March 16, 2020
The Miles Franklin Newsletter
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From The Desk Of David Schectman
I think the only thing you can own right now is gold,” - Adam Button, managing director at Forexlive.com.
 
When the dust settles, gold will be the asset to own. – Phillip Streible Blue Line Futures
 
Charles Nenner in his interview with  Greg Hunter  reiterates earlier statements by him that the DJIA will end below 5000. If that were to happen, it would wipe out more than 84% of the value of Wall Street at its high.
 
Gold is the only thing to own after Fed cuts rates to zero – analysts (Kitco headline)
 
How the heck can silver purchases be exploding and the price be imploding? The only thing crazier would be for prices of toilet paper to be plummeting. Silver is at unbelievable bargain prices and as long as you don’t buy on margin it’s hard for me to imagine how prices won’t be substantially higher in not a long time. – Ted Butler
What do toilet paper and gold have in common?
 
David's Commentary (In Blue)

Costco is a perfect snapshot in time that illustrates what is happening. It shows how people are reacting to the covid-19. Panic buying has suddenly set in whether it is for toilet paper or gold. Human nature is the same whether it is driving us to wait in line to buy multiple rolls of toilet paper or if it’s calling a precious metals dealer to buy gold. Fear and greed are the motivators. There are half-hour waits at the Costco check-out lanes – They are completely sold out of toilet paper and hand sanitizer and frozen chicken breasts. It seems like everyone wants to buy toilet paper and as of Friday it seems like all of our clients are calling us to buy gold. Between Friday and the week end we set all-time sales records. We moved millions of dollars of gold and silver. I guess people figured out that both are necessary - to save your ass.
 
Think clearly now. It has already started and there is no going back. The covid-19 virus (genie) is out of the bottle. The lid is open in Pandora’s Box. Hopefully, the virus will play itself out. It could be a reoccurring virus that pays us a visit every year? We don’t know yet. How long will it take before it will no longer be a threat to our system and our life? Here’s a good guess – at least a year, maybe two. It will be that long before an effective vaccine is ready and tested and approved and distributed. And, until every American has been vaccinated, the virus will remain lethal.
 
Why is this different from the flu? People ask me that all the time. A friend of mine works at Audio Research Corp and they have maybe 40 employees. He has been very sick with the flu for the last four weeks and he told me everyone at the company has it. That’s what the flu virus does – it infects everyone in its path. Now imagine this is not just the flu, but it’s the coronavirus which the experts say is even more contagious that the flu. With the common flu, people have built up anti-bodies in their blood stream over the centuries that help protect them against the flu. No one has any immunity against the covid-19. Do you remember what happened to the Aztecs when the Conquistadors introduced small pox-laced blankets into their society? They are all dead. You say it’s not the same? It is the same except that small pox is more deadly than covid-19. That’s what happens when a new infectious disease invades a population with no immunity.
 
In the blink of an eye, everything is starting to shut down. Schools, churches, sporting events, restaurants, health clubs, retail outlets, everything. The economy is going to be devastated. People will not go shopping or buy anything that is a non-essential. No trips, no new cars, no trips to the beauty shop or the gum or a restaurant or movie theater. This will not just be a business slowdown or a 5% drop in GDP, this will bankrupt many businesses, small and large. This is a game changer. 
 
Gold and silver will soon be the equivalent of toilet paper and hand sanitizer wipes at Costco. People will want it – need and like the toilet paper, there will be none on the shelves. You will have to wait to get it and it will cost more if you can find any to buy. The US Mint is sold out of Silver Eagles. That hasn’t happened for 12 years. Gold will soon follow suit. And the product that is still available, in limited quantities, like junk silver will see a huge price increase at the wholesale level. Since Friday the wholesale premium on junk silver has risen from under a dollar an ounce to over five dollars an ounce. The price of a bag is up one-third even though the spot price is low and falling. The next step is it will not be available at any price. We have done an enormous amount of business over the weekend. Our clients are calling our brokers after hours at home on their cell phones. This is unheard of. It’s a brand-new world.
 
Anyone who tells you to buy stocks and the market will bounce back is giving you very bad advice.
 
You should know by now that the global economy is now on the ropes. It was heading down before but the arrival of Covid-19. But once the virus was unleashed, it changed everything. Markets are driven by emotion. They are driven by fear and greed. You are seeing a bit of both now as trillions are fleeing the stock market but then you get the occasional 1000 to 2000-point recovery. Goldman Sachs now sees zero GDP growth in the U.S. in Q1, with a 5% contraction in Q2 and expects a 3% rebound in Q3 and a 4% gain in Q4. Who are they kidding? What are they smoking? We are not looking at a mild recession. I am expecting a market crash similar to 1931 on 1987.  I’m expecting a full-blown disaster. The Fed’s actions today reek of desperation. When have you ever seen the Fed use up all of its ammunition in one-shot? What will they do when the economy plunges into a deep recession or worse? They know how bad this is. All they can do is lower rates and throw money at the problem.  Option number one is no longer on the table. The interest rates are at zero so they cannot realistically be lowered any further. Option number two is QE. They announced that they are restarting QE, with plans to buy at least $500 billion in Treasuries and $200 billion in mortgage securities in the coming months. I have no doubt they will increase those numbers dramatically.  
 
