MAR 15 17
SIT EC y POL
ZERO HEDGE.
ECONOMICS
Logic and current trends suggest that declining
output growth accompanied by higher prices will begin hitting economies and
facing policy makers in the coming years. Markets should begin sniffing out
this stagflationary macroeconomic setup this year.
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After the hotter-than-expected PPI print, Consumer Prices confirmed
that inflation is running hot with the fastest rise since Feb 2012. Combined
with the weakest GDP growth outlook in over a year, it appears stagflation is looming... and The Fed is hiking
into its face.
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"The bottom line for
domestic equities remains the same: the SPX is only back to where it stood before
Trump spoke in front of Congress on 2/28 (the index is down just ~1.5%
from the 3/1 2400 high) and the larger risk remains whether the index retraces
the whole “phenomenal” rally (which would move it back to 2300 or lower)."
..
RELATED:
It is fitting that just a few hours until the
Fed's second rate hike in two quarters, and one day after Goldman downgraded global stocks to Neutral for the next 3 months, not to mention that global stocks as
well as S&P futures are higher, while crude oil has finally managed to stage
a rebound as the Dollar DXY index is fractionally in the red.
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Despite the surge in consumer confidence and exuberance at what lies
ahead, real wages for America's average joes declined year-over-year in
February (down 0.3%). This is the first consecutive monthly drop in real wages
since 2011 (which forced Bernanke to to hint at and then unleash QE2
later that year).
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As the vulture pundits in the mainstream media
pick apart hollow political scandals, the essential bankruptcy of the federal
government looms just ahead. The national debt is creeping toward 20 trillion
dollars, and the United State’s
largest problem is once again staring the world in the face.
If the government does shut down again, the Treasury Department reportedly
has as little as $66 billion in reserves and just enough income from taxes to
meet its essential obligations.
Entitlements like
social security and Medicare will likely be unaffected, but if lawmakers can’t
collaborate to pass some kind of resolution, the power to allocate additional
federal spending will largely be turned over to President Trump. The initial hiring
freeze on federal employees that was implemented shortly after his
inauguration could be just a taste of what’s to come.
The coming budgetary
stalemate also threatens to undermine the recent record highs seen in the stock
market.
Although the financial markets
have enjoyed massive
gains since the election, many investors have been hypnotized into blindly
embracing the illusion that ‘this time it’s different.’ Nearly a
decade of emergency monetary policy by the Federal Reserve to lower interest
rates, along with its injection of trillions of dollars into the economy, has
numbed Wall Street to the harsh realities of history.
David Stockman,
former budget director for the Reagan administration, spoke
to Neil Cavuto on Fox Business about the imminent debt crisis
threatening to blindside the U.S. economy:
“What I’m saying is, all the extra growth from dynamic accounting
that you could get if you got all these tax cuts through, it will not happen,
the math isn’t there, it’s impossible. There is going to be a debt crisis this
summer that will cause a financial crash of unbelievable proportions….It’s
going to go on for days and weeks if not months, because Congress is already
nasty and partisan. I’m seeing reality, the robo-machines are simply trading
sound bites and tweets and hourly sentiments, this is meaningless. This is the biggest suckers rally
in history and there is going to be a huge surprise very soon.”
This plague of short-term
thinking and desire for instant gratification has lulled America into an
apathetic fog. People no longer act as though they have a stake in
the future. They choose willful ignorance even as the most serious problems go
unresolved. The $20 trillion balance on the national credit card is the most
tangible example of how nearly a century of decadence can transform a society.
This country once represented the world’s moral compass and a beacon of
economic freedom, but those pillars have been abandoned to indulge in war
profiteering and monetary
fraud.
Delaying the inevitable has
become an American pastime.
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Source: http://www.zerohedge.com/news/2017-03-15/us-about-hit-20-trillion-debt-heres-how-it-affects-you
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In an
ideal world, all sides would come together and
not play politics with the debt ceiling again. Clearly that’s not the world in
which we live. America’s partisan divide may now be
so wide that a default will occur...
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This arcane financial instrument appears to be quickly becoming 'ground
zero' for the "next big short" of this bull cycle.
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Putting the Federal Reserve's third rate hike in 11 years
into context, if the Atlanta Fed's forecast is accurate,
0.9% GDP would mark the weakest quarter since 1987 in which rates were
raised, according to Julian Emanuel at UBS. We look forward to
Ms. Yellen explaining her reasoning -
Inflation no longer "transitory"? Asset prices in a bubble? Because we want to
crush Trump's economic policies? Because the banks told us to?
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The lack of uber-hawkishness in the dot-plot appears to have been
enough for dollar-buyers to desert the trade in the short-term. The
reaction to The Fed's 3rd hike in 11 years is buying
bonds, buying stocks, and buying bullion...
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US stocks are up, Treasuries are
up, emerging market stocks are up, oil is up, and high yield bonds are up ahead
of The Fed's (foregone conclusion) decision this afternoon. However, if everything is so awesomely hawkish, why is the
dollar dumping?
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As a reminder, it was only a couple of weeks ago that today's rate-hike
foregone conclusion wasn’t even on the market’s
radar...
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The GDPNow model forecast for real GDP growth
(seasonally adjusted annual rate) in the first quarter of 2017 is 0.9 percent
on March 15, down from 1.2 percent on March 8.
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POLITICS
Former Hillary Aide: "Even if it’s a year or two or three
from now, I still don’t think the timing would be right. I know
that’s not fair to [Chelsea], but nothing feels right about it. It feels too forced."
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In the budget proposal to be released by
President Trump on Thursday at 7am, the White House will call for spending cuts
of 28% for the State Department and 31% for the Environmental Protection
Agency, the NYT reported.
