’t demand much of the employee. The reality is that a great many people don’t have what it takes to learn high-level skills and work at a demanding pace under constant pressure–the description of the average job in America.

There were once millions of low-skill, low-pay jobs for people who for whatever mix of reasons were unable to muster the wherewithal to fulfill the fantasy of working extra hard, going to night school, soaking up high-level skills, moving quickly up the ladder to higher pay, buying the starter home and then moving up the food chain to middle class security from there.

The cost of living was low enough that those working these low-skill, low-pay jobs could still have an independent life. There were still low-cost rentals, often derided by the wealthy, in nooks and crannies of even the costliest cities. (I once lived in a room stuffed with old tax records in a poolside shack in an upscale neighborhood. The room had been cleared for a single bed and a path to the decrepit bathroom. Its most important attribute was that I could afford it on my low earnings.)

Affordable housing has vanished, eliminated by the financialization of America’s economy. Once landlords pay double the price for the property, rents have to double to pay their higher expenses. The apartment didn’t double in size or amenities–the rent doubled without any increase in utility to the renter. You get nothing more for double the price–nice.

Yes, people could make better choices, and some do. The point here is the game is rigged against those in the lower tier of the economy who can no longer afford a house or other stake in the only winning game in town–speculative asset bubbles. Go ahead and work a second job and go to night school–you’ll still be left behind the already-rich.

Globalization opened every job in America to global competition via offshoring or the influx of undocumented workers so desperate to support their families back home that no pay was too low and no working condition too wretched to refuse.

Many overindulged pundits who never worked an honest day in their lives sneer about burger flippers without realizing how hard those burger flippers have to work. I doubt the well-dressed pundits, snobbish about their university degrees and general brilliance, could manage to work a single day in a demanding fast-food job.

As the price of housing and other assets have soared, enriching the already rich, they’re out of reach for the bottom 50% who struggle to pay their bills as wages have stagnated and the costs of essentials have skyrocketed.

The rising cost of parking tickets, junk fees, user fees, utilities and food don’t impact the well-paid top 5% technocrat class, whose stake in the Everything Bubble keeps expanding by tens or hundreds of thousands of dollars. But for the bottom 50%, those incremental increases are, when added to higher rents, absolutely crushing.

As for getting high-quality healthcare that includes mental health support–those are reserved for the rich. But no worries, self-medication is always a “choice.”

Getting a boost in pay from $12 an hour to $15 an hour is welcome, but that doesn’t put the worker any closer to affording a house or equivalent stake in the Everything Bubble.

The new feudalism is masked by the glossy SillyCon Valley PR of a gig economy where (per the PR fantasy) bright, shiny and totally independent workers freely choose to serve the winners in the rigged sweepstakes for low pay and zero benefits.

In the SillyCon Valley PR, serfs freely choose to serve their noble masters for nothing but survival because they love the “freedom” and “choice” of kissing the nobility’s plump derrieres. (After all, there were “choices” even back in the good old days of feudalism–one could join the brigands in the forest, or enlist in a poorly paid mercenary army where the odds of dying were high–you know, “choices” of “gigs.”)

One might anticipate that the bottom 50%’s meager share of the nation’s exploding wealth would have increased as smartly as the wealth of the billionaires, but alas, no–the bottom 50%’s share of stocks (equities) actually plummeted in the the glorious decades of Federal Reserve free money for financiers, stock buy-backs and asset bubbles.

All this suits the billionaires and those collecting the crumbs of the Everything Bubble just fine. So what if the bottom 50% have nowhere to go but down? There’s plenty of room in the homeless encampment for another broken down station wagon or an old camper. There’s lots of “choices.”

And no consequences for the winners, of course, because The Fed has our backs.

America Is Now a Kleptocrapocracy

By Charles Hugh Smith

Source: Of Two Minds

I’ve coined a new portmanteau word to describe America’s descent: kleptocrapocracy, a union of kleptocracy (a nation ruled by kleptocrats) and crapocracy, a nation drowning in a moral sewer of rampant self-interest in which the focus is cloaking all the skims, scams, rackets and bezzles in some virtuous-sounding garb, a nation choking on low-quality junk ceaselessly hawked by robocalls, spam, phishing and Big Tech manipulation.

