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Coronavirus Exit Strategy

Coronavirus Exit Strategy: Use empty hotels to develop Herd Immunity

Stopping this market meltdown, and the fast growing financial and social challenges, requires two things: 

1. Making livelihoods our absolute focus (while still saving lives impacted by Coronavirus and managing hospital beds) and

2. Providing a clearly defined end date to this situation. This can be done by immediately starting to develop herd immunity by creating a Government Organised Voluntary Infection (GOVI) programme, for healthy people, in all the UK’s empty hotels

The Problem:

The market, and people generally, require certainty so they can move forward confidently. Currently there is no certainty when considering the end to this pandemic*. Hoping for a viable vaccine provides no certainty. It is like hoping to win the lottery: It’s worth trying, but don’t count on it as your only strategy.

The Solution:

We need a clear, time-bound exit strategy that can show progress is happening and has a clearly defined end date. A GOVI programme would do both. 

GOVI explained:

While people are self-isolating in this Suppression Phase, we can roll out a government organised voluntary infection (GOVI) programme at designated hotels (all UK hotels). The GOVI programme would be similar to the idea of chicken pox parties, where healthy children would get together with an infected child and get infected to be done with it. If 50%-80% of the healthy 6-60 population are going to get the Coronavirus at some time anyway, with mostly mild symptoms, why not get it over with?

For WWII, people volunteered to fight in the war effort knowing that there was a significant risk of death or serious injury. These recruits were checked for being in good health (i.e. no underlying conditions) and then sent off to battle the enemy. With more than 700,000 (mostly empty) hotel rooms in the UK alone, the government could pay hotels to host people who are 20-50 years old, and with no underlying conditions, who volunteer to contract the virus under supervision. They would get checked out by a GP, and if ok, they would go to a government designated hotel where they would contract the virus and stay in the hotel for 7-10 days, until ‘immune’. The volunteers are then checked/tested by a doctor before leaving the hotel to confirm their immunity. Once immune, the volunteer gets a document and badge noting that they can re-enter society. 

The government would need to authorise and organise this phase to maintain a controlled spread of the virus. They would need to set out the plan of action, acknowledge the challenges and risks involved and call out for suitable volunteers.

GOVI benefits :

In theory we could have c.700,000 very low risk people gaining immunity every 10 days. Over the next 12 weeks (84 days), we could have roughly 5 million people gaining immunity.  This could be happening while the 70+ group and the Underlying Condition (UC) group are protected through self-isolation. Additionally, we could continue to have strong social distancing/lockdown policies in place (Suppression Phase), continue testing and encourage scientists to search for and progress a possible vaccine: all concurrently.

It’s more Churchill D-Day then Chamberlain “Peace for our time”. Let’s take the battle to the enemy rather than try to avoid the inevitable. Advance on the enemy rather than simply shield the citizens from harm.

A war time army of volunteers is required and I believe many would be willing to do this. Since there seems to be an overwhelmingly high recovery rate for healthy people aged 18-50 (99.7%), let’s get it and get on with it.

The ever-growing Immune Army can then help high risk people, relieve care workers, support hospital workers and others, or just get back to work. Ever more volunteers will spend a week in the designated hotels until huge swathes of the population are immune. 

Within one year, about half of the young and healthy population (25 million people) in the UK will be immune, without having overrun the NHS. In 2 years, most under 70’s and those without known underlying conditions would have immunity (c.55 million). After communicating this plan, normalcy will start to return in weeks to months, demand will return, markets will stop the slide and maybe reverse, and the world can start to mend. 

Summary:

Without creating certainty with a credible exit strategy, the markets will continue in meltdown, workers will be laid off, industries will collapse, and the government will have to finance the entire economy, possibly for years. Adding a GOVI programme in parallel to the other strategies/phases being employed, could greatly improve our chances of saving the most lives, from all causes. In addition, the GOVI programme will also put a floor in the economy with a certain and time-bound exit strategy, which will stop the markets sliding. Finally, this additional strategy could save billions of people from suffering through the severe, drawn out, Depression era future that the trends seem to indicate we are heading for.

  • Link to Mervyn King on CNBC, on Monday, referring to no viable exit strategy, from minute 8:45 to 9:20 (so 35 seconds long).
* Link to Mervyn King on CNBC, on Monday, referring to no viable exit strategy, from minute 8:45 to 9:20 (so 35 seconds long).

FIND MORE DETAIL:

I have added several follow up thoughts for you on my blog website page called Coronavirus Exit Strategy: GOVI. Points covered consider the next 2-3 years and our options. I’ve also added some sources and supporting detail,

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CategoriesActionFinancialPropertyReframe your thoughts

What’s Your Number? Flow Versus Pot.

Have you ever played a game with your friends, where you discuss how much money you would need to retire? What size of pot would you have to have accumulated?

I remember one time playing this game about 15 years ago, and a friend decided that he would need £15 million. With this you could buy a fine home, some nice cars and a place in the country for weekend getaways. With the remaining £8 million, you could invest it for some cashflow to pay for the food, financing, and fun. Invested at 5%, you could gross £400,000 per year. This would make most people pleased.

Strangely, that little bit of friendly, whistful thinking was what many people would call their estate, or retirement, planning.

The one significant challenge most people found in this friendly game, was that it would take the majority of people far to many long years of work to amass that level of savings in a pot.

So maybe look at it another way. What level of cashflow could you live on and be happy? £1,000 per month? £8,000? £27,000? £376,000 per month? £3 million per month or more? It may be easier for many people to find a lower level of cashflow income, of several thousand pounds per month, coming from some investments (Dividend stocks, bonds, property, royalties, etc), than to work, save and build a large pot.

Could you do a side hustle, online perhaps, that, over the next three years, you could build up from £100 cashflowing income per month to say £5,000? If that money could be generated by a more passive income, imagine your free time too.

So how much would you need to earn, as a bare minimum, on a monthly basis? How could you start trying to make this extra income? Think about it. Do some research. Change your life!

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CategoriesThink About ItTime

Poor Kids, Lucky Kids.

In 50 years there may be no original content left to create. Everything will have been written, recorded, and documented.

There was a time, maybe several thousand (million?) years ago, when nothing was written down. Then cave dwellers started to create original content on cave walls and rocks. Some of these seem to have withstood the test of time.

Then people started to think, and feel, and create, and words were put on paper, and then music was recorded.

Everyone felt like they were the first and original creator of every idea, tome, piece of music, etc. Without any evidence to the contrary, they effectively were. At least in terms of proof. Though not necessarily in terms of reality.

Were the words written by Marcus Aurelius in Meditations, the first time anyone in history had ever thought those thoughts? Or were they just the first time they were ever captured, written down and eventually published for the world to consume?

As recorded music and books have taken off in popularity and accessibility (cost and ease of creation and consumption) in the last 70 years, more and more unique pieces have been created, written and recorded/published.

With access to GarageBand, or its equivalent/competitors, in the pockets of over 2 billion people, and growing rapidly, won’t every creative piece soon be recorded for history.

How soon will it be, before every word and every note, in every conceivable order, for a love song, or any other type, has been used and is owned by someone? How soon until every type of book has been written and there is nothing new to write?

Maybe it is longer than 50 years. Maybe it is sooner.

On the plus side, there is maybe the idea of excellence and efficiency. All the greatest hits and books will be known and available. The kids of today will know every detail of how to improve quickly, in everything, as every detail of every sport, career and relationship will have been considered, and assessed, and the optimal route to success will be available to all online.

It’s an interesting road ahead. It’s all the same. Only the names will change.

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