Gowings on George and Market…Going, Going, Gone

Commerce & Business, Economics and society,, Local history

Gowings menswear store was an retail institution in Sydney’s CBD for six score and then some years. This mid city store was the place you could find—in addition to its main line of affordable casual men’s clothing and apparel—among other things outdoor camping equipment, cricket kits, school uniforms and novelty items. Gowings also had a barber’s shop and you could hire a Year 12 formal suit or a wedding tux.

The Gowings story starts with John Ellis Symonds (JES) Gowings who emigrated to New South Wales from England in 1857. After retail experience in David Jones’ Sydney department store—where he worked his way up to head of mercery—JES’s first venture of his own was to open a drapery shop in 1863 in Crown Street, East Sydney. He then formed a partnership with his brother Preston, in 1868 the brothers opened a Mercery and Glove Depot at 318 George Street. JES managed the store in return for £200 per annum and 50% of the profits. The iconic Sydney retailer was up and running.

The business grew, in 1870 a new mercery warehouse was opened in Edinburgh House, 344 George Street, and 20 years later a second city store at 498 George Street. The brothers’ younger sibling Charles was hired as the Gowings store’s “dog walloper”, his job was chasing dogs away from the store as a preventive measure so they didn’t foul the pavement (Kingston).

Over time the Gowings retailer evolved from specialising in ladies’ gloves and silk umbrellas to menswear, turning itself into high-class gentlemen’s outfitters. JES’ customer-centric retail philosophy involved listening to the customers, treating them like they were friends and securing the best quality goods for them (Kingston). The 1890s and the approach of Federation prompted Gowings, anticipating the modern “Buy Australian” campaign, to push the Australian product. Restyling themselves as “Austral Clothiers, Mercer’s, Hatters”, Gowings Bros launched the slogan “Australian wool for Australian people”. For the country customers Gowings offered Australian manufactured commodities via its mail order service, eg, Marrickville Tweeds from John Vicars & Co, ‘bosker’ rugs made especially for Gowings (Kingston).

After JES’ death in 1908 control of Gowings passed to the John and Preston’s sons, with the firm’s tradition for quality goods continuing. The construction of a new flagship building in 1929 on the George Street site became a landmark for Sydney (at the time it was Sydney’s highest building and the first steel construction in the CBD)✦.

A testimony to Gowings’ fame is the cult phrase that it acquired (and cultivated by the retailer) during the 20th century …”Gone to Gowings” has passed into the Australian vernacular, meaning a failure of some kind or other, or possibly a state of inebriation or dementia (Tréguer). Macquarie Dictionary lists six definitions: 1. Deteriorating financially, 2. illness especially a hangover, 3. Failing dismally (a racehorse, a football team, etc), 4. having departed hastily or without a specific destination in mind, 5. drunk, 6. Insane, idiotic. Alternately it could mean down on your luck, lost at the races, etc. The other famous catchphrase that was posted on the flagship premises” facade was “Walk Thru, No one Asked to Buy”.

The Gowings family maintained a steady as it goes, minimise risk approach to the retail business for most of its history. Attempts to modernise it’s main store came later (installing air conditioning and music in lifts, the first retailer in Sydney to do so). Another innovation was its introduction of the “Gowings Own Brand” label of merchandise.

Gowings’ CBD stores (it added a second city store at Wynyard in 1996 – nicknamed the “Blokeatorium”) retained their popularity with the public, however a move to the suburbs (Oxford Street, Darlinghurst and Hornsby) proved less successful. In 2000 the Gowings family relinquished control of the retail business to an independent listed company G Retail and concentrated on the property development game.

Gowings ad, 1909

Gowings end-game
Under G Retail a new suburban outlet at Parramatta opened in 2002 proved a disaster, and when G Retail lost money three years in a row, the writing was on the board for the veteran retailer. More financial strife followed overreach (an aggressive expansion and building renovation program), G Retail was heavily in debt and headed for administration. In the early 2000s, Gowings, like most small retailers, struggled. A hike in the petrol price in Sydney in 2005 depressed consumer spending, exacerbating its problems (Evans; Perinotto). In recent years Gowings tried to innovate, going online, discounting, etc, but the decline was irreversible by then. Competition from the city’s retail giants was too great, Gowings simply couldn’t match the depth and breadth of range and quality that big merchants such as Target could offer (Lake)◈. The Oxford Street and Hornsby stores closed in 2005 and the following January the flagship George Street store closed its doors for good after 137 years of retailing. Later that year the Wynyard store completed the round of closures.

