JUN 10 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
Should the current rate of loan growth deceleration persist,
the US will post its first negative loan growth, or
rather loan contraction since the financial crisis, in roughly 4 to 6 week...
just in time for the Fed's rate hike.
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"It's just not possible to print our way to prosperity..."
Based on lots of historical inputs, I have concluded that Printing money out of thin air can engineer lots of things,
including asset price bubbles and the redistribution of wealth from the masses
to the elites. But it cannot print up real prosperity.
As much as I try, I simply cannot jump on the bandwagon that
says that printing up money out of thin air has any long-term utility for an
economy. It's just too clear to me that doing so presents plenty of dangers,
due to what we might call 'economic gravity': What
goes up, must also come down.
Which brings us to this chart:
The 2000 bubble blown by Greenspan was bad, the next one by
Bernanke was horrible, but this one by Yellen may well prove fatal.
As the central banks have printed
with abandon over the past decade, they’ve created the most extreme gap between
real things (GDP) and the claims on those same things (Net Worth) in all of
history.
That plan has worked rather well, at least from the
standpoint of creating vastly larger amounts of new borrowing (debt and
credit). But how much GDP growth has resulted? Not that much.
As the above chart
chillingly shows, the damage down by the bursting of each previous market
bubble blown by the Fed has been worse than the ones that preceded it. This time will not be the
exception. This third bubble, the largest and most ill-considered of them all
-- which we've written extensively one as The Mother Of All Financial Bubbles -- will be enormously destructive.
Actions, Not Words
If you listen to the words in the public statement of the
central banks, you'll hear a lot about ‘improving conditions’ and ‘nearly full
employment’ and ‘strengthening growth prospects’. However, if you then look at
their actions, you'll see they're in complete opposition to these statements.
As always, you should put far more weight on what someone
does rather than on what they say. Actions speak louder
than words, and so here’s all you need to know about the central banks, their influence
on markets, and what they really think about things at the moment:
CENTRAL BANKS HAVE BOUGHT $1.5TN
IN ASSETS YTD. See graph below
That’s right: the central banks began dumping far more
money in the equity and bond markets, in an attempt to save everything from the
inevitable downturn that threatened to result from the prior central
bank printing spree.
Now, here in early June of 2017, the Big 5 central banks
have poured a whopping $1.5 trillion dollars(!) of newly created, thin-air
money into the markets since the beginning of the year.
And because they have, we see
things like this, where all the hot speculative money flows to the very hottest
stocks, in this case the "FANGs"(Facebook, Amazon, Netflix, and
Google):
Growth Is The Answer (And The
Problem)!
However it’s important to remember where we are in the
economic cycle. Nothing grows forever, and we are now very far into this
so-called 'recovery'.
In the US, it ranks
as the third-longest recovery since WWII:
Apparently, not all
‘recoveries’ are built the same. If you look at the
average yearly GDP growth rate over the past decade, it's the same as we
experienced during the Great Depression era of the 1930’s:
Go to webside below to see the graph
The above dismal rate of growth
perfectly explains the growing gap between household net worth and GDP.
If you boost financial assets ever higher using central bank stimulus, but the
economy remains stagnant, you get a gap.
Said another way, as long as you can grow your debts
at a faster pace than your income -- forever -- you'll never have to experience
another economic downturn.
That statement right there,
lays bare the entire ridiculousness of everything the central banks have, and
are currently trying to engineer.
Eventually, reality always catches up. And there are
plenty of signs indicating that reality is now arriving.
And it doesn't look happy.
In Part 2: Get Ready For
The Coming Massive Correction
we explain why there's a better than 50% chance of a global recession occurring
in the next year -- and nearly a 75% chance of one in the US.
We then detail out
how the coming predicted massive market correction may well rip the financial
markets apart in a way that could take generations to repair in any meaningful
sense.
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What makes these debts particularly nasty is that there’s no
collateral backing them.
In short, investors were
simultaneously anticipating inflation and deflation. Naturally, this is a gross
oversimplification. But it does make the point that something peculiar is
going on with these markets.
Clear thinking and simple logic won’t make heads or tails of
things. For example, late Wednesday and then into Thursday the reverse
happened. Gold gave back practically all $13 per ounce it had gained on
Tuesday, while the yield on the 10-Year Treasury note climbed back up to 2.19
percent. What to make of it?
Unsustainable Debt Burdens
While the U.S. government can
seemingly borrow and spend without limits, the U.S. consumer appears to be
nearing the end of its rope. Somehow this always seems to happen at the
worst possible time.
