DEC 13 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
Global
context:
1
With the Fed now raising rates on expectations of higher inflation and promises from the ECB to cut their QE
targets in half for 2018 to a measly €30 billion a month "from January
2018 until the end of September 2018," you might expect global yields to be slowly
normalizing as well...but you would be wrong.
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2
China, somewhat unexpectedly, hikes rates this evening, minutes before dumping economic data that showed no
major surprises other than a modest disappointment in
retail sales growth.
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3-
"The economic law that honest exchange demands only things of real value
as currency cannot be repealed. The chaos that one day will ensue
from our 35-year experiment with worldwide fiat money will require a return to
money of real value. We will know that day is approaching when oil-producing countries demand
gold, or its equivalent, for their oil rather than dollars..."
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4-
"It
is not unreasonable to envision a world in which the overwhelming share of commodity contracts, especially for oil, are no
longer denominated just in dollars,"
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Yeah
sure:
Check out these evidences:
Financials had an ugly day...
High Tax stocks underperformed Low Tax stocks again
(though did ramp after headlines suggested a deal was close)...
Overall yields fell notably on the day - with 10Y
stumbling oince again at the 2016 close...
After 7 straight days higher - the longest streak
since January 2016 –
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We live
in inflationary times... no matter what the
'official' data says...
Asset Prices Are Prices
One indicator of an inflationary
monetary development is the link between the US money stock M2 and nominal GDP.
This ratio can be referred to as a measure of "excess
liquidity." Since the outbreak of the crisis 2008/2009, excess
liquidity has been growing strongly — as GDP
growth lagged behind the increase in the quantity of money. Why? Well, a great deal of the monetary expansion
has been driving asset prices upwards — most
notably in the stock and housing market.
See big
image of the above “Monetary Expansion inflates asset prices” at: https://mises.org/sites/default/files/styles/full_width/public/poll1_0.png?itok=0Tn5d-gs
How To Keep the Boom Going: More Inflation
To keep the inflationary boom going - and prevent the “bust,” - the Fed
has to make sure that credit and money supply keep increasing and that, by no
means less important, borrowing and capital costs remain at fairly low levels. That said, the ongoing inflationary policy must -
and for political reasons most likely will - go on. Higher
interest rates and a slowdown of credit and money creation would take away
the punch bowl - and the party would come to a shrieking halt. The economic
boom would turn into bust.
A central bank that wants
to keep the boom going and prevent the bust is left with just one option: it
has to create a higher dose of surprise inflation. The
reader may already know what such an “inflation game” is leading to: a super-inflation road or even a
hyper-inflation road will ultimately destroy the
purchasing power of the currency.
Why There Is No Perceived Crisis
So far, financial markets have remained fairly relaxed. Inflation is not seen as a major problem as proven
by inflation expectations. How come? There might
be two reasons for this. First, the majority of people derive their inflation
expectations from experienced CPI inflation (we can speak of “adaptive
inflation expectations”). As the latter has been relatively low for many years,
people do not expect inflation to edge up in the years to come.
SEE
IMAGE “Inflation Expectations are
fairly subdued” at:
https://mises.org/sites/default/files/styles/full_width/public/poll2_0.png?itok=RXt4pn64
Second, many people still do not seem to
realize that “asset price inflation” ruins the purchasing power of money in the
same way as CPI inflation does: If you want to buy stocks, houses or land with
your money, you will get less for your money if prices for these goods go up. However, as long as asset price inflation is not
understood as a form of "true inflation," inflation expectations
are tamed, and central banks can continue their inflationary scheme.
Against this backdrop we can
draw two conclusions. First, inflation is alive and
kicking, it is currently raging in asset price increases. Second, an inflationary boom runs the risk of turning into a
bust at some point — a scenario which would hit the economy, the financial
system, and asset prices hard. Unfortunately, one cannot forecast (with
any scientific precision) when the boom will turn into bust; it really
depends on certain conditions.
