FEB 1518 SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social
+ Capit-compet in Econ
Press the blue
- Global Stocks Power Ahead, Unfazed by U.S. Inflation (WSJ)
- Florida community seeks answers after 17 killed (Reuters)
- Number of crypto hedge funds soars amid bitcoin volatility (Reuters)
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ZERO HEDGE ECONOMICS
Neoliberal globalization is over. Financiers know it, they
documented with graphics
US Economic
situation today: Should we celebrate records of
volatility & its effects on USD?
Seriously... Stocks are up five days in a row... Nasdaq up 5.6% this week
alone...
See Chart:
For
context, this is the Nasdaq's best 5-day rally since 2011!!!!
See Chart:
Despite stock
strength, VIX ended the day modestly higher and we do note a significant
divergence.. [[ Just
the normal volatility? ]]
See Chart:
Which
pushed the yield curve even flatter...
See Chart:
The Dollar
Index bounced very briefly on BoJ headlines then tumbled back to its lowest
close since Dec 2014 - down 5 days in a row...
See Chart:
Once
Europe closed today, the dollar (lower) and gold and stocks (higher) were
locked at the hip...
See chart:
With
Bitcoin seemingly tied at the hip to Nasdaq and VIX...
See Chart:
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Apply this view to
geopolitics & neoliberal market dynamic.. you will
see why this Sys is over.
Besides, If the US plan to cut internet to avoid inconvenient truth.. it will be immediately replaced
Technological progress is not the
only thing rising at an exponential rate. The speed at which
newly commercialized technologies get adopted by consumers is also
getting faster, too.
The
telephone was invented in 1876, but it wasn’t until a century later that
landlines reached a saturation point in households.
For this to happen, massive amounts of infrastructure had to
be built and network effects also needed to
accumulate to make the product worthwhile for consumers. Further, the telephone
suffered from the “last-mile problem”, in which the logistics get tougher and more expensive as
end-users get hooked up to a network.
As a result, it wasn’t until the
1960s that 80% of U.S. households had landlines in them.
NEW ADOPTION
SPEEDS
Now,
here’s a chart with many older technologies removed – keep in mind that the x
axis has changed to a much shorter timespan (~65 years):
See Chart:
Why do newer technologies get
adopted so quickly? It seems partly because modern tech needs less
infrastructure in contrast with the water pipes, cable lines, electricity
grids, and telephone wires that had to be installed throughout the 20th
century.
However,
it also says something else about today’s consumers – which is that they are
connected, fast-acting, and not afraid to adopt the new technologies that can
quickly impact their lives for the better.
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SELF-DESTRUCTION USUALLY HAPPENS IN STAGES...
So far, the
financial markets are responding pretty much according to script:
(CNBC) – U.S. government debt yields hit
session highs Wednesday after the government reported inflation in January rose
more than expected.
(Kitco) – Gold prices are posting sharp gains
of around $20 an ounce in late-morning action Wednesday.
DOES THE END OF THIS PROCESS HAVE A NAME?
YES, a really scary one: “crack-up
boom.”
From Investopedia:
WHAT IS A
'CRACK-UP BOOM'
A crack-up boom is
the crash of the credit and monetary system due to continual credit expansion
and price increases that cannot be sustained long-term. Often, banks will attempt to prevent a
crack-up boom by halting credit expansion, which ends up backfiring and
yielding the same results that the boom would have caused. Both scenarios
result in an economic depression when the bubble finally bursts and the economic system crashes.
BREAKING
DOWN 'Crack-Up Boom'
When the economy is
down, one way to give it a temporary revival is to feed extra money into the
system - AKA economic stimulus. Providing people with credit makes them
feel richer and more inclined to spend their money, which in turn feeds more
money into the system. When people spend money, they tend to want to continue
this trend and continue to buy, despite the fact that their extra cash isn't
coming from actual savings. The problem comes when the government continuously
pours more and more money into the system and the actual economy beneath the
false expansion cannot keep up.
Feeding money into
the economy is a quick way to give it a short-term boost, but this practice
isn't sustainable over the long term. If credit expansion continues without
limit, prices continue to rise until they reach the point at which the entire
system collapses because it can no longer sustain itself. People can no longer
afford the high prices, so credit must expand even more to accommodate these
prices, which pushes them even higher.
