sábado, 16 de junio de 2018

JUN 15 18 SIT EC y POL



JUN 15 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

THE Econ debacle today:

That was a week...
Total chaos in FX, debt, and commodity markets and the S&P 500 ends unchanged?!!
See Chart:


The big banks ended the week - an FOMC week - red!
See Chart:


Treasury yields were extremely mixed with the short-end higher and long-end well bid.
See Chart


The yield curve collapsed to a new flattest level since Oct 2007...
See Chart:


In FX land, it was chaos:
  • Dollar Index's best week since US Election (Nov 2016), highest weekly close since July 2017
  • EUR lowest weekly close since July 2017
  • EM FX down 9 of last 11 weeks - lowest weekly close since Nov 2016
See Chart:


Commodity markets were crazy...
  • Bloomberg Commodity Index worst week since Feb, lowest close since April
  • Gold lowest weekly close since Dec 2017
  • Silver's worst week since April
  • Oil's 4th losing week in a row - lowest weekly close since April
  • Copper's worst week since Feb
See Chart:


The broad commodity complex was crushed this week...
See Chart:
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The following stupid causes on our Econ crisis have bad intentions : justify 1st strike of WW3

Russian liquidated half, or a massive $47.4 billion,
of its US Treasury holdings in one month.

As Trade Wars began, the rest of the world dumped more Treasuries in April than in any month since January 2016...
See Chart:


Hedge funds were buyers (as implied by the rise in holdings from the Cayman Islands)...they added $15,2 billion in April - the most ever...
SEE chart:


But the biggest selling culprit was not "good friend" China who saw a small $5.799bn reduction in its Treasury holdings in April...
See Chart


It was Vladimir Putin that decided to puke the most US Treasuries out of Russia ever, liquidating half, or $47.4 billion, of its US Treasuries in one month, to its lowest holdings since March 2008!
See Chart:


Put another way - Russia just liquidated half its US Treasury holdings in one month!
And what happened in April?
See Chart:

Mystery solved! Russia was dumping half of everything it had ($48bn) and yields on the 10Y rose around 35bps.
One can't help but wonder - as the Yuan-denominated oil futures were launched, trade wars were threatened, and as more sanctions were unleashed on Russia - if this wasn't a dress-rehearsal, carefully coordinated with Beijing to field test what would happen if/when China starts to really liquidate.
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"Economics is not like the physical sciences, and reasoning and analogies based on the physical sciences are often misleading in economics. Further, they can be dangerous to society, particularly in the mouths of those who wish to subject others to their command and control."
Conclusion:
What is the upshot of all this? Economics is not like the physical sciences, and reasoning and analogies based on the physical sciences are often misleading in economics. Further, they can be dangerous to society, particularly in the mouths of those who wish to subject others to their command and control. That is why Friedrich Hayek wrote, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” In other words, economics is a science whose principles and logic tell us why we cannot know enough to control people, even if we do know enough to control rockets.
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"...cheap money and poorly designed executive compensation packages encourage corporate actions that may not be in the best interest of longer-term shareholders or the economy. "

The first graph, courtesy Meritocracy, shows how mergers tend to run in cycles. Like clockwork, merger activity tends to peak before recessions. Not surprisingly, the peaks tend to occur after the Federal Reserve (Fed) has initiated a rate hike cycle. The graph only goes through 2015, but consider there has been $2 trillion in mergers in 2018, and its only June.
See Graph:



The following graph shows how corporate borrowing has accelerated over the last eight years on the back of lower interest rates. Currently, corporate debt to GDP stands at levels that accompanied the prior three recessions.
See Chart:

There is a pattern here among corporate activities which seems similar to that which we see in investors. At the point in time when investors should be getting cautious and defensive as markets become stretched, they carelessly reach for more return. Based on the charts above, corporate executives do the same thing. The difference is that when an investor is careless, his or her net worth is at risk. A corporate executive on the other hand, loses nothing and simply walks away and frequently with a golden parachute.

HERE THE READING FOR THIS WEEKEND:

ECONOMY & FED
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MARKETS
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MOST READ ON RIA
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RESEARCH / INTERESTING READS
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The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.” – Seth Klarman
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US  DOMESTIC POLITICS
Seudo democ y sist  duopolico in US is obsolete; it’s  full of frauds & corruption. Urge cambiarlo


"...splitting up the state would help put a dent in California's utterly unrepresentative and unaccountable political class..."
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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


Meet Rampage - the “counter weapon,” against new, rapidly emerging complex air defense environments in Iran and neighboring Syria.
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By reaffirming the Panmunjom Declaration, the US President has committed to bringing its military back from South Korea and thus a complete denuclearization of the South as well as the North...
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SPUTNIK and RT SHOWS
US  inside  GEO-POL n GEO-ECO  ..News


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RT SHOWS
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to break with Empire: 


PAL        - La verdad, la veracidad y Palestina  Gilad Atzmon
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FEM       - Histórico: media sanción para aborto legal en Arg  Rodolfo Koé G
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Ecua       - Adónde va Lenín Moreno? Entre crisis persist y nuevo neoliberalism
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                - “Estados Unidos es un país muy jodido…” por Wilkins Román S
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ALC        - Violencia y mentiras, las dos armas de la derecha  P Montesinos
-BRA: Una propuesta indecente   Emir Sader
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                Especial  La fiebre del Mundial: Moscú
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INFORMATION CLEARING HOUSE
Deep on the US political crisis, their internal conflicts n chances of WW3


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All empires are inherently evil and dangerous to any country wanting to be truly sovereign.
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COUNTER PUNCH 
Focus on US issues


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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars:  its profiteers US-NATO


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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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