MAY 11 18 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
"There is a sword of Damocles hanging over the head of every
American.
Sadly, it is about to drop..."
READ THIS: .. and my comment at the end
Let's
do the math together.
Take the CBO estimate of debt held by the public of $17.8
trillion in 2020, a 5% average interest on that amount comes to annual debt
service of $891 billion, an unfathomable amount. (In 2017, interest on the debt
held by the public was $458.5 billion, itself a scary number.) In its current
report, the CBO added: "It also reflects significant growth in interest costs, which are
projected to grow more quickly than any other major component of the
budget."
Here's the danger:
- According
to CBO, individual income taxes produced $1.6 trillion in revenue in
fiscal year 2017.
- Under
this 2020 scenario, over half of all personal income
taxes will be required just to service the national debt.
- Annual
debt service in 2020 will exceed our newly increased defense
budget of $700 billion in FY 2018.
- Annual
debt service would exceed our Social Security obligations.
WHAT CAN WE DO ABOUT THIS COMING CRISIS?
As investors, we should prepare for
higher inflation and higher interest rates. Investors should consider these
moves:
1-Sell all medium and long-term
bonds.
2-Consider
diversifying into reasonable amounts of gold and selected commodities.
3-Buy TIPS (Inflation protected
treasury bonds).
This last suggestion is an
exceptionally interesting investment because these are U.S. Treasury bonds that
adjust for inflation by adding to the principal every six months. So
long as you buy the bonds at par, you will get all your principal back at
maturity, even in the unlikely event we have a long bout of deflation. On the upside, if there is a spike in inflation, these bonds
could increase substantially in value, a welcome and unusual occurrence for a
bond guaranteed by the U.S. Treasury.
In time, the responsibility for
solving the crisis will fall on the Administration and Congress, who have
successfully ignored this predictable problem for years.
Brief comment:
[[ It is suggested: ‘get out of the system slowly’.. Valid only if a tsunami
is not ad portas, as it is now. IF so, fly to hell. There are 3 tsunamis
underway: a) sudden Econ crash, b) WW3, c) sudden
top-down and/or bottom up Rebelion.. killing the current System of Power. Not
one can be predicted.. if a –or-b starts, it will
pull the others.
]]
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The man who predicted the collapse of GM, Fannie, and
Freddie says the next big bankruptcy is going to
catch everyone by surprise.
[[ With WW3 will happens the
same surp.. (c ) is expected: Read Th. Sk or Tr. or any R-book ]]
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[[ Dicen que cuando el dólar cae, el oro sube.. imagínese el efecto del
desplome imperial .. Pero no hay que esperar el desplome .. hay que org y unir
todas las fuerzas para que ocurra y golpear fuerte, Hay que crear comandos Rev
aun dentro del Pdo Dem y GOP. Con los DEM-R y los GOP-R bajaremos rápido a los
neofascist. Y, a unirse a poderes que
están en ascenso al nivel Económico, caso China ]]
Emerging-market
stocks and debt finally saw $3.7BN of outflows in the latest week, the most
since December 2016.This is notable because it
represents the first material weekly outflow since late 2017.
See Chart:
La
emergencia de los Chinos es innegable aun para los economistas americanos
See chart:
See more charts at the source below
…:
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US
DOMESTIC POLITICS
Seudo democ y sist
duopolico in US is obsolete; it’s
full of frauds & corruption. Urge cambiarlo
IS THIS JUST MORE #RESISTANCE?
See Chart
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How do we explain our obsession
with relatively low risk dangers and ourcollective blindness to manufactured/marketed scourges that
kill tens of thousands of people annually?
Assessing risk and improving safety are complex issues, but we clearly have a political-social-economic system that is
blind to systemic dangers that could be prevented, were we to widen our narrow
obsession with safety to include them.
See chart: US drug overdose deaths
At the source in the bottom
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1)
Increased Competition;2) Better Negotiation; 3) Incentives for Lower List
Prices; 4) Lowering Out-of-Pocket Costs.
See graphic:
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While stocks initially dipped on the speech, it soon became
clear to the machines and the manipulators that, perhaps, there was not much
there, there... and all aspects of healthcare soared...
