As an outcome of short-sighted coronavirus issues, the Philadelphia police department has announced they will no longer be arresting suspects for retail theft, auto theft, burglary, narcotics or other “non violent” offenses.  Instead they will write tickets, release the suspects and address the criminality later on.  Now watch what happens.

CTH saw the instructions earlier today (see below) but we did not want to immediately distribute the information.  It should be remembered the current Philadelphia police commissioner, Danielle Outlaw (pictured left), is a social justice  activist from Portland, Oregon.

Unfortunately, there is a predictive element to this.  Perhaps some are familiar with the post Hurricane Andrew experience in Homestead and Miami-Dade.

The only thing standing between law-abiding citizens and those who would take their possessions is an ability to defend your own property.  This is now the Philadelphia reality.

PHILADELPHIA – In response to the COVID-19 outbreak, Philadelphia police officers have been instructed to stop making arrests for certain non-violent crimes.

The department said individuals who would normally be arrested and processed at a detective division, will be temporarily detained to confirm identification and complete necessary paperwork. The individual will then be a arrested at a later date on an arrest warrant. (read more)

Beware, the law of unintended consequences.

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Earlier today President Trump met with executives from the U.S. tourism industry to discuss how their operation are impacted by the various COVID-19 mitigation efforts.

Participants included: Roger Dow, President & CEO, Travel Association; Chip Rogers, President & CEO, American Hotel & Lodging Association (AHLA); Jon Bortz, President and CEO, Pebblebrook Hotel Trust and AHLA Chairman; Elie Maalouf, President, The Americas, Intercontinental Hotels Group (IHG); Christopher Nassetta, President & CEO, Hilton; Arne Sorenson, President & CEO, Marriott International; Richard Bates, EVP, Disney; Mark Hoplamazian, President & CEO, Hyatt Hotels Corporation; John Sprouls, Chief Administrative Officer, Universal Parks and Resorts; Patrick Pacious, President and CEO, Choice Hotels International; David Kong, CEO, Best Western Hotels and Resorts; Jim Murren, President & CEO, MGM  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you very much. We have the tourism industry executives, the biggest anywhere in the world. These are the great ones, and they’re going to say a couple of little words pretty soon, I think. We’ll talk about their company quickly and the number of employees and what’s happened since the Chinese virus came about. And they’ll be discussing that.

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CTH is spending time on this issue because the food distribution sector is the most important sector in all commerce. Having some familiarity with the supply chain might help people to understand the challenges; and possibly help you locate product.

The Inversion – Big chain markets; those who spent millions developing their own proprietary ‘just-in-time’ distribution networks and automated ordering systems; are currently the least equipped to deal with the level of demand.  Meanwhile smaller chains, or mom-and-pops, who rely on third-party brokered distribution are faster to respond.

Several factors have increased retail market demand for food products and non-perishables.  People stocking up, kids out of school, some panic shopping (example toilet paper) and now curfews/quarantines have people purchasing more for ‘meals prepared at home’.  Add in a level of closed restaurants and the demand on retail food markets is severely stressed.

In major urban areas the larger retailers are unable to keep up with demand.  This is creating an outward spread as people drive further and further distances to find their needs.  Those who travel a distance ultimately stock-up more; thus the outward spider web-cycle is created.  Based on ground reports Atlanta Georgia is a prime example.

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President Trump, Vice-President Pence and Treasury Secretary Steven Mnuchin lead the daily coronavirus briefing on COVID-19 mitigation efforts from the White House.

[Video Below – Transcript Added]

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[Transcript] – THE PRESIDENT: Thank you very much, everyone. Thank you. Progress being made. And I appreciate you all joining us.

Last night, the FDA announced groundbreaking new policies to further increase testing very substantially so. All states can now authorize tests developed and used within their borders, in addition to the FDA. So the states are very much involved. They have been involved from the beginning. But we’re stepping it up as much as we can, and the testing procedures are going well.

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Earlier today President Trump held a conference call with a who’s-who of executives in the restaurant industry.  One of the key aspects to the call was President Trump asking the CEO’s to continue food service operations despite the dine-in closures.  The reason is simple: the alternative, the retail supermarket industry nationwide, cannot compensate for the closure of restaurants in the total food production supply chain. [Ground Reports]

(WHITE HOUSE) – Today, President Donald J. Trump spoke by telephone with restaurant executives representing hundreds of thousands of hardworking Americans about the response to COVID-19. The executives thanked President Trump and his Administration for the whole-of-government response and for his efforts to ensure the public has the most accurate and up-to-date information.

The President reminded the restaurants that they can help flatten the curve and slow the spread of this virus in communities across the country by encouraging their customers to use drive-thru, pickup, or delivery options.

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By today the closure of dine-in restaurants should be in full swing across almost all areas. Understandably there’s going to be an operational lag as many of those restaurants don’t have the systems or equipment in place for exclusive take-out or pick-up services (ie. carry-out containers); though hopefully many are responding quickly to the changes.

The upstream consequence of the restaurant disruption is going to be even more pressure on grocery outlets already seeing additional traffic. Many people now shifting from meals “outside the home”, back to the more traditional “home-cooked” meals etc. Which brings up the question of the retail supermarket capacity to meet that extra demand.

This coronavirus event is like a nationwide pre-Hurricane shopping experience.

There have been numerous reports of wide-scale shortages in retail food markets. On the positive side this experienced supply chain has the ability to scale-up very fast (depending on region). However, on a national scale this is the first time the entire country has needed this level of increased retail food distribution simultaneously. To cope with the volume most stores appear to have reduced their hours of operation.

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Let me say up front, there’s something very sketchy about the wordy explanations provided by National Institute of Allergy and Infections Diseases (NIAID) Director Dr. Anthony Fauci.  Listen/watch or read what he says below.

Encapsulating Dr. Fauci’s position:  Data on the coronavirus assembled today doesn’t reflect what is actually taking place today, but rather reflects where we were several days ago…. OK, that part makes sense (there’s a lag).

He then goes on to say what is actually happening today will not be included in data until we arrive at a place a few days from now when today’s reality is quantified.  Again, that reasonably makes sense…  However….

The media is/are reporting on coronavirus impacts in real time.  There is no delay in what the media are reporting from various places around the nation.  The media reporting reflects what is taking place today; right now… and what the media is reporting today is not worse than the data Fauci is explaining.

Meaning if Dr. Fauci was correct, and if the coronavirus data (the reports of spread) was behind by several days from the reality of today; then what the media would be reporting (the on the ground reality of the spread today) would be significantly worse (higher incidents) than Fauci’s data, which he claims is lagging several days behind….

The problem with that supposition – The media ground reports do not reflect a higher incidence of coronavirus spread than Fauci’s data today.

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National Economic Council (NEC) Director Larry Kudlow held an impromptu press conference to describe what sectors of the U.S. economy may need direct financial assistance to bridge revenue gaps from mandated government policy. The stock market is not the U.S. economy.

Calling this type of financial assistance a “bailout” is not a fair term considering the financial impact was created by government instruction.  Government orders to shut down restaurants creates a financial loss for restaurants who also have bills and payroll obligations to meet.  These types of affected businesses will need immediate assistance.

Airlines, hotels, resorts, private parks, gyms, restaurants and various entertainment companies/industries may also need a direct infusion of cash or deferred tax payment to compensate for financial losses.  Again, these businesses have been impacted by government ordering their closure. Depending on the size of the business, the need for gap funds may be urgent.

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The McDonalds USA corporate restaurants, not necessarily all franchises, has announced the closing of all in-house dining and the kids playgrounds.  Approximately eight percent of all “food away from home” comes from McDonalds restaurants.

McDONALDS Press Release – “To align with increasing regulations throughout the country, effective at the close of business today, McDonald’s USA company-owned restaurants will close seating areas, including the use of self-service beverage bars and kiosks, and shift our focus to serving customers through Drive-Thru, walk-in take-out and McDelivery.

This decision allows for customers without access to a Drive-Thru and those unable to use McDelivery to continue to have access to McDonald’s.

Additionally, we have made the decision to close all PlayPlaces at U.S. locations, also effective today.

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San Francisco has skipped the interim mitigation efforts and has announced a forced quarantine of all residents inside their homes 24-hours-a-day for the next three weeks.

A totalitarian dream.  All residents must remain confined inside their homes or residences and no-one will be permitted outside except for emergency services or monitored visits to the grocery stores.  The order remains in effect until April 7, 2020, and may be extended.

CALIFORNIA – [….] Mayor London Breed announced what she calls a “defining moment” in U.S. response to the pandemic. Beginning at 12 AM, all residents within the city can only leave home for doctor’s appointments or runs to the grocery store.

It’s the strictest new policy enacted in the nation, and matches the current rules in Italy … which has been the 2nd hardest-hit country in the world.

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