Peter Schiff: The Fed Has Never Been Right

Peter Schiff: The Fed Has Never Been Right

Tyler Durden

Thu, 10/29/2020 – 16:43

Via SchiffGold.com,

Peter Schiff delivered a key-note speech at the Virtual Investor Day Conference. He walked through the history of the Federal Reserve’s monetary policy over the last several decades and explained the inevitable outcome. Peter’s recap of Fed history leads you to an undeniable conclusion: the Federal Reserve has never been right. And it has set us up for an even bigger crisis.

Peter opened his talk saying that he thinks we are entering the final chapter of the book Alan Greenspan started to write.

And I have a feeling he had an understanding of how badly it was going to end. But unfortunately, a lot of people who have been adding pages or chapters to that book since Greenspan resigned really don’t have any idea what’s coming.”

Greenspan started the book by unleashing the loose money policy that blew up the dot-com bubble.

When that bubble popped, instead of admitting his mistakes, Greenspan ignored them and tried to revive the economy by inflating a bigger bubble in the real estate market than the bubble that had just popped in the stock market. And the Fed succeeded in inflating that bubble. But that was not a success. It was a failure.”

Peter reminds us that he warned that the Fed policy was distorting the economy. He knew that it was creating a bubble economy. People were using the inflated value of their homes as ATMs and that drove consumer spending. People were living beyond their means. Nobody was saving.

So, the whole economy was distorted by the malinvestments and bad decisions that were being made as a result of artificially low interest rates.”

When the Fed tried to normalize, the bubble popped, the mortgage market blew up, and that gave us the Great Recession.

In the wake of the 2008 financial crisis, the Federal Reserve repeated the process, dropping interest rates to zero and launching quantitative easing. Ben Bernanke promised QE was just temporary – that the Fed was not monetizing the debt. He promised the Fed would shrink its balance sheet once the crisis passed. At the time, Peter said it was impossible. He said even if the Fed tried to normalize rates and shrink its balance sheet, it would fail.

Everything the Fed said about their ability to normalize rates and shrink the balance sheet was wrong. I said they were wrong as they were saying it. They never were able to normalize interest rates. They never came close to returning the balance sheet to pre-crisis levels.”

In Q4 2018, the Fed abandoned rate hikes at about 2.5% – not even close to normal. They called off quantitative tightening. By 2019, the Fed was back to rate cuts and the launched QE, all the while claiming it wasn’t QE. The Fed told us the pivot back to loose monetary policy was only temporary, calling it a “midcourse correction.”  But Peter said we were going back to zero and that’s exactly what happened.

And here we are today with the central bank running QE infinity and saying rates will stay at zero for years.

We are now the banana republic that Ben Bernanke assured us we would never become.”

Peter said he went through the history of Fed failures to make a point that should be pretty obvious.

The Federal Reserve has never been right. Everything they have said about the efficacy of their policies, what their policies would create, and their ability to reverse them or unwind them, has been wrong. And it’s amazing how consistently wrong they have been.”

And now they are pushing toward the logical conclusion.

We are headed for a US dollar crisis and a sovereign debt crisis. The magnitude of this crisis will be unlike anything we’ve ever experienced. Because this is not just mortgages blowing up. This is the credit of the United States government. This is the risk-free asset becoming the most toxic asset on the planet. And it’s not just US Treasuries that are going to collapse, but it’s the entire US-denominated bond market which is built on top the foundation of US Treasuries. So, Treasuries go — it all goes — corporate bonds, muni bonds, mortgages. Any debt instrument that is denominated in US dollars is going to collapse.”

So where will people run?

Gold.

The world is going to return to gold-backed paper money.”

via ZeroHedge News https://ift.tt/2HIQH7k Tyler Durden

Supreme Court Ruling Means We Probably Won’t Know Who Won Pennsylvania Until Days After Election

ppaphotos763063

Pennsylvania is the state most likely to decide next week’s presidential election, but a Supreme Court ruling this week has all but guaranteed that we won’t know who won the Keystone State’s 20 electoral votes on Election Day.