See Chart:
Pharmacies puked then exploded...
See chart:
However, market participants are not
expecting dramatic change... and the Nasdaq Biotech Index is jumping today...
See chart:
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"...private military firms
have greater independence to exercise their own prerogatives and
'we the people' don't get a say. That's the most dangerousthing, because they're profiting - their motivation is not God and country;
their motive is money."
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US-WW ISSUES (world & war)
: M-EAST .. PLUS
Global depression is on…China, RU, Iran search for State
socialis+K- compet. D rest in limbo
"The real danger, though,
is military brinksmanship. And the inescapable fog of war. It’s not
impossible to imagine a dispute in the distant South China Sea (7000 miles from
California) resulting in combat and casualties between the US and China. This could quickly escalate out of control.
And remember, we both have loads of nuclear weapons!"
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Syria's
response this week imposed new rules of engagement on a situation in which
Israel previously acted with impunity.
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"For most Americans the
geopolitical/financial crises of the 1970s happened so long ago
that they’re about as relevant as the Revolutionary War or the Reformation. But
for seasoned citizens who were around back then and paying attention,the similarities to today are becoming both
eerie and scary..."
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ONCE AGAIN - BAD NEWS
IS GOOD NEWS...
[ IF EU is up, try
to get its alliance to win WW3. Si CAE el EU..
we (US-UK) will celebrate it ]
See Chart:
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“He’s all about freedom.
He wants people to have information. That’s
power.”
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“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before
defeat.” Sun Tzu: The Art Of War
The biggest mistake investors make over the long-term is
investing without a strategy. The point that Sun Tzu was making, as it relates
to investing, is that having a strategy, such as buying
and holding stocks, will indeed
work. However, doing so without “tactics,” or a methodology to control risk and reduce emotional mistakes,
will substantially lengthen the “route to victory.” In
investing, “time” is both our most precious commodity and our
biggest enemy.
See Chart:
In the mainstream push to promote the “buy
and hold” myth, the problem of “time” in the equation is often overlooked. The chart
box below shows a $1000 investment
from either a period of low or high valuations. It assumes
a real, total return holding period until death assuming the individual
starts saving at 35-years of age using historical life-expectancy tables. No
withdrawals were ever made. (Note:
the periods from 1983 forward are still running as the investable-life
expectancy span is 40-plus years.)
The gold
sloping line is the “promise” of 6% annualized compound
returns. The blue line is what actually happened with invested capital
from 35 years of age until death, with the bar chart at the bottom of each
period showing the surplus or shortfall of the goal of 6% annualized
returns.
See Chart:
Back to Sun Tzu.
Strategy is the overarching premise the drives your investment
selections. Selecting the right strategy requires some thought about
your mental state, aversion or acceptance of risk, and most importantly
your “duration” or “time horizon.”
Warren Buffett has a great “strategy” for
investing. He buys great companies at “bargain” prices. However,
his time horizon is 100-years. You can not invest like Mr. Buffett because you
most likely don’t have 100-years to capture the expected return on investment
nor do you have $1 billion to buy a company with.
While the example is a bit extreme,
the premise is valid. Many investors may “believe” they
are long-term investors, but in reality they lack the time frame to achieve the
long-term expected returns. The problem becomes the inability for the portfolio
to withstand a sharp drawdown in price, and recover, within the actual time
horizon they have to meet retirement needs.
Tactics are the methods of controlling risk, taking advantage
of short-term opportunities and mitigation of loss. Tactics alone, more
commonly known as “day trading,” will end badly for most due
to emotional behaviors. Tactics,
when married with a strategy, will reduce the risk of drawdowns and increase
the probability of investment success over a given time period.