What Type
of Economy Can Be Hit by a Crack-Up Boom?
A crack-up boom is
something that can only happen in an economy that relies on paper money rather
than the gold standard, or electronic systems of monetary
transaction rather than physical. In a gold standard economy, interest rates
cap out at around 3 to 6%, since credit is based on actual saved money, instead
of being adjustable depending on the circumstances. However, in a system that
revolves around paper money, more cash can be printed at any time and
introduced into the system. This affects the value of each dollar and affects
the prices of market commodities. When the government introduces into the
economy money that doesn't really exist (in the form of false credit) it's only
a matter of time before the economy is damaged, even if the original intention
was to boost it.
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Source: https://www.zerohedge.com/news/2018-02-15/world-embraces-debt-exactly-wrong-time
…
Source: https://www.zerohedge.com/news/2018-02-15/world-embraces-debt-exactly-wrong-time
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Following yesterday's
hotter than expected Consumer price inflation (and rise in Core CPI), Producer
prices confirmed the hotter-than-expected trend, rising 2.7% YoY (vs 2.4% exp).
However, unlike CPI, PPI actually rose from December.
See chart:
Nearly
half of the January increase in the index for final demand goods is
attributable to prices for gasoline, which climbed 7.1 percent.
Interestingly, Core inflation data
did the opposite of headline - CPI rose and PPI slowed...
See chart:
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"We live in a strange financial
world with record low interest rates, and investors should understand how
unique it is – and how its unwinding will also likely be unique..."
SEE Chart:
https://www.zerohedge.com/sites/default/files/inline-images/Harvard-Yields-Smarter.png?itok=mwWKymkG
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"IT IS SIMPLY A FUNCTION OF THE MATH..."
The recent passage
of tax reform will trim roughly $2 Trillion from revenues over the next decade
as well.
This is easy math.
Cut $2
trillion in revenue, add $2 trillion in spending, and you create a $4 trillion
dollar gap in the budget. Of course, that is $4
Trillion in addition to the current run rate in spending which continues the
current acceleration of the “debt problem.”
See chart:
But it gets worse.
As Oxford Economics reported via Zerohedge:
“The tax cuts passed late last
year, combined with the spending bill Congress passed last week, will push
deficits sharply higher. Furthermore, Trump’s
own budget anticipates that US debt will hit $30 trillion by 2028: an increase
of $10 trillion.”
You can project the run rate quite
easily, and it isn’t pretty.
See Chart:
…
See more Charts at the source
below:
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POLITICS
Seudo democ y sist
duopolico in US is obsolete; it’s
full of frauds & corruption. Urge cambiarlo
"The
Schumer-Rounds-Collins immigration bill would be a total catastrophe...
it would be the end of immigration enforcement in America... It creates a giant amnesty (including for
dangerous criminals), doesn’t build the wall, expands chain migration,
keeps the visa... "
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Here the evidence that Trumpists HATE
ELDERS & people with disabilities or both: Hate
= genius. Orwell miss this one in his list of Dystopias; Of course ‘poor
working classes’: not his main concern
"If I was on food stamps, I wouldn't
like this either... I
think that's the point."
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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
Another invented -stupid reason for WW3: besides been full
of xenophobia
China’s emerging weapons
developments and broader defence-technological progress mean that it has become a global defense innovator and is not merely ‘catching up’ with the West.
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In addition
to buybacks, algos, CTAs, risk parities and a relentless retail bid, here is
another reason for the tremendous equity meltup at the end of 2017: furious
buying of US stocks by foreigners,
Recent concerns about a liquidation by China of its US
Treasury holdings appear to have been greatly exaggerated because according to
the latest TIC data released at 4pm on Thursday, in December, China not only
added $8.3 Billion to its holdings, bringing the total to $1184.9BN, or about
$26 billion more than a year ago, but for the full year 2017, China added the most Treasury holdings going
back seven years.
See chart:
But while China appears content with its US paper inventory,
it was the second largest foreign US creditor, Japan,
that has been liquidating in recent months, and in December, Japan sold $22.6 billion in TSYs, bringing its total to
$1,061.5BN, the lowest total since the start of 2012.
