MAY 15 17 SIT EC y POL
ND denuncia debacle d Globaliz neoliberal y
propone State-Social + Capit-compet in Econ
ZERO HEDGE ECONOMICS
Neoliberal
globalization is over. Financiers know it, they documented with graphics
Global recession came to US: case
Ford auto industry
Ford has 200,000 employees globally, half of which work
in North America..
Having admitted in March that "used
car prices will drop for years" and amid
near-record inventories, a
so-called 'plateau' in car sales, and
soaring
auto-loan losses, WSJ
is reporting that Ford is planning substantial cuts to its global workforce amid CEO Mark Fields’s drive to boost
profits and address the auto maker’s sliding stock price.
With near record high inventories of 3.9 million vehicles...
Demand tumbling...
and a flood of off-lease vehicles set to send prices
tumbling, as Morgan Stanley recently pointed out, we're just getting started as
they see used car prices dropping by up
to 50% over the next 5 years.
It appears Ford has seen the light of survival in this
non-recession, recession... (via
The Wall Street Journal)
The move
comes as Ford targets $3 billion in cost cuts for 2017, a plan aimed at
improving profitability in 2018 even as U.S. auto sales plateau.
Ford’s share price has suffered
during Mr. Fields’s three-year tenure, and the company’s market value has
slipped far behind Tesla and General Motors.
The job cuts, expected to be outlined as
early as this week, largely target salaried employees and aim to reduce the
global head count by an equivalent of about 10%, these people said.
It is unclear if the plan includes
cuts to the hourly workforce at Ford’s U.S. factories and plants that are
abroad.
See the 1st graph above. For big picture open: http://www.zerohedge.com/news/2017-05-15/how-not-recession-ford-slash-10-global-workforce
One can only imagine what this will do to production, and
thus US manufacturing output - still The Fed should hike rates anyway, right? How is this not a recession?
And finally, let's reflect a little on the government's hand
in this utter debacle. As a reminder, for those
who vehemently believe that Ford did
not receive a government bailout...
Although Ford did not receive
TARP funds, it did receive government loans.
These were critical because banks were not lending during the financial
crisis. It requested a $9 billion line-of-credit
from the government. In return, it pledged to spend $14
billion on new technologies. (Source: "Ford to Congress: Keep $9 Billion
Handy for Us," Politico, December 2, 2008.)
On June 23, 2009,
Ford received a $5.9 billion loan from the Energy Department's Advanced
Technology Vehicles Manufacturing program. In
return, it pledged to accelerate development of both hybrid and battery-powered
vehicles, close dealerships and sell Volvo. It upgraded factories in Illinois,
Kentucky, Michigan, Missouri and Ohio to produce hybrid vehicles.
Ford used the funds to switch its focus to commercial
electric vehicles. In 2016, CEO Mark Fields said, “"We want to become a
top player in electrified solutions.” The company wants to lead, “…we can win
such as with our commercial vehicles." (Source: "Trump Should Be Asking: Will Ford Pay Off Its Loan Before
Moving Small Car Production to Mexico?" Forbes, September 21, 2016.)
Eighty-one percent of the funds went to create new
efficiency technologies for gas-powered vehicles. For example, they helped fund
Ford's aluminum bodies in the F-series pickups.
The Congressional Research Service estimated the loans saved 33,000 jobs. Ford
will repay this loan by 2022. (Source:
"The
Advanced Technology Vehicles Manufacturing Loan Program: Status and Issues,"
Congressional Research Service, January 15, 2015.)
Many argue that Ford needed the
funds to sustain its cash flow during the recession. Ford says it was in better shape than the other
two because it had mortgaged its assets in 2006 to raise
$23.6 billion. It used the loans to retool its product lineup to focus on
smaller, energy efficient vehicles. It got the United Automobile Workers to
agree it could finance half of a new retiree health care trust with company
stock. By April 2009, it retired $9.9 billion of the debt it had taken out in
2006. (Sources:
"Obama Administration Awards First Three Auto Loans,"
Energy.gov, June 23, 2009. "How Ford Avoided the Meltdown that Hit GM, Chrysler,"
CNBC, April 9, 2009.)
So to clarify:
- Dec 2008 - headcount 213,000
- Dec 2008 - Ford received $9bn line of credit from the government. The Congressional Research Service estimated the loans saved 33,000 jobs. Ford will repay this loan by 2022.
- May 2017 - headcount 180,000
Money well spent... to lock in a few more voters, eh?
