MAY 29 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
World context:
We've
been playing two games to mask insolvency: one is to pay the costs of rampant debt
today by borrowing even more from future earnings, and the second is to create
wealth out of thin air via asset bubbles. All the games end badly.
There are multiple sources of friction in
the Perpetual Motion Money Machine.
We've been playing two games to
mask insolvency: … above
The two games are connected: asset bubbles require leverage and credit. ..
If credit dries up, asset bubbles
pop: no expansion of debt, no asset
bubble.
The problem with these games is
the debt-asset bubbles don't actually expand the collateral (real-world
productive value) supporting all the debt. Collateral
can be a physical asset like a house, but it can also be the ability to earn
money to service debt.
If the collateral supporting the
debt doesn't expand with the debt, the borrower's ability to service debt
becomes increasingly fragile. Consider
a household that earns $100,000 annually.
If a household earns $100,000
annually, how much can it borrow? The
answer depends on the terms of the debt: the rate of interest and the
percentage of principal that must be repaid monthly.
If the interest rate is 0% and
the monthly payment is fixed at $1, the household can borrow billions of
dollars. This is how the game is
played: there is no upper limit on debt if the interest rate is effectively
zero, or adjusted for inflation, less than zero.
Would you lend the household your
savings, knowing you'll never get any interest and the principal will never be
repaid? Of course not. Nobody in a
functioning market for capital would throw their hard-earned savings away on a
debtor who can't pay any interest or principal.
The only institutions that can
play this game are central banks, which create money out of thin air at zero
cost. As for risk--the way to manage
defaults is to print more money.
But once again--printing money
doesn't create collateral or income needed to service debt.
Central banks have printed
currency with abandon. Everybody loves free money--especially
bankers and financiers.
The other problem with this game
is interest keeps ticking higher while earnings remain flat. Even at
very low rates of interest, interest payments keep rising.
The whole game is a bet that
future income will rise faster than debt service. Unfortunately,
we've already lost that bet: household income has been stagnant or declining
for years
Which leads to the second game:
blowing asset bubbles. If the household's earnings are flat or
declining, one magical fix is to inflate the household home's value from
$100,000 to $300,000
Final statement:
All the games end badly. Tomorrow
we'll examine the paths to impoverishment we can choose from.
Keep reading at the source below
….
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Rising
living standards were never the fruit of capital alone, as the real strength
was in the combination of it with labor. Over the last few
decades, the real capital flow has been with eurodollar finance to the
offshoring of productive capacity. By simple
mathematics, businesses are no longer willing to afford labor...
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Fed Chairs Ben Bernanke and Janet
Yellen re-blew the Alan Greenspan initiated housing
bubble. However, the trend towards higher and higher home prices started well before that dynamic trio made a mess of
everything. The following charts show
the true origin of escalating home prices...
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"Those who have fought and died to defend America and its
freedoms are noble beyond measure. Those who pay self-serving tribute to their valor, but make
war and expend lives as means to corrupt ends are evil beyond redemption. Honor the former; expose and oppose the
latter."
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We do not need another Cold War to materialize. The way to stop it from occurring
is through sound diplomacy and strength of position, not through imperialism
and posturing. Therein lies the
challenge...
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What idiotic way of thinking:
"Russophobia isn’t actually racism – it proves your patriotism... Poverty,
starvation, refugees, terrorism, climate change – everyone in America is realizing that if we
can just get rid of Putin, everything else will surely fall into line.
Surely!"
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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
Saudi Arabia's reserves inexplicably tumbled
below $500 billion in April for the first time since 2011 even after accounting
for the first ever Islamic bond sale, fueling speculation it’s triggered by
capital flight and the costs of the kingdom’s war in Yemen.
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"...our
results will mirror Japan over time... They've tried to solve an indebtedness
problem by taking on more debt... the secular low in long treasury bonds
is not at hand.. [rates] are not going to be able to
stay up. The economy is too fundamentally weak..."
