AUG 30 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
TRUTH ON OUR FAKE ECONOMY
"Since late 2007, the Federal Reserve has embarked on grand-scale collusion with other G-7 central banks to
manufacture a massive amount of money..."
Since late 2007, the Federal
Reserve has embarked on grand-scale collusion with other G-7 central banks to
manufacture a massive amount of money. The scope and degree of this collusion are historically unprecedented and
by admission of the perpetrators, unconventional in approach, and - depending
on the speech - ineffective.
Central bankers have played a
game with no defined goalposts, no clock rundown, no max scores, and no true
end in sight. At the Fed’s instigation,
central bankers built policy on the fly.
Cracks in the Facade
On July 31, 2017,
Stanley Fischer, vice chairman of the Fed, delivered a speech in Rio de
Janeiro, Brazil. There, he addressed the phenomenon of low interest rates
worldwide.
Fischer admitted that
“the
effects of quantitative easing in the United States and abroad” are suppressing
rates. He also said there was “a heightened demand for safe assets affecting
yields on advanced-economy government securities.” (Actually, there's been heighted demand for
junky assets, as well, which has manifested in a bi-polarity of saver vs.
speculator preference.) What Fischer meant was that investors are realizing that low rates
since 2008 haven’t fueled real growth, just asset bubbles.
Remember,
Fischer is the Fed’s No. 2 man. He was also a professor to former Fed Chair Ben
Bernanke and current European Central Bank President Mario Draghi. Both have
considered him to be a major influence in their economic outlook.
The “Big Three” central banks — the Fed, the European Central Bank and the Bank of Japan — have
collectively held rates at a zero percent on average since the global financial
crisis began. For nearly a decade, central
banks have been batting about tens of trillions of dollars to do so.
They have fueled bubbles. They
have amassed assets on their books worth nearly $14 trillion. That’s money not
serving any productive, real-economy purpose – because it happens to be in
lock-down.
In other words, why should we hope that a 10-year global “solution” to
instill long-term financial stability and economic growth, even as it’s been
repeatedly touted as such, should do what central bankers said it will? The
answer again is, we shouldn't.
The Winners and Losers
Since the global financial
crisis, the biggest G7 winners have been the Big Six US banks that profited
from access to cheap money. They benefitted from central bank purchases of their securities that
exaggerated the value of the remaining securities on their books. They used
“printed” or electronically crafted money to stockpile cash and fund buybacks
of their own shares and pay themselves dividends on those shares. By producing
and distributing artificial money, central bankers distorted reality in global
markets. Multi-national banks were co-conspirators in that maneuver.
After the Big Six banks passed
their latest round of stress tests, they began buying even more of their own
shares back. The move elevated their stock prices further. The largest U.S.
bank, JP Morgan Chase, announced its most ambitious program to buy back its own
shares since the 2008 crisis, $19.4 billion worth. Citigroup followed suit with a $15.6 billion buy-bank plan.
More ominous than that was
another clear sign that a decade of money-conjuring collusion helped the same
banks that caused the last crisis. Proof came in the form of a letter to the U.S. Senate banking committee
from Thomas Hoenig, the vice-chairman of the U.S. Federal Deposit Insurance
Corp. (FDIC), the government agency in charge of guaranteeing people’s deposits.
He wrote that in 2017, U.S. banks used 99% of their net earnings
toward purchases of their own stock and paying dividends to shareholders
(including themselves).
They thus legally manipulated
markets in plain sight by pushing their own share prices up with cheap money
availed to them by the central bank that is supposed to regulate them.
As of this year, global debt
levels stood at 325% GDP, or about $217 trillion. The $14 trillion of assets the G-3 central banks held on their books is
equivalent to a staggering 17% of all global GDP. The European Central Bank
(ECB), Bank of Japan (BOJ) and Bank of England are still buying collectively
$200 billion worth of assets per month.
In the wake of that buying,
noncash instruments - crypto currencies and hard assets like gold, unrelated to
the main G-7 monetary system - have become increasingly attractive on the fear
that in another major downturn or crisis, central banks and private banks will
retract cash and liquidity from their customers.
In that likely event,
banks will protect themselves and turn to governments and central banks again.
In the absence of some sort of outside central bank benchmark, like a modern
gold standard or use of currency basket benchmarks like the IMF’s Special
Drawing Rights (SDR), currency wars will continue to be fought.
With rates hovering
between zero and negative in some countries, there would be little to no room to maneuver in the face of another crisis. Thus
- another thing has become increasingly clear: Central bankers have
demonstrated gross negligence regarding the consequences of their monetarily
omnipotent actions.