Compared to the larger, more dynamic players in the market, Gowings had the reputation of being a “blokey store”, leading some observers to pinpoint its ultimate demise in its retail conservatism, “stay(ing) locked in the fifties or sixties and limited (in its) geography” (Lake)

The post-Gowings space
Three months after its closure the Gowings landmark building at 452 George Street was snapped up by the Rydge family’s Amalgamated Holdings goliath for $68.6 million, consolidating its property holdings in this mid-town spot — Amalgamated Holdings had previously acquired the State Theatre building next door (49-51 Market St) as well as the nearby Mick Simmons building.

Footnote: in the late Nineties Gowings wholeheartedly embraced the ‘blokey’ image, its then MD and descendent of the founder proclaimed Gowings “the complete bloke’s outfitters”. Along with its usual clothing lines, it began pitching the “Bear Grylls” experience to men, selling goods for the great outdoor adventure (camping gear, hunting knives, zippo lighters) (Owens).

Gowings bldg (2021)

✦ designed by architect Crawford H Mackellar and incorporating a Palazzo style
◈ Retail expert Rob Lake attributes the fact that Gowings survived longer than many of the other ‘dinosaurs’ to its evolution into a sort of quaint relic which became its “point of difference” but one that didn’t boost it’s sales (Lake)

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Works and articles consulted:
Beverley Kingston, ‘Gowing, John Ellis Symonds (1835–1908)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, https://adb.anu.edu.au/biography/gowing-john-ellis-symonds-12945/text23395, published first in hardcopy 2005, accessed online 26 April 2021.
‘”gone to Gowings”: meaning and origin of this Australian phrase’, (Pascal Tréguer), Word Histories, 2020, www.wordhistories.net
‘End of an era as Gowings finally gone’, Sydney Morning Herald, 28-Jan-2006, www.smh.com.au
‘Gowings makes it like a man’s, (Susan Owens), Australian Financial Review, 25-Sep-1999, www.afr.com
‘The sad demise of a quirky retail dinosaur’, (Rob Lake), Crikey, 08-Nov-2005, www.crikey.com.au
‘Gowings clearing out for good after 137 years’, (Michael Evans), Sydney Morning Herald, 17-Dec-2005, www.smh.com.au
‘Gowings building sold to neighbour for $69m’, (Tina Perinotto), Australian Financial Review, 28-Apr-2006, www.afr.com

Selling Soda and the American Way of Life to the World: Coke and Pepsi and their 120-Year Rivalry

Commerce & Business, Media & Communications, Popular Culture

For as long as most consumers in the West can remember, it’s been Coca-Cola versus Pepsi-Cola, vying for the public’s preferred carbonated soft drink. Just how long is that? Well, the Pepsi-Cola Company was established in 1902, ten years after Coca-Cola did, so the rivalry got going pretty much early on in the 20th century. It was a long gestation period however for Pepsi before it got close to being competitive with Coca-Cola✱. PepsiCo struggled so much in the early years that in 1923 the company was even declared bankrupt – basically due to WWI sugar rationing in the US. Eight years later it filed for bankruptcy again! Pepsi never actually went away though, slowly and methodically rebuilding itself as a significant player in the industry, albeit for a long time it remained as one observer put it, a “persistent gadfly” in a lake dominated by Coca-Cola (Kahn).

In its early days Coke was marketed both as a medicinal drink and as a “refreshing tonic”

While Coca-Cola powered on with innovatively marketing (using high profile sportsmen) its product to kids with Santa Claus’ help, and expanding Coke overseas, Pepsi didn’t really get its act together until the middle of the 20th Century.  PepsiCo shifted its branding and marketing (moving from bottles to cans and adopting patriotic red, white and blue colours for the product). Another direction Pepsi goes in at this time is product diversification … the company’s 1965 merger with Frito-Lay Inc marks Pepsi’s foray into the snack food field. It also acquired other soft drink brands like Mountain Dew in 1964. Coca-Cola on the other hand confined itself to the beverage field with the introduction of TaB (a sugar-free diet version of Coke), then Sprite and Fresca.