It’s little wonder trust has collapsed in America: the only thing we can trust is whatever’s being pitched is deceptively packaged to mask the self-interest and profiteering of the perps.

The stench from the decomposing carcasses of once-trusted institutions is everywhere. Insiders and the marketers they pay to cloak their grifting are banking bennies at the expense of hapless debt-serfs who fell for the scam. You need these three costly medications, and then when the side-effects kick in, you need six more to counteract the first three, and so on. But trust us; your “health” (heh) is our only concern. Uh, sure.

Why do state universities need to market themselves like a roto-rooter service? Maybe because they’re both working the sewers: state universities are exploiting the student loan sewers, desperate to recruit another batch of debt-serfs who fell for the 3-card monte game in which a lifetime of debt is exchanged for a credential of dubious value.

The competition for the remaining pool of debt-serfs is heating up, so like everything else in America, the game is now all about marketing, virtue-signaling, exploiting Big Tech manipulation, and so on.

Doing something useful is now for chumps. The opportunities in America are all about getting rich by doing, well, nothing: skimming 20% “guaranteed” returns in DeFi, mining cryptos, trading stablecoins, selling volatility, etc.–getting rich and then living large on the sweat of the chumps who are still working (poor deluded fools!).

The obvious goal here is for everyone to get in on trading stablecoins, buying rentals with DeFi, churning meme stocks, etc. Why should anyone lower themselves to doing something useful anymore? Why bother?

Labor has been degraded for decades in speculative-frenzy America. Why work when the Fed has our backs and all those newly issued trillions are up for grabs? Doing something useful is for chumps.

Nobody seems to ask what happens when we’re all minting fortunes off speculative churn and there’s nobody filling potholes, stocking shelves or carrying bags of QuikCrete to customers’ trucks.

And while we’re on the subject of sewage: if America’s security services and Big Tech oligarchies track everything and everyone, why are we drowning in robocalls, spam, SMS-spam (smishing), etc.? Couldn’t the NSA/CIA track the spammers and robo-callers down and rendition them (warrantlessly, of course) to a hellhole camp in an unnamed country?

Of course they could. But the ruination of everyday life is of no concern to the kleptocrats (fly with me to the stars!) or our dysfunctional government, which has become nothing more than an invitation-only auction of favors that elevates the relentless pursuit of self-interest and profiteering to new kleptocratic heights.

Please don’t make the mistake of expecting anything to work properly in America. The components are garbage, the parts are on back-order, the people who knew how to make the kludgy mess function just quit in disgust, and we’ll have to get back to you about your request, as our service staff just left to launch an OnlyFans site.

I don’t want to work, I’m minting money speculating, but gol-darn it, I want everyone else to wait on me and meet my needs for low, low quality goods and services at not-so-low prices, and if I’m not treated well enough by everyone earning chump-change, then I’ll freak out, and if that doesn’t pan out, I’ll blame it all on my meds. Accountability is like work–only for chumps.

Trust me, everything’s going great and we’re all going to get wealthier and wealthier until we won’t be able to take it any more, it will be so great. I hope everyone here is hungry because the banquet of consequences is being served.

The U.S. Economy In a Nutshell: When Critical Parts Are On “Indefinite Back Order,” the Machine Grinds to a Halt

By Charles Hugh Smith

Source: Of Two Minds

Setting aside the “transitory inflation” parlor game for a moment, let’s look at what happens when critical parts are unavailable for whatever reason, for example, they’re on back order or indefinite back order, i.e. the supplier has no visibility on when the parts will be available.

If the part that blew out is 0.1% of the entire machine, and the other 99.9% still works perfectly, the entire machine is still dead in the water without that critical component. That is a pretty good definition of systemic vulnerability and fragility, a fragility that becomes much, much worse if there are two or three components which are on indefinite back order.

This is the problem with shipping much of your supply chain overseas: you create extreme systemic vulnerability and fragility even as you rake in big profits from reducing costs. Speaking of costs, let’s look at the costs of having a large, costly, complex mechanism sitting idle in a non-functioning state due to some broken element for which there is no substitute available. Whatever productive capacity the mechanism, process, etc. had is now stuck at zero.

Buying a new replacement is extremely costly, and that’s not always available for all the same reasons that parts and components aren’t available. Finding someone to fabricate a new component is not easy due to the wholesale transfer of manufacturing moxie and capability overseas.

