Sunday 18 July 2021

The Fifth Lockdown

Victoria's Premier Dictator Dan has put the entire state under lockdown for at least 5 days because there are 16 cases of Covid-19 in Melbourne. Like every one of the past 4 lockdowns it was done with the bare minimum of notice, in this case about 15 hours. I have been opposed to each and every one of these lockdowns. Even in February 2020 it seemed overblown to me, but I was prepared to be proven wrong, which I have not been. Once again we are under house arrest by another name.

But I must confess that I am perplexed by all this, many things don't make sense. 

Why is it that people just keep putting up with it?

Why is it that so many want to hear lies?

Why is it that small business hasn't revolted?

How can Australia have a lower unemployment rate today then it did before Covid-19?

Why is it that the science and medical profession are going along with this?

Why is it that every profession and industry has gone along with it?

Economically all of this is being paid for with debt and the printing of money. Modern Monetary Policy says that the government cannot go bankrupt as it can create it's own money and it has the entire economy as it's reserve currency. In the past this has always failed, today we are told "it's different", but it ain't. Once confidence goes and the funny money that we are all living off is viewed for what it is, things get very bad. The question is when will that happen?

As Adam Smith said, there is a lot of ruin in a nation.

It seems like everyone is so complacent. Collectively it seems that we enjoy being told what to do and what to think. Which is a very feminine way of living. It seems that Feminism has had consequences that go beyond simply women having jobs. Our society doesn't want to rock the boat, instead it wants to blend in, no matter the cost. I notice nearly all women wear masks, even when it is not required. Although to say that this is confined to women would be wrong. Today men seem to be following the lead of women. Conform and do as the authority figures want.

I particularly think of how no professional groups have raised even the slightest concern with the lockdowns or Covid-19 restrictions. Not the Unions, not the Churches, not any of the professional organisations, not any of the Industry groups, all silent and compliant. Everyone it seems has lost all sense of proportion. 16 people being sick in a state is not a reason to put 5 million people under virtual house arrest. 

I did read another reason for the Covid-19 panic and that was Risk Management. Since the 1980's everything has gotten more and more managed and controlled. The idea behind risk management is to minimise risk and then to eliminate risk. To make everything perfectly safe, which is an insane standard. In reality what it has meant is that risk is feared by management. So it spreads that fear to everyone else. Be afraid, be very afraid... of everything! 

I don't often quote FDR but, the only thing we have to fear is fear itself!

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  1. Although you have answered those rhetorical questions quite well there is a fair bit more to it that meets the eye: Mainly in the upper bracket consider:
    Less transport costs working from home, less child minding, costly school excursions etc. – a well off family about 20% better off.
    Small business suffering but some in service and retail are doing well - collectively Australians saved 200 billion with an overall 20% saving ratio calculated by treasury, currently about 12%. Prior to Corvid when below 5%. Restrictions on travel are equivalent to a protective tariff with 50 billion per year saved on overseas travel alone. Some offset spent instead on home improvements, services, take always, and local travel and so the list goes on.
    Result is it is a boon for more people to be employed. Some Retailers didn’t need job keeper but pocketed the money. Result are Profits soared with the share market booming- makes people feel good- notwithstanding the suffering of many at the bottom end.
    Most super funds will earn between 15% and 30 % last year and out biggest Australian super (200 billion) credited 22% for their balanced fund.

    Our current account surplus (exports -imports) is the largest on record due to surging iron prices.
    Even so our government debt as a percentage of GDP is one of the lowest in the western world. After World War 2 it was 3 times the current level.

    1. Lindsay what a good comment, you've made some interesting points.

      I will say that one organisation I know of has had a 20% drop in revenue, with it's main source being the stock market. So while the stock market may be high that does not mean that it is paying out. Having said that, the same day you made your comment I received a letter from a Superannuation company bragging about it's highest profits ever, 19%.

      Saying that our debt is the lowest percentage of GDP in the Western world, while true fails to take in to account just how bad the rest of the Western world is. Also after WWII the Australian government had every intention of paying off it's debt. The current Australian government has no such intention and neither does the opposition.

  2. That’s true the worlds loose monetary policy will have its day eventually with a very long sharp correction that takes everyone by surprise but it might be a long time off