The 1% blunder: How a simple but fatal math mistake by US Covid-19 experts caused the world to panic and order lockdowns

 

By Malcolm Kendrick, doctor and author who works as a GP in the National Health Service in England. His blog can be read here and his book, 'Doctoring Data - How to Sort Out Medical Advice from Medical Nonsense,' is available here.

In February, US Covid guru Anthony Fauci predicted the virus was 'akin to a severe flu' and would therefore kill around 0.1 percent of people. Then fatality rate predictions were somehow mixed up to make it look ten times WORSE.

When you strip everything else out, the reason for lockdown comes from a single figure: one percent. This was the prediction that Covid, if left unchecked, would kill around one percent of us.

You may not think that percentage is enormous, but one percent of the population of the world is 70 million people - and that's a lot. It would mean 3.2 million Americans dead, and 670,000 Britons.

But where did this one percent figure come from? You may find this hard to believe, but this figure emerged by mistake. A pretty major thing to make a mistake about, but that's what happened.

Such things occur. On September 23, 1998, NASA permanently lost contact with the Mars Climate Orbiter. It was supposed to go round and round the planet looking at the weather, but instead it hit Mars at around 5,000 mph, exploding into tiny fragments. It didn't measure the weather; it became the weather - for a few seconds anyway.

An investigation later found that the disaster happened because engineers had used the wrong units. They didn't convert pound seconds into Newton seconds when doing their calculations. Imperial, not metric. This, remember, was NASA. An organisation not completely full of numbskulls.

Now you and I probably have no idea of the difference between a pound second and a Newton second (it's 0.67 - I looked it up). But you would kind-of hope NASA would. In fact, I am sure they do, but they didn't notice, so the figures came out wrong. The initial mistake was made, and was baked into the figures.

Kaboom!

With Covid, a similar mistake happened. One type of fatality rate was substituted for another. The wrong rate was then used to predict the likely death rate - and, as with NASA, no-one picked up the error.

In order to understand what happened, you have to understand the difference between two medical terms that sound the same - but are completely different. Rather like a pound second or a Newton second.

Which fatality rate, did you say?

First, there's the Infection Fatality Rate (IFR). This is the total number of people who are infected by a disease and the number of them who die. This figure includes those who have no symptoms at all, or only very mild symptoms - those who stayed at home, coughed a bit and watched Outbreak.

Then there's the Case Fatality Rate (CFR). This is the number of people suffering serious symptoms, who are probably ill enough to be in hospital. Clearly, people who are seriously ill - the "cases" - are going to have a higher mortality rate than those who are infected, many of whom don't have symptoms. Put simply - all cases are infections, but not all infections are cases.

Which means that the CFR will always be far higher than the IFR. With influenza, the CFR is around ten times as high as the IFR. Covid seems to have a similar proportion.

Now, clearly, you do not want to get these figures mixed up. By doing so you would either wildly overestimate, or wildly underestimate, the impact of Covid. But mix these figures up, they did.

The error started in America, but didn't end there. In healthcare, the US is very much the dog that wags the tail. The figures they come up with are used globally.

On February 28, 2020, an editorial was released by the National Institute of Allergy and Infectious Diseases and the Centers for Disease Control and Prevention (CDC). Published in the New England Journal of Medicine, the editorial stated: "... the overall clinical consequences of Covid-19 may ultimately be more akin to those of a severe seasonal influenza."

They added that influenza has a CFR of approximately 0.1 percent. One person in a thousand who gets it badly, dies.

But that quoted CFR for influenza was ten times too low - they meant to say the IFR, the Infection Fatality Rate, for influenza was 0.1 percent. This was their fatal - quite literally - mistake.

Comment: A more skeptical mind might think that this was no mere mistake, but deliberate.

The mistake was compounded. On March 11, the same experts testified to Congress, stating that Covid's CFR was likely to be about one percent, so one person dying from a hundred who fell seriously ill. Which, as time has passed, has proved to be pretty accurate.

At this meeting, they compared the likely impact of Covid to flu. But they used the wrong CFR for influenza, the one stated in the previous NEJM editorial. 0.1 percent, or one in a thousand. The one that was ten times too low.

Flu toll 1,000 - Covid toll 10,000

So, they matched up the one percent CFR of Covid with the incorrect 0.1 percent CFR of flu. Suddenly, Covid was going to be ten times as deadly.

If influenza killed 50, Covid was going to kill 500. If influenza killed a million, Covid was going to get 10 million. No wonder Congress, then the world, panicked. Because they were told Covid was going to be ten times worse than influenza. They could see three million deaths in the US alone, and 70 million around the world.