Pepsi’s watershed year was 1975 when it mounted the “Pepsi Challenge”, a series of filmed blind-taste tests in which the majority of participants chose Pepsi over Coke as their preferred soda. This boosted Pepsi sales and escalated the rivalry between the two “Big Sodas”, kicking off what became known in America from the Sixties on as the “Cola Wars” or the “Soda Wars”. Until the Pepsi Challenge happened Coca-Cola had been coasting somewhat, complacently presenting itself as “the real thing” in contrast to the upstart pretender. Coca-Cola’s response to PepsiCo’s move was to promote the then most popular personality on US TV Bill Cosby as “the face of Coke”.

Pepsi embarked on a marketing campaign which depicted itself as a younger, hipper brand than its outmoded rival. Drinking Pepsi was a cool thing to do (so proclaimed the marketers), when stacked up against the tired, same old, same old Coke alternative. Integral to PepsiCo’s campaign was the recruitment of celebrities to endorse the beverage, the centrepiece of which was Michael Jackson. Other  pop music icons followed the success of Jackson’s involvement with the product – David Bowie, Madonna, Lionel Ritchie, etc. Ad men heralded Pepsi as “the choice of a new generation”.

In the early Eighties, under pressure from Pepsi’s inroads into the market, Coca-Cola introduced diet Coke, a caffeine-free soda, followed by a complete redesign of Coke—given the secret codename “Project Kansas”—the outcome in 1985 was a sweeter Coke, New Coke. To counter Pepsi’s sweeter, more syrupy taste, Coca-Cola replaced sugar with corn syrup (which also reduced the production cost). New Coke however proved a disaster for the company, provoking a huge backlash from loyal consumers, some described the new taste as like “two day old Pepsi”. Southern fans of Coke, where Coca-Cola (and Pepsi) had its origins, were especially offended.

Faced with an avalanche of criticism, Coca-Cola brought back the old formula under the name “Coca-Cola Classic”. New Coke for its part got rebranded but never really took off and was eventually discontinued. Disappointment that it was, New Coke did provide one unanticipated positive – it managed to reawaken in many Coca-Cola drinkers suffering from a bout of ennui a new craving for the original taste (Little).

The feud between Pepsi and Coke has continued to the present, in contemporary times reaching social media and outer space. In 2011 the hardball rivalry saw PepsiCo target Coke’s famous, family-friendly mascots, the polar bears and even every child’s favourite stranger Santa.

Vintage 1950s ad: “Pepsi-Chic” before it went “Pepsi-Hip” (Robt Levering)

The battle between the brown carbonated sugar beverages has seen Pepsi and Coca-Cola go tit-for-tat. Coke had the contour bottle so Pepsi introduced the swirl bottle, Pepsi had Gatorade so Coke had Powerade, Coke had Fanta so Pepsi had Tropicana, and so on. Only the decision by Pepsi to branch into non-beverage fields has not seen Coca-Cola follow suit. Some industry observers attribute Pepsi’s declining market position commensurate to Coke (2008–2018: Pepsi’s market share fell from 10.3 to 8.4 per cent, while Coca-Cola’s rose from 17.3 to 17.8 per cent) to it’s preoccupation with diversification leading to the company losing its focus on its flagship product (Weiner-Bronner; Beverage Digest).

World domination through the prism of “Coca-colonisation”
Both Coke and Pepsi are deeply embedded in American culture and psyche as national icons.  Coca-Cola’s brand recognition goes beyond this, embodying a universality that is global in reach. Mid-century Coca-Cola officials gleefully crowed that the drink is the “most American thing in America”. Robert W Woodruff, Coca-Cola president for over three decades, declared it to be “the essence of capitalism”. World War II enabled Coca-Cola to spread the word via US servicemen by cleverly promising (and delivering) them the sugary product in overseas theatres of war. The seemingly unstoppable postwar expansion of Coke as the company sought to extend its market to all corners of the world met with some international pushback. Certain European states like France (spurred on by agitation by the French Communist Party) staunchly resisted the drink’s introduction to their domestic markets, an attempt as they saw it to “Coca-colonise” other sovereign nations. In such countries the arrival of Coca-Cola bottles on their city shop shelves was seen as a pervasive evil, a symbol of American cultural imperialism, an all-consuming Americanisation which undermines the way of life and values of their society⍟.