The Fed has demonstrated that they do not know what they are doing and are acting in desperation. They have capitulated to Donald Trump’s demands to cut rates and open the flood gates. What happened to the Republican Party that used to care about debt and deficits and at least pretended to be fiscally responsible? The Fed’s QE is the very definition of monetizing, which in many countries leads to hyperinflation. It is when the central bank prints money out of thin air to buy government debt (Treasuries). They just announced it tonight. How long before the dollar goes into a tailspin? That’s the final dose of jet fuel that will ignite the mother of all gold bull markets. It is coming too.
 
This is the perfect set up for gold and silver. The Black Swan I have written about for years has finally made its entrance.
 
Quite to my surprise, so many people already see it what is happening and we are overwhelmed by the incoming calls , which have continued after hours through Sunday evening. Andy did several million in business himself this weekend. This is unprecedented. We are burning through our available product as never before. Delays of weeks or even months will probably be announced this week. Gold and silver physical coins and bars are in such high demand that if the demand doesn’t slow down, soon there will be nothing left to sell. You need to be ahead of this.
 
If you’ve been reading me the last couple of weeks you know that I have stated that what is happening now it is obvious. I wrote that the Covod-19 will shut down the economy, the stock market and global economies will plunge, and the Fed will panic and go all-in with more QE and lower interest rates. That is exactly what has now taken place. 
 
"unprecedented"
 
 
If, as expected, the shutdown is extended to more countries every week,  the negative effects on the economy will be longer and exponential, and  the mirage of a third-quarter recovery even more difficult...
This is the echo of 2008-09.
 
Study this chart carefully. 
In 2008, as the stock market started to crash, gold briefly fell, from around $1,000 down to $700. Then it abruptly reversed course and rose at a 45-degree angle, all the way into late 2011, peaking at $1,900. In 2-years the price of gold nearly tripled. And silver gained twice as much as gold, and it will happen again. Maybe not exactly the same, “History rhymes, it doesn’t repeat.” What is the “echo” I am talking about? The echo you hear, if you listen carefully, is the Fed panicking back into QE, just like they did in 2008. And the chart above shows you what happened to gold after the Fed went to QE and tarp which was just a different name for QE.. At the time, Jim Sinclair proclaimed “it will be QE forever.” It sure looks that way to me. With interest rates now at zero, that is all that’s left to keep the stock market from imploding right now. The Fed dares not to raise rates or stop the QE. 
 
I have written many essays on how corporate stock buybacks helped fuel the stock market bubble. Holy Moly: – Bank of America, JPMorgan Chase, Citigroup and several other banking giants and other larger American corporations have announced they are suspending buybacks. That is no small deal. That was one of the most important sources of demand that helped elevate the stock market to unrealistic and unsafe levels in the first place, and now, at the worst possible time, it’s coming to an end. How can anyone feel comfortable in the stock market?
 
So, what do people do when CDs and money market funds and bonds pay little to no interest. Less than inflation for sure. And what do they do when the stock market is collapsing – 1000 to 2000 points a day? They have no place to hide. The Dow futures and S & P futures are down limit coming into New York on Monday morning. There is a good chance that all or most of the dead-cat bounce on Friday will be given back today. That should be the nail in the coffin on the stock market’s long-in-the-tooth bull market. If the market is down 1000 points or more on Monday, in spite of the Fed’s slashing interest rates to zero and their promise of $700 billion in QE then it’s all over but the shouting.
 
NIRP is finally in the US, and it is about to suck much of the yield curve into negative territory.
Investor’s wealth is being threatened. Most of the rich folks are older, and they cannot afford a catastrophic loss. They know they won’t live long enough to recover from a big hit and they are counting on a decade of stock growth to fund their old age. What a mess. What many will do (the smart ones, those with an open mind who understand what is happening) is move their money into cash and gold and silver. 
 
At this point in time, gold and silver are MORE than an insurance policy . They will be a powerful profit vehicle too, one that can recover a portion of the significant losses in most people’s sock portfolios. This is what makes for a huge bull market. Fear and Greed. Both at the same time. There is no bull market like a gold bull market. We are witnessing it first-hand. Yup, the gold rush is on, just like the mob scene in front of the empty toilet paper shelves at Costco and Target and Wall Mart.
 
This is the perfect set-up. More QE, falling interest rates, below the rate of inflation and a stock market on the edge of a cliff and a killer virus that is shutting down the economy. What more do you need TO SEE? It’s right there before your eyes.
 
Can I still get gold and silver from you?
 
The way business is pouring in, it would be prudent to contact us immediately. Call your broker during office hours, or at night, or on the weekend if need be. If you don’t have their cell number call them and ask for it. We can lock in prices 24/7. Most dealers cannot do that. 
 
All the signs are here now – Silver Eagles sold out. Premiums are up dramatically on junk silver. Even the discount brokers are raising their prices. When product is difficult to get, no one gives it away. There will be shipping delays on most products. Soon what little is available will cost much more than it does today – regardless of the fabricated price set on the Comex. Yes, expect to pay more than the quoted spot prices you see. 
 
