Because

Because of a few songs wherein I spoke of their mystery, women have been exceptionally kind to my old age. Leonard Cohen.

That quote has absolutely nothing to do with the rest of this post, I just like it and it commences with “because”.

Conspiracy theorists always look for the “because”. It’s human nature to try to make sense of situations, particularly if they are causing you pain, suffering and anxiety.

It’s a fool’s errand though. The chances of someone affected by an externality to correctly guess the sequence of events leading to it are extremely unlikely.

What probably matters more is correctly observing all the pertinent facts about the present and drawing reasonable conclusions about how they might change in the future.

Some observable facts, then.

Using public health as the justification, despite 18 months of data showing it was, at a population level, a mid-severity flu and is now (with vaccines, regardless of what you may think about their safety), a very mild flu, the following changes have occurred:

  • International and domestic border closures,
  • Legislation and heavy-handed policing restricting freedom of movement, freedom of trade, freedom of association,
  • Curfews and military presence in suburban areas,
  • Legislation mandating quarantine of healthy individuals on the suspicion of infection,
  • Legislation mandating vaccinations for certain professions,
  • Closures of schools, replaced by very sub-optimal online lessons,
  • Vaccination of children against a virus that poses little threat to them,
  • Restriction of travel on several major airlines to those with proof of vaccination,
  • International airfares, for those allowed to travel, outside the budget of most people,
  • Unprecedented (there’s a word for our time!) government borrowing and economic stimulus, in the form of direct payments to business and individuals. In many cases, the government cheque is greater than the wage it replaced,
  • In those countries that have lifted some of the legislated restrictions above, the powers to re-impose them have been retained (the UK, for example).

That’s Australia today.

How might these situations change, do we think?

Borders will reopen and flights resume, but not for the plebeians for a very long time. The competition in international air travel drove prices down to a level where a middle class family could leave Australia once every second or third year. That’s not going to happen again for perhaps a decade. You’ll need a vaccination passport too.

Legislation restricting freedom of movement, trade and association will remain on the books, the powers to arbitrarily invoke the laws will be retained and used based on “cases” or new variants. Look at the decades old laws against terrorism for precedent.

Governments will not be tempted in the slightest to turn off the stimulus fire hoses. The creative destruction of free markets will be seen as a sign of policy failure. Universal Basic Income by another name will be here to stay.

Schools will re-open and close again several times based on “cases”. Masks for school kids, perhaps mandatory vaccinations too. Teachers’ unions will make demands for “safety” usually resulting in pay rises. The quality of the outcomes for pupils will be a distant footnote printed in tiny font.

Court cases will be brought by employees fired over vaccinations. They might win, they might not.

Bill’s Opinion

Don’t look for the because. You’ll drive yourself mad.

On the news every night, some idiot financial journalist will tell you “markets rose 17 points today because of new employment data”, or “fell because of new inflation data”.

Unprovable. All we can prove is markets rose or fell.

Similarly, we can’t be certain about the because of the situation we are living in now.

We can make reasonable extrapolations such as those I’ve offered above, though.

What to do then?

Here’s some suggestions:

  • Find a doctor who will give you a vaccine exemption. It might be accepted by employers, airlines, restaurants and governments for a while,
  • If you are eligible for a passport from another country, apply. Having options is wise. Ask any American male with a Canadian passport during the Vietnam draft era.
  • Consider alternative education models for your children. Take control of their curriculum and hire tutors. If you stay within the current system, focus them on what matters only. STEM.
  • Spread your assets across jurisdictions. Be nimble.
  • Perhaps move away from major population centres, if these are where all the police and army presence is focused.
  • Learn to sail. If you one day find it necessary to steal a yacht from the harbour and sail away, having the skills learned in the Day Skipper qualification would be important.

It’s all a bit tin foil hat, isn’t it?

But then, imagine a conversation between your 2019 self and your present day self.

Of course, once we’ve moved to Central Bank Digital Currencies, there will be nowhere left to hide anyway.

So enjoy your current freedoms.

Dine and discover unintended consequences

There’s a trial underway in New South Wales which apes Boris Johnson’s “Eat out to help out” stimulus from earlier in the year.

The NSW version is the “Dine and discover” programme.

It’s being trialled in The Rocks area of Sydney, later to be rolled out to the rest of the state.

