SEP 23 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
"Adventures in depravity
are nearly always confronted with the unpleasant
reality that stopping
the degeneracy is much more difficult than starting it. This realization, and the unsettling feeling
that comes with it, usually surfaces just after passing the point of no return."
In late November 2008, Federal Reserve Chairman Ben
Bernanke put in place a fait accompli. But he didn’t recognize it
at the time. For he was blinded by his myopic
prejudices.
Bernanke, a self-fancied Great Depression history buff with
the highest academic credentials, gazed back 80 years, observed several credit
market parallels, and then made a preconceived diagnosis:
Now here is
something all those “Great Depression experts” always neglect to mention: the
Fed’s holdings of government securities expanded my more than 400% between late
1929 and early 1933. Friedman’s often repeated assertion that the Fed “didn’t
pump enough” in the early 1930s – which is held up as the gospel truth by
nearly everyone – is simply untrue. It is true that the money supply collapsed
anyway – but not because the Fed didn’t try to pump it up. … We can tentatively conclude that the economy’s pool
of real funding was under great pressure,
which was exacerbated as a result of the trade war triggered by the
protectionist Smoot-Hawley tariff enacted in June 1930. The collapse in international trade and
investment meant that the pool of savings of the rest of the globe was no
longer accessible. [PT]
Bernanke’s dirty deed commenced
with the purchase of $600 billion in mortgage-backed securities, using digital
monetary credits conjured up from thin air. By March 2009, he’d run up the Fed’s
balance sheet from $900 billion to $1.75 trillion. Then, over the next
five years, he ballooned it out to $4.5 trillion.
All the while, Bernanke flattered his ego with platitudes
that he was preventing Great Depression II. Did it ever occur to him he was merely postponing a
much-needed financial liquidation and rebalancing? Did he
comprehend that his
actions were distorting the economy further and setting it up for an even
greater bust?
Normalization Principles and Plans
Perhaps Bernanke understood
exactly what he was doing. As many readers have insisted over
the years, the Fed works for the big banks and big money interests. Not
Main Street. Regardless, the Fed recognizes that the optics of its $4.5
trillion balance sheet have become a bit skewed. The Great Recession officially ended over eight years
ago. Why is the Fed’s balance sheet still extremely bloated?
On Wednesday, Fed
Chair Janet Yellen attempted to clarify what the Fed is going to do about it.
Following the two day Federal Open Market Committee meeting, the Fed issued its
customary statement.
Therein, it mentioned that balance sheet normalization would be initiated in October.
The referenced implementation
note offered details on how the Fed will go about contracting its
balance sheet:
…
Continue reading this interesting art at: http://www.zerohedge.com/news/2017-09-23/janet-yellens-78-month-plan-national-monetary-policy-united-states
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"The primary reason for persistence of bearish pressures on
gamma is excessive liquidity on the exchanges and transparency of the Fed.... In the environment of abundant information,
everything becomes short term."
BofA Barnaby Martin
wrote something we have said for years: "QE has
been the most effective way for CBs to 'sell vol'", arguing
that accommodative monetary policies across the globe amid QE have
"clearly supported a strong rebound in fixed income markets." This
should not be a surprise: as
Martin calculated, there is now some $51
trillion at risk should rates vol spike, not to mention countless housing bubbles that have been created since
the financial crisis where the bulk of middle class wealth has been parked,
which in turn have trapped central banks, preventing them from undoing nearly a
decade of unprecedented monetary largesse that has pumped over $15 trillion in
central bank liquidity.
The BofA strategist showed that every time the Fed embarked
on the different phases of its QE program, credit implied vols declined
significantly, while during periods of no monetary easing or when the market
started pricing the possibility of easing policy removal (tapering tantrum and
the subsequent tapering phase) implied vols advanced.
If the Fed won't step back voluntarily, what can force it to
do so? According to Kocic, just two things:
We see inflation and deficit
spending (releveraging) – anything that would cause a substantial bear
steepening of the curve – as the only factors that could force Fed’s hand.
Either one could create conditions
where unwind of the Fed’s “credibility” short becomes inevitable. That would
represent a withdrawal of convexity from the market and, as such, would be
bullish for vol. Without
either deficit spending or inflation, the market will be reluctant to take a
longer view on the Fed. The most we can expect
is repricing of the Fed path, rather than the long end. In the absence
of indication that the range of long rates is likely to be violated, we do not expect to see anything but short rate adjustments. We
see this as another side of Fed’s transparency.
And while there is much confusion about what the fate of
inflation is, ironically within the Fed
itself where as we reported yesterday in the context of chronically
low core CPI, the NY
Fed just "found" that inflation may in fact be the hottest since 2007,
one thing that is certain is that deficit spending
- with or without Trump - is coming, and it will make your head spin.
The only question is when will the market price it in. Then again, if the market is truly broken and can no longer discount the
future, the unpleasant answer may be "NEVER."
….
See all charts & comments at: http://www.zerohedge.com/news/2017-09-23/how-feds-transparency-killed-long-term-investing-deutsche-bank-explains
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"Juggalos", "Beliebers",
"Swifties", and "AntiFa" beware...
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WORLD ISSUES and M-East
Global depression is
on…China, RU, Iran search for State socialis+K- compet. D rest in limbo
It appears credit ratings agencies simply get no respect...
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Spain’s
plan to send boatloads of military police to Catalonia to prevent its
independence referendum has backfired
with dockers in two ports staging a boycott and a third refusing access...
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In what may be the latest major escalation involving North Korea - and
potentially the nation's 7th nuclear test - China's
earthquake administration said it detected a magnitude 3.5 earthquake in North
Korea, which it suspects "was caused by an explosion", raising
fears that the rogue state has tested another nuclear bomb.
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"None other
than Trump himself is on a suicide
mission... committed an irreversible mistake... making the visit of our rockets to the entire U.S. mainland all the more
inevitable."
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Russia's diplomatic and strategic victory in the Middle East was made
clear this week as news broke of "secret" and unprecedented US-Russia
face to face talks on Syria. The Russians reportedly
issued a stern warning to the US military, saying that it will respond in force
sif the Syrian Army or Russian assets come under fire by US proxies.
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Is this a 2nd China’ tit for tat? They lost 1Bill in a recent cut of tech-trade
by the US
Confirming reports that reception for Apple's iPhone 8 may be
"underwhelming" to put it lightly, is the following report from
Hangzhou, China which reveals that all of 2 people were
waiting in line for the latest gizmo from Tim Cook.
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GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars:
profiteers US-NATO under screen
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Secret
Document Reveals Former CIA Director’s Plan to Make Reading WikiLeaks a Crime By Jay Syrmopoulos
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INFORMATION CLEARING HOUSE
Deep on the US
political crisis, their internal conflicts n chances of WW3
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Veterans For Peace
Sends Joint Letter Calling for Peace Negotiations Now By Veterans For Peace
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Syria's Deputy PM
Speech At UN General Assembly Video
and Transcript
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Giving the Deep State
More Leeway to Kill With Drones By
Conor Friedersdorf
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The Erosion of
Empathy By Simon Baron Cohen
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Trump's War of Words
With Black Athletes By Adam Serwer
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SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered .. pro RU view
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RT SHOWS
The World According to Jesse The
Poisoned Land
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NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
La
militarización de la política en Estados Unidos James Petras
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Por qué la salida de Netanyahu no
significará nada Stanley L Cohen
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PRESS TV
Global situation
described by Iranian observers.. Titles distorted n incomplete sentences
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