Dow Jones dropped by 2% while bitcoin fell by $500 at some point before settling at $6,700.
That’s while gold has seen an increase to a new recent high above $1,700 with it very much on a bull run since October 2018.
Why bitcoin is following stocks instead of gold is a bit of a mystery.
As gold is used for jewelries and some hardware components for electronics, you’d expect it to be affected negatively by a Great Depression level fall in economic activity.
That obviously is being counterbalanced by profit takers from stocks needing a place to park, but why does there appear to be a clear effect for gold and not bitcoin?
We suspect bitcoin is used for international commerce, especially to and from China, but that should be counterbalanced by a need to park your money on something that is not devaluable.
And that is maybe where the difference lays. Bitcoin is currently being ‘devalued’ at around 4% a year, while for gold its new supply should have fallen because gold mines have probably been closed now.
The halving next month will bring bitcoin’s new supply down to around 1.8%, making it even rarer, but for now this is following stocks too closely so it may be it is being used as a hedge or Wall Street’s CME is manipulating bitcoin’s price to attack the safe haven narrative.
All this should start to change soonish because Europe is beginning to open up. Spain, quite interestingly, is opening up before Italy even though Italy was first.
Denmark, Austria, Norway, are among some of the countries relaxing restrictions, with pressure building up in UK to take a more sophisticated approach rather than this primitive house arrest for all.
In France apparently they’re to continue the curfew, as in Germany where the situation seems fine, but monkey see, monkey do presumably.
In Southern Europe this was probably over two weeks ago, while London probably passed the peak last week and now should have herd immunity.
The extremely risk averse politicians, however, come across as almost frozen, defaulting to let’s wait and wait even though farmers are badly hit because restaurants and much else has closed, so there’s less demand for their produce.
Some food factories are closing down fully. The government has just been too reactive instead of proactive and arguably too defeatist.
There have been so many briefings in UK and in none of them was the word treatment used once. How can this health industry upon which we spend $8 trillion not come with anything better than give them oxygen now four months on.
It is the first time the healthcare industry has failed so fully, and obviously we don’t mean doctors and nurses who are doing all they can, but we do mean the researchers, the medicine manufacturers, and so on.
PPE they keep talking about, failing to mention it is China that makes that PPE, not Europe or America.
China even makes our anti-biotics, so no wonder our healthcare industry can’t come up with anything because they don’t produce anything.
All the Asian countries moreover didn’t even lockdown, and people keep bringing up testing like that’s some treatment or cure, when 70% of these tests have fake results.
Put on masks they keep telling everyone, with those masks of course coming from China, so we should give them even more money.
But where it concerns treatment, no word at all. Perhaps because there’s only so much you can do to extend the life of a 95 year old, but there have been outbreaks like this before and plenty of them and our healthcare industry always came up with some treatment or some way to contain it without causing a Great Depression.
This time though the knowhow of medicine production and all the rest has vanished from Europe under the vast cheers of the current corporate media which is acting as if they are rooting for this flu as well as for longer and longer curfews even as many media outlets face bankruptcy because no one is reading them anymore and ad rates have plunged.
Our bureaucracy moreover has become so sclerotic that our sophisticated west can’t think of anything better than copy communist China and its authoritarian ways even in wearing dehumanizing masks.
It’s awful, and the west may face an exodus because of it as those of prime age sit and wonder what on earth are these people doing and how on earth can they bring up their children in an authoritarian country that produces nothing save for social theories of hairstyle colours.
It’s a wakeup call and a reminder of just how quickly countries can regress fully with first no lockdowns, then short lockdowns and now months or maybe years.
But much of Europe is now starting to open up and politicians probably hate all this as much as everyone else, but they terrified of politicized corporate media so they just follow orders instead of leading.
In Britain especially where the government has a vast majority, they would have had the political capital to stand strong as Sweden has done or Japan and many other countries because these lockdowns have clearly done nothing as numbers increase and decrease in line with ordinary seasonal flu.
Meaning everywhere now they should start at least relaxing restrictions, opening barbers under same rules as supermarkets, opening the ability to travel for some government functions, like passports as people may want to see their families etc and the passport process takes some time.
They also need to start explaining how on earth they are gone pay for all of this besides the regressive taxation of devaluing everyone’s money which hits the middle class and the poorest the most.
And basically they need to get a grip and get their act together because so far they have been only panickly reacting instead of using their heads to address one of the many problems we have to address, and one of the many illnesses we have to tackle, and one of the many risks we have to minimize, and basically one of the many things we have to live with like normal instead of acting as if we can solve things by giving people oxygen or by locking up whole continents.
Might as well ban cars while you at it, instead of putting up traffic lights and so on. Meaning taking steps to minimize the risk by shielding the at risk groups instead of lock up too hundreds of millions to whom this is just yet another flu alongside the 40 or however many flu strands there are.