miércoles, 26 de agosto de 2015

AUG 26 SIT EC y POL

AUG 26 SIT EC y POL




We have to look at the broader picture; from August of last year to approximately the end of June, the value of the Shanghai stock exchange, the composite index, increased by approximately 150 percent and then it started to collapse. This has all the features of a carefully planned rigging of financial markets where speculators push up the values of the stock market and then ultimately push them down. It is a well-known process that’s called ‘pump and dump’: artificially inflating the price of stock and then selling at inflated prices and then gathering profits subsequently when it goes down again.

CHECK VIDEO INTERVIEW AT:


MY COMMENT:
In my opinion the central point is the over production of goods or merchandise based on cheap –semi-slaved Chinese labor, and this also involves the corruption of power at both levels, China –US big corp, and the mega & micro wars, beyond the currency one. .. We can stop the planned rigging of financial markets by nasty speculators and put them in prison as China is doing it..  while America is doing just the opposite.. and it won’t solve the main problem of capital-labor gap & its explosive contradiction .. Our nation took advantage of un-expensive goods coming from China.. The owners of our country –big bankers & associated Corp- did not raise the salary of our working classes. .. That is over. . The neoliberal system is obsolete, is based in financial fraud, speculation & greed .. we need a new system to stop the coming recession.. We need a NEW DEAL at world level .. with an updated version of the Glass-Stegall ACT from FDR.   Hugo Adan. August 26, 2015
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ZERO HEDGE

Deflationary Collapse Ahead?. Submitted by Tyler Durden on 08/26/2015

Both the stock market and oil prices have been plunging. Is this “just another cycle,” or is it something much worse? We think it is something much worse...
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China & The Return Of The "Yellow Peril" - The Muddled Economics Of Scapegoating. Submitted by Tyler Durden on 08/26/2015 [Return Of The "Yellow Peril"?.. it sounds a xenophobic attitude ]

BUT .. “the reality is that the policies of our own rulers limn those of the Chinese: pump-priming the currency, flooding the US economy with money, and creating massive bubbles is something they learned from us. And those policies are having the same effect here as they are having in China”.

[[ HOWEVERChina is a society that is on the edge of coming completely unglued.”  [Are we a society  on the edge of coming completely glued?.. with a State using drones against its society .. Check this: North Dakota Becomes First State To Legalize Drones Weaponized With Tasers, Tear Gas, Rubber Bullets & Sound Cannons ]]

[ THOSE WHO LOVE XENOPHOBIA  & “THE YELLOW PERIL” may enjoy these stupid questions: 1- What Would Happen If Everyone Joins China In Dumping Treasurys? . 2- Bill Gross Asks The $64 Trillion Question: Is China Dumping Treasurys? He knew that China love the flexibility of those papers and they are using them in the toilet .. Why not? .. it has to be useful for the holy  sh.. at least.

OR this hypocritical fear: "I Fear For The Chinese Citizen" showing a tank about to run over a citizen
 .. My final critical question is: are we one of the unglued  nation to the global house?]
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[ China arrest a journalist.. We kill them .. Who loses all control? ]

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Virginia Reporter, Photographer Killed During Live TV Report; "Disgruntled Employee" Gunman Tweets Attack, Shoots Himself. Submitted by Tyler Durden on 08/26/2015

[ Alison Parker -ABC 13 reporter- & her cameraman were shoot in cold blood in  Virginia. They were simple workers, not the owners of a particular corporate media, so this is an attack to the freedom of Press in America. I tried to open previous reports from Allison to get a sense of possible motives.. I couldn’t get it. Does it means that we have to swallow the usual “corporate lies”?. We need an investigation of the “shooting himself” of the shooter. Justice has to be done.. The fate of Press in America is at stake.  “Vester Lee Flanagan - aka Bryce Williams - the gunman who killed two journalists during a live broadcast in Virginia has attempted suicide and is "in a very critical condition", media report.” We hope he don’t die and speak out the motives of his action ]


[[ THE LATEST FROM THE CORPORATE MEDIA: the murder carefully planned his assassination.. but in his  “Suicide Note for Friends and Family” he states:

·         He says has suffered racial discrimination, sexual harassment and bullying at work.
·         He says he has been attacked by black men and white females.
·         He talks about how he was attacked for being a gay, black man

THAT IS: a perfect argument for insanity.. plus religious “hate” and ideological evil influence from the Muslim Farrakhan. Check this article: Virgina Killer Sent "Suicide Note" To ABC, Says Massacre Is "Race War" In Reaction To Charleston Shooting . .. 
What a way of covering up an attack to the US Press ]]
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Take your pick - here's three good reasons to engineer a "crash" that benefits the few at the expense of the many. [ The fact that there are beneficiaries of this crisis, doesn’t mean that there is NO crisis ]

Let’s check Charles Hugh-Smith logic:
Why would "somebody" engineer a mini-crash and send volatility to "the world is ending" levels? There are a couple of possibilities, he said.