I don't expect you or I to get this sort of thing right. But I bloody well expect the experts to do so. They didn't. They got their IFR and CFR mixed up and multiplied the likely impact of Covid by a factor of ten.

Here's what the paper, "Public health lessons learned from biases in coronavirus mortality overestimation",says: "On March 11, 2020,... based on the data available at the time, Congress was informed that the estimated mortality rate for the coronavirus was ten-times higher than for seasonal influenza, which helped launch a campaign of social distancing, organizational and business lockdowns, and shelter-in-place orders."

On February 28 it was estimated that Covid was going to have about the same impact as a bad influenza season - almost certainly correct. Eleven days later, the same group of experts predicted that the mortality rate was going to be ten times as high. This was horribly, catastrophically, running-into-Mars-at-5,000-miles-an-hour wrong.

Enter the Mad Modellers of Lockdown

In the UK, the group I call the Mad Modellers of lockdown, the Imperial College experts, created the same panic. On March 16, they used an estimated IFR of 0.9 percent to predict that, without lockdown, Covid would kill around 500,000 in the UK.

Is this prediction anywhere close?

So far, the UK has had around 40,000 Covid deaths. Significantly less than 0.1 percent, but not that far off. Of course, people will say... "We had lockdown... without it so many more would have died. Most people have not been infected..." etc.

To answer this, we need to know the true IFR. Is it a 0.1 percent, or one percent? If it is one percent, we have more than 400,000 deaths to go. If it is 0.1 percent, this epidemic has run its course. For this year, at least.

With swine flu, remember that the IFR started at around two percent. In the end, it was 0.02 percent, which was five times lower than the lowest estimate during the outbreak. The more you test, the lower the IFR will fall.

So where can we look to get the current figures on the IFR? The best place to look is at the country that has tested more people than anywhere else as a proportion of their population: Iceland.

As of last week, Iceland's IFR stood at 0.16 per cent. It cannot go up from here. It can only fall. People can't start dying of a disease they haven't got.

This means that we'll probably end up with an IFR of about 0.1 percent, maybe less. Not the 0.02 percent of Swine Flu - somewhere between the two, perhaps. In short, the 0.1 percent prophecy has proved to be pretty much bang on.

Which means that we've had all the deaths we were ever going to get. And which also means that the lockdown achieved almost precisely nothing with regard to Covid. No deaths were prevented.

Mangled beyond recognition

Yes, we are testing and testing, and finding more so-called cases. As you will. But the hospitals and ICUs are virtually empty. Almost no-one is dying of Covid anymore, and most of those who do were otherwise very ill. 

Instead of celebrating that, we've artificially created a whole new thing to scare ourselves with. We now call a positive test a Covid "case." This is not medicine. A "case" is someone who has symptoms. A case is not someone carrying tiny amounts of virus in their nose.

Now, however, you test positive, and you're a "case." Never in history has medical terminology been so badly mangled. Never have statistics been so badly mangled.

When researchers look back at this pandemic, they'll have absolutely no idea who died because of Covid, or who died -coincidentally- with it. Everything's been mashed together in a determined effort to make the virus look as deadly as possible.

Lockdown happened because we were told that Coivid could kill one percent. But Covid was never going to kill more than about 0.1 percent - max.

That's the figure estimated back in February, by the major players in viral epidemiology. A figure that has turned out to be remarkably accurate. Bright guys... bad mistake.

We've killed tens of thousands - for nothing

But because we panicked, we've added hugely to the toll. Excess mortality between March and May was around 70,000, not the 40,000 who died of/with Covid. Which means 30,000 may have died directly as a result of the actions we took.

We protected the young, the children, who are at zero risk of Covid. But we threw our elderly and vulnerable under a bus. The very group who should have been shielded. Instead, we caused 20,000 excess deaths in care homes.

It was government policy to clear out hospitals, and stuff care homes with patients carrying Covid, or discharge them back to their own homes, to infect their nearest and dearest. Or any community care staff who visited them.

We threw - to use health secretary Matt Hancock's ridiculous phrase - a ring of steel around care homes. As it turned out, this was not to protect them, but to trap the residents, as we turned their buildings into Covid incubators. Anyone working in care homes, as I do, knows why we got 20,000 excess deaths. Government policy did this.

That is far from all the damage. On top of care homes, the ONS estimates that 16,000 excess deaths were caused by lockdown. The heart attacks and strokes that were not treated. The empty, echoing hospitals and A&E units. The cancer treatments stopped entirely.

