Monday Insight – July 20, 2020

China-US Traffic: O&D With An Increasing Global Pariah

Let’s put this in context…

Does anybody inside the Beltway still have a pulse?

Here’s the situation – incredibly…

… If some no-name plastic factory in some rural corner of North Dakota inadvertently spews some unpronounceable chemical into some turgid stream, threatening some stupid species of endangered water spiders that normal people would spray with a can of Raid, the EPA loses regulatory bladder control.

The fines and penalties – sometimes criminal – come like the Marines storming Iwo Jima.

It’s a big deal. Pollution is not to be tolerated – especially if it threatens wildlife.

And if the factory tried to doctor data, or withhold information, the folks running the place would have a change of wardrobe into bright orange jumpsuits.

One Giant Global Polluter – China’s Government. But now we’ve seen our entire economy, not just some rural creek, polluted by a virus a million times more dangerous to the health and well-being of our nation – and it’s all due to one entity… the unelected hoodlums running China.

This bunch of thugs discovered – or, as the evidence increasingly indicates, created in a virology lab – a vile contagious disease in Wuhan. Due to sloppy institute management, which was documented previously – the virus got out and spread.

So, to cover themselves, they continued to let it spread, as all the while more and more evidence showed this to be a dangerous highly contagious epidemic.

For several weeks, likely two months or more, they lied about it to their own citizens, muzzled medical staff, suppressed and arrested anyone who spoke of it, and then, to “prove” it wasn’t contagious, actually encouraged citizens to intermingle by holding huge communal events, just before 5 million citizens – many now infected – left town to points across the globe for the annual Chinese New Year (Spring) diaspora. They knew all this, but to save embarrassment within the varying levels of the CCP mob, they caused all this to happen.

Not Just A Rural Creek, But The Entire U.S. Economy Is Polluted. The result is that today, the U.S. economy has been trashed by the CCP-Covid pandemic. Our economy was shut down, 40 million people are out of work, and entire industries – such as restaurants and hotels – are on the ropes.

As for the aviation industry, past roadmaps are now obsolete. New fleets – as we’ve covered at Aviation Unscripted – will result in less air access at points across the country, revenues at airports destroyed, and thousands of airline, airport and supplier employees with careers destroyed.

The destruction of the economic lives of thousands of U.S. citizens has already been registered.

The Chinese government is polluter, just like that hypothetical factory in North Dakota. ‘Cept it’s not some rare bug that’s been endangered. It’s the entire U.S. economy.

Different Ethical Standards, When There’s A Political Play To Be Made. So, where is the outrage? Where are the politicians that are oh-so-concerned about endangered rodents, when the entire nation has been economically devastated by the pollution inflicted by China?

Yet, looking at the inhabitants of Washington, dozens – more like hundreds – of these examples of walking protoplasm say absolutely nothing about this global polluter – the Chinese government.

Where is the outrage? The USA has been attacked. Where are the measures to hold the dishonest criminal thugs in Beijing accountable? Answer, nowhere.

Somehow, the inhabitants of the Marble Playpen, a.k.a. Congress, aren’t too concerned with dealing with the culprits that caused this. The economic lives of citizens have less interest than a threat to snake darters.

Instead, they want to use the pandemic as a political play. Let the President dare point out the fact that the CCP is responsible, and the response is a barrage of accusations from politicians and the media that it’s “racist.”

That is every bit as sleazy as declaring Roosevelt’s speech to congress on December 8, 1941 as being “xenophobic.”

Protecting Business Revenues That No Longer Exist. To the contrary, the current general direction in political circles – and supported by strong business circles – is to protect the Chinese government. See, there were billions to be made in China, and taking the actions appropriate to hold them accountable might, in terms of a Chinese metaphor, break these corporations’ and U.S. businesses’ rice bowls.

That is the current situation – protect China and that will eventually restore the pre-pandemic revenue flows and business levels with China.

Here’s a hint: That’s not going to happen. China is sinking economically. Forget the jive numbers coming out of Beijing. From sluggish factory production, to deflating real estate bubbles, to a collapsing banking system, the China of the last five years no longer exists.

U.S. Airlines: The China Traffic Bonanza Is Gone. For the U.S. airline industry, our recommendation is caution, so when considering restoration of service to China, review the realities of the market.

First, as was clear before this pandemic rodeo got started, it was Chinese carriers that had the upper hand. United or Delta or American had no chance of developing sufficient traffic from all but the top 5 or 6 Chinese airports.

But more importantly, the entire China-USA O&D has now collapsed. The tourist trade is dead as the terra-cotta warriors in Xi’an. Business traffic is going to atrophy, too, as the Chinese economy sinks, and the CCP continues to become a pariah on the global scene due to human rights outrages and the fallout from the thuggery that caused the global pandemic.

Bottom line: The 8.2 million O&D that was seen between the USA and China in 2019 will be lucky to see one million anytime in the next 3-5 years.

We will be talking more about these developments in the weeks ahead.

One thing is clear: China has polluted the globe, and there will be an economic price to pay – sooner than later.

More Facts: If you’re interested in some further timelines and information on how the Chinese government intentionally polluted the globe’s economy, click here.