By: Neil S. Siskind
“Managed globalization” (or “nationalism”, or “protectionism”, or “partial-autarky”, or whatever term you prefer) as a response to a pandemic (in this case, the COVID-19 pandemic), and for the purposes of preventing and managing future diseases and pandemics, requires two entirely separate elements. Congress’s establishment of a federal mandate requiring the “onshoring” or “reshoring” of all manufacturing, production, and distribution of all “essential products” (or “critical products”) is a necessary measure towards the country being prepared to efficiently manage future emergencies as they arise and create demand for essential/critical products by hospitals, law enforcement, firefighters, the military, local businesses, and the general public, allowing for manufacturers and government agencies to more effectively prevent raw material and production limitations, and to rapidly solve supply chain constraints. We’ve learned, and are learning, a harsh lesson about the importance of this strategy and structure.
But, in terms of preventing or minimizing widespread infection and disease from pathogen outbreaks, in the first instance, inbound-travel restrictions and protocols are the main control valves.
A person brought this novel coronavirus to the United States; that happened through air travel- and not through trade. If we fail to properly and perpetually manage inbound travel from foreign nations (including by Americans returning home from business and pleasure trips), then, the next pandemic- notwithstanding manufacturing, production, and total supply chain autarky for essential/critical products- may not be far off (not to suggest that this pandemic is, even, nearly over).
Without inbound-travel restrictions and protocols, including health checks and quarantines for inbound travelers from overseas (with such protocols conducted at the travelers’ expenses), we will always be reactive- and not proactive.
Diseases (and pandemics) can certainly start in the United States; zoonoses can, potentially, be transmitted from animals to humans in U.S. forests, in U.S. rural areas, on U.S. farms, and in U.S. zoos. But, our modern and efficient health systems and standards, combined with our national interest and self-interest, would lead to an immediate and complete response, which would include mass and vast notices to the American public. We have laws and standards and protocols designed to protect the nation. Certain other countries may not have the same, or equivalent, health-management resources, emergency management systems, and legal obligations, or, they may have different standards of what is “concerning” or “problematic”, or they may have different interests, values, or food and sanitation practices. A nation’s financial resources, and limitations on such, play a role in its ability to detect and respond to emergencies. A nation’s self-interest in not creating a panic or not being blamed for a pandemic may outweigh its interest in our safety- as we have, now, witnessed.
Manufacturing, production, and complete supply chain autarky for all essential/critical products (including for the raw materials used in such products) through strictly domestic raw material sourcing/growing/development and essential/critical product manufacturing and production is a necessary national policy towards effectively responding to future state and national emergencies, of all kinds. But, when it comes to protection from diseases, at the borders and at customs is where versions of protectionism or managed globalization related to human cross-border mobility and movement must be implemented- otherwise our national health standards, health and hygiene practices, and disease emergency measures, will, increasingly, be rendered impotent.
Surely this would change the nature of travel as we know it. But, I’d rather see America change the nature of travel than see another country change the nature of America– again (and not even feel remorseful about it).
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About the Writer
Restructure and reduce business and personal debts; collect debts owed; monetize receivables by selling your invoices: https://www.debt-solutions-attorney.com/
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Neil Siskind is: President of The Siskind Law Firm, https://www.debt-solutions-attorney.com/, focused on debt negotiation and restructuring, debt collection, debt investing, product investments, trademark licensing, and product distribution; Founder & Chairman of The Fatherhood Assignment™, a think tank and advocate for children with absentee fathers; Founder of the global charity marketing initiative, Caring is Free®; Founder of National Fatherhood Day™; Owner & Conservator of The Neil S. Siskind Nature Preserve, over 9 acres of conserved waterfront land along New York’s majestic Hudson River; and author of The Complete Guide To The Ways To Manufacture & Sell Your Products. On December 11, 2017, in his article The Yield Curve Speaketh: Why Stocks Might Crash in Early 2018, Neil Siskind accurately predicted the February, 2018 stock crash, the largest single-day point drop in the Dow Jones Industrial Average’s history. All the stock indices are down approximately 6% for 2018. In his September 26, 2018 article, Lots of “Bull” In The Bull Market: Let’s Look At What’s “Really” Growing, Neil Siskind explained that, despite Wall Street’s bullishness, the economic data and stock market underpinnings were in decline, and the economy and stocks were at imminent risk. By the closing of markets on October 23, 2018, the S&P 500 had fallen approximately 7%, with October being the S&P’s worst month since August 2015 (and December being the S&P’s worst month ever), the Nasdaq continues to have its worst month since 2016, and is down approximately 8% from article publication, and the DJIA is having its worst monthly performance since 2008. In 2018, Neil Siskind coined the phrase “synchronized global slowth™” (or “synchronous slowth™”) to describe the occurrence or condition of multiple emerging market and developed market economies commencing a downward trajectory of economic and GDP growth, or actually contracting to a point of slow, stagnant, or negative economic and GDP growth, simultaneously. If you are in need of office space in South Florida, contact Neil Siskind about space availability at The Siskind Executive Office Complex in Boca Raton, FL.
