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.
…
…
SOURCE: https://www.zerohedge.com/news/2018-06-15/here-real-reason-why-treasury-yields-blew-out-april
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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
- Fed’s Powell Orchestrates A Masterful Move by Danielle DiMartino-Booth via Money Strong
- Is The U.S. The World’s Piggy Bank? by Caroline Baum via MarketWatch
- Social Security Crisis Already Here by IBD
- Is The Fed Rethinking It’s Balance Sheet Unwind by Mike Shedlock via The Maven
- Side Hustles Changing How Retirement Planning by Daniel Kline via Motley Fool
- If Economy Is So Great, Why Are 78 Million Working Gigs by Rex Nutting via MarketWatch
- Fed’s Phillips Curve Isn’t Dead by John Tamny via RCM
- Trump Economy Doing Just Fine by Peter Morici via MarketWatch
- The Facts On U.S. – Canada Trade by Patrick Hill via The Progressive Ensign
- $5089 – Why Trumps Tariffs Worry Automakers by Johnny Kampis via American Spectator
- Tight Labor Market Should Increase Wages by Noah Smith via Bloomberg
- Americas Fertility Problem, Not A Problem by Adair Turner via Project Syndicate
- ECB Volatility, Business Building And Speculation by Seth Levine via The Integrating Investor
- Recession Alert: World Headed For Slowdown by Dwaine Van Vuuren via Financial Sense
- How Good Is The Trump Economy Really? by Neil Irwin via The Upshot
- Trumps Tariffs Are Succeeding – In Upsetting Everyone by Editorial via USA Today
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MARKETS
- Someone Just Made A $75 Bet Gundlach Is Wrong by Tyler Durden via ZeroHedge
- How To Weather The Next Market Correction by Shawn Langlois via MarketWatch
- Global Earnings Recession All But Certain by Adem Tumerkan via Palisade-Research
- JP Morgan: US Losing Fiscal Discipline A Huge Risk For Markets by Pedro De Costa via BI
- A Deep Look Inside The GIG Economy by Simon Constable via Forbes
- Yields Retreat As ECB Lays Out Timetable For QE’s End by Mark DeCambre via MarketWatch
- An Average Rally by Dana Lyons via The Lyons Share
- Goldman: The Past Month Has Been A Giant Short Squeeze by Tyler Durden via ZeroHedge
- Fed Policy Close To Contractionary, Bull Market Close To End by Upfina
- Here We Go Again… by Charles Hugh Smith via Of Two Minds
- It Can Happen To Anyone by Nick Maggiulli via Dollars and Data
- Either GE, Or It’s Dividend, Is Set To Shrink by Ironman via Political Calculations
- Why Momentum Investing Is Actually Contrarian by Ivaylo Ivanov by Ivanhoff Capital
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MOST READ ON RIA
- The Myth Of Buy And Hold Investing – Part II by L. Roberts, M. Lebowitz & J. Coumarianos
- The Risks To Our Bullish View by Lance Roberts
- Monthly Fixed Income Update by Michael Lebowitz
- Pascal’s Wager: Why Stocks Get More “Risky” Over Time by Lance Roberts
- The Importance Of “Sequence Of Return Risk” by John Coumarianos
- 9-Minutes To Change Your Financial Life by Richard Rosso
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RESEARCH / INTERESTING READS
- Fed Grows More Hawkish by Wolf Richter via Wolf Street
- Buffett: Balderdash With A Side Of Hypocrisy by Felix Salmon via Slate
- 10-Best Universities In The World by Abigail Hess via CNBC
- What Lunch With Buffett Taught Me About Investing & Life by Guy Spier via MarketWatch
- The Hallmark Of An Economic Ponzi Scheme by John Hussman via Hussman Funds
- Retirement Cut Proposals & Federal Employment by Dan Caplinger via Motley Fool
- Lessons From West Point That Can Make You A Better Investor by Moose via MarketWatch
- Maybe You’re Asking The Wrong Questions by Scott Bell via I Heart Wall Street
….
“ 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
ICYMI with Polly Boiko The
World Cup has started, and some idiots still think it's about football!
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to
break with Empire:
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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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Israeli Lawmaker Proclaims Supremacy of
‘Jewish Race’ By Stuart
Winer Continue
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In Case
You Missed It
US Provides Military Assistance to 73 Percent of World’s Dictatorships By Rich Whitney
US Provides Military Assistance to 73 Percent of World’s Dictatorships By Rich Whitney
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Can the EU Become a Partner for Russia?
By The Saker
All empires are inherently evil and dangerous to any country
wanting to be truly sovereign.
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Masters Of The Universe: Pepe Escobar Must
Watch Continue
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UN Report Says US is a “S*ithole Country” By John M. Repp Continue
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COUNTER PUNCH
Focus on US issues
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David Rosen Why
Do Establishment Feminists Hate Sex Workers?
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Joyce Nelson The
NED’s Useful Idiots
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Josh Hoxie Just
How Rich Are the Ultra Rich?
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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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Rev.
William Barber: Jeff Sessions Using Religion to Justify Family Separations Is
“Biblical Heresy”
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PRESS TV
Global situation described by Iranian observers..
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