30 17 SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social
+ Capit-compet in Econ
ZERO HEDGE ECONOMICS
Neoliberal globalization is over. Financiers know it, they
documented with graphics
"Concerns about financial imbalances might also rise. Asset
valuations in some areas have risen to high levelsby historical standards. And there are now
some signs of speculative behavior in financial markets... Fed officials are therefore likely to view further easing of financial conditions as increasingly
undesirable..."
See images
in this source: https://www.zerohedge.com/news/2017-12-30/goldman-answers-10-most-important-questions-2018
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Speculators’
voracity don’t have limits.. they want more
If 2018 rings in a bear market, it
could look something like the Kennedy Slide of 1962.
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"...the
most dangerous place on the planet financially is now the Wall Street casino.
In the months ahead, it will become ground zero of the greatest monetary/fiscal collision in recorded history."
An already geriatric business cycle is
going to rear-up on its hind legs and take off into a new phase of growth
in the face of an epochal pivot of monetary policy to QT and a public
debt burden relative to GDP that is approaching a
Greek-style end game
Stated differently, fiscal policy has descended
into the hands of political mad-men at the very time that monetary policy
is inexorably slouching toward normalization. Under those circumstances
there is simply no way of avoiding the "yield shock" postulated above,
and the cascading "reset" of
financial asset prices that it will trigger across the length and breast of the financial system.
SEE IMAGES AT: https://www.zerohedge.com/news/2017-12-29/greatest-bubble-ever-why-you-better-believe-it-part-2
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"Credit cannot
expand faster than fundamentals forever..."
The Core Dynamic of the “Recovery” and Asset
Bubbles: Credit
Credit
is the foundation of the current financial system, for credit enables
consumers to bring consumption forward, that is, buy more stuff today
than they could buy with the cash they have on hand, in exchange for promising
to pay principal and interest with their future income.
Credit
also enables speculators to buy more assets than they otherwise could were they
limited to cash on hand.
Buying goods, services and
assets with credit appears to be a good thing:
consumers get to enjoy more stuff without having to scrimp and save up income,
and investors/speculators can reap more income from owning more assets.
But all goods/services and assets are not equal, and
all credit is not equal.
When I say that all credit is
not equal, I’m referring to the
creditworthiness of the borrower.
Lenders
make money by issuing credit to borrowers. The incentives are clear: the
more credit they issue, the higher their income.
Given this incentive, it’s easy
to convince oneself that a marginal borrower is creditworthy, and that a
speculative investment is a safe bet.
This is especially true if the
government guarantees the loan, for example, a
home mortgage. With the government guarantee, there’s no reason not to take a
chance on a marginal (risky) borrower buying a marginal (risky) house.
If we take some home mortgages
and bundle them into a mortgage-backed security,
we can sell the future income stream (i.e. the payments made by the borrowers
in the future) as securities that can be sold worldwide to investors. I
can make risky loans, skim the fees and pass the risk onto global investors. All this debt is now considered an asset to investors.
The Current (Flawed) Logic We're Pursuing
In response to the Global
Financial Crisis (GFC) of 2008, central banks lowered
interest rates to near-zero to boost private-sector lending, and increased
liquidity to enable private-sector lenders and borrowers to refinance existing
debt and generate new credit.
They also bought assets: government bonds,
corporate bonds and in some cases, stocks via ETFs (exchange traded funds).
While these policies accomplished the intended goals, boosting both new
credit and asset valuations, they also generated less
salutary consequences.
By lowering interest rates and bond yields to near-zero, central banks deprived
institutional owners who rely on stable, high-yielding safe investment
income—insurers, pension funds, individual retirement accounts, and so on—of
exactly what they need: safe, stable, high-yield
returns.
In this “do whatever it takes”
environment, the only way to earn a high return is to buy risk assets—assets such as stocks and junk bonds that are
intrinsically riskier than Treasury bonds and other low-risk investments.
The Stark Conundrum We Face
Central banks are now trapped.
If they raise rates to provide low-risk, high-yield returns to institutional
owners, they will
stifle the “recovery” and the asset bubbles that are dependent on unlimited
liquidity and super-low interest rates.
But if
they keep yields low, the only way
institutional investors can earn the gains they need to survive is to pile into
risk assets and hope the current bubbles will loft higher.
This traps the central banks in
a strategy of pushing risk assets—already at
nose-bleed valuations—ever higher, as any decline would crush the value of the
collateral underpinning the titanic mountain of debt the system has created in
the past eight years and hand institutional owners
losses rather than gains.