Footnote: the Big Sodas rivalry had ad companies of second-half 20th century working overtime to come up with the jingle or tagline that would give their client the edge … from Coca-Cola’s early go-to “The pause that refreshes” to the TV age’s standards “Things Go Better with Coke” and “It’s the Real Thing” (the words “real” and “real thing” recur over the decades in Coca-Cola’s ad campaigns). Pepsi for its part, went from “more bounce to the ounce” in 1950 to its 1960s accent on youth, “Come Alive! You’re in the Pepsi Generation” and numerous variations over the years on this theme (“young” and “generation” are the key Pepsi words that recur through the jingles and slogans).

Photo: George Marks/Retrofile/Getty

Postscript: The taste difference!
Most people know that Coca-Cola originally used small amounts of cocaine in the famous beverage (scandalous as that may seem to modern sensibilities), but what is it that makes the two brown-coloured soft drinks taste a bit different? They both have carbonated water, sugar, colour Caramel E150d, phosphoric acid and natural flavourings. Well, according to Malcolm Gladwell (Blink, 2005), its the hints of citrus acid that is added to Pepsi that sets the drinks apart – cf. Coke’s citrus-free, sweet vanilla and raisin flavours.

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✱ Pepsi was always coming from behind in the formative period, by the time PepsiCo was founded the Big Coke was already selling about one million gallons a year

⍟ the familiar bottle of Coke is boundless as well as ubiquitous, having  been carried under the North Pole and into outer space

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Articles and sites consulted:

‘Why Coke is winning the cola wars’, (Danielle Wiener-Bronner), CNN Business, 21-Feb-2018, www. money.cnn.com

‘COKE VS. PEPSI: The Amazing Story Between the Cola Wars’, (Kim Bhasin), Business Insider, 02-Nov-2011, www.businessinsider.com

‘Ever Wondered What’s The Difference Between Coca-Cola and Pepsi? It’s Literally ONE Ingredient’, (Bobbie Edsor), Delish, 03-Dec-3020, www.delish.com

‘The Universal Drink’, (E.J.Kahn Jr), The New Yorker, 06-Feb-1959, www.newyorker.com

‘The Cola Wars’, (Melissa Santore), Ranker.com, 20-Feb-2020, www.ranker.com

Late Communist Era Capitalist Cravings: The Pepsi Swap

Commerce & Business, Comparative politics, International Relations, Military history, Popular Culture

During the Cold War not many people outside of the USSR knew of the Russian penchant for it’s ideological rival’s second most popular cola drink. The Soviet Union’s love affair with Pepsi-Cola started with a meeting between Premier Khrushchev and US Vice-President Nixon in 1959. As part of what was a rare cultural exchange for the time, Khrushchev was introduced to the sugary, carbonated beverage, the taste apparently meeting with the Soviet premier’s approval.

⏏️ Pepsi’s role in the Nixon-Khrushchev Kitchen Debate So began a novel bilateral trade. With Russian rubles not valued outside of the USSR, a barter system was forged. The Russian and other Soviet people got to drink Pepsi, in return vodka (in the form of the state-owned brand Stolichnaya) was made available in the US market.

Things went smoothly enough until 1980…the Soviet invasion of Afghanistan threatened the Pepsi deal. Americans boycotted Soviet goods including Stolichnaya…the popular vodka’s sales plummeted in the US. In the late 1980s the Pepsi company—mindful that seven billion Russians were drinking Pepsi each year—hit upon a new and more unorthodox US/Soviet exchange deal.

To keep the Pepsi flowing to Russian consumers, Pepsi accepted a flotilla of ageing Soviet warships in lieu. Taking possession of 17 rusty Soviet warships plus a few other auxiliary naval vessels. The fleet was far from being in A1 shipshape condition, but it enabled the soft drink giant to boast that it possessed the world 6th most powerful navy at the time – on paper if not on water!

(Source: www.naval-encylopedia.com)

Pepsi’s move earned the displeasure of the US military but the company CEO’s slightly disingenuous rejoinder to the Pentagon was that it was dismantling the Soviet fleet faster than they were!*

Pepsi didn’t hang on to the decidedly decrepit Russian fleet for long, selling the warships to a Swedish scrap-recycling business in the early 1990s. A few years later Coca-Cola usurped it’s place in the Russian market.

