Topic: Iou

The timing of the coronavirus outbreak is linked to the recently signed Phase One China trade agreement and President Xi Jinping's fears regarding the Chinese economy. Speculation arises that Xi is overcompensating with lockdowns to prevent President Trump from using the virus as leverage to halt all Chinese containers. China's financial system is described as a precarious "IOU system" that could collapse if factory production remains halted after the Lunar New Year.

Adam Curry broadcasts from Formentera, Spain, while John C. Dvorak reports on the California budget crisis and the state's issuance of IOUs to taxpayers. Small businesses are reportedly unable to use these IOUs to pay state sales taxes. The hosts clarify that Formentera is a quiet island south of the party-centric Ibiza.