Sat AUG 4 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 stability of
America's status quo is illusory...
[[ Here
only extracts. GO to above source to get
full article ]]
One of the
enduring mysteries of the past decade is why inflation has remained tame while
the central bank and government have pumped trillions of dollars of newly
created money into the economy. Millions
of words have been written about this, and so some shortcuts will have to be
taken to make sense of it in one essay.
Let's start with the
basics.
1. Adding
newly created money but not generating new goods and services of the same value
reduces the purchasing power of existing money. To
keep it simple: say the economy of a country is $20 trillion. (Hey, the US GDP
is $20 trillion...) Say its money supply is $10 trillion.
In effect,
the new money robs purchasing power from all existing money. Those holding existing money have
lost purchasing power while the recipients of the new money receive purchasing
power they didn't have prior to receiving the new money.
We can see
how this works by looking at a chart of GDP to debt. As debt has
soared (and remember, debt is "new money" that was loaned into
existence), GDP has risen at a much lower rate, so the ratio of debt to GDP has
skyrocketed. (see chart below)
2. Where "inflation" (higher prices for the same item)
shows up depends on who gets the newly created money: the wealthy few or the
wage-earning many. As I have
explained many times, in our system, all newly issued money goes to banks,
financiers and corporations--the super-wealthy few.
So what do
already-wealthy people and companies do with trillions in new money? They buy
assets--stocks and bonds and real estate. Wage
earners who receive new money tend to save some of it but they also spend some
of it. The super-wealthy and corporations already own more stuff than they know
what to do with, so they spend the new money on income producing assets or
stock buybacks.
The net
result of giving all the new money to the wealthy is the inflation of an asset
bubble, which is precisely what's happened in the past decade. Real estate: bubble. Corporate debt: bubble.
Stocks: bubble. We can see this bubble by comparing the value of the stock
market to the real economy (as measured by GDP): the higher the ratio of stocks
to GDP, the greater the bubble.
Look at the chart below. The current
stock market bubble is the greatest in history, exceeded only by the insanity
of the last few months of the dot-com bubble, when companies with very little
revenue and zero profits were valued in the billions of dollars.
Stocks are
in a bubble, period. This is the inevitable result of shoveling all the new money
into the hands of the wealthy and corporations. Real-world inflation is certainly higher than
official inflation, but the real inflation (higher prices for the same item) is
in assets, which have tripled or quadrupled in a mere decade.
3. The
inevitable consequence of asset inflation is rising income and wealth
inequality. The
wealthy few have gorged on assets with all the newly issued credit-money, and
as the assets soared in value, they've become immensely wealthier.
4. To quell the revolt of the many, the Powers That Be will create trillions in new money and
helicopter-drop it to the masses. This
mass distribution of newly created money (borrowed into existence by the
central bank and/or government) will flow into the real-world economy, not
assets, and so the inflation (higher prices for the same item) will manifest in
good and services.
This is
precisely what Venezuela has been doing for a decade: distributing newly
created money that isn't matched by a corresponding increase in the production
of goods and services. And as we
know, the result of this has been the complete destruction of the purchasing
power of Venezuela's money.
"That
can't happen here" is just what the Venezuelans thought five years ago. But really, it boils down to math:
creating money out of thin air and pumping it into a dysfunctional economy
destroys the purchasing power of the existing money. Those receiving the new money
are like a snake eating its own tail.
Real-world
inflation will blow the doors off every forecast of low inflation forever. From the point of view of the
wealthy few who control the status quo in the US, they have a stark choice:
either continue pushing wealth/income inequality to extremes that trigger
social and political revolt, which puts their control at risk, or create and
distribute trillions in "free money."
They know this generates inflation,
but the increases in the value of their assets have always far outstripped
real-world inflation, so they don't care about inflation. That's for
little people to worry about.
But what
the wealthy few are forgetting is rip-roaring inflation destroys the system
just as surely as wealth/income inequality. Just
ask the Venezuelans how effective creating new money has been in terms of
eliminating poverty: now their entire populace is impoverished, with the only
exceptions being the wealthy few in control of the status quo.
The
stability of America's status quo is illusory. Can't
happen here is going to ring mighty hollow in five years.
Nothing to
see here, move along. So what if debt has blown past GDP?
See Chart: US Stock Market to GDP Ratio
Rising
stock valuations are good for America--or at
least good for the few who own most of the stocks. Never mind this is
the second-greatest bubble in history; stocks can never go down, volatility is
low, the Fed has our backs, profits have never been higher, etc.
* * *
My new book Money
and Work Unchained is now $6.95 for the Kindle ebook and $15 for the
print edition. Read
the first section for free in PDF format. If you found value in
this content, please join me in seeking solutions by becoming a $1/month patron of
my work via patreon.com.
….
….
----
----
Here's why neither gold nor the yuan nor cryptocurrencies can or will
replace the dollar as the reserve currency, but together they just might...