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* undoubtedly Pepsi’s billion-dollar stake in the USSR remained it’s primary motive

Sites/works consulted: 👁‍🗨👁‍🗨👁‍🗨

’When the Soviet Union Paid Pepsi in Warships’, (Anne Ewbank), Atlas Obscura, 12-Jan-2018, www.atlasobscura.com)

‘ How Pepsi became the 6th largest military in the world‘, (Tom Kirkpatrick, We Are The Mighty, 28-Jan-2019, www.wearethemighty.com

‘Pepsi Navy: When the Soviets Traded Warships for Soft Drinks’, Sandboxx, 06-Nov-2020, www.sandboxx.com

The Pandemic’s “Holy Grail”, the Elusive Vaccine: For the “Global Public Good” or an Inward-looking Assertion of Vaccine Nationalism?

Commerce & Business, International Relations, Politics, Public health,, Science and society

At this point in the war on COVID-19 there are over 120 separate vaccination projects—involving Big Pharma, the public sector, academe, smaller biotech firms and NGOs—all working flat out worldwide trying to invent the ‘magical’ vaccine that many people believe will be necessary to bring the current pandemic to an end. While nothing is guaranteed (there’s still no cure for the HIV/AIDS virus around since the Eighties), the sheer weight of numbers dedicated to the single task, even if say 94% of the efforts fail, there’s still a reasonable chance of success for achieving a vaccine for coronavirus [“Former WHO board member warns world  against coronavirus ‘vaccine nationalism’”, (Paul Karp), The Guardian, 18-May-2020, www.theguardian.com].

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(Source: CEPI)

If and when the vaccine arrives, will it get to those in greatest need? The way the coronavirus crisis has been handled between nations so far doesn’t exactly give grounds for optimism. Collective cooperation on fighting the pandemic has been sadly absent from the dialogue. We’ve seen the US attack China over coronavirus’ origins with President Trump labelling it the “China virus” and the “Wuhan virus”, and China retaliating with far-fetched accusations of America importing the virus to Wuhan via a visiting military sporting team, and the whole thing becoming entwined in a looming trade war between the two economic powers.
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(source: www.socioecomonics.net)

The advent of COVID-19 has introduced us to terms such as “contact tracing”, “social distancing”, “covidiot” and the like, but recently we‘ve been hearing a new term thrown about, one with more ominous implications – “vaccine nationalism”. As the scattered islands of scientific teams continue the hunt for the “silver bullet” that presumably will fix the disease, there is a growing sense that the country or countries who first achieve the breakthrough will adopt a “my nation first” approach to the distribution of the vaccine. There are multiple signs that this may be the reality…the US government has launched the curiously named “Operation Warp Speed”, aimed at securing the first 300 million doses of the vaccine available by January 2021 for Americans [‘Trump’s ‘Operation Warp Speed’ Aims to Rush Coronavirus Vaccine’, (Jennifer Jacobs & Drew Armstrong), Bloomberg, 30-Apr-2020, www.bloomberg.com]. In the UK Oxford University is working with biopharma company AstraZeneca to invent a vaccine that will be prioritised towards British needs.

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(Source: IndiaMart)

A “vac race”
Not to be outdone, China, operating through Sinovac Biotech, is at the forefront of testing potential cures for COVID-19. The pressing need for a vaccine to safeguard its own population aside, Beijing’s rationale includes a heavy investment in national pride and the demonstration of Chinese scientific superiority (cf. Trump’s motivation). The Sino-US rivalry over finding a cure for the pandemic has been compared to the Cold War era ”Space Race” between the US and the USSR (Milne & Crow). A political war of superpower v superpower on a new battlefield…noted as bring part of a longer trend of the “securitisation of global health “ where the health objective increasingly has to share the stage with issues of national security and international diplomacy (E/Prof Stuart Blume, quoted in ibid.).