1. The Shock Doctrine. Naomi Klein's landmark study of how manufactured crises are used to justify further consolidation of power, The Shock Doctrine: The Rise of Disaster Capitalism, provides a blueprint for how financial crises set the stage for policies that extend the power of central and private banks and various state-private sector players.

[ FACT: Naomi Klein didn’t pay much attention to the issue derivatives, hedge funds and other financial tricks that the China’s case is showing up ]

2. A "crash" engineered to set up a buying opportunity for insiders. When easy gains get scarce, what better way to skim a quick 10% than engineer a "crash," scoop up shares dumped by panicked punters and momo-following HFT bots spooked by "the world is ending" VIX spike, and then reverse the "crash" with another round of happy talk?

[ FACT: The buying & selling didn’t  stop but all indices fell down. The crisis is more complex than mere trade. The central point is the over production of goods or merchandise based on cheap –semi-slaved Chinese labor, and this also involves the corruption of power at both levels, China –US big corp, and the mega & micro wars, beyond the currency one. The “crash” was not yet  averted but China is trying hard .. we depend on their success or their failure .. China is still the engine of the neoliberal system .. What happens recently took them by surprise.. Nobody knows when that “crash” will come again since the labor salary worldwide had been pushed down thanks to the cheap merchandise coming from slaved labor in China and other countries in Asia.. Every country is taking their own precautions according to their economic rulers .. Perhaps Germany will survive this crash because the capital-labor relations is more fair than in other countries in the West... Even if the West  manage to put together one single plan to stop the next “world recession”  (a minimum salary worldwide, for instance)  .. nothing warrantee that the plan will be implemented .. And  this phenomena  has little to do with the “conspiracy” of potential benefactors ]

3. Settling conflicts within the Deep State. I have covered the Deep State for years, in a variety of contexts--for example:
The Dollar and the Deep State (February 24, 2014)
Without going into details that deserve a separate essay, we can speculate that key power centers with the Deep State have profoundly different views about Imperial priorities.

[ This is not an argument in favor of “crash as rigged” for super-power actors inside the system. The “deep state” main priority supposed to be keeping alive the US empire. To get it, the interests of the FED, the States and The Nation as a whole should be safeguard from the private “greed” and particular interests of big Corp. There is not evidence that such an agreement have been rich so far at the level of economics .. perhaps only the common sense that “world recession” is coming and all big banks & corporation will be affected & the Nation as well. So, we need an FDR plan to save America, another huge DEAL, a new adaptation of the Glass-Steagall ACT and the political will to set-up the right political actors to implement such plan. In this aim, the by-partisan system is a trap. We have to go beyond Dems & Rep and open the chance for a third option. This is the right time to do it. If the Deep State is not divided.. that is their task ]

IN SHORT:

[ The “everything else” in the title includes the author & the content of his article. .. FACTS PREVAIL: 1st, the nasty intervention of US speculators in China’s market; 2nd The correction attempt of China’s authorities recognized as positive by US economist and even the IMF. 3rd The reality of the crisis we induced in China’s economy: the overproduction of commodities while keeping the purchase power of people very low, the gap between salaries inside China and outside in the world neoliberal market is an explosive tic-tack-bomb ready to spark a huge world economic recession that will be impossible to stop it. 4th The effects of this lethal contradiction & the spread of the current crisis is still a process that we all can see it on.. now  ]

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During Monday's flurry of tripped circuit breakers and flash crashing mayhem, ETF investors learned the hard way that Howard Marks was precisely correct when he warned that ETFs "can't be more liquid than the underlying and we know the underlying can become highly illiquid." The question now, is whether subsequent flash crashes will trigger even more spectacular divergences between fair value and ETF unit prices on the way to proving, once and for all, that ETFs may indeed be the new financial weapons of mass destruction.
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Courtesy of Evercore ISI, which using its own GDP equivalent index - the Synthetic Growth Index (SGI) - we get a vastly different China GDP result from the official one, namely Chinese growth of -1.1% annually. Or rather, contraction.
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In spite of all the attention the nation has received in recent years, SCMP reports thatthousands of so-called "politically exposed persons”, or PEPs - a category that includes heads of state and other top officials - hold Swiss bank accounts, a Swiss foreign ministry official said. But, perhaps not for much longer as Bern aims to finalize a law aimed at simplifying the process of freezing and unblocking such funds.
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The size of Paulson's stake is unknown, however we do know that the top 20 shareholders top out at about $150 million in SYNN holdings. Assuming a $200 million Paulson stake, that means that Paulson's paper losses were likely $30-40 million today (depending on the price he build up his stake), losses which may have been booked if Paulson decided to cash out.
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In 2011, Iran’s output was 3.7 million barrels per day. With the sanctions, production dropped to 1.2 million barrels per day.
Iran and six world powers – Britain, China, France, Germany, Russia and the United States – reached an agreement in July on controlling that program and lifting the sanctions, probably by early 2016. Oil Minister Bijan Zanganeh has said repeatedly that his country can quickly boost production by more than 1 million barrels per day within a month after the sanctions are lifted.
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China's Economy Is.... Submitted by Tyler Durden on 08/26/2015