Which means that at least as many people have died as a result of the draconian actions taken to combat Covid, as have been killed by the virus itself. This has been a slow-motion stampede, where the elderly - in particular - were trampled to death.

We locked down in fear. We killed tens of thousands unnecessarily, in fear. We crippled the economy, and left millions in fear of their livelihoods. We have trapped abused women and children at home with their abusers. We have wiped out scores of companies, and crushed entire industries.

We stripped out the NHS, and left millions in prolonged pain and suffering, on ever lengthening waiting lists, which have doubled. There have also been tens of thousands of delayed cancer diagnoses - the effects of which are yet to be seen, but the Lancet has estimated at least sixty thousand years of life will be lost.

Lockdown can be seen as a complete and utter disaster. And it was all based on a nonsense, a claim that Covid was going to kill one percent. A claim that can now be seen to be utterly and completely wrong. Sweden, which did not lock down, has had a death rate of 0.0058 percent.

It takes a very big person to admit they have made a horrible, terrible mistake. But a horrible, terrible mistake has been made. Let's end this ridiculous nonsense now. And vow never to let such monumental stupidity happen ever again.

Why is the Economy Continuing To Unravel Despite All Stimulus Measures?

 

Authored by Brandon Smith via Alt-Market.com,

Since the pandemic lockdowns were first implemented in the US I have been more concerned with the government and central bank response than the virus itself. As I have noted in past articles, the pandemic restrictions and subsequent economic and social crisis events they help to create will cause far more deaths than Covid-19 ever will. Not only that, but the actions of the Federal Reserve continue to con the American public into believing that there is some kind of “plan” to stop the crash that THEY engineered.

 

The only agenda of the Fed is to increase the pain in the long term; they have no intention of actually preventing any disaster.

 

This is evidenced in comments by voting members of the Fed, including Neel Kashkari who recently argued for the enforcement of hard lockdowns for at least six weeks in the US, all because the US savings rate was going up. Meaning, because Americans are saving more in order to protect themselves from economic fallout, Kashkari thinks we should be punished with an economic shutdown that would force us to spend whatever we have been able to save.

 

Do you see how that works?

 

Fed members and government officials demand hard lockdowns, depleting public savings and destroying small businesses. Then, the public has to beg the Fed and the government for more and more stimulus measures so that they can survive. The people and the system become dependent on a single point of support – fiat money creation and welfare. Yet, the evidence suggests that this strategy is failing to do much of anything except stall the inevitable for a very short time.

 

If the goal was really to reduce the pain of the pandemic as much as possible, then the strategy should be to keep the economy as open as possible and let the virus run its course.  By initiating lockdowns, all we are doing is extending the economic damage over the span of years instead of months.  We can deal with the comparatively minimal deaths associated with the virus; we cannot handle the disaster that is about to befall the financial system.

 

The small business sector appears to be the most fragile element of the economy right now. The PPP loans that were supposed to shore up small businesses failed miserably, with data showing only 13% to 19% of applicants getting a loan of any kind. Over 64% of small businesses that received a loan are also worried about being approved for loan forgiveness. In other words, of the few small business owners that got a PPP loan more than half do not have the ability to pay the loan back if they end up not qualifying for exemption.

 

This problem does not seem to be affecting the corporate sector, however. International companies are enjoying incredible cash infusions from the Fed through overnight loans as well as Fed stimulus propping up stock markets (at least for now). Tech companies in particular are enjoying a rush of investment as the assumption in the daytrading world is that the central bank will not allow these companies to fail.

 

Maybe they are right, but stock markets today DO NOT reflect the health of our system in any way. Stock tickers are a placebo, a Pavlovian trigger for the public, a tool to make people believe that the situation is improving merely because share values are going up. This is not the case.

 

Small businesses in the US account for around 50% of all employment and job creation. They are a vital part of the economy. Yet, government and central bank measures seem to have left them out in the cold to die.

 

To be sure, the $600 weekly unemployment enhancement created through the CARES Act passed in March did boost consumer spending, primarily on durable goods such as computers, TVs, cellphones, etc. Spending on services declined though, which is where the majority of small businesses make their money. And, considering the fact that most durable goods are manufactured overseas, this means that the majority of stimulus dollars that went to consumers did not go into the US economy, but foreign exporters like China.

 

Now, the unemployment enhancement has ended and its return is in question. It will be interesting to see if the boost to purchases of goods will continue without that extra $600 weekly stimulus. Consumer spending rose in July by 1.9%, but this was already a weak print compared to the increases during the previous two months.