Other Recent Articles by Neil S. Siskind:
- Fighting COVID-19: Walking on Sunshine
- COVID-19’s Contagiousness Period is Known- So, Let’s Quarantine Together, End the Contagiousness Together, and Move-On Together
- Virusgate and the Trade Agreement: What Did the President Know- and When Did He Know It?
- Enforcing China’s Agriculture Purchase Promises: President Trump- Think Like a Real Estate Developer
- The Big Jackson “Hole” in the Fed’s Understanding of the Economy
- Hey, China- Heed What Confucius Say
- The 2019 “Holding Our Breath” Economy
- U.S. & China: It’s Not A Trade War- Well, It Is … But, Not Really
- Trade: Who Even Needs China To Agree? All We Need Are “Ceilings”
- “Jay”walking Things Back: The Truths About The Fed’s Intentions, Concerns, & Wisdom
- China & The G20: Some People Are Way-Underestimating Trump’s Ambition
- Lots of “Bull” In The Bull Market: Let’s Look At What’s “Really” Growing
- The Flattening Yield Curve- It’s “Not” Different This Time
- Capex- The Elephant In The Room
- Is The Yield Curve Flatter Than You Think? Is The Economy About To Crash?
- Stormy Daniels Breached Her Settlement Agreement With Donald Trump- Period
- Here’s Why Facebook’s Woes Help – And Vindicate -Snapchat
- The Yield Curve Speaketh: Why Stocks Might Crash In Early 2018
- Caution: Here’s Why Real Estate Is A Risk To The Economy And Stock Market
- Is Snap Getting Acquired: Reason Enough To Own Snap Stock
- The Yield Curve And The Fed Are On Exactly The Same Page
- New JonBenet DNA Test: A Farce
- Beware Of False Financial Premises
- A Flattening Yield Curve: Is “Housing Inflation” The New “Wage Inflation”?
- A Vital Legal Fact About Athletes And The National Anthem
- The Real Reason Why O.J. Should Not Have Been Paroled
- Will Amazon Be Buying Your Favorite Fashion Brand?
- Two Communications Brands Together: Will Apple Buy Snapchat?
- Will The Real Snapchat Please Stand Up?: Will Apple Buy Snapchat (Part II)?
- Food Investing: When Taste Matters More Than Sales
- The Complete Guide To The Ways To Manufacture & Sell Your Products
- Romney vs. Trump: Does Mitt Romney Respect the Value of Business Branding?
- To “Loan” is not to “Own”
- How the Sharks……Tank
- Is Licensing a Trademark Worth it?
- Distribution is King
- Why the “Affluenza” Defense is So Dangerous
- A Shark, a Chicken, and a Trademark
- Celebrities “and” Brands; Celebrities “as” Brands
Settle Debts, Restructure Debts, Collect Debts, Sell Receivables: Debt Solutions From The Siskind Law Firm- https://www.debt-solutions-attorney.com/
Narrow credit spreads (in times of low bond yields) mean that financing operations with corporate bonds is inexpensive, and capital is pretty freely available for public companies. Low interest rates mean that there’s a low cost of capital and low debt service costs for public and private businesses.
In times of low rates, low yields, and narrow spreads, companies take on debt- sometimes, or often, too much debt- which can turn against them as interest rates rise, or as growth and earnings slow.
This puts companies, and their credit obligations, under pressure, and can push companies’ loans into default. When the number of non-performing loans (“NPLs”) rise, it creates distressed debt and distressed credit opportunities for investors.
Of course, a buyer of a distressed credit instrument has to understand the underlying business, industry, and sector of the subject company and have a proper business plan in order to improve performance and ensure a successful distressed credit investment.