The recent spread of the potentially pandemic swine flu discovered in Mexico that spread across the world in the past few days could give world governments the ammunition they need to further increase already heightened levels of government intervention in already severely disrupted economic systems caused by the faulty monetary and financial system.

Governments might, in the short run, have an easy alibi to curtail so called free trade flows and other measures which are the last lifeline of the economy and could further degrade slumping trade between countries. Giving credence to the often used mantra that “governments should never waste a good crisis,” this swine flu, the so called war on terror, and the economic and financial collapses certainly give governments an excuse to “use crises to further their agendas.”

The World health organization, an arm of the “unholy trio” of the World Bank, International Monetary fund,. And the World trade organization, has already pushed its doctors to warn governments to contain the spread of this deadly new swine flu that has already claimed the lives of more than 100 people in Mexico and spread to many other countries of the world courtesy of fast human transportation systems.
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World economic markets have already reacted erratically to this news of a potentially new pandemic, and some politicians have already called for closing of borders to stem the spread of it. Rep. Eric Massa (D-N.Y.) said the border should be closed until the threat is resolved. “The public needs to be aware of the serious threat of swine flu, and we need to close our borders to Mexico immediately and completely until this is resolved,” Massa said in a statement (The Hill, 2009).

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The problem here is that markets have not had an overly negative reaction to this new swine flu, but if government intervention becomes increased, and likely will, it may cause markets to adverse extremely negatively due to the big hand of government stepping in to destroy markets further than they already have since the economic crisis and the government central bank interventions around the world.

Indeed, public debt has increased exponentially in many countries after all of the easy public money that was dumped into dying markets and companies. Japan had a similar problem in the early 1990s where the government intervened and created “zombie companies” that never recovered.

Also, if we were to see an increase in the severity of this new swine flu, and if it were to increase to a pandemic, analysts say this would cause a repeat of some of the government intrusions that worried many investors last year. From the introduction of controls to contain capital leaving countries, to the nationalizing of banks in the US and the fall of many previously stable companies, we are seeing some nasty government intervention indeed. The swine flu’s economic impact has already been felt in mexico where they saw their peso drop 3 per cent on Monday.
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John Raines, deputy director of political risk at London-based consultancy Exclusive Analysis, said even if swine flu was controlled and no more destructive than the SARS outbreak, it would likely further hit trade particularly in agricultural products.

“At the very least, I would expect them to use it as a way of supporting their domestic pork industries,” he said. “Trade is always the first to go and it is an easy excuse for protectionist measures. But if it became a true pandemic, affecting millions, then all bets are off.”

However, trade restrictions prompted by public health emergencies like the swine flu outbreak are permitted under international law, if they are only maintained as long as necessary, White & Case law partner Brendan McGivern said.

Totally unexpected “black swan” events such as the outbreak of the First World War — when investors suddenly had to adapt to the prospect of global conflict in a matter of weeks — have sometimes prompted draconian intervention and have had a seismic economic impact (Alertnet, 2009).
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Could Plagues Be God’s Punishment?

The Plagues of Egypt (Hebrew: ???? ?????, Makot Mitzrayim), the Biblical Plagues or the Ten Plagues (Hebrew: ??? ?????, Eser Ha-Makot) are the ten calamities imposed upon Egypt by God in the Bible (as recounted in the book of Exodus, chapters 7 – 12), in order to convince Pharaoh to let the poorly treated Israelite slaves go. The Plagues of Egypt are recognized by Jews, Christians, and Muslims.

Could the decadence and immorality of the world finally be at a breaking point; so much that plagues and various other so called natural disasters could be on their way to destroy humanity. Indeed, the 10 plagues were not just punishment to the Egyptians. He uses plagues to chasten and discipline people for their disobedience and faithlessness. This is what has happened to the world today.

Indeed, it was Dr. Henry Kissinger who wrote: “Depopulation should be the highest priority of U.S. foreign policy towards the Third World.” “Dr. Henry Kissinger proposed in his memorandum to the NSC that “depopulation should be the highest priority of U.S. foreign policy towards the Third World” (Rense, 2004)

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Will Pandemic Protectionism Kill Off Globalization?

Protectionism is rapidly replacing free trade as the political, if not the economic, orthodoxy. Lord George Bentinck would have loved it (Dizzy was only along for the ride during the Corn Laws debacle, as his subsequent embrace of free trade demonstrated). Globalisation is in retreat. Recessions do funny things like that; and it gets worse as it deepens into full-blown depression, as this crisis will do.

Globalisation has failed. The chief reason for this failure is not the current recession – that is only the occasion – but the neglect of governments around the world to respond to it fiscally and culturally. Now it is too late. Every time demonstrators against foreign contractors appear at factory gates, the local MP has to support them. (Gerald Warner, 2009).