The Supreme Court on Wednesday rejected a Republican effort to force Pennsylvania to discard mail-in ballots received after Election Day, but the high court left open the possibility of re-hearing the case after the election if those ballots could alter the outcome. Last month, the Pennsylvania Supreme Court ordered counties to accept and count ballots that arrive through November 6, three days after the election, even if those ballots don’t contain postmarks showing when they were mailed.

If the election in Pennsylvania is close—and if the overall results hinge on who wins Pennsylvania—those late-arriving ballots are likely to end up being 2020’s version of the infamous “hanging chads” that defined the 2000 presidential election in Florida.

In a statement announcing the court’s decision on Wednesday (no formal opinions were issued), Justices Samuel Alito, Clarence Thomas, and Neil Gorsuch said that “it would be highly desirable to issue a ruling” on the Pennsylvania ballot rules before the election, but that the court decided “there is simply not enough time” to give the issue a proper hearing “at this late date.”

Meanwhile, Pennsylvania’s secretary of state issued new guidance to county-level election offices on Wednesday instructing officials to keep late-arriving ballots separate from absentee ballots that arrive before or during Election Day.

That should help avoid some of the potential chaos. But other issues are looming too.

Unlike most other states, Pennsylvania does not allow mailed-in ballots to be opened or counted before Election Day, which means election offices have not been able to get a head start on what’s likely to be a record number of absentee ballots cast this year. Under state law, counties can begin counting those ballots at 7 a.m. on Election Day, but some counties have already decided they won’t begin counting any absentee ballots until the day after the election, PennLive reports. In Cumberland County, a Republican-run suburban county near Harrisburg, that means at least 45,000 votes won’t be counted the day of the election.

Statewide, there are expected to be more than 2 million mail-in ballots waiting to be counted. State officials maintain that the “overwhelming majority” of those votes will be counted by the Friday following Election Day, The Philadelphia Inquirer’s Angela Couloumbis reports. Still, there’s plenty of room for the results to shift in the days after the election. Keep in mind that President Donald Trump won Pennsylvania by less than 50,000 votes in 2016.

“We need to brace ourselves for a ‘blue shift‘ in states like Pennsylvania,” advises FiveThirtyEight‘s Geoffrey Skelley. “That is, states that primarily report Election Day results first could show Republicans with an initial lead on election night only to then shift toward Democrats as more mail ballots are counted.”

In short, it looks like the best-case scenario in Pennsylvania is that a winner is announced before the end of next week. The worst-case scenario sees a Florida 2000–type mess and the election’s outcome landing in front of the Supreme Court.

If that happens, newly minted Justice Amy Coney Barrett will be part of the decision-making process. She did not participate in this week’s decision to punt the Pennsylvania ballot issue—or similar cases involving late-arriving mail-in ballots in North Carolina and Wisconsin—because she did not have time to fully review the cases. She did not recuse herself.

On Monday, Trump tweeted that states “must have final total on November 3rd.”

In Pennsylvania—and probably in a few other places too—that is simply impossible.

from Latest – Reason.com https://ift.tt/34C1BVf
via IFTTT

What Current Data Tell Us About How the Pandemic Could Play Out This Winter

CoronaYakobchukDreamstime

Winter is coming, and diagnosed cases of COVID-19 are increasing in the U.S. (and in Europe). Way back on April 30, researchers associated with the Center for Infectious Disease Research and Policy (CIDRAP) released a report in which they outlined three scenarios, based on past influenza pandemics, for how the COVID-19 pandemic might play out in the United States over the next couple of years.

In Scenario 1, the first wave of COVID-19 in spring 2020 is followed by a series of repetitive smaller waves that occur through the summer and then consistently over a one- to two-year period, gradually diminishing sometime in 2021. The occurrence of these waves may vary geographically and may depend on what mitigation measures are in place and how they are eased.