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"What happened between December and March? GDP is tracking
very low. Measures of labor compensation are not threatening to boost inflation
any time fast. The consumer is not picking up very much. Fiscal policy [is
uncertain]. And yet, you have
to raise rates now..."
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As its
defenders tax the system to protect what no longer works (except for
them, of course), the slide to oblivion accelerates as the system breaks down under
the collective
weight of all the skims, scams and rackets benefiting the few at the expense of
the many.
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If
rejected there .. he will be declared INCOMPETENT nationwide .. a plus to impeach him
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WORLD ISSUES and ME
"We are straight up told to tell false
stories (lie) to sell products." And an RBC financial adviser told Go
Public, "We are all doing
it."
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After December's brief dead cat bounce, in
which foreign central banks bought $18.6 billion in US Treasuries, breaking a
streak of 12 consecutive months of selling, in January they resumed their
liquidation dumping another $44.9 billion in Treasuries.
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Mexico's outspoken Presidential frontrunner, Andres Manuel Lopez
Obrador: "President
Trump's approach of blaming migrants for the problems of the United States has
been excessive. We will not allow that, you can't implement a campaign of hate
against Mexicans because that is neofascism."
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Is
going to happen in the US too: cuando la barca se hunde las ratas con los 1ros
en huir
What is that saying about rats and sinking
ships?
"Och-Ziff, one of the largest hedge funds,
positioned itself to profit from the corruption that is sadly endemic in
certain parts of Africa, including Libya, the Democratic Republic of the Congo,
Chad and Niger," U.S. Attorney Robert Capers in Brooklyn, New
York, said in a statement. "Despite knowing that bribes were being paid to
senior government officials, Och-Ziff repeatedly funded corrupt
transactions."
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DEMOCRACY NOW
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GLOBAL RESEARCH
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INFORMATION CLEARING HOUSE
US Delta Force, SEAL Team 6 Prepare To Take
Out Kim Jong-Un By Tyler Durden
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Third Time's The Charm - The Neocons Want
Another Sunni Insurgency By
Moon Of Alabama
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|
In Case You Missed It
The Zionist Plan for the Middle East Translated and edited by Israel Shahak
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A Soft Coup, or Preserving Our Democracy? By Philip Giraldi
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COUNTER PUNCH
Michael Hudson How
Bankers Became the Top Exploiters of the Economy
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Ralph Nader “Making
America Great” at Americans’ Expense
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SPUTNIK and RT SHOWS
Is it possible to put them down when they depart? .. to
avoid more terrorism on Syria-Irak
Pentagon Deploys B-52 Bombers, 400 Airmen for Iraq, Syria Air Campaign https://sputniknews.com/middleeast/201703161051627659-pentagon-b52-syria-iraq/
Trump is starting WW3 in 3 regions (ME-Asia & UKR) as
only way to remain in power. Stop it!
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RU is sending 500 tonnes (metric tons) of Hu-Aid to
Donbas and Kiev order to block roads
Russia Sends Out 62nd Humanitarian Aid Convoy to Ukraine’s Southeast https://sputniknews.com/russia/201703161051629179-russia-donbass-humanitarian-aid-convoy/
Related
Poroshenko Calls for Adoption of Law Ensuring Regaining Control Over Donbass https://sputniknews.com/europe/201703161051625885-poroshenko-law-control-donbass/
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WASHINGTON BLOG
Posted on March 15, 2017 by Eric Zuesse.
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The fragmentation of political
consensus (i.e. the consent of the citizenry) is presented by the Powers That
Be and their media servants as being a disaster.The implicit fear is
real enough: how can we rule the entire nation-empire if it fragments?
As I noted the other day, fragmentation
terrifies the Establishment of racketeers and insiders, for when the
centrally-enforced rentier skims and scams collapse, those who own and control
the rentier skims, scams and rackets will lose the source of their wealth and
power.
To understand why fragmentation
is the solution rather than the problem, we have to look at how power is
leveraged in centralized government. Let’s take the recent increase
in a common pinworm treatment from $3 to $600: Pinworm
prescription jumps from $3 to up to $600 a pill (via J.F.).
In a top-down, centralized hierarchy of political power
(i.e. the central state), the pharmaceutical company only needs to lobby a few
authorities in the central state to impose its
rentier skim/scam on the entire nation.
Lobbying/bribing a relative handful of federal officials and
elected representatives is remarkably inexpensive: a financier or
corporation only needs to focus on these few key players, and smoothing the PR
pathway via a highly concentrated corporate media.
A mere $5 million spent in the right places guarantees $100
million in future profits– profits earned not from open competition in a
transparent market, but profits plundered as rentier skims: the product
didn’t get any better or effective when the price leaped from $3 to $600, and
competition was squelched by regulatory capture and high barriers to
entry.
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NOTICIAS IN SPANISH
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Reseña de "Karl Marx,
antropólogo", de Thomas C. Patterson Miguel Ángel Adame
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Marx y la Cuarta Revolución Industrial Franco Santol
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¿Golpe de Estado a la vista en
Washington? Ojala no regrese el clan Clinton y su trash
DEMs
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EE.UU. manda a Corea del Sur la
unidad que mató a Bin Laden [mató o
resucito el terrorismo Imp]
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CIA: espía como puedas que también te
espiare
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PRESS TV
Republican
senator 'working for Vladimir Putin' . Here the stupid logic of McCain:
McCain said Rand Paul blocked vote on treaty for NATO
membership for Montenegro.. THEN he is working for Putin.. FACT is: 1-NATO favor WW3 with RU. F.2-Many US disagree.. do
they wk for P?
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HRW
censures UN for inaction against Bahrain’
regime
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US
indicts two Russian intelligence in Yahoo cyberattack
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French far right official suspended over Holocaust denial -NFparty
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