Coronavirus is killing the global economy not just people.
If we all survive the infection, we will still need to survive the economic disaster.
So what's the economic vaccine?
The governments of the captalist world need to cease and freeze all currency, commodity and equity market trading and financial instittution, commercial bank lending and mortgages.
The only reason small, medium businesses are going to stop making money, stop paying staff and stop repaying their debts is because their creditors are still calling in repayments.
If the banking creditors stop calling in repayments, small and medium businesses will stop losing money, caused by their books being all expenditure and no revenue. Families will avoid homelessness.
The Reserve banks and governments can arrange the macro economy to compel this outcome with radical fiscal and monetary policy and a suite of targeted incentives and finance stimulus initiatives.
If household revenue stops, household expenditure needs to stop. Only one authority can achieve this.
If household income stops, we'll have mass evictions and mortgagee defaults. Landlords need to get themselves some morality.
The governments need to step in and control the economy.
If markets stopped trading, investors would not be able to sell shares and big business would stop losing money. Our superannuation would be frozen at current levels instead of being reduced to small change through markets collapsing.
If banks stopped calling in repayments, mortgages would be frozen and people wouldn't lose their houses, nor default on loans.
Utility companies should similarly be compelled to freeze repayment for services, which could be acheived through government action.
If these measures are taken, businesses will stay afloat, households will sustain their survival and flow on effects will keep all of us where we are today.
If these measures are not taken, businesses will collapse, unemployment will soar, crime will soar and government will be replaced by mob rule.
State and non-state agressors will take the opportunity before them. They will take advantage of this unprecedented opportunity.
What about daily sustainance? Food, water, medicine, essential goods and services?
Societies have long histories of surviving through war and famine, through government control. Rationing, stockpiling, mass production in primary industry, prioritisation, critical industry policies, primary industry protection, etc etc has been used successfully before and can again. Must again.
All of this will take strong and courageous political leadership and real social cohesion. If we ever had this, we will soon find out.
The problem is defined. The solution is there. All that's left is action.
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