An internal report in China has been revealed that indicates the country is facing a lot of anti-China sentiment around the world. China is growing increasingly sensitive to verbal attacks on the country that are blaming it for the coronavirus pandemic. It also sees that the West considers its attempts at expansion and covering up the truth about COVID-19 as a growing threat to democracy. China warned in the same report that increasing tensions may lead to armed conflict if it continues. After news of this situation was released, the stock market took a dive. At the same time, it drove gold prices higher and made the dollar stronger.
The tension between the U.S. and China has also increased because of a problem with manufacturing and the supply chain. Industry and shipping have been extremely injured because of China’s strong manufacturing processes that were shut down when coronavirus spread throughout the country. Once they started reopening, the U.S. was shut down, creating an even worse problem that is not apt to be corrected until both countries are at full operational speed again.
Coronavirus Cases Expected to Rise
Now that some states are on the way to reopening, people in those states are glad to be able to have more freedom to move and enjoy some recreation and basic services. Unfortunately, there is a very dark side to this picture that is expected to occur toward the end of the month. Projections from FEMA reveal that there could be as many as 3,000 deaths a day from coronavirus. There are about 2,000 a day now. This would also cause about 200,000 new cases each day.
More States Opening Soon
States such as California will begin to open this Friday and relax some of the stay-at-home orders. While it will start to bring some money into the state’s coffers, it cannot begin to be enough for this state with the largest population in the U.S. Some other states will not open until May 15th and a few will not open until closer to the end of the month.
Part of the plan for bringing America to the place where phase 3 is reached – complete freedom – involves contact tracing. This plan involves using cellphones to record the movement of people so that when someone comes in contact with an infected individual, contact tracing will enable medical personnel to inform him or her of the interaction. This enables people to know when to quarantine themselves and it will limit the spread of COVID-19.
Both Google and Apple have refused to use these contact tracing applications. They are concerned about privacy issues and governmental compiling of data on citizens. The exception to their rejection would be that the information must be limited to be viewed by medical personnel only. The possible exception is to use a Bluetooth-based system, but it would likely miss a lot of potential interactions with infected people who have their cellphones turned off.
Editor’s Note: Some of us believe that contact tracing is an egregious breach of privacy, and a slippery slope to state surveillance, and we will actively avoid participating.
When economies lose value, gold typically increases in value. This has been happening and will continue to do so. Although gold has not yet hit the 2008 high price of over $1,900, it appears to be headed toward those highs again, having reached a high that has not been seen in seven years. Today its value is $1,701.72 per ounce. With interest rates from the Fed at zero, the stock market fluctuating violently, and the strong possibility of a second wave of coronavirus, it may reach that value again soon. This may be the ideal time for you to add gold to your investment portfolio.