See Chart
Other notable holders were mixed:
- Russia sold $3.5BN to $102.2BN
- The United Kingdom added $12.5BN to $250BN
- Belgium, i.e. the proxy for China and other anonymous buyers, rose by $3.9BN to $119.2BN
- Cayman Islands, i.e. hedge funds, also added some $2.5BN to $269.9BN
The good news for all these buyers of US debt is that thanks
to Trump's budget, there's plenty more where that came from.
Looking at the broader universe of all US International
capital transactions, in December, foreign public and private entities sold a
total of $16BN in Treasurys while buying $16.4BN in Agencies; they also sold a
modest $1.25 BN in corporate bonds.
But the biggest surprise was the
surge in US stock purchases by public and private foreign entities, which in
December amounted to a whopping $35.1 billion (of which official
entities sold $5.3BN while private entities bought $40.3BN), the second highest monthly total on record, and smaller only compared to the record foreign buying in May
2007, when offshore entities bought a record $42 billion.
See chart:
So in addition to buybacks, algos,
CTAs, risk parities and a relentless retail bid, here is another reason
for the tremendous equity meltup at the end of 2017: furious
buying of US stocks by foreigners, a trend which will likely continue well into
2018.
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"In doing so China is effectively lobbing the first shot across the bow of the
Petrodollar system, and more
importantly, the key support of the USD in the international arena... setting the scene for the petroyuan."
But,
as we detailed previously, some see the writing is on the wall for dollar hegemony, and we suspect
the decline in global yuan trade volumes is another reason for China to push
ahead sooner.
See chart:
Beijing is ready to step up the game. Soon China will launch
a crude oil futures contract priced in yuan. This means
that Russia – as well as Iran, the other key node of Eurasia integration –
may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan -
according to some - will be fully convertible into gold
on both the Shanghai and Hong Kong exchanges.
The new
triad of oil, yuan and gold is actually a win-win-win. No problem at all if
energy providers prefer to be paid in physical gold instead of yuan. The key
message is the US dollar being bypassed.
And now
it just became one step closer to reality, which, according
to Adam Levinson, of hedge fund manager Graticule Asset Management Asia, will be a “wake up call” for
investors who haven’t paid attention to the plans.
China is now the biggest importer of crude in
the world. If China starts running perpetual trade deficits with OPEC
countries, it makes sense for OPEC to hold Yuan reserves as long as the OPEC
countries trust the yuan.
Yuan has certainly been bid since Chinese
regulators finished testing the petroyuan contract successfully...
See Chart:
…
Source: https://www.zerohedge.com/news/2018-02-14/end-petrodollar-china-unveils-oil-futures-launch-date
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DEMOCRACY NOW
US politics crisis: Trump captured by Deep state to reproduce
old cronyism without alter-plan
We have an Econ system that profit from weapons & wars
& pay the consequences:
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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
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Trump’s Syria Policy: Perpetual War Without
Debate
By James Carden
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Dutch Lies Over Putin’s ‘Aggression’ Expose
NATO War Agenda By Finian Cunningham
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When Former Spies Turn into TV 'Experts' By Philip Giraldi
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The Wars No One Notices Talking to a Demobilized Country By Stephanie Savell
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I've Reviewed Some Cruel Budgets By Robert Reich never
seen anything crueler than this
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Why We’re Underestimating American Collapse By Umair Haque
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SPUTNIK and RT SHOWS
Geopolitics & the nasty business of US-NATO-Global-wars
uncovered ..
A member of the white supremacist group "Republic
of Florida," pro militia training
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RT SHOWS
Keiser Report Episode
1189 Recent testimony from US
regulators at the SEC and CFTC comes under scrutiny from Max and Stacy. P2: Max
also interviews Patrick Byrne about the regulatory..
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to
break with Empire:
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Vive
mi perro Nerón –en mi memoria- el amigo fiel de mi gato Flopy
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"Es
catastrófico": Las claves del tiroteo en una escuela de Florida, EE.UU.
que dejó varias víctimas
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PRESS TV
Global situation described by Iranian observers..
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