In Scenario 2, the first wave of COVID-19 in spring 2020 is followed by a larger wave in the fall or winter of 2020 and one or more smaller subsequent waves in 2021. This pattern will require the reinstitution of mitigation measures in the fall, in an attempt to drive down the infection’s spread and to prevent health care systems from being overwhelmed. This pattern is similar to what was seen with the 1918–19 Spanish influenza pandemic.

In Scenario 3, the first wave of COVID-19 in spring 2020 is followed by a “slow burn” of ongoing transmission, but without a clear wave pattern. This third scenario likely would not require the reinstitution of mitigation measures, although cases and deaths would continue to occur.

So: Six months later, how has the pandemic actually been evolving? Let’s take a look at the the daily diagnosed cases as recorded by the COVID Tracking Project.

Eyeballing the trend in daily diagnosed U.S. cases would seem to rule out the slow burn of Scenario 3, but the data cannot yet distinguish between the peaks and valleys in Scenario 1 and the fall peak in Scenario 2.

Although the number of diagnosed cases is ascending, the COVID Tracking Project’s data on deaths have been flattish at around 900 per day. That suggests that a different, less vulnerable age cohort has been getting infected and that clinicians have gotten better at treating COVID-19 patients. But in the absence of widely deployed effective vaccines, that trend isn’t likely to remain flat if the pandemic tracks Scenario 2.

from Latest – Reason.com https://ift.tt/2JkmNXN
via IFTTT

Supreme Court Ruling Means We Probably Won’t Know Who Won Pennsylvania Until Days After Election

ppaphotos763063

Pennsylvania is the state most likely to decide next week’s presidential election, but a Supreme Court ruling this week has all but guaranteed that we won’t know who won the Keystone State’s 20 electoral votes on Election Day.

The Supreme Court on Wednesday rejected a Republican effort to force Pennsylvania to discard mail-in ballots received after Election Day, but the high court left open the possibility of re-hearing the case after the election if those ballots could alter the outcome. Last month, the Pennsylvania Supreme Court ordered counties to accept and count ballots that arrive through November 6, three days after the election, even if those ballots don’t contain postmarks showing when they were mailed.

If the election in Pennsylvania is close—and if the overall results hinge on who wins Pennsylvania—those late-arriving ballots are likely to end up being 2020’s version of the infamous “hanging chads” that defined the 2000 presidential election in Florida.

In a statement announcing the court’s decision on Wednesday (no formal opinions were issued), Justices Samuel Alito, Clarence Thomas, and Neil Gorsuch said that “it would be highly desirable to issue a ruling” on the Pennsylvania ballot rules before the election, but that the court decided “there is simply not enough time” to give the issue a proper hearing “at this late date.”

Meanwhile, Pennsylvania’s secretary of state issued new guidance to county-level election offices on Wednesday instructing officials to keep late-arriving ballots separate from absentee ballots that arrive before or during Election Day.

That should help avoid some of the potential chaos. But other issues are looming too.

Unlike most other states, Pennsylvania does not allow mailed-in ballots to be opened or counted before Election Day, which means election offices have not been able to get a head start on what’s likely to be a record number of absentee ballots cast this year. Under state law, counties can begin counting those ballots at 7 a.m. on Election Day, but some counties have already decided they won’t begin counting any absentee ballots until the day after the election, PennLive reports. In Cumberland County, a Republican-run suburban county near Harrisburg, that means at least 45,000 votes won’t be counted the day of the election.

Statewide, there are expected to be more than 2 million mail-in ballots waiting to be counted. State officials maintain that the “overwhelming majority” of those votes will be counted by the Friday following Election Day, The Philadelphia Inquirer’s Angela Couloumbis reports. Still, there’s plenty of room for the results to shift in the days after the election. Keep in mind that President Donald Trump won Pennsylvania by less than 50,000 votes in 2016.

“We need to brace ourselves for a ‘blue shift‘ in states like Pennsylvania,” advises FiveThirtyEight‘s Geoffrey Skelley. “That is, states that primarily report Election Day results first could show Republicans with an initial lead on election night only to then shift toward Democrats as more mail ballots are counted.”