That said, the current boom may go on for
quite a while — with the economies keeping expanding and asset prices
rushing from one record level to the next. However, we
do know from sound economics that the current inflationary boom — which
is presumably welcomed by many as it provides more jobs and additional incomes
— is actually sowing the seeds of a bust.
That
said, investors are well-advised to live up to a rather uncomfortable
truth: We've had inflation, and there will be more of
it. Money will continue to lose its
purchasing power.
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There is a huge
disparity in employment rates among over 65s across different
countries...
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There is one simple rule to follow when understanding the
tragic history of economies: Never put blind faith in a system built on an
establishment-created foundation.
To maintain a real economy in which people are self
reliant and safe from fiscal shock, you need three things:
1-tangible localized and decentralized production,
2- independent and decentralized trade networks that
are not structured around an establishment controlled system (like the internet
is controlled), and
3- the will to apply force to protect and preserve that production and
those networks.
If you cannot manufacture a
useful thing, repair a useful thing or teach a
useful skill, then you are essentially useless in a
real economy. If you do not have localized trade, you have nothing. If you do not have the mindset
and the community of independent people required to protect your local
production, then you will not be able to keep the
economy you have built.
This is the cold hard truth
that crypto proponents do not want to discuss,
and will dismiss outright as "archaic" or "not obtainable."
The virtual economy is so much easier, so much more enticing, so much more
comfortable. Why risk anything or everything in a real
world effort to build a concrete trade network in your own neighborhood or
town? Why risk everything by promoting true decentralization through
localized commodity-backed money and barter systems? Why risk everything by
defending those systems when the establishment seeks to crush them? Why do this,
when you can pretend you are a virtual hero wielding virtual weapons in a no
risk rebellion in a world of electronic ones and zeros?
In truth, the virtual
economy is not legitimate decentralization, it is a weapon of mass distraction
engineered to kill legitimate decentralization.
…
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"I can protect our country at many levels..."
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Just in
time for Christmas, the Deep State wants to give
America the gift that keeps on giving: never-ending mass surveillance.
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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
"The neoliberal world order has
been in crisis for some years now, with no signs of recovery. Trump's victory is an expression of a breach of trust between the
American people and the national elites."
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DEMOCRACY
NOW
US politics crisis: Trump
captured by Deep state to reproduce old cronyism without alter-plan
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INFORMATION
CLEARING HOUSE
Deep on the US political
crisis, their internal conflicts n chances of WW3
North Korea Has Already Deterred USA By Ryan Cooper
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Washington’s Secret Wars By Bill Van Auken
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U.S. Surrenders On Syria - Resistance Turns
Eyes On Israel By Moon Of Alabama
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Yes, The Neocons Are Back By Philip Giraldi
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Advocating for Israel Pays Well: Salaries of
Nonprofit Heads By If Americans Knew
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The U.S. is Not a Democracy, It Never Was By Gabriel Rockhill
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SPUTNIK
and RT SHOWS
The nasty business of US-NATO-Global-wars
uncovered ..
REALATED:
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Later
they implied “our missiles will assure
Syria victory and destroy any opposition”
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We are
champions in selling weapons and fostering wars all over the world
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One
sells weapons & the other oil.. “to
foster clean energy”.. What a time we live!
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Missiles
for 'Directed Energy'? Better:
re-processing DU to avoid our soldiers be infested?
B-1B Bomber will be more
effective against our enemies RU-Chi. Can we call it “friendly develt”?
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A Dios rogando y con el mazo dando: Deseo
a Chi-RU muerte rápida via our ‘B-1B Bomber’
“Late November, the US told the WTO it refused to recognize China as a
market economy”.
Current ‘market economy’ is based on Frauds,
speculation and plundering: Chi-RU don’t fit in it.
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RT SHOWS:
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Keiser
Report
Episode
1162 Max
and Stacy discuss the three bitcoin pizza masterpiece and poverty in America.
Later, Max interviews Steve Marshall of Cuba Ventures
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NOTICIAS
IN SPANISH
Latino America fight to break with
collapsing Empire: leftist view on
alternatives
PRESS
TV
Global situation described by
Iranian observers.. Titles distorted n incomplete sentences
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