In short:
“Victorious warriors win first and then go to
war, while defeated warriors go to war first and then seek to win”– Sun
Tzu: Art Of War
HERE THE READING FOR THIS WEEKEND
Economy & Fed
- Trump Tricks Trade Partners Into
Dangerous Game by
Peter Muller & Martin Hesse via Der Spiegel
- How Trump’s Move On Iran Helps Saudi
Arabia by
Simon Constable via Forbes
- Why Wages May Not Be Rising With Hiring by
Caroline Baum via MarketWatch
- 3-Reasons To Expect A Recession Soon by
Pierre Lemieux via Econlog
- Are We Trapped In A Debt Spiral by
George Will via National Review
- Trump Doesn’t Understand How Fed
Works by
Pedro Da Costa via BI
- Will Trump Pay The Price For What He
Wants From Iran by
Tom Luongo
- The Fed Has Robbed The Future by Brian Maher via
The Daily Reckoning
- Trade Deficit Is A Meaningless Indicator by
Adam Brandon via IBD
- Jobless Rate Looks Like Old Times,
Economy Doesn’t by
Natalie Kitroeff via NYT
- Central Banks: The Great Experiment Has
Failed by
Nomi Prins via The Daily Reckoning
- Sanders’ Job Guarantee Boondoggle by
Robert Samuelson via RCM
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Markets
- Dalio Derisks Portfolios Goes Net Short
Stocks by
Tyler Durden via ZeroHedge
- Buying & Holding The Market Has Many
Pitfalls by
Aaron Brown via Bloomberg
- Technically Considering Technical
Analysis by
Seth Levine via The Integrating Investor
- Earnings Offer Up Important Investing
Lesson by
Brian Sozzi via TheStreet.com
- A Low Unemployment Rate Isn’t Bullish
For Stocks by
Charlie Bilello via Pension Partners
- Why The Market Has Its Swagger
Back by
Mark DeCambre via MarketWatch
- Why I’m Not An Emerging Market Bull by
Edward Harrison via Credit Writedowns
- Is It Time To Get Concerned by
Ryan Vlastelica via MarketWatch
- A Preview Of The Next Housing
Crisis by
Scott Sumner via The Money Illusion
- Risk Aversion Meets Hypervalued
Market by John Hussman via
Hussman Funds
- This Signal Can Foreshadow Big Price
Moves by
Chris Ciovacco via Ciovacco Capital
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Most Read On RIA
- The Myth Of “Buy & Hold” & Why
Starting Valuations Matter by
Lance Roberts
- The Great Contagion by
Danielle DiMartino-Booth via Money Strong
- Stoking The Embers Of Inflation by
Michael Lebowitz and J Brett Freeze
- The Coiled Spring Market by
Lance Roberts
- Recession Says Nothing About Future
Stock Returns by
John Coumarianos
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Research /
Interesting Reads
- The State Of American Debt Slaves by
Wolf Richter via Wolf Street
- Where’s The Invisible Hand by
Stanley Druckenmiller via WSJ
- Is The U.S. Becoming Japan 2.0 by Upfina
- Wishful Thinking & Willful Blindness
In Pension Plans by
Danielle Park via JugglingDynamite.com
- Another Step Towards Collapse Of The
PetroDollar by
Rory via The Daily Coin
- 13-Best Quotes From Warren Buffet’s BRK
Meeting by
Jen Wieczner via Fortune
- 21-Best Quotes From Charlie Munger’s BRK
Meeting by
Jen Wieczner via Fortune
- The Fed Should Shrink Its Balance Sheet by
Mickey Levy via Economics 21
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SPUTNIK and RT SHOWS
US inside GEO-POL n GEO-ECO ..News
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RELATED 1:
RELATED 2:
RELATED 3:
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Asking support for imperial terror:
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Organization of
Islamic Cooperation countries (OIC) in their efforts to enter the Russian
market and all conditions have been created for this, Russian Deputy Minister
of Industry and Trade Georgy Kalamanov said on Thursday.
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RT SHOWS
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to
break with Empire:
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ALAI --Marx-200 Pablo Mériguet
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Reemplazar a EE.UU. como líder mundial:
¿Es capaz la UE de hacerlo? Si se alía
a China SI
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more
business-wars: its profiteers US-NATO
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Israeli
Attack on “Iranian” Targets in Syria a Sign of Tel Aviv’s Frustration, Fear By Elliott Gabriel,
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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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PRESS TV
Global situation described by Iranian observers..
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