Indeed, they’ll need plenty of
money set aside to cover unpaid debt. You just wait and see…
The Three Headed Debt Monster
That’s Going to Ravage the Economy
The three heads of
the consumer debt monster consist of student
loans, auto loans, and credit card debt. What makes these debts
particularly nasty is that there’s no collateral backing them.
Where’s the collateral?
The collateral for student loans
is non-recoverable.
Similarly, credit card debt has been run-up
purchasing 72-inch flat screen televisions, avocado toast, and combination
dinner platters at Applebee’s. How does a creditor recover the cost of a
meal that was consumed 2 years ago?
Technically, auto loans have some
form of collateral. The
cars can always be repossessed.
But new cars lose value nearly as fast as fresh tomatoes turn to rot.
What’s more, easy lending over the last 8 years has
compelled more and more car buyers to roll their negative
equity from prior loan balances into new loans. On top of
that, some amiable lenders only verified income on 8
percent of their auto loans. Why bother with such
inconveniences when the bad loans are being securitized in packaged debt
offerings and sold to pension funds?
Of course, the chief architects,
the policy makers – particularly Bernanke and Yellen – provided the
blueprint. Remember, the almighty American consumer was to
borrow all the cheap credit being sprinkled about and spend the economy back to
optimal growth. Well, the consumers did their part. Yet the lame
economic theories fell flat.
Who would you like to feed to
the three headed monster for breakfast?
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Source : http://www.zerohedge.com/news/2017-06-10/meet-three-headed-debt-monster-thats-going-ravage-economy
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After the Fed failed to spark any notable increase in aggregate demand despite
keeping interest rates at zero for seven years, a group of economists is pressuring the central bank to rethink one of its
most closely held-policy parameters...
Some Fed officials have already expressed tentative
support for raising the inflation target, or at least changing the system by which the central bank’s parameters
are set.
Kocherlakota said. “If, for example, people expect inflation to
be 3 percent, then a zero nominal rate translates into a negative 3 percent
real rate -- a full percentage point lower than the Fed could achieve if
expected inflation were 2 percent.”
But while the Bureau
of Labor Statistic’s seasonally adjusted CPI slumped
to a 19-month low in April, other measures, like
a gauge of consumer prices from PriceStat, have consistently recorded
higher levels of inflation.
And regardless of
what the rate of price growth is right now, the hard truth of the situation for
many American workers is that real average wage growth is mired in the red
while average household
debt levels have climbed to record highs
The endgame, of
course, is to pay off the old 'expensive' dollars with new 'cheap' dollars...
quietly taxing the citizenry to death...
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
The FBI employment agreement states that violating any of the included terms
may result in termination, civil
liability, revocation of security clearances, or even criminal sanctions.
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Attorney General Jeff Sessions has agreed to appear before the Senate Intelligence Committee
on Tuesday.
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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
One of
the last acts of Obama's presidency was to "impose
costs" on Russia over election-hacking allegations (so far unproven)
by expelling 35 Russian diplomats and
seizing two compounds in NY and MD. Putin
initially warned of "proportional response" but then surprised
many by "refusing
to sink to 'kitchen' diplomacy." However, six months later, Reuters
reports Russia may seize U.S.
diplomatic property in Moscow.
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GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars: profiteers
US-NATO under screen
Tehran
Was Always America’s Final Destination, the Target of the ISIS Terror Attack By Tony Cartalucci,
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SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered .. pro RU view
How Trump's New Strategy 'Risks Changing Balance of Power' in Persian Gulf https://sputniknews.com/middleeast/201706101054516538-trumps-persian-gulf-strategy/
On June
7, Unidentified attackers opened fire inside the Iranian Parliament
in Tehran and took several people hostage. Sputnik Italia spoke with Pejman
Abdolmohammadi, an expert on Iran and a researcher at the London
School of Economics and Political Science,
This attack occurred
during a very difficult moment, when the balance of power in the
Middle East is being put to the test. I believe that the terror attacks in Iran
will have serious consequences for the balance of power in the
Persian Gulf, as there is a risk
of escalation of tensions between Iran and Saudi Arabia,” Abdolmohammadi
said.
“It seems to me that the
new strategy of the Trump administration will hit
the countries of the Persian Gulf hard and change the balance
of power in the Middle East,” Abdolmohammadi said.