It’s now 4:40 a.m. in Minneapolis and silver is quoted at $12.75. Let that sink in for a moment. That’s to lowest it’s been in over 14 years. And the silver to gold ratio is an all-time high, 119 to 1. Unbelievable! I promise you, at these prices physical silver will sell out. You will not be able to buy it at these prices. They will only reside, for a short while, in the paper silver world. Be prepared to be quoted much higher prices and be prepared for all popular forms of silver to be sold out and/or order to be delayed for long periods of time. If you price something too cheap, it sells out.
 
 Even before this morning’s pre-market plunge, Ted Butler wrote: 
About the only good thing about silver’s cheapness compared to gold is that I don’t have to use words like “effective” to describe silver’s undervaluation – never in the history of the world has silver been as cheap as it is now relative to gold (which is one reason why physical forms of silver, mostly retail forms, are impossible to purchase at close to current published prices – more on this in a bit).
 
I must point out that this week was one of the most egregious examples of price manipulation in gold and silver ever. 
 
How the heck can silver purchases be exploding and the price be imploding? The only thing crazier would be for prices of toilet paper to be plummeting.
Don’t fret, you haven’t lost your mind. There is a very good reason to explain the plunge in silver and gold prices concurrent with a rush to buy, especially silver. In fact, there is only one reason and it’s staring you right in the face – the commercial crooks on the COMEX. And the craziest thing of all is that the COMEX commercial crooks are buying, not selling every single contract of silver and gold they can get their greedy hands on. I know this sounds impossible, but that’s the gospel truth, so help me. That’s just how this nutty game works.
I would not be surprised if the Dow takes another 1000 point or more drop on Monday, and continues to fall from there. If it does, I would not be surprised to see gold and silver reverse course and start to move up fast as people finally give up on the stock market. How can anyone feel confident about their stock portfolio anymore? 1,000 point and higher drops are becoming a daily occurrence.
What we are seeing is not a normal correction, and this will not be a typical recession, or just another strain of the common flu that will come and go. No, it IS different this time. Like the boy who cried “wolf,” the wolf is here now. Once is all it takes to be right, and we have always maintained you need gold and silver when everything else is failing and boy ain’t that the case now. Gold is doing exactly what it is supposed to do. It is financial insurance. And don’t make the mistake of asking why is the price falling then? You are looking at the wrong indicator. The artificial “price” is controlled by the crooks at Comex, manipulated is a better description. But the real price is derived by supply demand, not by those leveraged worthless paper contracts. We are running out of product and wholesale prices are rising in spite of what Comex publishes. The paper world will have to reprice their contracts to meet the reality. It happened eight years ago; it will happen again. The bull market is here, in spite of what the spot price is telling you. 
 
So far two states have cancelled their primaries. My bet is the election will be called off this fall. I can hear the Democrats swearing and screaming. They will blame it on Trump when in fact it will be the massive active cases of coronavirus. Who would want to go out and vote? 
 
I want to repeat - If you are still in stocks you are taking an enormous risk. Sure, Wall street will tell you to hold on - and buy the dips - and the market will recover and rise to new highs. It could happen. I give that scenario less than a 10% chance. But it could happen. After all, the Cleveland Cavaliers (NBA) won the lottery in 2014, with a 1.70 percent chance.  Play the odds. The odds favor a monster fall in the stock market because the global economy in on quarantine. No business, no profits, in that environment the stock market is not where you want to be. Many of you will not listen. Oh, you will, but it will be down the road when the stock market is selling at far, far lower prices. We gold and silver bulls learned that lesson eight years ago. The bubble was pierced, gold started to fall from $1,900 and silver from $50 and the metals continued to fall until gold finally bottomed in 2016 at $1,050, after having lost nearly half its value, and silver really took it on the chin, plunging all the way back down to a low of 13.58, a loss of more than three quarters from where it was at the high. I fully expect similar results in the stock market now and you many of your mainstream stock bulls will hold on too long just as many of the gold and silver bulls hung on too long as well. Pigs get fat and hogs get slaughtered. In all markets.
More on the virus
 
The next step will be when President Trump holds a press conference and announces he has activated the Stafford Act. That is used to bring an orderly means of Federal assistance to states and local governments in times of crisis. Don’t be surprised to see travel bans and the National Guard patrolling the streets. This is serious folks.
 
(shortly after I wrote the above paragraph the following story appeared on Zero Hedge. It’s coming here too. We waited too long and our containment measures were not strong enough, but heck, the is America and we hate to trample on people’s freedom and convenience, like unlimited travel between states and cities.)
This is what a global Pandemic looks like in the early stages…
Health officials and politicians were all over TV on Sunday. 60 Minutes lead in story was on Covid-19 in New York. People are scared. They should be. But it is worse than they are telling us, much worse, but at least they are bringing the problem to peoples’ attention with their softened and muted warnings. They think it best not to panic people. They are not telling you what you need to know, but a little is a little better than nothing. The thing is, it is the wrong way to handle this. They should sacrifice the economy and get in front of this. It will save more lives. Everyone will know the scope of the disease in two or three weeks. So why not prepare them now and slow down the exponential growth of the virus.
 