If rates were to rise higher in
the US (and I don't think we're in for more than another 25 basis points, this
year which is under last year's Fed forecast) so would the cost of servicing
that debt. That would hurt companies domestically and
abroad, induce more defaults and a rush by the banks involved in derivatives
associated with that debt to concoct more toxic assets. The vicious cycle of central bank bailouts would reverberate
again.
Savers and
pensioners are getting close to no interest on their nest eggs. Depositors
are paying banks to house their money through fees that offset
negligible interest. Small businesses have to jump through hoops to get loans
for expansion purposes. Wages are stagnant. Ultimately, big banks had played
the system — and us — again, this time with central banks helping to fund them.
The threat of an even larger collapse looms as stock markets and global debt
have been propelled higher.
As
we approach the ninth anniversary of the collapse of one of my former
employers, Lehman Brothers, and the 10th anniversary of the beginning of
central bank collusion into the financial crisis, there has been – no change –
in global G7 central bank monetary policy.
Jackson Hole offered
a different spin on the same old verbiage, indicating that a bit of nipping
here, means a lot of tucking somewhere else. Janet Yellen took what could be
her last hoorah to craft her legacy as potential Fed Chair nominee and current
Trump National Economic Council Director, Gary Cohn, awaits his possible turn.
And if it’s not him, it’ll remain her, or someone else that will perpetuate
more of the same policies.
While speaking to
the monetary policy glitterati at central bank base-camp, Yellen declared any dialing back of regulatory reform
measures for banks should be “modest.” She said, “The evidence shows that reforms since the crisis have made
the financial system substantially safer.” There
was no mention of the unprecedented decade of easy money bolstering the
financial system - that makes it appear - solvent.
For all the cheap
cash offered up, much at the expense of taxpayers who will bear the burden of
the associated debt this enabled, and the bank fraud it plastered over, it will be ordinary citizens who will pay the
price – yet again. In the era of money fabrication and
monetary policy collusion, a decade of ongoing “emergency” procedure spells an
eventual recipe for disaster.
Big US banks are bigger than
before the crisis. They float atop a life-raft, among other things, of $4.5
trillion Fed asset book, as part of a total $14 trillion G7 central bank asset
book. Yellen’s speech was code for preserving the
status quo and central bank elasticity high. As for Cohn’s sentiment on the
matter? Well, he feels the same. So does Trump. So did Obama.
Take the composite of all
that and what are you left with? Ongoing G7 central bank monetary policy
collusion, zero percent interest rates globally, unlimited QE potential, and
major asset bubbles.
…
Source: http://www.zerohedge.com/news/2017-08-30/nomi-prins-decade-g7-central-bank-collusion-and-counting
----
----
"I think [bitcoin]'s a lot
more legitimate than people give it credit for..."
----
----
"There Will Be Blood": S&P Warns Failure To Raise Debt Ceiling Would Be "More Catastrophic Than Lehman"
"Failure
to raise the debt limit would likely be more catastrophic to the economy than
the 2008 failure of Lehman Brothers and would erase many of the gains of the subsequent recovery." - from S&P titled "With
A Shutdown, There Will Be Blood"
----
----
The machines have achieved their short-term goal (getting the S&P
above its 50-day moving-average), next is getting green for the month. Once again, the US
market open triggered a panic-buying bid under mega-cap US Tech stocks...
----
----
Janet Yellen didn’t run for President, but you wouldn’t know it from
her policy démarche Friday at the Federal Reserve’s annual Jackson Hole
retreat. The Fed Chair
unleashed a defense of post-crisis financial regulation that shows how
political the world’s central bankers have become.
----
----
"Risk
off is when the 21-dma crosses lower versus the 55-dma. That’s
when you know you should be scared. When the opposite occurs, feel free to go back to ignoring the front page news."
----
----
I DOUBT IT.. it seems data is being manipulated: from 1.2% to
3.0%. Let’s wait..
In a surprise for traders - and the Fed - moments ago the BEA reported that after its first
revision of Q2 GDP (a quarter which ended two months ago), the initial estimate
of 2.6% was revised to 3.0%, beating expectations of a 2.7% print, and the
highest annualized growth rate since Q1 2015. The
annualized Q2 GDP was more than double the first quarter number which as a
reminder printed at 1.2%
----
----
Front-month (Sept) RBOB Gasoline futures traded as high as $1.90 this
morning - the highest since July 2015 - as more refiners (including America's largest)
shutdown output due to Harvey's impact.