In short, it looks like the best-case scenario in Pennsylvania is that a winner is announced before the end of next week. The worst-case scenario sees a Florida 2000–type mess and the election’s outcome landing in front of the Supreme Court.

If that happens, newly minted Justice Amy Coney Barrett will be part of the decision-making process. She did not participate in this week’s decision to punt the Pennsylvania ballot issue—or similar cases involving late-arriving mail-in ballots in North Carolina and Wisconsin—because she did not have time to fully review the cases. She did not recuse herself.

On Monday, Trump tweeted that states “must have final total on November 3rd.”

In Pennsylvania—and probably in a few other places too—that is simply impossible.

from Latest – Reason.com https://ift.tt/34C1BVf
via IFTTT

What Current Data Tell Us About How the Pandemic Could Play Out This Winter

CoronaYakobchukDreamstime

Winter is coming, and diagnosed cases of COVID-19 are increasing in the U.S. (and in Europe). Way back on April 30, researchers associated with the Center for Infectious Disease Research and Policy (CIDRAP) released a report in which they outlined three scenarios, based on past influenza pandemics, for how the COVID-19 pandemic might play out in the United States over the next couple of years.

In Scenario 1, the first wave of COVID-19 in spring 2020 is followed by a series of repetitive smaller waves that occur through the summer and then consistently over a one- to two-year period, gradually diminishing sometime in 2021. The occurrence of these waves may vary geographically and may depend on what mitigation measures are in place and how they are eased.

In Scenario 2, the first wave of COVID-19 in spring 2020 is followed by a larger wave in the fall or winter of 2020 and one or more smaller subsequent waves in 2021. This pattern will require the reinstitution of mitigation measures in the fall, in an attempt to drive down the infection’s spread and to prevent health care systems from being overwhelmed. This pattern is similar to what was seen with the 1918–19 Spanish influenza pandemic.

In Scenario 3, the first wave of COVID-19 in spring 2020 is followed by a “slow burn” of ongoing transmission, but without a clear wave pattern. This third scenario likely would not require the reinstitution of mitigation measures, although cases and deaths would continue to occur.

So: Six months later, how has the pandemic actually been evolving? Let’s take a look at the the daily diagnosed cases as recorded by the COVID Tracking Project.

Eyeballing the trend in daily diagnosed U.S. cases would seem to rule out the slow burn of Scenario 3, but the data cannot yet distinguish between the peaks and valleys in Scenario 1 and the fall peak in Scenario 2.

Although the number of diagnosed cases is ascending, the COVID Tracking Project’s data on deaths have been flattish at around 900 per day. That suggests that a different, less vulnerable age cohort has been getting infected and that clinicians have gotten better at treating COVID-19 patients. But in the absence of widely deployed effective vaccines, that trend isn’t likely to remain flat if the pandemic tracks Scenario 2.

from Latest – Reason.com https://ift.tt/2JkmNXN
via IFTTT

‘Massive Traffic Jams’ Across Paris As People Flee Ahead Of Second COVID Lockdown 

‘Massive Traffic Jams’ Across Paris As People Flee Ahead Of Second COVID Lockdown 

Tyler Durden

Thu, 10/29/2020 – 16:32

On Wednesday, French President Emmanuel Macron announced that France would enter a full lockdown from midnight on Thursday until the end of November due to the second wave of the coronavirus pandemic. 

With hours to go before the month-long national lockdown takes effect, videos have surfaced on Twitter, showing massive traffic jams of people trying to escape the city as lockdowns go into effect. 

“Traffic is barely moving in every direction as far as the eye can see. Lots of honking and frustrated drivers,” said one Twitter user. 

Another Twitter user suggests “traffic jams around Paris tonight” could be due to “people leaving the capital before lockdown.”

Using real-time data to confirm, that, in fact, the videos posted by citizen journalists in Paris are accurate – TomTom traffic data shows much of the city is in serious gridlock. 

