Meanwhile, 94% of the Fortune 1,000 companies and 5 Million companies worldwide rely on manufacturing out of Wuhan. China is able to invoke a Supply Shock to the US economy at the flick of a switch. COVID 19 makes China look like they are just trying to stop the spread of this deadly disease rather than something sinister like intending to bring US to its knees.
https://fortune.com/2020/02/21/fortu...-chain-impact/
Also, India has limited exports of pharmaceutical ingredients:
https://www.in-pharmatechnologist.co...anic-over-APIs
Now the virus has community spread in the US, there is a Demand Shock (which has traditionally been, and will be eased by QE and rate cuts). But once you solve the demand shock with more money and liquidity, the Supply Shock means there will be nothing much to buy.
Demand Shock + Supply Shock has never happened before, ever.
https://www.youtube.com/watch?v=xE6aKTziunE
This guy is entertaining and terrifying.