Information that I deem to be very credible states that the virus doubles every three days. (see article below). That means it is growing exponentially, increasing by a FACTOR OF 10 every week. The official number is 3,000 cases. Estimates coming out of universities and clinics say the number is probably on the low side by a factor of 50-70. Not enough testing has been done and the virus has at least a two-week (some say up to a month) incubation period so they are only getting a tiny sampling. Be that as it may, let’s use 3000 and do the math. 3000 cases today, 30,000 cases a week from today, 300,000 cases two week from today 3,000,000 cases three weeks from today. Folks, we are rapidly running out of time. We waited too long to slow this down. It is exponential growth not linear growth (it’s not 2,4,8,16,32… it’s 2,20,200,2000,20,000…) 
 
If you think the public is in a panic now, and the government is doing their best to keep it from becoming one, wait three weeks. I listened to Trumps medical advisor, Dr. Fauci, on TV. I give him credit. He at least addressed most of the issues. But he underplayed the extent and danger of the Pandemic. But when asked would HE get on an airplane and fly now he emphatically said NO. When asked if HE would eat out at a restaurant now, he answered NO. He said you must avoid people. And people include your friends and family, children grandchildren, everyone. Half measures do not work. In S. Korea if you were under quarantine and they caught you outside you would be arrested and face five years in prison or a $100,000 fine. That’s why it is not spreading rapidly throughout S. Korea. They took it seriously from day one and instituted harsh measures to curtail the spread. Here, in America, if you are sick you can drive or fly anywhere in the country. You can send your kids to school. That is why we are screwed and the partial policies that are being implemented, may slow the spread but not stop it and not keep it from going exponential. We need harsh policies now to stretch out the curve so a massive number of cases don’t hit the health care system all at once and overwhelm it. Dr. Fauci said we do not have nearly enough respirators in the US to deal with this. If you need to be hospitalized and need an ICU bed or respirator, in as little as three weeks that option will no longer be available. If they haven’t done it already, all elective surgery will be cancelled. Do not get sick. Avoid people. What you now think is over-reacting you will soon realize is what you should have done by now, when you had the chance. 
 