 

Unemployment numbers have declined due to soft reopenings in numerous states, and at the very least some part time jobs appear to be returning, but nowhere near the level needed to erase the millions of jobs lost since February after the initial lockdowns began. If you count U-6 measurements and unemployed people who have been removed from the rolls for being jobless for too long, the REAL unemployment rate is closer to 30% of working age Americans. This is essentially Great Depression levels of joblessness.

 

US GDP has continued to decline by 32% according to the Bureau of Economic Analysis (despite statistical rigging by the Fed and government agencies), and while it's possible that stimulus slowed the effects of GDP loss, there is no indication what the trillions of dollars created by the Fed have actually bought other than a few months of time and a massive bubble in the stock market.

 

The economy cannot survive extreme lockdown conditions for any length of time, let alone almost two more months. And, if you want to know what it means when elites in government and central banking call for a “hard lockdowns”, just look at Level 4 restrictions in places like Australia and New Zealand, where only one person can leave home at any given time, can only travel 3 miles from home and only for food and supplies, and anyone caught not wearing a mask is subject to arrest or a $10,000 fine.

 

This mother in Melbourne, Australia was arrested because of a Facebook post calling for protests over the lockdown restrictions.  She later had to take the post down and offered an apology, saying she did not know it was illegal to post such statements on social media:

 

Yeah, this kind of Orwellian response will do wonders for any economic recovery, and this is what Kashkari is calling for in the US.  It's almost as if the Fed and certain politicians WANT a financial collapse in America...

 

The REAL solution is to stop the lockdown restrictions altogether. If the goal is truly to protect as many American lives as possible for the “greater good”, then the pandemic response must stop. Luckily, it seems that more and more people are beginning to see through the facade and are rejecting the restrictions. Even in Europe and Australia there have been some signs of protest and rebellion. The problem is that, at least in terms of the economy, it may be too late.

 

We have to consider the fact that once a large portion of the business sector (like small businesses) takes a massive hit like the one they have suffered over the past several months, many such businesses and jobs will simply not come back. There are many reasons for this, but primarily it's a matter of debt. The average small business owner carries almost $200,000 in debt for 3-5 years before he reaches profitability or breaks even. This is assuming that there are no major economic catastrophes in that time.

 

With the pandemic, the riots, the restrictions, etc., businesses will have to take on much more debt with little guarantee of recovery in the next few years let alone the next few months.  Chapter 11 business bankruptcies in the US rose over 26% in the first half of 2020 alone.

 

Even if lockdown restrictions were completely eradicated tomorrow, a large number of businesses would go bankrupt anyway.  The "Retail Apocalypse" has been growing over the past decade, LONG before the coronavirus was on issue.  Thousands of businesses shut down last year and tens of thousands more are slated to close this year.   The virus and lockdowns simply accelerated the existing decline.

 

This is why large banks are cutting off loans to business owners and consumers right now; they know exactly where all this is headed.

 

Banks act as middlemen for the PPP loans financed by the Fed, yet those loans are not getting to most businesses. Banks have also cut credit card lending in the past few months, and general lending has crashed. All of this despite low interest rates for banks receiving stimulus injections from the Fed. Where is all of the money going? They are keeping it for themselves, buying up hard assets as well as propping up the stock market. As noted above, the elites have NO INTENTION of saving the economy, only themselves.

 

If the stimulus is not getting to the main-street economy then the only purpose it serves is to give the public a false sense of comfort.  The people who gain the most from the ongoing pandemic chaos are establishment elites that want severe restrictions on personal liberty.  Not to mention, the virus and lockdowns offer a convenient scapegoat for the financial crisis that was already brewing due to central bank mismanagement of stimulus, inflation and interest rates. The bottom line is, the banks do not want the crisis to end.  Why would they?  The longer the panic continues, the more they benefit.

Unemployment and recessions in the US (chart)

 

Each recent crisis has been deeper and employment has taken longer to recover.

That is until 2020 which is out of the chart. 

Massive layoff are still ahead of us in the retail and aviation industry and will pull the indices down as other companies start rehiring furloughed employees. It usually takes from 12 to 18 months for employment to reach the bottom and we are consequently still close to a year away. As for the financial cost, it is at this stage anybody's guess... 

The shape of the curve is also unusual. Normally, as business confidence falter, employment weaken until you get a financial shock when everybody in the market realize that PER (price earning ratios) have gone through the roof. This time is truly different. Or is it? We will know early next year.