As
The Wall Street Journal concludes, deep cuts in the U.S. could
trigger political backlash due to the role the auto industry played during the
campaign and early tenure of President Donald Trump.
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'Soft' Data Slumps - Empire Fed Plunges Into Contraction As New Orders Collapse
Having surged to its highest
since Oct 2014 early in the year on the back of Trumptopian exuberance, Empire Fed's manufacturing survey crashed back to -1.0 in
May. This is the worst (and first) contractionary print since
October 2016 as New Orders crash from 7-year highs to
7-month lows.
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If central bankers hope that
investors will start to exhibit sensible behavior, consistent with their
fiduciary duties, they need to start speaking their minds. And if that causes
markets to back up, so be it. No one believes they
aren’t in complete thrall to financial conditions. They are going to have to prove it isn’t the case. So far
there’s no indication they have the stomach for it.
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So Chinese data dumped, European data
disappointed, and US data was dismal... sending the global macro surprise index to its lowest since November..
Yet another new record streak... VIX closed below 11
The last time the US equity market had a longer stretch of
calmness was February 1969.
And that helped provide cover for desperate stock buyers...
The Dollar Index extended its losses after CPI missed on
Friday...
Silver has outperformed gold for the last few days...
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Nothing says buying panic like a "constitutional
crisis" in America, crashing US 'soft' economic data, the world's largest
cyberattack ever, a slowing Chinese economy, and a higher VIX...
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Hedge
funds dumped almost $6 billion notional in gold futures last week. That is
the largest drop in hedge fund longs in the history of CFTC data.. and the
precious metal has stabilized since.
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On a
broader scale, markets are about to
collide with reality...
RELATED:
"The smoother the road, the faster people are likely to drive... but,
also, the greater the risk of an
accident that could also harm other drivers..."
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With further deteriorating GDP and other metrics, along with no fiscal stimulus possibly seeing the light
of day (meaning actually signed into law) for the rest of 2017,
along with a potential
government shutdown and a June
hike now to be considered a done deal (and a prudent one at
that), the possibilities for major 'policy error'
are soaring...
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The hedge funds need momentum to
make money and May 25th's
OPEC discussions could be the catalyst (one way
or the other)...
RELATED 1-A
In an otherwise quiet session in which European
shares dropped, Asian equities rose and S&P500 futures were little changed,
crude oil surged above $49 on high volume, after the Saudi and Russian energy
ministers said in Beijing they favor extending the OPEC production cut for 9
months, though the end of Q1 2018.
RELATED 1-B
"Whatever
it takes." That's what
Saudi and Russian energy ministers said in a statement overnight in Beijing
they would do to reduce the global oil inventory overhang, using the immortal
phrase coined by ECB President Mario Draghi five years ago in his successful
bid to defend the euro. For OPEC, however,
"whatever it takes" may not be enough. Here's the simple math.
RELATED 2
The average
gasoline tax in the U.S. is 49.5 cents per gallon, according
to data from the American Petroleum Institute. That’s not too bad as far as
averages go, but it has been climbing over the last five years and it will continue rising as
states lose hope that the federal government will chip in for infrastructure
construction and maintenance, and transportation.
RELATED 3
"We
believe that today’s announcement is consistent with OPEC’s desire to achieve
both price stability and backwardation, which will help to slow the recovery in
shale oil production by curtailing the market's ability to grow future production
through forward sales. For the strategy to work, however, we believe two things have to take place."
- compliance needs to remain high and
- long-term oil prices need to remain low to prevent shale producers from ramping up investment significantly more. In fact, an extension of the cuts should go hand in hand with guidance of future production increases by low cost producers, in our view, with an already notable emphasis by Saudi and others that oil prices will likely remain in a $45-55/bbl long-term range, in line with our forecasts.
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"White House interference with any FBI investigation is
incompatible with democratic safeguards, and that’s especially the case when
the investigation involves the president or his associates. Political meddling
with law enforcement investigations is a recipe for abuse of power. The public has a right to know why
Comey was fired so the president can be held accountable for any abuse of his
position."
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Spicer Back At The Podium With Monday's Press Briefing
After evading the press for much of the past
week in the aftermath of Comey's firing, and following this weekend's
unconfirmed report that Trump may be seeking to fire Sean Spicer (along
with several other key members of the Trump inner circle) today's press
briefing may be somewhat awkward for the White House press secretary.