Here is email from Zhanna Schectman, Andy’s wife, that is absolutely a must-read. It is very powerful, very insightful. You will see what it means when I say the virus is growing at an exponential rate. Most people have no idea just how powerful compounding is. 
It was initially shared by a physician that is taking social distancing as seriously as we all should right now.
Please read:
This is a long post addressing two underlying issues with the current response to the pandemic that leave me concerned.  It’s the longest post I’ve ever written.
For those of you not taking action, or believing the pandemic to be “over hyped”, you can make fun of me as much as you want now or when this is over. You can make me the subject of memes and post it everywhere. I will pose for the picture. I am not trying to convince you, but I do feel compelled to share information that I deem critical to all of us, which is why I am posting this at all.
WHY YOU SHOULD TAKE 5 MINUTES TO READ AND CONSIDER THE INFORMATION I AM SHARING:
For those of you who don’t know me well, I am analytical and metered. I don’t freak out nor do I respond emotionally. I also don’t post a bunch of bullshit or political or controversial stuff on Facebook. I founded and am CEO of a successful software company that provides SaaS based data, analytics, and dashboards to recruiting departments at companies we all know. As you would expect, I am data driven and fact based. Before founding my company, I held executive roles leading very large recruiting teams at some of the world's fastest growing companies such as Starbucks and Google. At Google I was fortunate enough to report to Sheryl Sandberg before she took the Facebook COO role. I was a Chemical Engineering major in college and have a business degree from a top undergraduate business school. I am not one for hyperbole or histrionics. My bullshit factor is close to zero.
I share all this personal information only to help solidify that this post may be worth reading and sharing with others. I would encourage you to forward or share this post at your discretion. Many people do not understand what is happening with the pandemic to the degree required which is why I took the time to write this and share this on Facebook.
Now that I've gotten the introduction out of the way, here are two issues I want to bring to everyone’s attention. 
ISSUE ONE: SOCIAL NORMS ARE POWERFUL MOTIVATORS AND GETTING IN THE WAY OF PEOPLE TAKING THE RIGHT STEPS IN RESPONSE TO THE PANDEMIC: 
One of the current problems with addressing the pandemic is the social pressures of taking action today. It's awkward, and feels like an over-reaction. The reason it feels like an overreaction is that most people OVERWEIGHT the currently reported cases and inherently UNDERWEIGHT the mathematics of how the virus is spreading and what will happen in about 30 days’ time. This is because our brains tend to think linearly as opposed to logarithmically. It’s the same reason many people don’t save for retirement or understand compound interest.
To create a new social norm, human beings like to see behavior modeled. This serves as a signal that says, “oh, someone else is doing it so I should do it also.” 
SO, HERE IS A SOCIAL BENCHMARK FOR REFERENCE - THIS IS WHAT I’VE DONE FOR MY FAMILY TO DATE:
I have already isolated my family. We have canceled EVERYTHING. We have canceled previously scheduled doctor visits. Social get togethers. Normal routine meetings. Everything has been canceled. It's difficult and socially awkward. Some of you think I’m crazy, but I’m doing it not because I am afraid, but because I am good at math (more on that in part 2). I had to have my 16-year-old daughter quit her job coaching junior gymnasts at the local gym, with one day’s notice and also tell my kids they can't attend youth group at church. Both of those were tough discussions. I told a very close friend he shouldn’t stay at my house this weekend even though he was planning to and had booked his flight from the Bay Area. I canceled another dear friend’s visit for later this month to go snowboarding on Mt Bachelor.
We are not eating out. Our kids are already doing online school so we don’t have to make changes there. I would not send my kids to school even if they were in public or private school. We have eliminated all non-essential contact with other people. We will only venture out to grocery shop when required. We will still go outside to parks, go mountain biking, hiking, and recreate to keep ourselves sane and do other things as a family, just not with other people. We have stocked up on food and have a supply for ~2 months. We have stocked up on other goods that if depleted would create hardship, like medicines and feminine hygiene products. We have planned for shortages of essential items.
THE REASON I HAVE CHOSEN THIS ROUTE FOR MY FAMILY IS MULTI FACETED: 
1.   Although my family is considered low risk (I’m 49 in good health, Angi is 46 and in good health, and our kids are 14 and 16), we must assume that the healthcare system cannot help us, because the hospitals will become overwhelmed very quickly. Most American hospitals will become overwhelmed in approximately 30 days unless something changes. More on this in part 2 below. So, although we are in great health and unlikely to become gravely ill, the risk is greater if you do not have access to the medical care that you need. This is something for everyone to consider. As a society we are accustomed to having access to the best medical care available. Our medical system will be overwhelmed unless we practice social distancing at scale. That said, the medical teams in Italy are seeing an alarming number of cases from people in their 40s and 50s.
2.   It’s not a matter of if social distancing will take place, it’s a matter of when. This is because social distancing is the only way to stop the virus today. As I will explain in part 2 below, starting now is FAR more effective than starting even 2 days from now or tomorrow. This has been proven by Italy and China (and soon to be France and other European countries who have been slow to respond.). Wuhan went on lockdown after roughly 400 cases were identified (and they had access to testing that America has systematically failed to do well to date). The US already has more than 4 times this number of known infected cases as Wuhan did when it was shut down, and our citizens are far more mobile and therefore spreading the virus more broadly when compared to Wuhan. Yet our response is tepid at best. 
If hand washing and “being smart” were sufficient Italy would not be in crisis. So, I pray the draconian measures are coming from our government, because they are required to stop the spread of the virus. It’s better to start sooner than later as the cost is actually far greater if we wait. I pray they close all schools and non-essential services the way that Italy and China have done.
3.   Spreading the virus puts those in the high-risk category at much greater risk. This is the moral argument. It’s a strong argument because there are only two ways, as of today, that the virus can be stopped:  let it run its course and infect 100s of millions of people, or social distancing. There is no other way today. If you don’t practice social distancing, people downstream from you that you transmit the virus to will die, and many will suffer.