TomTom real-time data shows a massive spike in Traffic Thursday night, the highest congestion so far this week, as lockdowns are only a few hours away. 

While people flee Paris ahead of lockdowns, it wouldn’t be shocking if anti-lockdown protests flared up across the city this weekend. 

via ZeroHedge News https://ift.tt/31UeqZk Tyler Durden

Amazon Slides Despite Crushing Expectations, Guiding Sharply Higher

Amazon Slides Despite Crushing Expectations, Guiding Sharply Higher

Tyler Durden

Thu, 10/29/2020 – 16:24

Heading into today’s earnings call juggernaut which sees over $5 trillion in market cap report among just 4 companies (AAPL $1.9TN, AMZN $1.6TN, GOOGL $1.1TN, FB $800BN) Amazon had once again emerged as the one FAAMG stock that was viewed as the cleanest clean shirt among the uber-mega-cap techs (unlike Facebook and Google it has no risky ad exposure; unlike Apple it has no risky China exposure, unlike Microsoft its upside isn’t capped) especially with its consensus eearnings estimates rising sharply in recent months…

… helping the stock soar 75% in 2020 hitting a new all time high, and a near record market cap of $1.6 trillion, roughly where it was during its Q2 earnings calls (which saw the company report blockbuster earnings and guide sharply higher) on expectations that the online retailer would be the biggest beneficiary of the transformation in US society to one where most work from home and just order random stuff online while conventional retailers rush to file for bankruptcy.

So was all this optimism – and stock price surge – justified? Well, apparently yes and bigly so because the company not only smashed earnings expectations for the second quarter in a row, but also reported net sales for the second quarter that beat the highest analyst estimate.

  • Q3 Revenue of $96.1 BN, Exp. $92.71BN; That as Bespoke notes, is 39% higher than the $69 billion in revenues from Q3 2019 and ~$7 billion more than its prior record for any quarter set last quarter. 
  • Q3 EPS of a whopping $12.37, almost 3x higher than a year ago, and crushing expectations of $7.55, although one should note that AMZN’s tax rate was just 8.3% for the quarter, down sharply from 18.8% last quarter

In other words, Amazon smashed both top and bottom line expectations. Not only that but Amazon’s also delivered an impressive outlook:

  • Amazon sees Q4 Net Sales between $112.0 billion and $121.0 billion, or to grow between 28% and 38% compared with fourth quarter 2019, with a midline of $116.5BN, well above the exp. $112.47.51B
  • Operating income is expected to be between $1.0 billion and $4.5 billion, compared with $3.9 billion in fourth quarter 2019. This guidance assumes approximately $4.0 billion of costs related to COVID-19

Yet despite the stellar numbers the stock is lower after hours. How come?

One possible reason is that AWS revenue in Q3 was of $11.6BN, which while hitting estimates, resulted in a profit margin of 30.5%, slightly below the 31.0% in Q2. In recent months, analysts had been asking Amazon about investments in news sales efforts related to cloud computing, and it looks like Amazon is having to spend a bit more to sustain AWS revenue growth, which can worry investors about profitability. AWS profits help subsidize the rest of Amazon operations.

Another possible reason for the drop in shares after hours is that as Boomberg notes, “investors are worried about spending and profitability in the busy holiday quarter. Besides Covid-related expenses, Amazon will have to spend a lot expanding its delivery capacity to meet demand. Investors know customers will be spending. They are worried how much Amazon will have to spend to meet demand.”

That said, Amazon’s projected Q4 revenue growth of 33.2% (taking the midline) was clearly just as impressive and indicates the company does not expect any headwinds, at least on the topline, although the company’s operating income guidance which hints at a sharp drop in margins, is concerning.

And speaking of profit margins, after hitting 6.6% last quarter, the second highest in recent history, in Q3 margins dipped a bit to 6.0%…

… with Amazon’s guidance suggesting that this number will drop further in Q4.

Developing.