An environment of competition in lieu of collaboration
Even prior to the start of serious talk about the vaccine, the coronavirus crisis was provoking an “everyone for themselves”, non-cooperative approach. With the onset of equipment shortages needed to combat the virus outbreak, an international bunfight developed over access to PPE (personal protection equipment). 3M masks destined for Germany were intercepted by the White House and re-routed to US recipients; French president, Emmanuel Macron, seized millions of masks that were on route to Sweden; Trump purportedly tried to buy CureVac, a German biopharma company working on the vaccine [‘Why vaccine ‘nationalism’ could slow the coronavirus fight’, (Richard Milne & David Crow), Financial Times, 14-May-20320, www.ft.com/]. India (under Hindu nationalist Modi), the world’s largest supplier of hydroxychloroquine (touted as a cure for the virus), withheld it from being exported. As part of this neo-protectionism of the corona medical trove, more than 69 countries banned the export of PPE, medical devices and medicines [‘A New Front for Nationalism: The Global Battle Against a Virus’, (Peter S Goodman, Katie Thomas, Sui-Lee Wee & Jeffrey Gettleman), New York Times, 10-Apr-2020, www.nytimes.com].

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Politics and economics over science and global health?
Will narrow self-interest and economic advantage prevail? Will Big Pharma sell the virus panacea to the highest bidders? A zero-sum game  in which those who can’t afford the cost fall by the wayside? There are precedents…the distribution of the H1N1 vaccine for the 2009 Swine Flu was predicated on the purchasing power of the higher-income countries, not on the risk of international transmission [‘The Danger of Vaccine Nationalism’, (Rebecca Weintraub, Asaf Britton & Mark L Rosenberg), Harvard Business Review, 22-May-2020, www.hbr.org/]. The availability of the vaccine is seen as integral to restarting the global economy (Milne & Crow).

The eclipse of multinationalism?
With WHO in the eyes of some international players seemingly tarnished by its relationship with China, and by Trump’s undermining of its effectiveness by threatening to withdraw American support, multilateralism is on the back foot. There have been some attempts to stem the tide, CEPI (Coalition for Epidemic Preparedness Innovations’), with a mission of promoting a collective response to emerging infectious diseases, is trying to advance both the development of coronavirus vaccines and equitable access to them (http://cepi.net/).

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Getting to an “equitable distribution” of the vaccine
As CEPI recognises, and is committed to redressing, there is no formal mechanism in existence for fairly distributing vaccines for epidemics…one step being taken is to try to get  an equitable distribution strategy accepted by the G20 nations. The only way forward to ensure that allocation is fair and prioritised according to needs is through a coordinated global effort (Milne & Crow; Weintraub eg al).

The fear is thus well founded that if and when a vaccine is discovered and developed, the richer nations will secure a monopoly over it and prevent it getting to poorer nations where it would be urgently needed by the elderly, the immunocompromised and the “first responder” health workers. There are many who hope fervently that a different scenario will be played out, that a more enlightened type of self-interest will prevail. This would require the wealthier countries seeing the bigger picture – the danger that if they don’t redistribute the cures, the outcome will be an adverse effect on the global supply chain and on the world‘s economies. As Gayle Smith (CEO of “One Campaign“, a Washington-based NGO fighting extreme poverty) put it: it is in the richer countries‘ own interests ”to ensure that the virus isn’t running rampant in other countries” (Milne and Crow). “If an international deal can be reached“, CEPI CEO Dr Richard Hatchett said, ”Everyone will win, if not, the race may turn into a free-for-all” with the losers in plain sight [‘Why the race for a Covid-19 vaccine is as much about politics as it is about science’, (Paul Nuki), The Telegraph (UK), 10-Apr-2020, www.telegraph.co.uk].

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(Source: www.euroweeklynews.com)

PostScript: Its no done deal! – reining in the wave of vaccine optimism
Even some of the scientists working on developing a vaccine are less than sanguine about the prospects. As immunologist Professor Ian Frazer (UQld) explains: there is no model of how to attack the virus. Trying to come up with a vaccine for upper respiratory tract diseases is complicated due to “the virus landing on the outside of you”, as we have seen with the common cold. What’s needed is “an immunise response which migrates out to where (the coronavirus) lands” [‘No vaccine for coronavirus a possibility’, (Candace Sutton), News, 19-Apr-2020, www.news.com.au].

 

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a matter of getting “the maximum shots on goal” as Jane Halton, a former member of the WHO board, put it
with Trump aided and abetted in this mission by Peter Navarro (who Bloomberg calls “Trump’s Trade Warrior”) enthusiastically leading the charge in the undeclared trade war with China
with funding from the Bill and Melinda Gates Foundation