----
----
POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"Some
political figures truly embody the classic role of the divider;
their purpose seems to be to agitate and provoke, to instigate conflict rather
than mediate peace... One of these individuals is Joe
Biden."
----
----
WHAT? The best honest people united to revive the worse pest of US Politics: Dems’ party?
NO WAY! This stupid Dems tactic won’t work. Sanders-Warren should
create a People Front
DOWN WITH THE OLYGARCHY! Let Mark Zuckerberg divide the circus of corruption and
buying elections.. We don’t need more
clowns in US politics. WE NEED A THIRD OPTION!
----
----
If Trump plan to keep alive the waste of producing weapons
& wars abroad, the NATION SHOULD NOT PAY TAXES. Trump should tax the
beneficiaries of such damp policy!
“In what is speculated to be a speech heavy on
populist rhetoric and light on actual details, Trump will take the stage
in Springfield, Missouri this afternoon to kick off what
will undoubtedly be a long slog by Republicans to pass a tax reform
bill.”
[[ I don’t think Trump will be able to
design a Post-neoliberal agenda for PEACE and development inside &
world-wide. His pro-war agenda will be rejected &
it will divide the NATION even worse. The US Nation won’t accept a tax
Ref that favor WW3 ]]
----
----
"'AntiFa' is a misnomer for this rogue wing of the 'safe space' movement....They
have more in common with the Tiki-torch Nazis than with American ideals..."
----
----
WORLD ISSUES and ME
Global depression is
on…China, RU, Iran search for State socialis+K- compet. D rest in limbo
Trump will Swallow his words: China & RU will respond his
neo-nazi agenda for WW3
"The
U.S. has been talking to North Korea, and paying them extortion money, for 25
years. Talking is not the answer!"
RELATED:
DIPLOMACY is the only SOLUTION. It was said by China-RU..
even by Mattis (Sec of Def)
In the latest public disagreement between President Trump and his top military advisor, Defense Secretary Jim Mattis said
that when it comes to North Korea, diplomatic solutions remain on the table
after he was asked to respond to a tweet by President Trump that said "talking
is not the answer."
----
----
The Jackson Hole monetary conference had no sooner ended than one more European country was added
to the scroll of countries with negative 2 year sovereign yields...
----
----
S&P futures are higher in early Wednesday
trading, alongside Asian stocks and European bourses, both solidly in the green
as the EURUSD drifts below the 1.20 "redline" while the dollar
rebounds off a two and a half year low following the US "measured"
response to North Korea’s missile test, which soothed jittery investors who now
turn their focus to US economic data.
----
----
"Credit risk is ricocheting back as a
legitimate concern after years of
hibernation..."
----
----
DEMOCRACY NOW
US politics crisis:
Trump captured by Deep state to reproduce old cronyism without alter-plan
----
----
----
----
----
GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars:
profiteers US-NATO under screen
Breaking:
Trump Administration Intends to Hyper-militarize State and Local Law
Enforcement By Black
Alliance for Peace,
----
Bashar
al-Assad on the Future of Syria, “Failure of the West” and America’s “Deep
State”. “Several Parallel Wars on Syrian Soil” By Bashar al Assad,
----
How
‘Antifa’ Mirrors the ‘Alt-Right’. “The Violence-as-Beauty Rhetoric Is At the
Core of These Movements” By Chris Hedges,
----
----
----
COUNTER PUNCH
Dan Corjescu Rethinking
Socialism in the Twenty-First Century
[[ IF WW3 happens & US empire is destroyed, the inevitable
aftermath is socialism. Think about the amount of Econ & Pol issues
run by the FED.. that will be kept . All is a matter of changing the
drivers and repair key parts of the old
capitalist system .. We are close to socialism.
We don’t need any more the crook masters of our fake
neoliberal system . ]]
----
----
----
----
William James Martin Carter
and North Korea: the 1994 Treaty Halting North Korea’s Development of Nuclear
Weapons
----
----
SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered ..
----
----
----
----
Japan
Left Vulnerable After US Reneges on Radar Delivery US’ law: submit or dye
----
----
----
----
----
----
----
----
----
RT SHOW
----
----
NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
COL La
cuestión minero-campesina Pequeña minería… ¿artesanal o criminal?
JA G
----
----
Charlottesville
Momento clave en lucha unida contra el fascismo
Charlottesville,
USA Jónatham F. Moriche
----
El contenido primario del golpe en Brasil L C Muñoz, et.al
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
PRESS TV
Global situation
described by Iranian observers.. Titles distorted n incomplete sentences
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
No hay comentarios:
Publicar un comentario