You might be able to find someone to weld a replacement strut, but try finding someone to fab a new bicycle derailleur or better yet, a multilayer semiconductor chip. What about 3-D fabrication? Doesn’t that solve this problem? If the part can be “printed,” yes, but there are limits on what can be 3-D fabbed. You can’t 3-D fab a complex thermostat or controller, for example. You can’t 3-D fab a rubber gasket, either, or a great many other bits of petrochemical-based manufacturing.

Scarcities are not limited to parts and components; skilled people can be scarce, too. For example, there is a limited supply of ICU doctors and nurses. The training required to work in an ICU is specialized and experiential; throwing someone with minimal training in is not a substitution that’s going to work. You can’t order an ICU staff from China or print one digitally the way the Federal Reserve creates currency out of thin air. It takes many years to train the staff to function at a high level in ICU.

A great many such labor scarcities exist for skilled workers who cannot be replaced except by someone with the same training and years of experience. This is one reason ICUs can break down: there is no replacement staff available, and no way to “print more.”

It turns out there’s also a scarcity of people willing to do the dirty-work jobs America needs done for wages that haven’t kept up with inflation. As I have explained here, the $1.65 minimum wage I earned in 1970, if factored for real-world inflation, is around $18 per hour, and arguably closer to $20 per hour.

The solution is to raise the pay to levels that attract workers, but then this requires raising prices on the good and services to the point that customers can no longer afford them.

But wait, can’t we automate all work and deliver full-gee-whiz free-money, no-work communism to everyone? I invite everyone who reckons this is in the realm of the do-able to design, program and manufacture an automated robot that can trundle out to the laundry room, pop open a broken clothes dryer, diagnose the problem, manage to find a new controller board, fit it correctly and properly reconnect all the little wiring bits, close it up, test it, lift the dryer back on the washing machine and do all that for the relatively modest cost of a human repairperson. When you accomplish fabricating and programming that robot to do all the work without instruction or oversight, by all means let us all know how much it cost to design, program and manufacture, what the payback of the development and manufacturing process will cost amortized over the (short) life of the robot and how reliable it is in the real world.

The point is, fantasies are nice but reality is far more demanding.

There can also be scarcities of competence. There may be replacements who claim competence, but when reality intrudes on the shuck-and-jive, their competence was illusory, and the net result is the entire institution can be described by President G.W. Bush’s memorable phrase, this sucker’s going down.

There can also be scarcities of institutional infrastructure and capacity. Once the institution, enterprise, state agency, etc. has been stripmined of redundancy, institutional memory and competence, then the first scarcity that cannot be replaced is the first domino that topples all the other dominoes of systemic vulnerability and fragility.

The Federal Reserve can print trillions of dollars and the federal government can borrow and blow trillions of dollars, but neither can print or borrow supply chains, scarce skills, institutional depth or competence. That nice shiny new semiconductor fab you reckon will resolve the chip shortage? You can print the billions of dollars needed in an instant, but the machinery, expertise and time can’t be conjured quite so easily. That fab is years away from completion no matter how many freshly conjured dollars you throw into the air.

When Critical Parts Are On “Indefinite Back Order,” the Machine Grinds to a Halt: that’s the U.S. economy in a nutshell.

A great many essential components in America are on indefinite back order, including the lifestyle of endless globally sourced goodies at low, low prices. That lifestyle is out of stock and cannot be replaced with financialization fakery.

Hey, Federal Reserve, can you conjure up a non-corrupt financial system, a domestic supply chain, and an economy of open competition, transparency, accountability and competence? If not, you are even more worthless than we feared.

The Number Of Billionaires In America Has Absolutely Exploded During The Pandemic

By Michael Snyder

Source: Investment Watch Blog

For the wealthy and the ultra-wealthy, happy days are here again.  Even though we have just been through one of the most difficult 12 months in our history, the number of billionaires has increased dramatically during this pandemic.  That seems rather odd, but there is no denying that the rich have gotten even richer during this crisis.  In fact, Forbes revealed this week that the number of billionaires has risen by about 30 percent over the past year…

The number of newly minted and reissued billionaires soared last year, Forbes reported Tuesday in its annual ranking, a staggering accumulation of personal wealth that stands in sharp contrast with the widespread economic struggles unleashed by the coronavirus pandemic.