4.   The risk of infection is increasing exponentially, because the quantity of infected people, most who will not show symptoms, is doubling every three days. So, the longer you wait to self-isolate, the greater the chance of you or someone you love becoming infected and then you infecting others because more of the population is becoming infected. There are twice as many infected people today as there was on Tuesday.
5.   The virus is already in your town. It’s everywhere. Cases are typically only discovered when someone gets sick enough to seek medical attention. This is important as it typically takes ~5 days to START showing ANY symptoms. Here’s the math: For every known case there are approximately 50 unknown cases. This is because if I become sick, I infect several people today, and they infect a few people each tomorrow (as do I), and the total count of infected people doubles every 3 days until I get so sick I get hospitalized or get tested and become a “known case”. But in the time it takes me to figure out I am sick 50 others downline from me now have the virus. So, every third day the infection rate doubles until I get so sick that I realize I have the virus an am hospitalized or otherwise tested. Harvard and Massachusetts General Hospital estimate that there are 50x more infections than known infections as reported (citation below). The implication of this is that the virus is already “everywhere” and spreading regardless if your city has zero, few or many reported cases. So instead of the 1573 reported known cases today there are likely 78,650 cases, at least, in the United States. Which will double to 157,300 by this Sunday. And this will double to 314,600 cases by this coming Wednesday. So in less than 1 week the number of total infected in the United States will quadruple. This is the nature of exponential math. It’s actually unfortunate that we are publishing the figures for known cases as it diverts attention away from more important numbers (like the range of estimated actual cases).
6. Some people cannot, or will not, practice social distancing for a variety of reasons and will continue to spread the virus to many people. So, everyone else must start today. 
The reasons above are why I have begun to practice social distancing. It’s not easy. But you should do it too.
The hospitals will be at capacity and there are not enough ventilators. You will hear a lot about this issue in the coming few weeks... the shortage of ventilators. 
ISSUE TWO: MANY PEOPLE ARE FOCUSED ON THE WRONG NUMBERS:
Yes, the virus only kills a small percentage of those afflicted. Yes, the flu kills 10s of thousands of people annually. Yes, 80% of people will experience lightweight symptoms with COVID19. Yes, the mortality rate of COVID19 is relatively low (1-2%). All of this true, but is immaterial. They are the wrong numbers to focus on... 
The nature of exponential math is that the infection rates start slowly, and then goes off like a bomb and overwhelms the hospitals. You will understand this math clearly in the next section if you do the short math exercise. Evergreen hospital in Seattle is already in triage. I have heard credible reports from people on the ground that they are already becoming overwhelmed. And the bomb won't really go off for a few more days. Probably by Wednesday, March 18th (next week). In just a few days from now we will hear grave reports from Seattle hospitals. 
You should assume the virus is everywhere at this point, even if you have no confirmed cases in your area. 
YOU SHOULD DO THIS SIMPLE 2 MINUTE MATH EXERCISE (NO REALLY TAKE TWO MINUTES AND DO IT):
To further understand exponential growth, take the number of confirmed cases in your area and multiply by 10 (or 50 if you believe Harvard and Massachusetts General estimations) to account for the cases that are not yet confirmed. If you have no confirmed cases choose a small number. I’d suggest 10 cases in your city, if no cases are yet reported. But you can use whatever number you like. This number of infected people doubles every ~3 days as the infection spreads. So literally take your number, and multiply by 2. Then do it again. Then do it again. Then do it again. Do this multiplication exercise 10 times in total. 
2 x 2 x 2 x 2 x 2 x 2 x 2 x 2 x 2 x 2 x (the number of estimated infections in your city today (not just the reported cases)). 
This result is the estimate for the actual cases in your area 30 days from now. The math will take 30 seconds to complete with a calculator and it’s worth doing the math to see how it grows. This end number is the number of cases in your city 30 days from today if a large percentage of the population do not practice social distancing. 
2 to the 10th power is 1024. When something doubles 10 times, it's the same as multiplying by 1024. The infection rate of the virus doubles every 3 days. In thirty days there will be 1,024 times the number of infected people in your area as there is today if your community does not immediately put social distancing into practice. One thousand and twenty-four times as many infected people as there is today, in just 30 days. 
Next, divide the final number (the scary big one) you just calculated by the current population of your city and you will be able to get the percentage of people THAT YOU KNOW PERSONALLY who will be infected 30 days from now. 
Next take 15% (multiply by 0.15) of that final 30-day number of total infected people. This will provide an estimate of the serious cases which will require acute medical care, and compare it to the number of beds and ventilators available at your local hospital. Google the "number of beds" and the name of your local hospital now. It takes 2 seconds and the number of beds is easy to find. 65% of beds are already occupied by patients unrelated to the coronavirus. St Charles in Bend, Oregon where I live, has 226 beds and the town is roughly 100,000 people. Most hospitals have on average, 40 or fewer ventilators. 
These numbers you just calculated are the problem: Too many patients, not enough beds, and a serious shortage of ventilators (the biggest problem) if we don't immediately begin social distancing. More on this biggest problem related to the insufficient quantity of ventilators is below.
COUNTRIES THAT GET OVERWHELMED WILL HAVE A MUCH GREATER MORTALITY RATE BECAUSE THEY WON’T BE ABLE TO ADEQUATELY CARE FOR THE SICK. 
And by sick I mean not just coronavirus patients. Your son or daughter that needs acute care surgery this May for his badly broken leg will be attended to by an orthopedic doctor that has been working at maximum capacity and working 18-hour shifts for 7 days every week for 6 weeks because it was required to care for all the coronavirus patients at her hospital. Or the orthopedic surgeon will be sick with the virus and your son or daughter will be operated on by a non-expert or a member of the National Guard. Your elderly Mom that has diabetes and goes into acute distress next month may not receive ANY care because the doctors are consumed and have to prioritize patients based on triage handbooks filled with success rate probabilities. Your sibling’s family that are all injured in a terrible car crash in June will have diminished care. If one of them needs a ventilator there will be none available because all of them will be in use by critical coronavirus patients. Your young friend with cancer and a compromised immune system from treatment will succumb even though the cancer was curable and the treatment was working, because their body was too fragile to combat the coronavirus due to the chemotherapy and they couldn't receive the customized, acute care required due to the hospital being overwhelmed. All of the above is currently happening in Italy, who had the same number of infections we have today just 2 weeks ago. You must start today.