 

 

 

via ZeroHedge News https://ift.tt/31RWcb2 Tyler Durden

Twitter Tumbles After Massive User-Growth Miss

Twitter Tumbles After Massive User-Growth Miss

Tyler Durden

Thu, 10/29/2020 – 16:24

At first glance, Twitter’s numbers look solid with big top- and bottom-line beats (notable after disappointing revenue in both Q1 and Q2):

  • 3Q Rev. $936.2M, Est. $780.5M

  • 3Q Adj EPS 19c, Est. 5c

But…there is a big red flag here, and that is Twitter’s user growth.

After adding 20 million new users in Q2, Twitter added just 1 million new users in Q3, and that’s despite the fact that most pro sports are back and we have a massive election in five days. Expectations were that Twitter would report growth of 9 million new users in the quarter so this is a definite miss.

This sent the stock down hard after hours…

In its earnings release, Twitter raises more concerns about the post-election environment::

As we approach the US election, however, it is hard to predict how advertiser behavior could change. In Q2, many brands slowed or paused spend in reaction to US civil unrest, only to increase spend relatively quickly thereafter in an effort to catch up. The period surrounding the US election is somewhat uncertain, but we have no reason to believe that September’s revenue trends can’t continue, or even improve, outside of the election-related window.

And additional concern is that Twitter says the new version of its MAP ad product (Twitter’s direct response ad product) has been delayed until 2021. The company said this was a top priority after Q1.

Developing…

via ZeroHedge News https://ift.tt/34FrjII Tyler Durden

Glenn Greenwald Resigns from The Intercept, Citing ‘Pathologies, Illiberalism, Repressive Mentality’ of Pro-Biden Newsroom

rtrleleven759483

Award-winning journalist Glenn Greenwald, known for his civil libertarian writings on free speech and national security issues, announced on Thursday his resignation from The Intercept, the progressive news website he co-founded in 2014.

In his resignation letter, Greenwald—a recipient of Reason‘s Lanny Friedlander Prize for helping to bring to light Edward Snowden’s documentation of the National Security Agency’s illegal surveillance of Americans—said the last straw was Intercept editors’ stipulation that he must remove “all sections critical of Democratic presidential candidate Joe Biden” from an article he sought to publish.

“Not content to simply prevent publication of this article at the media outlet I co-founded, these Intercept editors also demanded that I refrain from exercising a separate contractual right to publish this article with any other publication,” writes Greenwald, adding that Biden is “the candidate vehemently supported by all New-York-based Intercept editors involved in this effort at suppression.”

The Intercept released a statement accusing Greenwald of “distortions and inaccuracies—all of them designed to make him appear as a victim, rather than a grown person throwing a tantrum.” Editors said they would release a full accounting of what happened with his article in due time, and that “it is Glenn who has strayed from his original journalistic roots, not The Intercept.” On Twitter, former colleagues have taken various positions.

Greenwald has yet to publish the article on his own—he has recently joined Substack—so it’s not yet possible to say whether editors’ concerns were reasonable, or even accurately described. The Intercept has certainly not been shy about criticizing Biden in the past, though its anti-Biden slant was stronger back when Sen. Bernie Sanders (I–Vt.), a progressive more in line with the publication’s outlook, was still a viable contender for the nomination.

Greenwald has a number of other concerns about The Intercept‘s trajectory, and these will be familiar to readers who have followed the woke takeover (for lack of a better term) of various newsrooms, including the The New York Times and The Atlantic. From Greenwald’s resignation post:

The pathologies, illiberalism, and repressive mentality that led to the bizarre spectacle of my being censored by my own media outlet are ones that are by no means unique to The Intercept. These are the viruses that have contaminated virtually every mainstream center-left political organization, academic institution, and newsroom. I began writing about politics fifteen years ago with the goal of combatting media propaganda and repression, and—regardless of the risks involved—simply cannot accept any situation, no matter how secure or lucrative, that forces me to submit my journalism and right of free expression to its suffocating constraints and dogmatic dictates….