The number of billionaires on Forbes’ 35th annual ranking swelled by 660 to 2,755 — a roughly 30 percent jump from a year ago — and 493 of them are first-timers. Seven of eight are richer than they were before the pandemic. Forbes calculates net worth by using stock prices and exchange rates from March 5.

Of course thanks to the reckless policies of our leaders, a billion dollars does not go nearly as far as it once did.

But still, a billion dollars is a whole lot of money.

Needless to say, the biggest reason why the number of billionaires has exploded is because we have been witnessing one of the greatest stock market rallies in history.

A year ago, the Dow Jones Industrial Average was sitting at about 23,000.

Today, it is above 33,000, and some analysts expect it to shoot quite a bit higher throughout the rest of 2021.

Stock prices have never been more detached from economic reality as they have been over the past 12 months, and they have only risen so high because of unprecedented intervention by the Federal Reserve and because of extremely wild spending by the federal government.

Many have warned that the party will inevitably come to a crashing end at some point, but it hasn’t happened yet.

So for now, the market optimists look like champions.

And now that Joe Biden is in the White House, the corporate media is telling us that we are on the verge of a grand new era of American prosperity.  The corporate media insists that the pandemic will soon be behind us thanks to the vaccines, and the talking heads on television envision a return to the good old days very quickly.

In fact, Barron’s is already declaring that the “U.S. economy might be stronger than it’s ever been”.

And CNN is trying to convince us that “America’s economy could be heading for a golden era of growth”.

Really?

If the U.S. economy is actually improving, then why are new claims for unemployment benefits going up?

The number of Americans filing first-time unemployment benefits unexpectedly rose last week, according to the Labor Department.

Data released Thursday showed 744,000 Americans filed first-time jobless claims in the week ended April 3. Analysts surveyed by Refinitiv were expecting 680,000 filings. The previous week’s total was revised higher by 9,000 to 728,000.

If economic conditions were getting better, that number should be going the other way.

Even I didn’t expect a number this bad.

Prior to 2020, the all-time record high for new unemployment claims in a single week was 695,000.  That record was established in October 1982, and it stood all the way until the COVID pandemic hit the U.S. early last year.

Sadly, we have been above 695,000 almost every single week since then.

The numbers compiled by the states tell us that nearly three-quarters of a million Americans filed new claims for unemployment benefits last week.  That is an absolutely catastrophic number.  Nobody should be talking about a “golden era of growth” or claiming that the “economy might be stronger than it’s ever been” until we get that number back down to pre-pandemic levels.

And right now, we are at a level that is about three times as high as pre-pandemic levels.

Look, the truth is that anyone that tells you that unemployment is low in the United States is lying to you.

According to John Williams of shadowstats.com, if honest numbers were being used the unemployment rate in the United States would be 25.7 percent right now.

That is the sort of number that we would expect to see during an economic depression, and the truth is that we are in an economic depression.

Over the past year, more than 70 million new claims for unemployment benefits have been filed, and approximately 4 million U.S. businesses have gone out of existence permanently.

But don’t worry, the stock market is hovering near all-time record highs and the corporate media is telling you that everything is going to be wonderful now that Joe Biden is in control.

Come on man!

You can’t really believe that stuff that they are shoveling.

With each passing day, more Americans are losing their jobs, more Americans are falling out of the middle class, and the cost of living just keeps going up even higher.

In fact, we just learned that global food prices have now gone up for 10 months in a row

The global food-price rally that’s stoking inflation worries and hitting consumers around the world shows little sign of slowing.

Even with grain prices taking a breather on good crop prospects, a United Nations gauge of global food costs rose for a 10th month in March to the highest since 2014. Last month’s advance was driven by a surge in vegetable oils amid stronger demand and tight inventories, according to Abdolreza Abbassian, a senior economist at the UN’s Food and Agriculture Organization.

I am going to continue to watch global food prices very carefully, because I believe that it will be a very important trend in the months and years ahead.

But for now, the good news is that at least economic conditions are relatively stable.

Yes, things are not nearly as good as they were before the pandemic, but at least they are not getting a whole lot worse.

So even though things are not great, we should enjoy this period of relative stability while we still can, because it definitely will not last.