This conundrum has pushed the central banks into yet another policy
extreme: to mask the rising systemic risk created by
asset bubbles, central banks have taken to suppressing measures of volatility—measures
than in previous eras would reflect the rising risks of
extreme asset bubbles deflating.
…
In Part 2: So What Comes Next & How Can We Prepare For It?,
we’ll ask: how does this resolve? Can central banks
raise rates without popping the bubbles the system needs to remain solvent? Or
can they keep yields near zero and keep pushing asset valuations higher for
years or decades to come?
Or is
this all much more likely to end in a massive financial/currency crisis? One characterized by default and liquidation of
America's high-fixed-cost, heavily indebted households and enterprises that
have only stayed afloat by borrowing more money?
…
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POLITICS
Seudo democ y sist
duopolico in US is obsolete; it’s
full of frauds & corruption. Urge cambiarlo
WORLD ISSUES and M-East
Global depression is on…China, RU, Iran search for State
socialis+K- compet. D rest in limbo
You know who is behind when they talk on “jihadists”. It is expected tit for tat inside US
A Sunni jihadists group with links to
Syria's Nusra Front has destroyed an oil pipeline in Iran while targeting
"the economy of the criminal Iranian regime."
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars: its profiteers US-NATO
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INFORMATION CLEARING HOUSE
Deep on the US political crisis, their internal conflicts n
chances of WW3
US to Launch Another War? By Alex Gorka
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Iran - Regime Change Agents Hijack Economic
Protests By Moon Of Alabama
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Putin Foresaw Death of US Global Power By Finian Cunningham
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COUNTER PUNCH
Virginia
Tilley The
New Hysteria on Kremlin Trolls
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Louis
Yako 2018
Won’t be New or Happy, Either!
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David
Krieger Ten
Nuclear Wishes for the New Year
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Carla
Santos Skandier When
Companies Deny Climate Science, Their Workers Pay
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SPUTNIK and RT SHOWS
Geopolitics & the nasty business of US-NATO-Global-wars
uncovered ..
How many innocent people die-
migrate?.. & How many US soldiers disappear?
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Happy
New Year: Mainland China Bans Sale of Elephant Ivory Esto
si se prohibe?.. See my note bel
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RELATED 2: 2018 - The Year in Russophobia https://sputniknews.com/columnists/201712301060437717-2018-russophobia-russian-meddling/
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RT SHOWS
Keiser
Report Episode
1169 Max and Stacy discuss their
forecasts and predictions for 2018. Will bitcoin continue to climb? Or will it
fall? Will gold ever rise again?
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to
break with Empire:
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-Medidas peligrosas Guillermo
Almeyra
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Uno
condenado por crímenes, el otro
sospechoso de coimas
La coima tampoco.
La lucha es por re-instalar la Constit de 1979
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Corea del N promete "aumentar capacidad de defensa" mas amen: mas def
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LA MEJOR
FORMA DE ENFRENTAR EL 2018 ES FINGIR UNA SONRISA:
¿Qué depara el 2018 para las
criptodivisas? “Nadie la quiere”: todos la aman
tendrán
que crear nuevo sistema financiero
basado en el bitcóin, ya que ...
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Si y ya están en venta.. Significa que “los
billonarios huevones” existen. QT?:
No sería más provechoso si los “pendejos” les roban
esos Billones a balazos?
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Al
parecer los Chinos no solo tienen el nido, también sus ojos en “los Billos” :
Apúrense
“pendejos”: consigan la lista de los pillos.. Si-no se quedan al hambre
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Huevo
de Dino? Mochicas y Chimus [Perú] usaron semen para la piel de viejas
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“La
ciencia no solo sirve para crear WMD y billonarios de la noche a la mañana”
WS
creo la mejor Narco-cirug. Comprar stock y venderlo a la misma Emp=+ USD
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Putin envía mensaje de Año Nuevo a
Trump :
Compra los huevos de Dino-Chino!
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ESTO SI VA EN SERIO:
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PRESS
TV
Global
situation described by Iranian observers..
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US
choppers evacuate Daesh commanders from Syria’s Dayr al-Zawr: Report http://www.presstv.com/Detail/2017/12/30/547216/Syria-US-Daesh-airlift-Dayr-alZawr-Hasakah-Nusra-Front-Ghouta
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