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Italian stocks have tumbled to one month lows
and the Italian bank sector is down 3% in Monday trading, its biggest one-day
loss in nearly 4 months, while italian BTP yields have jumped by the most in 2
months with traders citing rising risks that the euro zone's third largest
economy could head to early elections in the autumn.
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Banks
and financial institutions are already preparing for the world after Brexit and planning to pull some of their staff
from the finance hub in the City of London...
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GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars:
profiteers US-NATO under screen
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Dakota
Access Pipeline (DAPL) Company Hired “War on Terror” Contractors to Suppress
Native Uprising By Lauren McCauley,
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INFORMATION CLEARING HOUSE
Deep on the US
political crisis, their internal conflicts n chances of WW3
Russia Calls House Bill an “Act of War.” By Gar Smith
The bill presumes to grant the US “inspection authorities”
over shipping ports (and major airports) specifically, ports in China, Russia,
Syria, and Iran.
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Trump: Dancing with Wolves on the Titanic By The Saker
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The Rhetoric of Regime Change By Kim Petersen and B.J. Sabri----
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Jim Kavanagh No
Laughing Matter: The Manchester Bomber is the Spawn of Hillary and Barack’s
Excellent Libyan Adventure
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Ray McGovern Will
Europe Finally Rethink NATO’s Costs?
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Andrew Stewart Xi,
Trump and Geopolitics
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SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered .. pro RU view
Netanyahu Says No ‘Blank Check’ from US, Tells Party Time for a Deal is Now https://sputniknews.com/politics/201705301054106849-netanyahu-no-us-blank-check/
Israeli Prime Minister Benjamin
Netanyahu warned on Monday that while the current US administration is friendly
toward the Middle Eastern country, Jerusalem does not have a “blank check” from
Washington to do as it pleases.
RELATED
Palestinian Prisoners in Israel End Hunger Strikes After Main Demands Met https://sputniknews.com/middleeast/201705271054037605-palestinian-prisoners-israel-end-hunger-strike/
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Ecuador's President Calls Julian Assange 'Hacker' https://sputniknews.com/politics/201705301054106823-ecuador-president-calls-assange-hacker/
"Mr. Assange is a
hacker. That is something we and personally I reject… I respect the condition,
in which he is… we also ask him to respect the situation he is
in," Moreno told reporters as quoted by RTVECUADOR broadcaster.
RELATED 1
Assange: Kushner's Alleged Plan to Set Up Secret Channel With Moscow 'Correct' https://sputniknews.com/us/201705281054071703-assange-kushner-us-russia-trump/
RELATED 2
Kushner Had No Plans to Set Up Secret Communication With Russia https://sputniknews.com/us/201705301054108200-kushner-no-plans-secret-russia-communication/
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Two Ministers, Deputy Head of National Oil Company to Present Venezuela at SPIEF https://sputniknews.com/business/201705301054107771-two-ministers-present-venezuela-spief/
A Venezuelan diplomatic source
said that a total of two Venezuelan ministers and a vice president of
state-owned Petroleos de Venezuela oil and gas company will present Caracas at
the upcoming St. Petersburg International Economic Forum.
RELATED
Cuban Delegation at SPIEF to Present Projects for Russian Investors https://sputniknews.com/world/201705291054092591-spief-cuba-russia-investors/
Russian Trade Representative to
Cuba said that delegation of Cuba at the St. Petersburg International Economic
Forum [SPIEF] will present its
investment possibilities to interest Russian investors.
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RT SHOWS
On
contact The
Fragility of Empire with Wallace Shawn
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WASHINGTON BLOG
Flash points on US
politics: internal contradict.. Hugh Smith good articles reproduced
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See extracts in Economy section above
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NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
Chelsea Manning es una mujer libre:
Su heroÃsmo va más allá de la
denuncia de crÃmenes de Estado Glenn Greenwald
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Washington imperial .Juan Jiménez
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El cerco a Venezuela… Lilliam Oviedo
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La Venezuela de hoy y de mañana François Houtart
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PRESS TV
Global situation
described by Iranian observers.. Titles distorted n incomplete sentences
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Massive
bombing strikes heart of Baghdad
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Keep reading at the source below
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