“These terrorist attacks brought the crisis
of Persian nationalism to the forefront; therefore the reaction
on part of the Republic is expected. It is no longer talks
about issues between Shiites and Sunnis; the conflict has moved
to another level, it is between Arabs and Persians now,” Abdolmohammadi said
RELATED 1
Al-Tanf Standoff: US Coalition Risks 'Open Confrontation With Syria, Iran' https://sputniknews.com/middleeast/201706101054512740-al-tanf-coalition-syria-strikes/
On June
8, a United States-led coalition attacked a motorcade of pro-Damascus allied
forces near the town of al-Tanf in southern Syria, destroying a tank and
several artillery systems. This was the third time coalition strikes have
occurred in the area.
On May 18, the US-led coalition struck pro-Assad
fighters near al-Tanf in the area of an established de-confliction
zone with Russia. The strikes occurred near al-Tanf, where US' and
British special operations forces have been training Syrian rebel fighters
near the border with Iraq and Jordan. Thesecond similar incident
took placenear al-Tanf on June 6.
The US State Department said that the strike
was carried out as self-defense and was not indicative of an
escalation.
"Nevertheless,
the Pentagon’s strikes on Syrian forces have recently been regular,
from the Shairat air base in April to al-Tanf in May and
June. It does not seem to be self-defense," Russian political
commentator Alexander Khrolenko wrote in an op-ed for Sputnik.
RELATED 2
Syrian Army Announces Major Breakthrough Near al-Tanf After Coalition Strikes https://sputniknews.com/middleeast/201706101054510269-syrian-army-al-tanf-iraq-border/
The
Syrian government forces have reached the border with Iraq after fighting
against Daesh terrorists near al-Tanf in the country's south after Damascus'
allies had been bombed by the US-led coalition for the third time in the area,
the Syrian Army's command announced.
"Units of our
[Syrian] armed forces with the support of allied forces… were able
to reach the border with brotherly Iraq northeast of al-Tanf and
establish control over a large number of strategic positions
in the Syrian steppe," SANA news agency
reported citing the Syrian army.
According to the
command, the success in this region "tightens
the stranglehold over what remains of Daesh formations" and cuts
their supply routes in several directions.
READ
ALSO Pentagon
Admits it Has No Right to Prevent Damascus Allies From Being Stationed in
al-Tanf
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COMEY TESTIMONY: What Went Wrong for Trump's Political Opponents? https://sputniknews.com/politics/201706101054511010-trump-comey-testimony/
Contrary to the expectations of Donald Trump's
political rivals, former FBI Director James Comey failed to indict the US
president on Thursday, Wall Street analyst Charles Ortel told Sputnik.
Furthermore, Comey's testimony revealed inconvenient truths about the former
FBI director and the Democrats themselves.
Sputnik
asked Wall Street analyst and investigative journalist Charles Ortel
to comment on Comey's testimony delivered before the Senate
Intelligence Committee on Thursday.
"I found his testimony
ineffective in making a case against President Trump
for obstruction of justice; instead, he demonstrated that he is a
weak man who previously served as head of America's foremost investigative
service, which is a scary thought given the array of threats we and he
faced during his tenure as FBI chief from September 2013
through May 2017," Ortel responded.
Comey also admitted that it
was he who leaked his memo of private conversations with President
Trump to the US press via his "friend."
BOTH COMEY and
TRUMP ARE LIARS:
See
this video: COMEY: TRUMP ADMIN LIED
ABOUT ME AND FBI: https://twitter.com/wikileaks/status/872895723506978816
RELATED
3
It’s pretty much the left’s very favorite thing to
say that President Trump is doing something wrong. The worse they can make him
look, the better they like it, with no regard for how their petty antics are
making the nation look to outsiders...
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WASHINGTON BLOG
Flash points on US
politics: internal contradict.. Hugh Smith good articles reproduced
False Flags: And
horrific staged event –blamed on political enemy- and used as pretext to start
war or inact draconian Laws in the name of National Security
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NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
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Que sobre el historial de conductas ilegítimas del FBI Goodman y
Moynihan
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Frente
a crisis e incumplimientos del gobierno ¡Paro Cívico Nacional!
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La larga, cruel y constante ocupación sionista de Palestina Nicola y Silvia
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Keiser
Report 1082 'Juego de Tronos' en Oriente Medio:
Washington castiga a Catar y no toca a Arabia Saudita
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Elecciones del UK: El capitalismo británico en desorden Michael Roberts
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PRESS TV
Global situation
described by Iranian observers.. Titles distorted n incomplete sentences
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