The count of actual virus infections doubles every ~3 days. The news and government agencies are lagging in their response. So we hear that the US only has 1573 cases today (3/12/20), ( see  https://www.worldometers.info/coronavirus/ ) and it doesn't seem like a lot. It would be better to report the estimated actual cases, since reported cases don’t tell us much. However, we know from China that the actual number of cases are at least an order of magnitude greater than the reported cases, because people get infected and do not display symptoms. In math, an "order of magnitude" means ten times difference, or put another way, a factor of 10. 100 is 10 times greater than 10, so it's an order of magnitude greater. 
Harvard Medical School / Massachusetts General Hospital just released their estimate (recording is here:  https://externalmediasite.partners.org/Mediasite/Play/53a4003de5ab4b4da5902f078744435a1d ) that the actual cases are 50x greater than the reported cases. So, we likely have 75,000 cases in the United States already. The number of reported cases is not that important.
But let’s assume the current number of cases is only 10,000 ACTUAL cases in the United States just to be conservative and model out what will happen:
If we don’t stop the virus from spreading, in 30 days we will have 2 to the 10th power more cases of infected people because the infection count doubles every 3 days (the virus doubles every 3 days and there are 10, 3 day periods in 30 days). 
The math: 2 to the 10th power means 1,024 times as many cases as we have today (2 times 2 repeated 10 times). 
This number is a catastrophically big problem for all of us: We will have 10 million+ actual cases (10,000 actual cases today x 1,024) in the United States in just 30 days’ time if we continue without extreme social distancing. 10 million people with the virus. And it will keep doubling every 3 days unless we practice social distancing.
15% of cases require significant medical attention, which means that 1.5 million people will require significant medical attention if 10 million people get infected (15% of 10 Million total infections = 1.5 million people requiring hospitalization). 
1.5 million hospitalizations is about 50% more than we have beds for at hospitals in the United States. And 65% of all beds are already occupied in our hospitals. But patients with the virus need ICU beds, not just any old hospital bed. Only about 10% of hospital beds are considered intensive care. So, we will have a huge bed shortage, but that is not the biggest problem, as we can erect temporary ICU shelters and bring in more temporary beds, as Italy has already done, and California and Washington hospitals have already done. Evergreen Hospital in Seattle has already erected temporary triage tents in the parking lot as of 3/13/20. All regular beds are full at Evergreen Hospital as of yesterday.
Once the government of China, Norway, and Italy came to understand this math, they reacted accordingly and shut EVERYTHING down. Extreme social distancing is the only response available to stop the virus today. The United States is not responding well nor are other countries like France or the UK. Countries that do not respond well will pay a much larger, catastrophic price.
But hospital beds are not the big problem. The lack of ventilators is the big problem. Most estimates peg the ventilators in the United States at roughly 100,000 to 150,000 units. See  https://www.ncbi.nlm.nih.gov/pubmed/21149215  (admittedly dated) and  https://theweek.com/speedreads/900850/doesnt-have-enough-icu-beds-ventilators-deal-even-moderate-coronavirus-outbreak
The primary and most serious comorbid (comorbid is a medical term that means co-existing or happening at the same time) condition brought on by the Coronavirus is something called bilateral interstitial pneumonia which requires ventilators for treatment of seriously ill patients. So, if 1.5M people of the 10 million infected 30 days from now require acute care (15% of the 10M estimated total infections), 1.3M may not get the care that they need because we don’t have enough ventilators in the United States. And remember, this is only if ALL OF US EFFECTIVELY start social distancing by April 11th (30 days from today).
BUT IF WE START EXTREME SOCIAL DISTANCING BY MARCH 23 (12 days from this writing), WE AVOID OVER 1.4 MILLION PEOPLE GETTING CRITICALLY ILL AND OVERWHELMING THE HOSPITALS:
If everyone takes extreme measures to social distance, and the United States can dramatically reduce the spread of the virus 12 days from now, the math is very different, as the exponential growth will only be 2 to the 4th power (12 days divided by the doubling rate of every 3 days equals the exponent of 4):
2 x 2 x 2 x 2 = 16
So instead of 10 Million cases in the United States if we wait 30 days, if we act 18 days sooner, we will have only 160,000 cases (16 times the estimated 10,000 actual cases as of today), of which 15% are likely to require critical care. This is 24,000 critical patients (a huge difference compared to 1.5 million acute patients).  The difference between taking extreme measures now, versus waiting even a few days, is very large due to how exponents work in math.
THE OUTCOME IS EVEN BETTER IF WE TAKE ACTION IN THE NEXT 6 DAYS: If the vast majority of the population self isolates and implements social distancing in only 6 days from now the exponential math is 2 to the 2nd power (6 days divided by the 3 days it takes the virus to double means the exponent is only 2). In math this is "two squared".
2 x 2 = 4 
Multiplied by the estimated 10,000 ACTUAL cases as of today (3/12/20) that means only 40,000 total cases will develop, 15% of which may be critical which is 6,000 critical patients.
This is why you should share this post broadly. If people begin social distancing in the next 6 days it will greatly reduce the impact on all of us. It's why they say a "post goes viral".
SOCIAL DISTANCING WILL REDUCE THE FINANCIAL IMPACT TO YOU AND YOUR FAMILY:
Finally, the longer everyone waits to practice significant social distancing the greater the economic hardship will be on all of us. Lost jobs. Mortgage defaults. Closed businesses. Bankruptcies.  All will be minimized if you start social distancing today.
Some of the reasons the economic impacts will be reduced are worth mentioning: If we stop the virus now the overall duration of the outbreak will be far shorter. The stock market will normalize more quickly and recover more quickly. Businesses and people will be able to survive a shorter duration outbreak vs a longer duration outbreak. More companies will avoid bankruptcy if we begin to practice social distancing now.
This is a big financial reason to begin social distancing if you are employed by any company: if companies see that the virus is being slowed, they will be less likely to conduct layoffs. You will be more likely to be laid off or experience a job-related event if we don’t practice social distancing immediately. As an HR executive, I’ve been involved in many, many layoffs. It’s the last thing companies want to do. But if they see that the pandemic will be shorter lived vs long and drawn out, they are less likely to make the permanent decision of laying off staff.