It differs from the UK version however, as the business categories eligible for the stimulus are far greater, including “scenic and sightseeing transport”, “recreational activities such as go-karting, indoor climbing, mini-golf, billiards, bowling or ice-rinks”, “outdoor adventures”, and “travel agencies and tours.

Can anyone see a flaw in the scope of the trial and what do we think happens next?

Bueller? Anyone?

There are plenty of pubs and restaurants in The Rocks, but go-karting and outdoor adventures? Not so many. Similarly, there’s not a huge number of travel and touring businesses based out of the small historic part of Sydney.

Why is this a problem?

Well, what won’t be tested as these $25 vouchers are rolled out is whether there’s an opportunity for misuse and fraud.

Anyone who’s ever previously met another human will instinctively know the axiom, if fraud is possible and a large enough number of people are involved, fraud will occur.

Bill’s Opinion

It’s an absolute certainty there will be multiple cases of newly-registered or previously dormant businesses making a load of free money from innovative use of these vouchers.

At its simplest, a scam might simply launder part of the $25 back to the consumer, say, $20 in cash back to you while my “scenic tour business” pockets a fiver and nobody says anything.

More imaginative minds than mine will be working on various elaborate and profitable versions of this idea right now.

This is little league stuff compared with some of the Bernie Madoff-esque scams surely underway already in financial markets, though.

2021 is going to be the “everything bubble” party. Perhaps 2022 is when the hangover kicks in?

2021 surely can’t be any worse?

Gonna sleep down in the parlor

And relive my dreams

I’ll close my eyes and I wonder

If everything is as hollow as it seems

When you think that you’ve lost everything

You find out you can always lose a little more

I been to Sugar Town, I shook the sugar down

Now I’m trying to get to heaven before they close the door

Bob Dylan

Last year’s predictions weren’t too far off the mark, with the minor exception of missing a global pandemic and subsequent complete overreaction by practically every national government…..

“Other than that, Mr Waite, how was your holiday in Beirut?”

On to this year’s predictions then:

Australian Politics

Internal borders will continue to open and close like a hooker’s legs throughout the year. The two week quarantine for international travellers will remain all year.

An Australian university will threaten to declare bankruptcy and will be bailed out by the federal or a state government.

An interviewee will point out to a Sky News Australia talking head that they can’t simultaneously berate Dan Andrews for his response to Kung Flu whilst complaining the rest of the world are overreacting to a virus with a 99.93% survival rate.

Global Politics

Kamala Harris will take over the presidency from a medically-impaired Joe Biden. For this selfless act of bravery, she will will receive the Nobel Peace Prize.

A proxy war between China and the western powers will be fought in SE Asia.

The USA will return to the Iran nuclear deal. Somewhat related, mysterious explosions will continue to occur at various locations in Iran followed by an innocent face and shrug of the shoulders in Jerusalem.

The UK will have a new Prime Minister, most likely Dishy Rishi Sunak or Liz Truss.

An EU-sceptic party will win an election outright or by enough to form a coalition government in one of the 27 states.

The trial of Ghislaine Maxwell will result in weasely apologies and withdrawal from public life of several high profile figures.

A Black Lives Matter leader will be arrested for embezzlement and fraud.

Zeitgeist

The new “Trump TV” internet channel will overtake CNN’s viewing figures within a week of being launched.

As crowds return to sports matches, nobody will kneel before kick off for fear of ridicule.

A new hedonistic and illegal music/dance/drugs genre will emerge as teenagers and twentysomethings kick out against the societal restrictions. It will be inspirational for about as long as the northern hemisphere summer lasts and then it will crash and burn.

Alec Baldwin launches a charity with Rachel Dolezal and Shaun King to help sufferers of the newly identified condition, TransEthnic.

Harry and Megan Windsor-Markle’s podcasts and Netflix output is quietly dropped due to awful listening/viewing figures.

Sport

England wins the Grand Slam in the Six Nations.

The British and Irish Lions tour will go ahead in empty stadia and will be won 2-1 by South Africa.

The Olympics will also go ahead but will be a dull collection of the sports you wouldn’t normally pay to watch, as always.

Economy

Gold will reach new highs and stay above $2,100 an ounce all year.

Bitcoin will reach $35,000 and also fall to $18,000 and back again.

Tesla will reach a market capitalisation of $1 trillion but you still won’t personally know anyone who owns one.

All major stock indices will have and maintain major rises.

Several major airlines will be nationalised.

Bill’s Opinion

Some serious, some jokingly serious.

On verra, on verra.