The hospitals in China will have more than 5.8 million beds occupied during the current epidemic. Deaths in the big cities are running 4 to 8 times the normal rate. The largest port city, Shanghai, is in the worst shape. None-the-less, the top brass of China’s government said yesterday morning total quarantines or lock-downs will not be re-introduced until after a review in February, if even then.
It is clear that lock-downs to control contagious diseases are like government price controls in times of inflation. Eventually, lockdowns and price controls must end and when they do end, sickness and prices jump to levels as high or higher than they would have been without artificial controls. It is a historical fact.
The $2 gain yesterday for crude oil topped the $8 gain since the low of $70.08 on December 9th. There are four contributing factors: