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the economic security of most Americans dwindled, and the legitimacy of the system was called into question. One consequence has been the rise of the far right; another is Donald Trump.

Germany insisted that the struggling countries had to practice austerity in order to restore the confidence of private financial markets. In a deep recession, even orthodox economists at the International Monetary Fund soon recognized that austerity was a perverse recipe for economic recovery.

Europe, because of Germany’s worries that these policies would lead to inflation, had no way to extend credit to struggling nations or to raise money through the sale of bonds, which would have allowed the ECB to provide debt relief or to invest in public services.

The political result was the same on both sides of the Atlantic—declining prospects for ordinary people, animus toward elites, and the rise of ultra-nationalism

Not so in Europe. Parties such as the German Social Democratic Party, the British Labour Party, and the French Socialists disgraced themselves as co-sponsors of the neoliberal formula that brought down the economy.

In nation after nation, the main opposition to the party of Davos is neofascism.

In his masterful narrative, the economic historian Adam Tooze achieves several things that no other single author has quite accomplished. Tooze has managed to explain a hugely complex global crisis in its multiple dimensions, and his book combines cogent analysis with a fascinating history of the political and economic particulars

when the collapse came, it was “a financial crisis triggered by the humdrum market for American real estate.”

the collapse reinforced the financial supremacy of Washington and New York. “Far from withering away,” he writes, “the Fed’s response gave an entirely new dimension to the global dollar.”

When the entire structure of borrowed money collapsed, the losses more than wiped out all the capital of the banking system—not just in the US but in Europe, because of the intimate interconnection (and contagion) of American and European banks. Had the authorities just stood by, Tooze writes, the collapse would have been far more severe than the Great Depression:

While insisting to Congress that the emergency response was mainly to shore up US finance, Bernanke turned the Fed into the world’s central bank. “Through so-called liquidity swap lines, the Fed licensed a hand-picked group of core central banks to issue dollar credits on demand,” Tooze writes. In other words, the Fed simply created enough dollars, running well into the trillions, to prevent the global economy from collapsing for lack of credit.

Bernanke instigated government action on an unimagined scale to prop up a private system that supposedly did not need the state

Using deposit guarantees, loans to banks, outright capital transfers, and purchases of nearly worthless securities, the Fed and the Treasury recapitalized the banking system. To camouflage what was at work, officials invented unlimited credit pipelines with disarmingly technical names.

The blandly named policy of quantitative easing, which drove interest rates down to almost zero, was a euphemism for Fed purchases of immense quantities of private and government securities.

The crisis, Tooze writes, “was a devastating blow to the complacent belief in the great moderation, a shocking overturning of the prevailing laissez-faire ideology.” And yet the ideology prevailed

In a reversal of New Deal priorities, most of the relief went to the biggest banks, while smaller banks and homeowners were allowed to go under

Banks were permitted to invent complex provisional loan “modifications” with opaque terms that favored lenders, rather than using their government subsidies to provide refinancing to reduce homeowner debts

How did a nominally center-left administration, elected during a financial crisis caused by right-wing economic ideology and policy, end up in this situation?

Turning to Europe, Tooze explores the fatal combination of Germany’s demands for austerity with the structural weakness of the ECB and the vulnerability of the euro.

Portugal or Greece now enjoyed interest rates that were only slightly higher than Germany’s, and markets failed to take account of the risk of default, which was more serious than that of devaluation.

instead of treating the Greek situation as a crisis to be contained and helping a genuinely reformist new government find its footing, Brussels and Berlin treated Greece as an object lesson in profligacy and an opportunity to insist on punitive terms for financial aid

A central player in this tragedy was the European Central Bank. Tooze does a fine job of explaining the delicate dance between the bank’s leaders and its real masters in Germany. Since Germany opposed continent-wide recovery spending, the bank could only pursue monetary policy. The model was the Fed. Yet while the Fed has a congressional “dual mandate” to target both price stability and high employment, the ECB’s charter allowed for price stability only

The ECB, with the consent of the Germans, came up with one of those bland-sounding names, Outright Monetary Transactions, for its direct purchases of government bonds. But the program, at the insistence of the Germans, was restricted to nations in compliance with Merkel’s rigid fiscal terms, which limited national deficits and debts. In other words, the money could not go to the very nations where it was needed most, since the hardest-hit countries had to borrow heavily to get themselves out of the recession

Reading Tooze, you realize that it’s a miracle that the EU and the euro survived at all—but they did so at terrible human cost.

the ideal of liberalized trade, and the use of trade treaties to promote deregulation or privatized regulation of finance, is a major element of the story of how neoliberal hegemony promoted the eventual collapse. But except for a passing reference, trade and globalized deregulation get little mention here.

he has almost nothing to say about Janet Yellen. Her nomination as Fed chair in 2013 to succeed Bernanke was an epochal event and an improbable defeat for the proponents of austerity, deregulation, and bank bailouts who influenced Obama’s policymaking. Yellen, a left-liberal economist specializing in labor markets, was the only left-of-center Fed chair other then FDR’s chairman Marriner Eccles. She also believed in tough regulation of banks. The extension of quantitative easing well beyond its intended end was substantially due to Yellen’s concern about wages and employment, and not just price stability, since low interest rates can also help promote recovery.

Tooze ends the book with a short chapter called “The Shape of Things to Come,” mainly on the ascent of China, the one nation that avoided all the shibboleths of economic and political liberalism, though it also, of course, does not have a political democracy.

Over centuries, notes John Hagel, who currently co-heads Deloitte’s Center for the Edge, business has “been organized around stocks of knowledge as the basis for value creation. The key to creating economic value has been to acquire some proprietary knowledge stocks, aggressively protect those knowledge stocks and then efficiently extract the economic value from those knowledge stocks and deliver them to the market. The challenge in a more rapidly changing world is that knowledge stocks depreciate at an accelerating rate. In this kind of world, the key source of economic value shifts from stocks to flows.

The wisest leaders also understand that all the big problems today are global problems, and they have only global solutions. I am talking about climate change, trade rules, technology standards and preventing excesses and contagion in financial markets

you need to be part of a wider coalition like the European Union. The U.K. membership in the E.U. has given it an outsize voice in world affairs.

How quickly they’ve all forgotten that the E.U. and NATO were built to prevent the very competitive nationalism that ran riot in Europe in the 20th century and brought us two world wars.

“Even though the Germans had been directly influenced by Madison Grant and the American eugenics movement, when we fought Germany, because Germany was racist, racism became unacceptable in America. Our enemy was racist; therefore we adopted antiracism as our creed.” Ever since, a strange kind of historical amnesia has obscured the American lineage of this white-nationalist ideology.

What is judged extremist today was once the consensus of a powerful cadre of the American elite, well-connected men who eagerly seized on a false doctrine of “race suicide” during the immigration scare of the early 20th century. They included wealthy patricians, intellectuals, lawmakers, even several presidents.

Madison Grant. He was the author of a 1916 book called The Passing of the Great Race, which spread the doctrine of race purity all over the globe.

Grant’s purportedly scientific argument that the exalted “Nordic” race that had founded America was in peril, and all of modern society’s accomplishments along with it, helped catalyze nativist legislators in Congress to pass comprehensive restrictionist immigration policies in the early 1920s. His book went on to become Adolf Hitler’s “bible,” as the führer wrote to tell him

Grant’s doctrine has since been rejuvenated and rebranded by his ideological descendants as “white genocide

The cross between a white man and an Indian is an Indian; the cross between a white man and a Negro is a Negro; the cross between a white man and a Hindu is a Hindu; and the cross between any of the three European races and a Jew is a Jew.

When Nazism reflected back that vision in grotesque form, wartime denial set in.

In 1853, across the Atlantic, Joseph Arthur de Gobineau, a French count, first identified the “Aryan” race as “great, noble, and fruitful in the works of man on this earth.”

In 1899, William Z. Ripley, an economist, concluded that Europeans consisted of “three races”: the brave, beautiful, blond “Teutons”; the stocky “Alpines”; and the swarthy “Mediterraneans.”

Another leading academic contributor to race science in turn-of-the-century America was a statistician named Francis Walker, who argued in The Atlantic that the new immigrants lacked the pioneer spirit of their predecessors; they were made up of “beaten men from beaten races,” whose offspring were crowding out the fine “native” stock of white people.

In 1901 the sociologist Edward A. Ross, who similarly described the new immigrants as “masses of fecund but beaten humanity from the hovels of far Lombardy and Galicia,” coined the term race suicide.

it was Grant who synthesized these separate strands of thought into one pseudo-scholarly work that changed the course of the nation’s history. In a nod to wartime politics, he referred to Ripley’s “Teutons” as “Nordics,” thereby denying America’s hated World War I rivals exclusive claim to descent from the world’s master race. He singled out Jews as a source of anxiety disproportionate to their numbers

The historian Nell Irvin Painter sums up the race chauvinists’ view in The History of White People (2010): “Jews manipulate the ignorant working masses—whether Alpine, Under-Man, or colored.

In The Passing of the Great Race, the eugenic focus on winnowing out unfit individuals made way for a more sweeping crusade to defend against contagion by inferior races. By Grant’s logic, infection meant obliteration:

The seed of Nazism’s ultimate objective—the preservation of a pure white race, uncontaminated by foreign blood—was in fact sown with striking success in the United States.

Grant, emphasizing the American experience in particular, agreed. In The Passing of the Great Race, he had argued that

Teddy Roosevelt, by then out of office, told Grant in 1916 that his book showed “fine fearlessness in assailing the popular and mischievous sentimentalities and attractive and corroding falsehoods which few men dare assail.”

President Warren Harding publicly praised one of Grant’s disciples, Lothrop Stoddard, whose book The Rising Tide of Color Against White World-Supremacy offered similar warnings about the destruction of white society by invading dusky hordes. There is “a fundamental, eternal, inescapable difference” between the races, Harding told his audience. “Racial amalgamation there cannot be.

Calvin Coolidge, found Grant’s thesis equally compelling. “There are racial considerations too grave to be brushed aside for any sentimental reasons. Biological laws tell us that certain divergent people will not mix or blend,” Coolidge wrote in a 1921 article in Good Housekeeping.The Nordics propagate themselves successfully. With other races, the outcome shows deterioration on both sides. Quality of mind and body suggests that observance of ethnic law is as great a necessity to a nation as immigration law.

On Capitol Hill debate raged, yet Republicans and Democrats were converging on the idea that America was a white man’s country, and must stay that way. The influx of foreigners diluted the nation with inferiors unfit for self-government, many politicians in both parties energetically concurred. The Supreme Court chimed in with decisions in a series of cases, beginning in 1901, that assigned the status of “nationals” rather than “citizens” to colonial newcomers.

A popular myth of American history is that racism is the exclusive province of the South. The truth is that much of the nativist energy in the U.S. came from old-money elites in the Northeast, and was also fueled by labor struggles in the Pacific Northwest, which had stirred a wave of bigotry that led to the Chinese Exclusion Act of 1882

In 1917, overriding President Woodrow Wilson’s veto, Congress passed a law that banned immigration not just from Asian but also from Middle Eastern countries and imposed a literacy test on new immigrants

When the Republicans took control of the House in 1919, Johnson became chair of the committee on immigration, “thanks to some shrewd lobbying by the Immigration Restriction League,” Spiro writes. Grant introduced him to a preeminent eugenicist named Harry Laughlin, whom Johnson named the committee’s “expert eugenics agent.” His appointment helped ensure that Grantian concerns about “race suicide” would be a driving force in a quest that culminated, half a decade later, in the Immigration Act of 1924.

Meanwhile, the Supreme Court was struggling mightily to define whiteness in a consistent fashion, an endeavor complicated by the empirical flimsiness of race science. In one case after another, the high court faced the task of essentially tailoring its definition to exclude those whom white elites considered unworthy of full citizenship.

In 1923, when an Indian veteran named Bhagat Singh Thind—who had fought for the U.S. in World War I—came before the justices with the claim of being Caucasian in the scientific sense of the term, and therefore entitled to the privileges of whiteness, they threw up their hands. In a unanimous ruling against Thind (who was ultimately made a citizen in 1936), Justice George Sutherland wrote:What we now hold is that the words “free white persons” are words of common speech to be interpreted in accordance with the understanding of the common man, synonymous with the word “Caucasian” only as that word is popularly understood.The justices had unwittingly acknowledged a consistent truth about racism, which is that race is whatever those in power say it is.

Grant felt his life’s work had come to fruition and, according to Spiro, he concluded, “We have closed the doors just in time to prevent our Nordic population being overrun by the lower races.” Senator Reed announced in a New York Times op-ed, “The racial composition of America at the present time thus is made permanent.” Three years later, in 1927, Johnson held forth in dire but confident tones in a foreword to a book about immigration restriction. “Our capacity to maintain our cherished institutions stands diluted by a stream of alien blood, with all its inherited misconceptions respecting the relationships of the governing power to the governed,” he warned. “The United States is our land … We intend to maintain it so. The day of unalloyed welcome to all peoples, the day of indiscriminate acceptance of all races, has definitely ended.”

t was America that taught us a nation should not open its doors equally to all nations,” Adolf Hitler told The New York Times half a decade later, just one year before his elevation to chancellor in January 1933. Elsewhere he admiringly noted that the U.S. “simply excludes the immigration of certain races. In these respects America already pays obeisance, at least in tentative first steps, to the characteristic völkisch conception of the state.”

Harry Laughlin, the scientific expert on Representative Johnson’s committee, told Grant that the Nazis’ rhetoric sounds “exactly as though spoken by a perfectly good American eugenist,” and wrote that “Hitler should be made honorary member of the Eugenics Research Association.”

What the Nazis “found exciting about the American model didn’t involve just eugenics,

“It also involved the systematic degradation of Jim Crow, of American deprivation of basic rights of citizenship like voting.”

Nazi lawyers carefully studied how the United States, despite its pretense of equal citizenship, had effectively denied that status to those who were not white. They looked at Supreme Court decisions that withheld full citizenship rights from nonwhite subjects in U.S. colonial territories. They examined cases that drew, as Thind’s had, arbitrary but hard lines around who could be considered “white.

Krieger, whom Whitman describes as “the single most important figure in the Nazi assimilation of American race law,” considered the Fourteenth Amendment a problem: In his view, it codified an abstract ideal of equality at odds with human experience, and with the type of country most Americans wanted to live in.

He blended Nordic boosterism with fearmongering, and supplied a scholarly veneer for notions many white citizens already wanted to believe

it has taken us fifty years to learn that speaking English, wearing good clothes and going to school and to church do not transform a Negro into a white man.

The authors of the Fourteenth Amendment, he believed, had failed to see a greater truth as they made good on the promise of the Declaration of Independence that all men are created equal: The white man is more equal than the others.

two “rival principles of national unity.” According to one, the U.S. is the champion of the poor and the dispossessed, a nation that draws its strength from its pluralism. According to the other, America’s greatness is the result of its white and Christian origins, the erosion of which spells doom for the national experiment.

Grantism, despite its swift wartime eclipse, did not become extinct. The Nazis, initially puzzled by U.S. hostility, underestimated the American commitment to democracy.

the South remained hawkish toward Nazi Germany because white supremacists in the U.S. didn’t want to live under a fascist government. What they wanted was a herrenvolk democracy, in which white people were free and full citizens but nonwhites were not.

The Nazis failed to appreciate the significance of that ideological tension. They saw allegiance to the American creed as a weakness. But U.S. soldiers of all backgrounds and faiths fought to defend it, and demanded that their country live up to it

historical amnesia, the excision of the memory of how the seed of racism in America blossomed into the Third Reich in Europe, has allowed Grantism to be resurrected with a new name

Grant’s philosophical framework has found new life among extremists at home and abroad, and echoes of his rhetoric can be heard from the Republican base and the conservative media figures the base trusts, as well as—once again—in the highest reaches of government.

The resurrection of race suicide as white genocide can be traced to the white supremacist David Lane, who claimed that “the term ‘racial integration’ is only a euphemism for genocide,” and whose infamous “fourteen words” manifesto, published in the 1990s, distills his credo: “We must secure the existence of our people and a future for white children.” Far-right intellectuals in Europe speak of “the great replacement” of Europeans by nonwhite immigrants and refugees.

That nations make decisions about appropriate levels of immigration is not inherently evil or fascist. Nor does the return of Grantian ideas to mainstream political discourse signal an inevitable march to Holocaust-level crimes against humanity.

The most benignly intentioned mainstream-media coverage of demographic change in the U.S. has a tendency to portray as justified the fear and anger of white Americans who believe their political power is threatened by immigration—as though the political views of today’s newcomers were determined by genetic inheritance rather than persuasion.

The danger of Grantism, and its implications for both America and the world, is very real. External forces have rarely been the gravest threat to the social order and political foundations of the United States. Rather, the source of greatest danger has been those who would choose white purity over a diverse democracy.

Trump’s policy proposals — the details of which Trump himself seems unconcerned and uninformed about — are symbolic expressions of a certain approach to politics.

The stated purpose of Trump’s border wall is to keep out a contagion of Mexican rapists and murderers. His argument is not taken from Heritage Foundation policy papers. He makes it by quoting the racist poem “The Snake,” which compares migrants to dangerous vermin. Trump proposes to ban migration from some Muslim-majority countries because Muslim refugees, as he sees it, are a Trojan-horse threat of terrorism. Trump’s policy ideas are incidental to his message of dehumanization.

So how do we split the political difference on this one? Shall we talk about Mexican migrants as rapists on every other day? Shall we provide rhetorical cover for alt-right bigots only on special occasions, such as after a racist rally and murder?

The point applies in other areas.

We have seen similar damage in the realm of values and norms. In the cultivation of anger and tribalism. In the use of language to inflame and demean. In the destruction of a common factual basis for politics, making policy compromise of the kind Olsen favors impossible.

What would fusion with this type of politics look like? Trump defines loyalty to conservatism as contempt for many of our neighbors

One might as well have proposed a fusion between popular sovereignty and Abraham Lincoln’s conception of inherent human rights. They were not a dialectic requiring a synthesis. They were alternatives demanding a choice.

The list includes Vladimir V. Putin of Russia, Abdel Fattah el-Sisi of Egypt and Recep Tayyip Erdogan of Turkey, all of whom have abandoned most pretenses that they rule according to the people’s will.

There are many reasons for such moves by Mr. Xi and others — including protecting their power and perks in an age of unrest, terrorism and war amplified by new technologies — but a significant one is that few countries have the standing or authority, morally or otherwise, to speak out — least of all, critics say, the United States

The surprise disclosure on Sunday that the Communist Party was abolishing constitutional limits on presidential terms — effectively allowing President Xi Jinping to lead China indefinitely — was the latest and arguably most significant sign of the world’s decisive tilt toward authoritarian governance, often built on the highly personalized exercise of power.

Authoritarian leaders now act with greater impunity — or at least less worry about international isolation.

President Trump’s critics say that while he may not yet have eroded democracy in the United States, his populist appeals and nativist policies, his palpable aversion to the media and traditional checks on power, and his stated admiration for some of the strongest of strongmen are cut from the same cloth.

The trend toward authoritarianism, while specific to each country’s history, is rooted in insecurities and fears afflicting the world today: globalization and rising inequality, the stunning and scary advances in technology, the disorienting chaos and extreme violence of civil wars like Syria’s, separatism and terror.

Mr. Xi, as a result, believes that only stability can ensure his vision of China’s revival and emergence as the world’s power. “He seems to genuinely believe that he’s the only person who can achieve this vision,” she said. In last fall’s Communist Party congress, Mr. Xi even presented China as a new model for the developing world — a thinly veiled argument that the United States and Europe were no longer as attractive as they once were.

The process was repeated over and over, as word of cum-ex spread like a quiet contagion. Germany was hardest hit, with an estimated $30 billion in losses, followed by France, taken for about $17 billion. Smaller sums were drained away from Spain, Italy, Belgium, Austria, Norway, Finland, Poland and others

Outrage in these countries has focused on the City of London, Britain’s answer to Wall Street. Less scrutinized has been the role played by Americans, both individual investors and branches of United States investment banks in London, including Morgan Stanley, JPMorgan Chase and Merrill Lynch Bank of America.

American bankers didn’t try cum-ex at home because they feared domestic regulators. So they moved operations to London and treated the rest of Europe as an anything-goes frontier

”There was this culture in London, and it really came from New York,” he said. “These guys were either from New York or trained in London at New York banks, and they looked at Europe as their playground. People at the highest levels were collaborating to rip off countries.”

uffice it to say, the goal was to fool the financial system so that two investors could claim refunds for dividend taxes that were paid just once.

the presiding judge issued a preliminary ruling that, for the first time, declared cum-ex a felony, calling it a “collective grab in the treasury.”

German prosecutors say they will now pursue 400 other suspects, unearthed in 56 investigations. Banks large and small will be ordered to hand over cum-ex profits, which could have serious consequences for some. Two have already gone bust.

officials in Germany say the trade was a form of theft, one so obviously illicit that forbidding it — which was tried twice, with ineffectively worded laws — was hardly necessary.

Precisely who invented cum-ex trading, and when, are mysteries, but ground zero for this scandal may have been the London branch of Merrill Lynch.

At Merrill, Mr. Shields’s job was to identify “tax-attractive trades,” as he put it in his testimony. He had joined one of the least visible sectors of the financial world, which pokes at the seams of international finance law, looking for ways to reduce clients’ tax bills.

When he pointed this out to management, the policy was tweaked.“They said, ‘You can answer a call on your mobile, but you need to immediately move off the floor,’” he recalled. “So these guys would get up from their desks, start walking toward the edge of the floor, send a text message and then walk back. It was a joke.”

The trade was pure theater and required a huge cast: stock lenders, prime brokers, custodians, accounting firms, asset managers and inter-dealer brokers. It also required vast quantities of stock, most of which was sourced from American shareholders.

A lawyer who worked at the firm Dr. Berger founded in 2010, and who under German law can’t be identified by the media, described for the Bonn court a memorable meeting at the office.

Sensitive types, Dr. Berger told his underlings that day, should find other jobs.“Whoever has a problem with the fact that because of our work there are fewer kindergartens being built,” Dr. Berger reportedly said, “here’s the door.”

Seemingly risk-free profits poured in, and over the years a mini-industry thrived, one that a former participant labeled “the devil’s machine.”

When Mr. Tibo tried to signal his concern to executives at UniCredit, the bank’s Italian owner, they didn’t seem to care, he said

“There were big profits coming out of HypoVereinsbank, and most of it was from the investment banking section,” Mr. Tibo said. “The Italians quickly made up their minds: ‘We want to make money.’ No one gave us any internal support, because they didn’t want us to learn anything.”

By then, Mr. Mora and Mr. Shields were long gone from the London branch. Tired of niggling questions and feeling underpaid, they had left in 2008 to open Ballance Capital, one of the first full-service, one-stop cum-ex trading shops.

Dozens of German banks participated in cum-ex deals, too, gobbling up German taxpayer money at the same time they received a rescue package worth more than $500 billion.

Last year, the lawyer who testified anonymously at the Bonn trial described the culture of the cum-ex world to Oliver Schröm and Christian Salewski, two reporters on the German television show “Panorama,” under disguising makeup. It was a realm beyond morality, he said: all male, supremely arrogant, and guided by the conviction that the German state is an enemy and German taxpayers are suckers.

“That was the normal world to which we no longer belonged,” he told the reporters. “We looked out the window from up there, and we thought, ‘We’re the cleverest of all, geniuses, and you’re all stupid.’”

a former Merrill Lynch investment banker sat in a London restaurant near the Thames and described what had turned him into a whistle-blower. In the years after the financial crisis, he said, he noticed that a handful of colleagues on the company’s trading floor were using their personal mobile phones, a breach of company policy. All communication was supposed to be tracked and recorded. These guys were sending self-deleting texts on Snapchat.“Obviously, they were circumventing controls,”

Worried about the growing pileup of tax-withholding credits on the books, Frank Tibo, the bank’s chief tax officer, flew to London in May 2007. He spent the day grilling Mr. Mora

The complaint lays out, in painstaking detail, how the trades were confected, who executed them and which questions should be asked by investigators to uncover the “sham.” It states that Merrill Lynch earned hundreds of millions of dollars over the previous seven years from cum-ex trades.

“Anyone who stood in the way of this trade was swept aside, and those who enabled it were promoted,” the whistle-blower said in a follow-up phone call. “But it was widely regarded as insanity inside the bank for it to be extracting money from sovereign treasuries, particularly after the entire sector had been supported by the public purse.

American banks conducted their cum-ex trades overseas, rather than at home, out of fear, the whistle-blower said. Specifically, he mentioned a 2008 Senate investigation into “dividend tax abuse” that found it was depriving the Treasury of $100 billion every year. The report led to a ban on dividend arbitrage tied to stock in United States corporations.

But nothing prevented American bankers from conducting such trades with foreign companies on foreign soil.

German efforts to stamp out cum-ex with legislation, in 2007 and 2009, left holes through which certain types of financial players could still crawl. This included private pension plans in the United States, a niche financial product for wealthy people who want the kind of privacy, and exotic investment options, that Fidelity doesn’t offer.

Investors will have problems of their own. Many have said they had no idea how cum-ex traders returned such dazzling profits. That defense became less plausible in 2012, after the German government spent millions of dollars to buy 11 hard drives from industry insiders. The hard drives were filled with marketing fliers, written by bankers, who sold cum-ex with an antigovernment pitch.

“We learned that it was very common for these bankers to have conversations over coffee with clients about cum-ex,” said Norbert Walter-Borjans, a former minister of finance for North Rhine-Westphalia. “They would say, ‘If you have a problem with how your hard-earned money is being spent in taxes, we’ve got an idea for you.’”

Authorities across Europe are said to be waiting for a resolution of the Bonn trial to move ahead with their own. Many are livid that Germany didn’t alert them sooner about the perils of cum-ex. The failure, say lawyers, stems from a Europe-wide hypersensitivity about privacy, which is especially acute when it comes to taxes.

In 2012, soon after Germany shut down its cum-ex problem, a London trader began a cum-ex scheme that fleeced the Danish tax authority of $2 billion, officials there say. The trader, Sanjay Shah, who now lives in Dubai, denies wrongdoing but has never been shy about the source of his wealth.When he bought a $1.3 million yacht a few years ago, he found the perfect name: Cum-Ex.

Many camp clinics are already struggling to fight outbreaks like dengue and cholera, leaving them without the resources to treat chronic conditions, such as diabetes or heart disease. The coronavirus, which has no vaccine or agreed upon treatment regimen for Covid-19, the respiratory disease it causes, could be even more devastating, medical experts warn.

So far, the number of confirmed coronavirus cases among refugees is low, but that may be the result of a lack of testing. Testing is severely limited, and refugees are rarely a priority.

Refugee camps across Africa, the Middle East and Asia are packed with traumatized and undernourished people with limited access to health care and basic sanitation, perfect breeding grounds for contagion. Extended families jam into tarpaulin shelters with mud floors. Food, water and soap are often lacking. Illnesses, from hacking coughs to deadly diseases, go untreated, facilitating their spread.

Daily life in a refugee camp is an ideal incubator for infectious disease. Many lack running water and indoor sanitation. People often stand in line for hours to get water, which is insufficient for frequent showers, much less vigilant hand washing.

Nor are there adequate health systems. The same conflicts that have displaced huge numbers of people have decimated medical facilities, or forced people to live in places where there are none.The war in Syria has sent more than a million refugees into Lebanon, which is facing an economic crisis. Many live in cramped, squalid conditions and suffer from acute poverty.

Many refugees also suffer from poor nutrition and other health conditions that could leave them particularly vulnerable. In Bangladesh, where about 860,000 Rohingya Muslims fled to escape persecution in Myanmar, the authorities fear that the coming rainy season will cause sewage to overflow into flimsy shelters and possibly spread the coronavirus.

A lack of information in the camps has elevated the sense of panic among people already primed for anxiety. In Bangladesh, the government has limited mobile internet access for many Rohingya, creating an information vacuum that has allowed rumors to flourish:

Aid agencies that have contended with donor fatigue at a time when the number of displaced people is at a record high are worried that health and economic crises in the West will mean less money for refugees. Some fear that people in wealthier nations will worry less about people in poor ones when they feel threatened at home.

. “So-called low-risk areas are not to be believed. Bureaucrats everywhere have already begun covering up,” another said.

Such patients, usually found by tracing the contacts of confirmed cases, are quarantined for 14 days and released if they do not show any symptoms. But the number of reports of new cases has started to worry the public.

Documents seen by the South China Morning Post reportedly showed more than 40,000 asymptomatic patients that would not have been included in China’s total number of infections of more than 80,000.

the financial news magazine Caixin called on the government to publish data on asymptomatic carriers. “Within China, transmission caused by asymptomatic infections has occurred many times. The number needs to be made public as soon as possible. Investigation and and research is needed to raise the public’s alertness,” it said.

Last week, authorities formally arrested a man in Beijing who was diagnosed as an asymptomatic carrier in mid-February. He repeatedly visited grocery stores, pharmacies and other public places against regulations. His mother has been infected and 20 other close contacts have now been quarantined.

China’s top respiratory disease expert Zhong Nanshan told the state broadcaster CGTN that while asymptomatic patients who have been in close contact with confirmed patients can be “very infective”, he did not believe they posed a “big problem” in China.

Last week, the premier, Li Keqiang, called on health officials to investigate whether asymptomatic people were contagious, in order to help the country’s ongoing prevention plans, and ordered officials “not to cover up” cases.

But the infectious disease expert Zhang Wenhong, said at a symposium on Friday that asymptomatic carriers would continue to pose a major risk, even as China took measures, such as temporarily banning foreigners from entering the country.

“Now, we only allow Chinese people to come back. But when our country’s doors open again, there will be large numbers coming in. When they are asymptomatic, the risk is great.”

Mendonça, who works at São Paulo’s Federal University, said taking flight at a time of epidemic was a longstanding practice for South American indigenous communities, a survival technique passed down from generation to generation or acquired from personal suffering. “This is part of their ancestral memory,” she said.

“If we don’t get these people out of the [indigenous] areas the chance of contagion is much greater,” she said.

If those flocking back to remote villages from towns outside reserves were not properly quarantined or tested before returning it was possible they could carry coronavirus back home with them – with catastrophic effects.

Mendonça said authorities also needed to act swiftly to expel outsiders such as thousands of wildcat goldminers from reserves like the Yanomami territory, straddling Brazil’s border with Venezuela.

But such tactics – which were employed during 2016’s H1N1 epidemic – also brought risks.

Kaiabi, who is head of the Xingu Indigenous Land Association, said he feared Brazil’s specialized indigenous health system – which has faced dramatic cuts under the country’s anti-indigenous president, Jair Bolsonaro – was “totally unequipped” to deal with the coming coronavirus crisis.

The government hopes to use the findings to unravel a riddle that will allow Germany to move securely into the next phase of the pandemic: Which of the far-reaching social and economic restrictions that have slowed the virus are most effective and which can be safely lifted?

Other countries like Iceland and South Korea have tested broadly for infections, or combined testing with digital tracking to undercut the spread of the virus. But even the best laid plans can go awry; Singapore attempted to reopen only to have the virus re-emerge.

President Trump is in a hurry to restart the economy in an election year, but experts warn that much wider testing is needed to open societies safely.

Both Britain and the United States, where some of the first tests were flawed, virtually forfeited the notion of widespread testing early in their outbreaks and have since had to ration tests in places as they scramble to catch up

Germany, which produces most of its own high-quality test kits, is already testing on a greater scale than most — 120,000 a day and growing in a nation of 83 million.

Merkel, a trained scientist, said this week that the aim was nothing less than tracing “every infection chain.”

Every 10 people infected with the virus now pass it to seven others — a sharp decline in the infection rate for a virus that has spread exponentially.

The generosity and solidarity on such striking display inside of Europe’s largest and richest economy have been missing in Germany’s response to poorer European nations in the south, which were hit hardest by the virus.

the chancellor’s mixture of calm reassurance and clear-eyed realism — as well as her ability to understand the science and explain it to citizens — has been widely praised and encouraged Germans to follow social distancing rules. Her approval ratings are now higher than 80 percent.

That broad confidence in government has given Germany a tremendous advantage. It is much of the reason a knock on the door by a police officer and strangers dressed like aliens asking for blood can engender good will rather than alarm

“We are leading the thinking of what to do next.”

Its most ambitious project, aiming to test a nationwide random sample of 15,000 people across the country, is scheduled to begin next month.

“In the free world, Germany is the first country looking into the future,”

Nationally, the Robert Koch Institute, the government’s central scientific institution in the field of biomedicine, is testing 5,000 samples from blood banks across the country every two weeks and 2,000 people in four hot spots who are farther along in the cycle of the disease.

In Gangelt, a small town of about 12,000 in northwest Germany, tests of a first group of 500 residents found that 14 percent had antibodies to the virus. Another 2 percent tested positive for the coronavirus, raising hopes that about 15 percent of the local population may already have some degree of immunity.

“The process toward reaching herd immunity has begun,”

t may hold valuable insights for places that lag behind as the pandemic runs its course.

The mortality rate in the town, for example, turned out to be 0.37 percent, much lower than the national rate of 2.9 percent which is calculated based only on detected infections.

“We are at a crossroads,” said Mr. Hoelscher, the professor. “Are we going the route of loosening more and increasing immunity in the summer to slow the spread of this in the winter and gain more freedom to live public life? Or are we going to try to minimize transmissions until we have a vaccine?

“This is a question for politicians, not for scientists,” he added. “But politicians need the data to make an informed risk assessment.”

“I thought to myself if we’re going into lockdown, we need to start working on an exit strategy now,”

The next day, he said he wrote a short pitch to the Bavarian government. Six hours later, he had the green light. It took another three weeks until the test kits had arrived, a new lab was opened and teams of medics started fanning out across the city.

Six days after they first rung his doorbell, a doctor and two medical students came back to Mr. Germann’s apartment, household number 420 out of 3,000.They put on disposable protection suits, gloves and goggles and one of them sat down on a plastic stool they had brought along to take a small vial of his blood. Then they removed and bagged their suits, disinfected the stool and any surface they had touched and left. It took all of 10 minutes.

Basically, bathrooms are a danger zone and you gotta be smart about how you use the toilet. Put the seat down, take a step back, cover your face (especially your mouth and eyes), then wash your hands.

When we flush a toilet, it essentially “sneezes” and sprays tiny spurts of water all over the place — that water (which includes microscopic particles of urine, feces, bacteria, and viruses) can shoot out a couple of feet and may hit your pants and splatter on the doors, surfaces and sinks around you.

Make sure you’re also sanitizing your smartphone, which research shows is a hotspot for germs. Slate reported that disinfectant wipes may be fine to use on some parts; some companies also recommend using warm, soapy water and a microfiber towel

The report’s conclusion: This is “the only viable strategy.”

There will probably be more than one curve.

If we’re lucky, the coming months will probably look less like a mountain and more like a string of bumpy hills, say epidemiologists

if authorities ease some measures in coming months or if we start letting them slip ourselves, that hill could easily turn right back into the exponential curve that has cratered Italy’s health system and that U.S. officials are desperately trying to avoid replicating

One reason she and others are alarmed: In China, the fatality rate in Wuhan, the raging epicenter, was 5.8 percent. But in all other areas of the country it was 0.7 percent — a signal that most deaths were driven by an overwhelmed health system.

Initially leery of alarming the public, they have increasingly compared this pandemic to the 1918 flu pandemic, the deadliest in modern history. It infected roughly a third of the world’s population and killed at least 50 million people, including at least 675,000 in the United States.Like the bumpy hills some foresee in coming months, the 1918 pandemic hit America in three waves — a mild one that spring, the deadliest wave in fall and a final one that winter.

The crisis brought out the best in Baltimoreans — with sewing circles churning out gauze masks and hospital bedding, and neighbors donating food and services. But it also brought out the worst — xenophobic conspiracy theories that nurses of “German extraction” were deliberately infecting people. African American patients were kept out of most hospitals under Jim Crow-era segregation.

“Pandemics aren’t just physical,” said Schoch-Spana. “They bring with them an almost shadow pandemic of psychological and societal injuries as well.”

BUT IF WE START EXTREME SOCIAL DISTANCING BY MARCH 23 (12 days from original writing), WE AVOID OVER 1.4 MILLION PEOPLE GETTING CRITICALLY ILL AND OVERWHELMING THE HOSPITALS

the math is very different, as the exponential growth will only be 2 to the 4th power (12 days divided by the doubling rate of every 3 days equals the exponent of 4):2 x 2 x 2 x 2 = 16

So instead of 10 Million cases in the United States if we wait 30 days, if we act 18 days sooner, we will have only 160,000 cases (16 times the estimated 10,000 actual cases as of today), of which 15% are likely to require hospitalization.

This is 24,000 critical patients (a huge difference compared to 1.5 million acute patients). The difference between taking extreme measures now, versus waiting even a few days, is very large due to how exponents work in math.

Finally, the article that I posted yesterday written by Tomas Pueyo has been read 30M times in the last few days and has been updated with new information. It’s worth reading again.

https://medium.com/…/coronavirus-act-today-or-people-will-d…

They blamed Italy’s high number of infections on aggressive testing of people without symptoms in the north, which they argued only created hysteria and tarnished the country’s image abroad.

Even once the Italian government considered a universal lockdown necessary to defeat the virus, it failed to communicate the threat powerfully enough to persuade Italians to abide by the rules, which seemed riddled with loopholes.

Still, he acknowledged that the health minister had struggled to persuade his government colleagues to move more quickly and that the difficulties of navigating Italy’s division of powers between Rome and the regions resulted in a fragmented chain of command and inconsistent messages.

For the coronavirus, 10 days can be a lifetime.

Politicians across the spectrum worried about the economy and feeding the country, and found it difficult to accept their impotence in the face of the virus.

Most importantly, Italy looked at the example of China, Ms. Zampa said, not as a practical warning, but as a “science fiction movie that had nothing to do with us.” And when the virus exploded, Europe, she said, “looked at us the same way we looked at China.”

A day later, on March 9, when the positive cases reached 9,172 and the death toll climbed to 463, Mr. Conte toughened the restrictions and extended them nationally.

But he also had not had any direct contacts with China, and experts suspect he contracted the virus from another European, meaning Italy did not have an identifiable patient zero or a traceable source of contagion that could help it contain the virus.

Mr. Ricciardi said Italy had the bad luck of having a super spreader in a densely populated and dynamic area who went to the hospital not once, but twice, infecting hundreds of people, including doctors and nurses.“He was incredibly active,” Mr. Ricciardi said.

“Who we call ‘Patient One’ was probably ‘Patient 200,’ ” said Fabrizio Pregliasco, an epidemiologist.

Mr. Fontana, who had been pressing the central government for tougher action, agreed. He said that the mixed messages from Rome and the easing of restrictions had led Italians to believe “that everything was a joke, and they kept living as they used to.”

“They were convinced that the situation was less serious and they did not want to hurt our economy too much,”

the nation became divided between those who saw the threat and those who didn’t.

some regional governors independently ordered people coming from the newly locked-down area to self quarantine. Others didn’t.

The virus had already been active in Italy for weeks by that time, experts now say, passed by people without symptoms and often mistaken for a flu

Italy is still paying the price of those early mixed messages by scientists and politicians. The people who have died in staggering numbers recently — more than 2,300 in the last four days — were mostly infected during the confusion of a week or two ago.

Roberto Burioni, a prominent virologist at the San Raffaele University in Milan, said that people had felt safe to go about their usual routines and he attributed the spike in cases last week to “that behavior.”

Leaders in the north are desperate for the government to crack down harder.

On Friday, Mr. Fontana complained that the 114 troops the government deployed were insignificant, and that at least 1,000 should be sent. On Saturday, he closed public offices, work sites and banned jogging. He said in an interview that the government needed to stop messing around and “apply rigid measures.”

“At least this slows down the virus’ speed,’’ Mr. Zaia said, arguing that testing helped identify potentially contagious people without symptoms. ‘‘And slowing down the virus’ speed allows the hospitals to breathe.’’

Based on epidemiological projections, as the virus ran unchecked, it would quickly expand to infect somewhat over half the population before herd immunity would slow its course. Assuming a death rate of about 1 percent of those infected, about 1.7 million Americans would die within a year.

The only case in which the benefits of lifting restrictions outweigh the costs in lost lives, Mr. Wolfers said, would be if “the epidemiologists are lying to us about people dying.”

Government agencies calculate these trade-offs regularly. The Environmental Protection Agency, for instance, has established a cost of about $9.5 million per life saved as a benchmark for determining whether to clean up a toxic waste site.

The economy would contract sharply even without a government-imposed lockdown as people chose to stay away from workplaces and stores, hoping to prevent contagion. In that case of voluntary isolation, Mr. Eichenbaum and his colleagues estimated that U.S. consumer demand would decline by $800 billion in 2020, or about 5.5 percent.

It’s useful to adopt the cost-benefit frame, but the moment you do that, the outcomes are so overwhelming that you don’t need to fill in the details to know what to do,”

A policy to contain the virus by reducing economic activity would slow the progression of the virus and reduce the death rate, but it would also impose a greater economic cost.

Mr. Eichenbaum and his colleagues say the “optimal” policy — assessing economic losses alongside lives — requires restrictions that slow the economy substantially. Under their approach, the decline in consumption in 2020 more than doubles, to $1.8 trillion, but the deaths drop by half a million people

That would amount to $2 million in lost economic activity per life saved.

an important corollary is that there are limits to the sacrifice: Beyond a certain point, it would not be worth it to lose more economic activity in order to save more people.

The discussion gets even more touchy when one considers the age profile of the dead. It raises the question: Is saving the life of an 80-year-old as valuable as saving the life of a baby?

Cass Sunstein, a legal scholar who worked for the Obama administration, heading the White House office in charge of these valuations, once proposed focusing government policies on saving years of life rather than lives, as is customary in other countries.

Trump's focus on the economic fallout of the crisis is driven in part by his own belief that it will dictate his political future. Facing a potential recession, Trump has fretted that the coronavirus pandemic could cost him his job in November, though polls have shown his approval rating largely holding steady through the crisis.As the crisis worsened, Trump held off canceling his political rallies, hopeful he would be able to remain on the campaign trail even amid the outbreak. But eventually it became clear his preferred outlet for speaking to supporters and touring the country would temporarily end -- and that, like most Americans, Trump would be constrained to his home -- the White House.

Perhaps the most recent pandemic that many are aware of is the ‘Spanish Flu’ of the early twentieth century. Rather than originate in Spain, as the name would suggest, it is thought this severe strain, or strains of influenza, originated in the unhygienic and primitive conditions of the Western Front. Brought to America by returning troops in 1918, the virus returned to mainland Europe in a more potent form. 

While the coronavirus does concern many, we shouldn’t think that it will have the same devastating effects as the epidemics and pandemics mentioned. Understanding of the mechanisms by which viruses and bacteria spread is now highly advanced, and models of disease spread allow scientists and policymakers to target their resources effectively.

It’s simply not possible for a contagion to have the astonishing spread and lethal effect of, say the Bubonic Plague of 1348.  Both the government and independent medical professionals both advise that regular washing of hands, covering the mouth when sneezing and self-isolating in case of infection can limit the spread of the virus. Keeping this in mind, while it is rational to be worried, we should not fear that we have anything on the scale of historic pandemics facing Germany. 

The president, though, was slow to absorb the scale of the risk and to act accordingly, focusing instead on controlling the message, protecting gains in the economy and batting away warnings from senior officials.

Mr. Trump’s response was colored by his suspicion of and disdain for what he viewed as the “Deep State” — the very people in his government whose expertise and long experience might have guided him more quickly toward steps that would slow the virus, and likely save lives.

The slow start of that plan, on top of the well-documented failures to develop the nation’s testing capacity, left administration officials with almost no insight into how rapidly the virus was spreading. “We were flying the plane with no instruments,” one official said.

But dozens of interviews with current and former officials and a review of emails and other records revealed many previously unreported details and a fuller picture of the roots and extent of his halting response as the deadly virus spread:

The National Security Council office responsible for tracking pandemics received intelligence reports in early January predicting the spread of the virus to the United States, and within weeks was raising options like keeping Americans home from work and shutting down cities the size of Chicago. Mr. Trump would avoid such steps until March.

Despite Mr. Trump’s denial weeks later, he was told at the time about a Jan. 29 memo produced by his trade adviser, Peter Navarro, laying out in striking detail the potential risks of a coronavirus pandemic: as many as half a million deaths and trillions of dollars in economic losses.

The health and human services secretary, Alex M. Azar II, directly warned Mr. Trump of the possibility of a pandemic during a call on Jan. 30, the second warning he delivered to the president about the virus in two weeks. The president, who was on Air Force One while traveling for appearances in the Midwest, responded that Mr. Azar was being alarmist

Mr. Azar publicly announced in February that the government was establishing a “surveillance” system

the task force had gathered for a tabletop exercise — a real-time version of a full-scale war gaming of a flu pandemic the administration had run the previous year. That earlier exercise, also conducted by Mr. Kadlec and called “Crimson Contagion,” predicted 110 million infections, 7.7 million hospitalizations and 586,000 deaths following a hypothetical outbreak that started in China.

By the third week in February, the administration’s top public health experts concluded they should recommend to Mr. Trump a new approach that would include warning the American people of the risks and urging steps like social distancing and staying home from work.

But the White House focused instead on messaging and crucial additional weeks went by before their views were reluctantly accepted by the president — time when the virus spread largely unimpeded.

When Mr. Trump finally agreed in mid-March to recommend social distancing across the country, effectively bringing much of the economy to a halt, he seemed shellshocked and deflated to some of his closest associates. One described him as “subdued” and “baffled” by how the crisis had played out. An economy that he had wagered his re-election on was suddenly in shambles.

He only regained his swagger, the associate said, from conducting his daily White House briefings, at which he often seeks to rewrite the history of the past several months. He declared at one point that he “felt it was a pandemic long before it was called a pandemic,” and insisted at another that he had to be a “cheerleader for the country,” as if that explained why he failed to prepare the public for what was coming.

Mr. Trump’s allies and some administration officials say the criticism has been unfair.

The Chinese government misled other governments, they say. And they insist that the president was either not getting proper information, or the people around him weren’t conveying the urgency of the threat. In some cases, they argue, the specific officials he was hearing from had been discredited in his eyes, but once the right information got to him through other channels, he made the right calls.

“While the media and Democrats refused to seriously acknowledge this virus in January and February, President Trump took bold action to protect Americans and unleash the full power of the federal government to curb the spread of the virus, expand testing capacities and expedite vaccine development even when we had no true idea the level of transmission or asymptomatic spread,” said Judd Deere, a White House spokesman.

Decision-making was also complicated by a long-running dispute inside the administration over how to deal with China

The Containment IllusionBy the last week of February, it was clear to the administration’s public health team that schools and businesses in hot spots would have to close. But in the turbulence of the Trump White House, it took three more weeks to persuade the president that failure to act quickly to control the spread of the virus would have dire consequences.

There were key turning points along the way, opportunities for Mr. Trump to get ahead of the virus rather than just chase it. There were internal debates that presented him with stark choices, and moments when he could have chosen to ask deeper questions and learn more. How he handled them may shape his re-election campaign. They will certainly shape his legacy.

Facing the likelihood of a real pandemic, the group needed to decide when to abandon “containment” — the effort to keep the virus outside the U.S. and to isolate anyone who gets infected — and embrace “mitigation” to thwart the spread of the virus inside the country until a vaccine becomes available.

Among the questions on the agenda, which was reviewed by The New York Times, was when the department’s secretary, Mr. Azar, should recommend that Mr. Trump take textbook mitigation measures “such as school dismissals and cancellations of mass gatherings,” which had been identified as the next appropriate step in a Bush-era pandemic plan.

The group — including Dr. Anthony S. Fauci of the National Institutes of Health; Dr. Robert R. Redfield of the Centers for Disease Control and Prevention, and Mr. Azar, who at that stage was leading the White House Task Force — concluded they would soon need to move toward aggressive social distancing

A 20-year-old Chinese woman had infected five relatives with the virus even though she never displayed any symptoms herself. The implication was grave — apparently healthy people could be unknowingly spreading the virus — and supported the need to move quickly to mitigation.

The following day, Dr. Kadlec and the others decided to present Mr. Trump with a plan titled “Four Steps to Mitigation,” telling the president that they needed to begin preparing Americans for a step rarely taken in United States history.

a presidential blowup and internal turf fights would sidetrack such a move. The focus would shift to messaging and confident predictions of success rather than publicly calling for a shift to mitigation.

These final days of February, perhaps more than any other moment during his tenure in the White House, illustrated Mr. Trump’s inability or unwillingness to absorb warnings coming at him.

He instead reverted to his traditional political playbook in the midst of a public health calamity, squandering vital time as the coronavirus spread silently across the country.

A memo dated Feb. 14, prepared in coordination with the National Security Council and titled “U.S. Government Response to the 2019 Novel Coronavirus,” documented what more drastic measures would look like, including: “significantly limiting public gatherings and cancellation of almost all sporting events, performances, and public and private meetings that cannot be convened by phone. Consider school closures. Widespread ‘stay at home’ directives from public and private organizations with nearly 100% telework for some.”

his friend had a blunt message: You need to be ready. The virus, he warned, which originated in the city of Wuhan, was being transmitted by people who were showing no symptoms — an insight that American health officials had not yet accepted.

On the 18-hour plane ride home, Mr. Trump fumed as he watched the stock market crash after Dr. Messonnier’s comments. Furious, he called Mr. Azar when he landed at around 6 a.m. on Feb. 26, raging that Dr. Messonnier had scared people unnecessarily.

The meeting that evening with Mr. Trump to advocate social distancing was canceled, replaced by a news conference in which the president announced that the White House response would be put under the command of Vice President Mike Pence.

The push to convince Mr. Trump of the need for more assertive action stalled. With Mr. Pence and his staff in charge, the focus was clear: no more alarmist messages. Statements and media appearances by health officials like Dr. Fauci and Dr. Redfield would be coordinated through Mr. Pence’s office

It would be more than three weeks before Mr. Trump would announce serious social distancing efforts, a lost period during which the spread of the virus accelerated rapidly.Over nearly three weeks from Feb. 26 to March 16, the number of confirmed coronavirus cases in the United States grew from 15 to 4,226

The China FactorThe earliest warnings about coronavirus got caught in the crosscurrents of the administration’s internal disputes over China. It was the China hawks who pushed earliest for a travel ban. But their animosity toward China also undercut hopes for a more cooperative approach by the world’s two leading powers to a global crisis.

It was early January, and the call with a Hong Kong epidemiologist left Matthew Pottinger rattled.

Mr. Trump was walking up the steps of Air Force One to head home from India on Feb. 25 when Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Diseases, publicly issued the blunt warning they had all agreed was necessary.

It was one of the earliest warnings to the White House, and it echoed the intelligence reports making their way to the National Security Council

some of the more specialized corners of the intelligence world were producing sophisticated and chilling warnings.

In a report to the director of national intelligence, the State Department’s epidemiologist wrote in early January that the virus was likely to spread across the globe, and warned that the coronavirus could develop into a pandemic

Working independently, a small outpost of the Defense Intelligence Agency, the National Center for Medical Intelligence, came to the same conclusion.

By mid-January there was growing evidence of the virus spreading outside China. Mr. Pottinger began convening daily meetings about the coronavirus

The early alarms sounded by Mr. Pottinger and other China hawks were freighted with ideology — including a push to publicly blame China that critics in the administration say was a distraction

And they ran into opposition from Mr. Trump’s economic advisers, who worried a tough approach toward China could scuttle a trade deal that was a pillar of Mr. Trump’s re-election campaign.

Mr. Pottinger continued to believe the coronavirus problem was far worse than the Chinese were acknowledging. Inside the West Wing, the director of the Domestic Policy Council, Joe Grogan, also tried to sound alarms that the threat from China was growing.

The Consequences of ChaosThe chaotic culture of the Trump White House contributed to the crisis. A lack of planning and a failure to execute, combined with the president’s focus on the news cycle and his preference for following his gut rather than the data cost time, and perhaps lives.

the hawks kept pushing in February to take a critical stance toward China amid the growing crisis. Mr. Pottinger and others — including aides to Secretary of State Mike Pompeo — pressed for government statements to use the term “Wuhan Virus.”Mr. Pompeo tried to hammer the anti-China message at every turn, eventually even urging leaders of the Group of 7 industrialized countries to use “Wuhan virus” in a joint statement.

Others, including aides to Mr. Pence, resisted taking a hard public line, believing that angering Beijing might lead the Chinese government to withhold medical supplies, pharmaceuticals and any scientific research that might ultimately lead to a vaccine.

Mr. Trump took a conciliatory approach through the middle of March, praising the job Mr. Xi was doing.

That changed abruptly, when aides informed Mr. Trump that a Chinese Foreign Ministry spokesman had publicly spun a new conspiracy about the origins of Covid-19: that it was brought to China by U.S. Army personnel who visited the country last October.

On March 16, he wrote on Twitter that “the United States will be powerfully supporting those industries, like Airlines and others, that are particularly affected by the Chinese Virus.”

Mr. Trump’s decision to escalate the war of words undercut any remaining possibility of broad cooperation between the governments to address a global threat

Mr. Pottinger, backed by Mr. O’Brien, became one of the driving forces of a campaign in the final weeks of January to convince Mr. Trump to impose limits on travel from China

he circulated a memo on Jan. 29 urging Mr. Trump to impose the travel limits, arguing that failing to confront the outbreak aggressively could be catastrophic, leading to hundreds of thousands of deaths and trillions of dollars in economic losses.

The uninvited message could not have conflicted more with the president’s approach at the time of playing down the severity of the threat. And when aides raised it with Mr. Trump, he responded that he was unhappy that Mr. Navarro had put his warning in writing.

From the time the virus was first identified as a concern, the administration’s response was plagued by the rivalries and factionalism that routinely swirl around Mr. Trump and, along with the president’s impulsiveness, undercut decision making and policy development.

Even after Mr. Azar first briefed him about the potential seriousness of the virus during a phone call on Jan. 18 while the president was at his Mar-a-Lago resort in Florida, Mr. Trump projected confidence that it would be a passing problem.

“We have it totally under control,” he told an interviewer a few days later while attending the World Economic Forum in Switzerland. “It’s going to be just fine.”

The efforts to sort out policy behind closed doors were contentious and sometimes only loosely organized.

That was the case when the National Security Council convened a meeting on short notice on the afternoon of Jan. 27. The Situation Room was standing room only, packed with top White House advisers, low-level staffers, Mr. Trump’s social media guru, and several cabinet secretaries. There was no checklist about the preparations for a possible pandemic,

Instead, after a 20-minute description by Mr. Azar of his department’s capabilities, the meeting was jolted when Stephen E. Biegun, the newly installed deputy secretary of state, announced plans to issue a “level four” travel warning, strongly discouraging Americans from traveling to China. The room erupted into bickering.

A few days later, on the evening of Jan. 30, Mick Mulvaney, the acting White House chief of staff at the time, and Mr. Azar called Air Force One as the president was making the final decision to go ahead with the restrictions on China travel. Mr. Azar was blunt, warning that the virus could develop into a pandemic and arguing that China should be criticized for failing to be transparent.

Stop panicking, Mr. Trump told him.That sentiment was present throughout February, as the president’s top aides reached for a consistent message but took few concrete steps to prepare for the possibility of a major public health crisis.

As February gave way to March, the president continued to be surrounded by divided factions even as it became clearer that avoiding more aggressive steps was not tenable.

the virus was already multiplying across the country — and hospitals were at risk of buckling under the looming wave of severely ill people, lacking masks and other protective equipment, ventilators and sufficient intensive care beds. The question loomed over the president and his aides after weeks of stalling and inaction: What were they going to do?

Even then, and even by Trump White House standards, the debate over whether to shut down much of the country to slow the spread was especially fierce.

In a tense Oval Office meeting, when Mr. Mnuchin again stressed that the economy would be ravaged, Mr. O’Brien, the national security adviser, who had been worried about the virus for weeks, sounded exasperated as he told Mr. Mnuchin that the economy would be destroyed regardless if officials did nothing.

in the end, aides said, it was Dr. Deborah L. Birx, the veteran AIDS researcher who had joined the task force, who helped to persuade Mr. Trump. Soft-spoken and fond of the kind of charts and graphs Mr. Trump prefers, Dr. Birx did not have the rough edges that could irritate the president. He often told people he thought she was elegant.

During the last week in March, Kellyanne Conway, a senior White House adviser involved in task force meetings, gave voice to concerns other aides had. She warned Mr. Trump that his wished-for date of Easter to reopen the country likely couldn’t be accomplished. Among other things, she told him, he would end up being blamed by critics for every subsequent death caused by the virus.

what the administration should have been doing in January to prepare us for today.

She cites the delay on tests, without which “cases go undetected and people continue to circulate” as a leading issue along with other missed federal government responses—many of which are still not fully operational

The prescient recommendations from experts across disciplines in the period before COVID-19 reached American shores—about testing, equipment, and distancing—make clear that more than any single factor, it was Trump’s squandering of out lead-time which should have been used to prepare for the pandemic that has exacerbated this crisis.

What follows is an annotated timeline revealing the warning signs the administration received and showing how slow the administration was to act on these recommendations.

The Early Years: Warnings Ignored

2017: Trump administrations officials are briefed on an intelligence document titled “Playbook for Early Response to High-Consequence Emerging Infectious Disease Threats and Biological Incidents.” That’s right. The administration literally had an actual playbook for what to do in the early stages of a pandemic

February 2018: The Washington Post writes “CDC to cut by 80 percent efforts to prevent global disease outbreak.” The meat of the story is “Countries where the CDC is planning to scale back include some of the world’s hot spots for emerging infectious disease, such as China, Pakistan, Haiti, Rwanda and Congo.”

May 2018: At an event marking the 100 year anniversary of the 1918 pandemic, Borio says “pandemic flu” is the “number 1 health security issue” and that the U.S. is not ready to respond.

One day later her boss, Rear Adm. Timothy Ziemer is pushed out of the administration and the global health security team is disbanded

Beth Cameron, former senior director for global health security on the National Security Council adds: “It is unclear in his absence who at the White House would be in charge of a pandemic,” Cameron said, calling it “a situation that should be immediately rectified.” Note: It was not

January 2019: The director of National Intelligence issues the U.S. Intelligence Community’s assessment of threats to national security. Among its findings:

A novel strain of a virulent microbe that is easily transmissible between humans continues to be a major threat, with pathogens such as H5N1 and H7N9 influenza and Middle East Respiratory Syndrome Coronavirus having pandemic potential if they were to acquire efficient human-to-human transmissibility.”

Page 21: “We assess that the United States and the world will remain vulnerable to the next flu pandemic or large scale outbreak of a contagious disease that could lead to massive rates of death and disability, severely affect the world economy, strain international resources, and increase calls on the United States for support.”

September, 2019: The Trump Administration ended the pandemic early warning program, PREDICT, which trained scientists in China and other countries to identify viruses that had the potential to turn into pandemics. According to the Los Angeles Times, “field work ceased when funding ran out in September,” two months before COVID-19 emerged in Wuhan Province, China.

2020: COVID-19 Arrives

anuary 3, 2020: The CDC is first alerted to a public health event in Wuhan, China

January 6, 2020: The CDC issues a travel notice for Wuhan due to the spreading coronavirus

Note: The Trump campaign claims that this marks the beginning of the federal government disease control experts becoming aware of the virus. It was 10 weeks from this point until the week of March 16 when Trump began to change his tone on the threat.

January 10, 2020: Former Trump Homeland Security Advisor Tom Bossert warns that we shouldn’t “jerk around with ego politics” because “we face a global health threat…Coordinate!”

January 18, 2020: After two weeks of attempts, HHS Secretary Alex Azar finally gets the chance to speak to Trump about the virus. The president redirects the conversation to vaping, according to the Washington Post. 

January 21, 2020: Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Disease at the CDC tells reporters, “We do expect additional cases in the United States.”

January 27, 2020: Top White House aides meet with Chief of Staff Mick Mulvaney to encourage greater focus on the threat from the virus. Joe Grogan, head of the White House Domestic Policy Council warns that “dealing with the virus was likely to dominate life in the United States for many months.”

January 28, 2020: Two former Trump administration officials—Gottlieb and Borio—publish an op-ed in the Wall Street Journal imploring the president to “Act Now to Prevent an American Epidemic.” They advocate a 4-point plan to address the coming crisis:

(1) Expand testing to identify and isolate cases. Note: This did not happen for many weeks. The first time more than 2,000 tests were deployed in a single day was not until almost six weeks later, on March 11.

(3) Prepare hospital units for isolation with more gowns and masks. Note: There was no dramatic ramp-up in the production of critical supplies undertaken. As a result, many hospitals quickly experienced shortages of critical PPE materials. Federal agencies waited until Mid-March to begin bulk orders of N95 masks.

January 29, 2020: Trump trade advisor Peter Navarro circulates an internal memo warning that America is “defenseless” in the face of an outbreak which “elevates the risk of the coronavirus evolving into a full-blown pandemic, imperiling the lives of millions of Americans.”

January 30, 2020: Dr. James Hamblin publishes another warning about critical PPE materials in the Atlantic, titled “We Don’t Have Enough Masks.”

January 29, 2020: Republican Senator Tom Cotton reaches out to President Trump in private to encourage him to take the virus seriously.

Late January, 2020:  HHS sends a letter asking to use its transfer authority to shift $136 million of department funds into pools that could be tapped for combating the coronavirus. White House budget hawks argued that appropriating too much money at once when there were only a few U.S. cases would be viewed as alarmist.

Trump’s Chinese travel ban only banned “foreign nationals who had been in China in the last 14 days.” This wording did not—at all—stop people from arriving in America from China. In fact, for much of the crisis, flights from China landed in America almost daily filled with people who had been in China, but did not fit the category as Trump’s “travel ban” defined it.

January 31, 2020: On the same day Trump was enacting his fake travel ban, Foreign Policy reports that face masks and latex gloves are sold out on Amazon and at leading stores in New York City and suggests the surge in masks being sold to other countries needs “refereeing” in the face of the coming crisis.

February 4, 2020: Gottlieb and Borio take to the WSJ again, this time to warn the president that “a pandemic seems inevitable” and call on the administration to dramatically expand testing, expand the number of labs for reviewing tests, and change the rules to allow for tests of people even if they don’t have a clear known risk factor.

Note: Some of these recommendations were eventually implemented—25 days later.

February 5, 2020: HHS Secretary Alex Azar requests $2 billion to “buy respirator masks and other supplies for a depleted federal stockpile of emergency medical equipment.” He is rebuffed by Trump and the White House OMB who eventually send Congress a $500 million request weeks later.

February 4 or 5, 2020: Robert Kadlec, the assistant secretary for preparedness and response, and other intelligence officials brief the Senate Intelligence Committee that the virus poses a “serious” threat and that “Americans would need to take actions that could disrupt their daily lives.”

February 5, 2020: Senator Chris Murphy tweets: Just left the Administration briefing on Coronavirus. Bottom line: they aren't taking this seriously enough. Notably, no request for ANY emergency funding, which is a big mistake. Local health systems need supplies, training, screening staff etc. And they need it now.

February 9, 2020: The Washington Post reports that a group of governors participated in a jarring meeting with Dr. Anthony Fauci and Dr. Robert Redfield that was much more alarmist than what they were hearing from Trump. “The doctors and the scientists, they were telling us then exactly what they are saying now,” Maryland Gov. Larry Hogan (R) said.

the administration lifted CDC restrictions on tests. This is a factually true statement. But it elides that fact that they did so on March 3—two critical weeks after the third Borio/Gottlieb op-ed on the topic, during which time the window for intervention had shrunk to a pinhole.

February 20, 2020: Borio and Gottlieb write in the Wall Street Journal that tests must be ramped up immediately “while we can intervene to stop spread.”

February 23, 2020: Harvard School of Public Health professor issues warning on lack of test capability: “As of today, the US remains extremely limited in#COVID19 testing. Only 3 of ~100 public health labs haveCDC test kits working and CDC is not sharing what went wrong with the kits. How to know if COVID19 is spreading here if we are not looking for it.

February 24, 2020: The Trump administration sends a letter to Congress requesting a small dollar amount—between $1.8 billion and $2.5 billion—to help combat the spread of the coronavirus. This is, of course, a pittance

February 25, 2020: Messonier says she expects “community spread” of the virus in the United States and that “disruption to everyday life might be severe.” Trump is reportedly furious and Messonier’s warnings are curtailed in the ensuing weeks.

Trump mocks Congress in a White House briefing, saying “If Congress wants to give us the money so easy—it wasn’t very easy for the wall, but we got that one done. If they want to give us the money, we’ll take the money.”

February 26, 2020: Congress, recognizing the coming threat, offers to give the administration $6 billion more than Trump asked for in order to prepare for the virus.

February 27, 2020: In a leaked audio recording Sen. Richard Burr, chairman of the Intelligence Committee and author of the Pandemic and All-Hazards Preparedness Act (PAHPA) and the Pandemic and All-Hazards Preparedness and Advancing Innovation Act (reauthorization of PAHPA), was telling people that COVID-19 “is probably more akin to the 1918 pandemic.”

March 4, 2020: HHS says they only have 1 percent of respirator masks needed if the virus became a “full-blown pandemic.”

March 3, 2020: Vice President Pence is asked about legislation encouraging companies to produce more masks. He says the Trump administration is “looking at it.”

March 7, 2020: Fox News host Tucker Carlson, flies to Mar-a-Lago to implore Trump to take the virus seriously in private rather than embarrass him on TV. Even after the private meeting, Trump continued to downplay the crisis

March 9, 2020: Tom Bossert, Trump’s former Homeland Security adviser, publishes an op-ed saying it is “now or never” to act. He advocates for social distancing and school closures to slow the spread of the contagion.

Trump says that developments are “good for the consumer” and compares COVID-19 favorably to the common flu.

March 17, 2020: Facing continued shortages of the PPE equipment needed to prevent healthcare providers from succumbing to the virus, Oregon Senators Jeff Merkeley and Ron Wyden call on Trump to use the Defense Production Act to expand supply of medical equipment

March 18, 2020: Trump signs the executive order to activate the Defense Production Act, but declines to use it