See chart:
To have assurity of access to that oil — and not run afoul of the U.S.
military – they needed to keep a substantial portion of their national accounts
in US$, or more technically U.S. Treasury debt, sparking not just the ability,
but the REQUIREMENT of a massive U.S. deficit. Kissinger just discovered social
media: the truth that virtual things have value simply because other people use
them. This was for all practical purposes the first
virtual currency, existing only in room-sized mainframes in central banks
worldwide. The world’s currency now looked like this:
See Graph:
So is the system still gold backed with gold as the “premier”, that is,
first, real, and primary currency as Greenspan said? You tell me:
See Chart:
….
….
----
----
"August
is the most popular month for repurchase
executions,
accounting for 13% of annual activity."
See Chart:
….
….
----
----
Short news begin here…
NO charts
"At the very least, crypto-currencies
can protect us from the problem of policy makers taking advice from academics
with zero real world experience like Krugman and enacting policies
to implement their hare-brained economic models..."
----
RELATED:
Despite
headlines that the biggest coffee
chain in the world will soon begin accepting Bitcoin, the crypto space
is under pressure this morning (led by Bitcoin) following comments from Goldman Sachs that "further declines"
are expected.
---
----
“TSMC has been attacked by viruses before, but this is the first time a virus attack has
affected our production lines..."
----
----
Interestingly, Apple is not the first company globally
to ever hit $1 trillionin market
capitalization...
----
----
"It would be far better to remind the masses of the failures of communismand leave them
to draw their own conclusions about
interventionism, and whether the lessons apply to us today, instead of trying to get them to understand
the false fallacy of composition..."
----
----
...and it's
hello, 2008!
----
----
US
DOMESTIC POLITICS
Seudo democ y sist
duopolico in US is obsolete; it’s
full of frauds & corruption. Urge cambiarlo
"This is now a civil disturbance. If you do not disperse, you will
be subject to riot control agents and impact weapons"
----
----
...the meteor “struck…miles from a key U.S. early warning air
base,” which is home to the 12th Space Warning Squadronbased at Thule, that operates and maintains
the Air Base in support of missile warning, space surveillance, and
satellite command-and-control operations missions.
----
----
If half of what I have come to understand about the Curious Case of Bill
Browder is true, then the
“Magnitsky Trio” of Senators John McCain, Lindsay Graham and Ben Cardin are
guilty of espionage, at a minimum...
----
----
Facebook
doesn't sell your data...it sells
your attention. See
Graph:
----
----
US-WW ISSUES (Geo Econ, Geo Pol
& global Wars)
Global depression is on…China, RU, Iran search for State
socialis+K- compet. D rest in limbo
A public
speech by Venezuela's Nicolas Maduro was abruptly cut off due to a reported
assassination attempt using drones packed with explosives.
----
----
...a secret
deal possibly in the works between top Russian and American generals
----
----
"Russia has more objective incentives to get along with China than
with the US.The main thing Russia needs
from the US is basically – well, nothing..."
----
----
"People
sort of feel that we’re getting a raw deal from the U.S. and we have to stick
up for ourselves. And this is their way at the supermarket of trying to do
so."
----
----
SPUTNIK and RT SHOWS
US inside GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
RELATED 1
RELATED 2
RELATED 3
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
RT SHOWS
----
----
Keiser
Report Episode
1262 Max and Stacy discuss
the ‘happy winners’ of Trump’s trade wars. In 2nd half, Max interv Mish Shedlock about why
Trump’s trade war is a lose-lose situation.
----
----
----
----
NOTICIAS IN SPANISH
Lat Am NEW FOCUS: alternat to neo-fascist regimes, breaks to
HR, Peace & support to US-terrorism
----
----
----
----
----
Ecua Mario Campaña "Por cultura de lo pequeñ: no
más clientelis ni cort"
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal
conflicts that favor WW3
The "Next" Financial Crisis and
Public Banking as the Response
By Michael Hudson
----
Would War with Iran Doom Trump? By Pat Buchanan Continue
----
Washington Post Blames Iran For Trump's
Unilateral Sanctions Against It
By Moon Of Alabama
----
How BRICS Plus Clashes With The US Economic
War On Iran By Pepe Escobar Continue
----
Jared Kushner's Cynical ‘Deal of the Century’
By Robert Fisk Continue
----
FBI Records Show Russian Dossier Author
Deemed ‘Not Suitable For Use’ as Source, Show Several FBI Payments in 2016 By Judicial Watch "The corruption and abuse is
astonishing.” Continue
----
Pakistan Needs A Strong New Leader By Eric Margolis Continue
----
Imperialists’ Fear and Loathing. . . of being
Colonized By James Petras Continue
----
----
The West Has Performed ‘Philosophical Coup’
Against the Left By Andre
Vltchek Continue
----
Americans Live In A World Of Lies By Paul Craig Roberts Continue
----
US Immigration Nightmare Continues Amid Media
Blackout By Eric London Continue
----
----
GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more
business-wars from US-NATO allies
Rise
and Continued Influence of Neocons. The Project for the New American Century
(PNAC) By Michael Welch,
et al
----
----
----
----
----
----
----
PRESS TV
Resume of Global News described by Iranian observers..
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
===
No hay comentarios:
Publicar un comentario