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June 30th saw the end of the 2020 financial year, and for the last six months of it, extraordinary market volatility: Firstly, one of the 10 sharpest quarterly declines in history, followed by one of the 10 sharpest rallies. We'd suggest that's a "V" shaped recovery if ever we saw one. But that's the market. From where we sit, the economy is going to be a very different beast.
Tech rules! Actually money does, but where there's tech, it seems there's wealth. Tesla is now the most valuable automaker in the world, and today's paper says Afterpay is knocking on the door of the ASX Top 20.
Meanwhile medically, the pandemic - particularly in the USA, South America and other major population centres of the world - shows no real sign of abating, seemingly because people either can't, or won't, socially distance. And why would they when (unlike in Australia) their political masters seem to be actively encouraging themselves not to do so?
We even heard (surely this is folklore?) that in Alabama people are holding COVID parties with an entry fee, which is collected as a "pot" which is then "won" by the first person to test positive.
Insanity prevails!
Elsewhere the Chinese government has made its long-awaited move on Hong Kong, possibly hoping to do so under the cover of COVID. In turn, Australia (and other democracies) seem to have finally woken up to the concerns of the average Australian. Having been seduced by seemingly easy Chinese wealth for the past 15 or 20 years, we're seeing the inevitable drawback of that complacency.
Having seen Chinese agents of influence at work here and abroad, Australia is being firmly told not to even consider meddling in Chinese affairs by offering assistance or asylum to anyone wanting to leave, or flee, Hong Kong. The Chinese "absorption" of Hong Kong is complete. Next will be the democratic Republic of China, namely Taiwan.
How will Australia and the democratic world respond when (not if) that's next on the list?
Australia is eventually going to have to face the alternative of trade and wealth, or freedom. Maybe we've always been secretly aware of the threat, but lacked the vision, ability, resolution or inclination to take appropriate action. Just like the boiling frog.
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