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Senate Majority Leader Mitch McConnell has just
confirmed that Deputy AG Rod Rosenstein will brief the Senate on the events
leading up to Comey's abrupt dismissal this Thursday at 2:30pm EST.
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WORLD ISSUES and ME
Global depression is
on…China, RU, Iran search for State socialis+K- compet. D rest in limbo
"It's a massive attack on the nation's property
rights..."
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Recent years have seen a mounting showdown between the old world order configuration based on chaos and destruction
and led by Washington, and the new multipolar order that focuses on win-win
opportunities, dialogue and sincere cooperation. If Washington
decides not to accept the new rules of the game, where it can no longer dictate
the law, it
will end up producing more damage against itself than any foreign country could
actually do...
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The playing field was never
level: the Neoliberal Corporate-State Order had all the power, and
rigged the game to its own advantage. No wonder the rural regions are
rebelling--not
against the cities, but against the Neoliberal Global Order that has stripped
the economic diversity from rural economies.
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Equity strategists are cooling on the prospects for further
gains in European stocks just as investors poured a record amount
of money into the region’s equity funds...
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DEMOCRACY NOW
US politics crisis:
Trump captured by Deep state to reproduce old cronyism without alter-plan
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GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars:
profiteers US-NATO under screen
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Peace,
Harmony and Happiness, Plus a Deluge of Yuan. The Belt and Road Forum in Beijing By Pepe Escobar,
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The
Belt and Road Initiative (BRI): China’s Vision of an Interconnected, Inclusive
World By Carla Stea
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INFORMATION CLEARING HOUSE
Deep on the US
political crisis, their internal conflicts n chances of WW3
Why Is North Korea the United States’
Problem? By Doug Bandow
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China Widens its Silk Road to the World By Pepe Escobar
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Graham: We Can't Go Forward As A Nation
'Until We Punish Russia' By
Rebecca Savransky
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How Did Russiagate Start? By Matt Taibbi
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Will Trump and Netanyahu Continue to Misread
Iran? By Trita Parsi
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COUNTER PUNCH & ZCOM.ORG/
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Lawrence Davidson Trump’s
Behavioral Legacy
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Mel Gurtov Our
Imperiled Democracy
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Binoy Kampmark Lavrov
at the White House
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SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered .. pro RU view
Who is the worse evil
between 2 war-mongers-pro-WW3? .. Hillary of course!... unlessTrump start it. In either case
our alternative is a UNITED FRONT against both fascistic candidates.
Out of the Woods and ‘Onward Together’: Hillary Clinton Launches Super-Pac https://sputniknews.com/politics/201705161053644501-onward-together-hillary-clinton-superpac/
If Trump wants chance for
re-election: 1-set up Clinton’ indictment, 2- cancel OB Superpac & S-deleg
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THAAnks But No: Japan Favoring Aegis Missile Defense System Over THAAD https://sputniknews.com/military/201705151053642025-japan-aegis-thaad-missile-defense/
“Tokyo is turning away from the
Terminal High Altitude Area Defense (THAAD) missile defense system, instead
favoring the Aegis Ashore system instead. Both systems were developed by
Lockheed Martin on a US military contract.”
RELATED 1
Japan Defense Chief, US Pacific Command Head to Discuss N Korean Missile Launch https://sputniknews.com/politics/201705151053616242-north-korea-missile-launch-japan-us/
RELATED 2
China ‘May Back’ New UN Sanctions After Pyongyang’s Latest Missile Test https://sputniknews.com/military/201705151053641216-china-may-back-new-sanctions/
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Troubles Chasing US Aircraft Carriers Amid Tensions on Korean Peninsula https://sputniknews.com/asia/201705151053630000-korea-us-aircraft-carrier-trouble-japan/
One of them has to abandon the area: “US
Aircraft Carrier Ronald Reagan Departs Japanese Port for Sea Trials” .. he USS Ronald Reagan's return
to operations was supposed to "mark a significant milestone
for the forward-deployed naval forces, reaffirming the United States
commitment to the region."
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RT SHOWS
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SophieCo Mafia
made money from migrants, but we’re cleaning up the system – Rome Mayor Virgina
Raggi
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NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
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La dictadura "democrática"
de los poderosos Raúl Zibechi
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Sobre la soberanía económica en
Ecuador Sergio Martín
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Siete historias lógicas y un cuento
breve Salvador
López
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PRESS TV
Global situation described by Iranian observers.. Titles
distorted n incomplete sentences
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