The overall economic impact that hits your bank account will be greater if you wait or you don’t practice social distancing.  This is why Norway acted now, because it’s less economic impact to take drastic measures early than to do them later, and it saves a lot of lives and suffering by doing so. And Norway has only one confirmed death as of this writing. 
START TODAY. I CAN’T STRESS THIS ENOUGH. YOU MUST START TODAY. 
Finally, the article that I posted yesterday written by Tomas Pueyo has been read 7M times in the last 24 hours and has been updated with new information. It’s worth reading again.
Here’s that link. 
Other up to date data I frequently consult regarding the pandemic is here:
I hope this is helpful and useful. My brain focuses on the math and I try and be fact based in my analysis and interpretation of how I should respond.
HERE IS MORE INFORMATION IN THE COMMENTS BELOW WORTH READING AND I WILL BE UPDATING THIS POST, AND THE COMMENTS, WITH MORE INFORMATION, (AS OPPOSED TO CREATING NEW POSTS).
MY FINAL PARTING THOUGHT: Please share or forward this post at your discretion.  If everyone shares this post and two of your friends share this post and so on, we use the power of exponential math to work in our favor, which seems appropriate given the virus is using that same exponential math against us. 
HOW YOU CAN REALLY HELP: If you know people who have large numbers of followers, or people in the media, please leverage your personal relationship with them and ask them to amplify this post by sharing it. 
For people not on Facebook you can email or text the link.  If you know people in government this fact-based post may help inform them to make the best decisions. 
It's time for us humans to go on the offensive against the virus. We must fight back. 
There is only one way to do so: Social Distancing. 
Do it today.
NOTE: Anyone, including the media, is free to use this post, any related content, in all or in part, for any purpose, in any format, with no attribution required. Please direct message me if you have other ideas for how to raise awareness.
Here is another email from Zhanna. This is the real world that we live in now. And yes, young people can get it and die from it too.
We personally know all of these families...
There are a group of Minneapolis college kids all about 20 or 21 years old. They all went to Europe together for Spring Break and came back this past week. Three of them are already confirmed with the coronavirus. One stayed in London and he’s confirmed to have it too. The families are still waiting for results from the other kid. One of the boys came home and his sister (who’s a friend of our oldest daughter, Lola) went to Hopkins High school for 2 days before her brother was confirmed. The entire family is now quarantined at home. This is what one of the moms post to her Facebook. 
These are the boys (Jordan Zaroff, Noah Kaplan, Friedman, Jonah Salita, Jonah Stillman)
Quarantine Day#1: This is technically day #3 of quarantine but since we only just received a confirmed diagnosis of COVID 19 for my almost 21-year-old son this afternoon we have to start the counting today. Fortunately, I am the only family member that has been exposed and caring for him. He returned from a 5-day trip to the UK last Wednesday, he felt ill and upon landing I immediately took him to be tested. We were met at a separate entrance of the doctor's office by a nurse dressed in a HAZMAT suite, goggles, gloves and a mask. We were escorted to a small room where they took his temperature (it was normal), tested him for the flu (which was negative), then nose and throat swabbed him and collected a large amount of spit in a jar. We were then escorted out of the room through the same back door and told to quarantine until we received the results which should be within 24-48 hours. 36 agonizing hours later we received a call confirming that my son is infected with the COVID-19 virus. Shocking, yes. Paralyzing, yes. However, thankfully his symptoms are mild: sore throat, mild cough, headache and body aches - no fever. Ten minutes after receiving the call confirming the test was positive, we received a call from a cheery and friendly woman who informed us that she is a senior Epidemiologist of the Vectorborne Diseases Unit from the Infectious Disease Epidemiology, Prevention, and Control Division of the Minnesota Department of Health (what a mouthful!). She began with an introduction and then proceeded to read us our legal obligation to answer and comply with all of the requirements she was about to inform us of. If we did not comply or agree to share everything we knew there may be legal action so of course we agreed to give as much information as we could. We told her about his trip to the UK, his trip to Australia 2 weeks prior and even his trip to Thailand via China and South Korea 2 weeks before that. We told her who he had been in contact with since falling ill and what his symptoms are. We informed her that we followed his doctor's orders to quarantine until we received the test results (we got major kudos for that!). I also told her how I have been fastidious about cleaning every single surface in our home with disinfectant wipes from the doorknobs to the light switches, From the toilet flushers to the counters and every other hard surface in the house, toilet seat included. I informed her about our constant hand washing and about my son staying in his room 75% of the time taking breaks only to shower, grab some food or run up and down the stairs to get rid of some of his pent-up energy out (and there is a lot of it!). Our call lasted 45-minutes. She asked a lot of questions. Informed us that we will need to both take our temperatures twice a day and log it. She said that she will be calling us daily to check in for updates and symptoms. She also told me that I will need to take an online survey daily that will be sent to me via email and that I am now officially a "high risk contact". If I am to develop any symptoms whatsoever, I will also need to be tested she said. Then she hung up the phone and left the 2 of us still reeling in disbelief that this is actually happening. So, here we go, day 1. I pray for this to go as smoothly as possible. I pray for my son to recover quickly. I pray that I will not be infected even though I am not quite yet in the high-risk category (a lady doesn't give away her age) plus I have no underlying health conditions. I pray that no one else in my family tests positive but mostly I pray that there will be an end to this nightmare soon. Meanwhile, we are hunkering down with Netflix, Prime, tons of food (thanks to family and friends you know who you are) and following orders to mitigate this nasty virus. I hope that each and every one of you that reads this will take this as seriously as we are. Wash your hands a lot, hug your kids a lot, and listen to the officials-they do in fact know what they are doing. Wish us luck. More to come.......
Zero Hedge
 
 
If something is not done  to dramatically slow this virus down in the United States,   soon the level of fear will be absolutely unprecedented...
 
 
If this is a “Phase 2” relief rally of a bear market,  you really don’t want to be around for the “final mauling.”
 
 
" I don't think it's a crazy analogy to compare this to World War 2 ... I think this is an appropriate analogy and the mindset that people need to get into..."
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