And here is how Hong Kong sees China...
George Chen:  Wow! Hong Kong media declare China is already in economic crisis and its impact will be like "nuclear explosion"
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SO YOU’RE SAYING THERE IS A CHANCE?
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"Central Bankers Look Naked... & Investors Have Nothing Else To Believe In"Via RBS' Alberto GalloSubmitted by Tyler Durden on 08/26/2015

"Policymakers responded to the financial crisis with easy monetary policy and low interest rates. The critics — including us — argued against 'solving a debt crisis with more debt.' Put differently, we said that QE was necessary, but not sufficient for a recovery. We are now coming to the moment of reckoning: central bankers look naked, and markets have nothing else to believe in."

SEE IMAGE: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/08-overflow/20150826_gallo_0.jpg  The Emperor is Naked. Long live the Emperor. The QE infinity Paradox

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Yesterday, we highlighted what could well have been the catalyst for the collapse late in the session. SUNE has crashed in the last two days as the hedge fund hotel which boasts such guests as Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon,  sees mass liquidations, and judging by this morning's 6% plunge in the face of a notably higher broad market, it appears the margin-call driven liquidation may be continuing if not accelerating.
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Following The Dow's recent 'death cross' - when the 50-day moving average drops below the 200-day - it fell 2000 points. So will AAPL triggering its own 'death cross' warrant "no brainer" buying-the-dip or will investors remember what happened in 2012...
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It seemed like finally China's relentless and increasingly futile attempts to have a green stock close would work: interest rate cuts, liquidity injections, direct stock interventions, even threats on the Prime Minister's head, and just to make certain moments before the close news very deliberately broke that government funds are buying large financial stocks, especially state-owned banks, to support the index, in the latest clear signs of government support, the Shanghai Composite seemed on pace to end an unprecedented series of consecutive tumbles which have dragged the composite down nearly 1000 points, or 25% in one week, and then... red close, with the SHCOMP down 1.3% to 2927, and a stunned China watching in horror as the central bank and government lose control, and everything they throws at the biggest market bubble of 2015 does absolutely nothing.
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Submitted by Tyler Durden on 08/26/2015 - 07:33
  • Global Stocks Struggle to Shrug Off China Fears (WSJ)
  • Brief Respite Ends for European Stocks Amid Renewed Retreat (BBG)
  • Stock futures rise after China injects $21.8 billion (Reuters)
  • China turmoil needn't rattle BOJ, yen rise not a worry: Abe adviser (Reuters)
  • Stock-Market Tumult Exposes Flaws in Modern Markets (WSJ)
  • Dollar gains as stocks recover, lessens safe-haven bid for yen (Reuters)
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"Greece’s state insurance funds are resorting to external loans to cover their needs as fears grow that the measures of the third bailout will not be enough to cover the rest of 2015’s liquidity needs."
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"Given the size of foreign holdings of Asian equity and debt, should foreigners reduce their portfolio holdings by 2-3% over the course of a month, it would broadly offset the region’s current account surpluses, leaving their external balances in a shakier position. During the 'taper tantrum' period, foreigners sold markedly more than 3% of their portfolio holdings through June and July 2013, highlighting the risk that portfolio outflows could cause further Asian currency weakness."
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GLOBAL RESEARCH


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INFORMATION CLEARING HOUSE


Hillary Clinton helped a right-wing coup in Honduras remove an elected left-of-center president, setting back the cause of democracy and enabling corrupt and drug-tainted forces to tighten their grip on the poverty
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The US Congress sold their collective soul to a special interest group, while forsaking the American people.
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Syrian Rebels: Turkey Tipped al Qaida Group to U.S.-trained Fighters
By James Rosen, Duygu Gevenc and Zakaria Zakaria
The kidnapping of a group of U.S.-trained "moderate Syrians" moments after they entered Syria last month was orchestrated by Turkish intelligence
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NOTICIAS IN SPANISH


Grecia. Entrevista al exministro de finanzas griego Yanis Varoufakis. “Hemos traicionado a la gran mayoría del pueblo griego”. Pavlos Kapantais
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Economia. El fin del sueño de la "multipolaridad". Gonzalo Hernández. Crisis de monedas emergentes
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Colombia. Carta abiertaFARC-EP
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Chile.  El militarismo sigue aquiPatricio Malatrassi
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