As the coronavirus pandemic continues to spiral out of control south of the border, White House health advisor Dr. Anthony Fauci has issued a grim statement.
As infections are rising by nearly-exponential values with at least 40,000 new cases reported in the US each day, up from an average of 22,000 daily cases in May, the remainder of summer is going to be bleak for many Americans. Despite the federal government, alongside many US states, pushing for the lifting of restrictions and reopening of the economy, the coronavirus pandemic is far from being under control.
At a hearing put on by the Senate Health, Education, Labor and Pensions Committee, Dr. Fauci was asked by Sen. Elizabeth Warren if he thinks the US is controlling the outbreak adequately – to which he gave a less than reassuring response. According to Dr. Fauci, new daily cases could reach 100,000 if left unchecked at the current pace. As per data compiled by John Hopkins University, the average number of new cases have increased by over 40% since last week, with the seven-day average of daily new cases increasing by 5% each week across 40 US states.
Many of the new outbreaks have been predominantly originating from several states in the South and West, mainly of which are Texas, Florida, Arizona, and California. Other states such as New York, Connecticut, and New Jersey have been seeing signs of a decrease in the number of new cases, but severe outbreaks in other parts of the US could very quickly hinder their progress.
Although the federal government released a series of recommendations for states wanting to expedite the reopening process, the guidance was not mandatory. As a result, the states that aggressively pursued reopening while sidelining the federal recommendations are now reporting rampant outbreaks and increased hospitalizations. When such rapidly-spreading outbreaks occur, contact tracing efforts become increasingly difficult and in many cases overwhelming. Nonetheless, some of the US states that had a head-start at the economy-reopening finish line are now having to embarrassingly retract the lifting of restrictions.
Information for this briefing was found via CNBC and John Hopkins University. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Hyperinflation: Remember, GDP = Money Supply x Velocity
When trying to wrap my head around economics, I like to simplify basic principles down...