Courage is required to step out of line, to question and poke at those pieties most sacred in one’s own milieu, but fear of alienating the guardians of liberal orthodoxy, especially on Twitter, is the predominant attribute of The Intercept’s New-York based editorial leadership team. As a result, The Intercept has all but abandoned its core mission of challenging and poking at, rather than appeasing and comforting, the institutions and guardians most powerful in its cultural and political circles.

Greenwald cites The Intercept‘s mistreatment of staff reporter Lee Fang, who was denounced as a racist for spotlighting a black man who expressed disagreement with violent protest tactics. Whether Greenwald has endured a similar thing is not quite knowable, but it certainly was true in Fang’s case—where the drama unfolded in public—that a willingness to question progressive orthodoxies got him in trouble.

Greenwald and Fang belong to a group of left-leaning writers who find themselves out of step with the modern progressive movement’s emphasis on elite cultural issues and trendy activism and who often agree with libertarian-leaning critics of performative social justice excess. Greenwald has also carved out a niche for himself as a leftist skeptic of the liberal mainstream’s reporting on Russian election influence, and he frequently appears on Fox News to deride other networks’ handling of these issues.

It should go without saying that this is not a First Amendment issue. Legally speaking, whether The Intercept is required to publish Greenwald’s article with minimally invasive editing is at best a contractual dispute. In any case, people will still be able to read Greenwald’s frequently excellent work.

But the broader issue raised in Greenwald’s resignation letter is one that should provoke plenty of concern—especially as Biden’s victory in the 2020 election looks likely. A mainstream press that looks at anti-Biden stories with suspicion, staffed by young progressives who think dissenting viewpoints should be squelched for fears of offending their own ranks, would be a danger to investigative journalism. And if The New York Post‘s Hunter Biden expose was an experiment in how such a thing will be handled by mainstream outlets and social media companies in the future, we are in for a rough four years.

from Latest – Reason.com https://ift.tt/3jJU5vH
via IFTTT

What Current Data Tell Us About How the Pandemic Could Play Out This Winter

CoronaYakobchukDreamstime

Winter is coming, and diagnosed cases of COVID-19 are increasing in the U.S. (and in Europe). Way back on April 30, researchers associated with the Center for Infectious Disease Research and Policy (CIDRAP) released a report in which they outlined three scenarios, based on past influenza pandemics, for how the COVID-19 pandemic might play out in the United States over the next couple of years.

In Scenario 1, the first wave of COVID-19 in spring 2020 is followed by a series of repetitive smaller waves that occur through the summer and then consistently over a one- to two-year period, gradually diminishing sometime in 2021. The occurrence of these waves may vary geographically and may depend on what mitigation measures are in place and how they are eased.

In Scenario 2, the first wave of COVID-19 in spring 2020 is followed by a larger wave in the fall or winter of 2020 and one or more smaller subsequent waves in 2021. This pattern will require the reinstitution of mitigation measures in the fall, in an attempt to drive down the infection’s spread and to prevent health care systems from being overwhelmed. This pattern is similar to what was seen with the 1918–19 Spanish influenza pandemic.

In Scenario 3, the first wave of COVID-19 in spring 2020 is followed by a “slow burn” of ongoing transmission, but without a clear wave pattern. This third scenario likely would not require the reinstitution of mitigation measures, although cases and deaths would continue to occur.

So: Six months later, how has the pandemic actually been evolving? Let’s take a look at the the daily diagnosed cases as recorded by the COVID Tracking Project.

Eyeballing the trend in daily diagnosed U.S. cases would seem to rule out the slow burn of Scenario 3, but the data cannot yet distinguish between the peaks and valleys in Scenario 1 and the fall peak in Scenario 2.

Although the number of diagnosed cases is ascending, the COVID Tracking Project’s data on deaths have been flattish at around 900 per day. That suggests that a different, less vulnerable age cohort has been getting infected and that clinicians have gotten better at treating COVID-19 patients. But in the absence of widely deployed effective vaccines, that trend isn’t likely to remain flat if the pandemic tracks Scenario 2.

from Latest – Reason.com https://ift.tt/2JkmNXN
via IFTTT