Regime Change & Covid-19

Some further thoughts on the Novel Covid-19.  Health systems around the world have been woefully late to the party, largely thanks to governments not wishing to sow the seeds of panic.  Unfortunately the new lockdown/quarantine measures that may be effective against the virus over a period of time are also tremendously effective against the wider economic/social habitat.  Interest rate cuts are largely ceremonial unless these are fed directly into the hands of debt holders.  Moreover large fiscal stimulus and support of individuals and businesses across the spectrum are likely needed to prevent a system regime change.  Unlike 2008 where we were still able to drown our sorrows amongst friends, virtually all extraneous social expenditure is now increasingly under wraps.  We cannot spend more because we are not allowed to and whole swathes of businesses, industries and individuals are being affected.  The fiscal, social and medical supports our modern societies may well need to get us through will rewrite the economic textbooks that have for too long excluded medical, social, community and environmental aspects of life from the market pricing model.

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