Oct 17 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
"Markets can and do indeed
prosper during tough economic cycles due to fiscal and monetary
stimulus... but as the Fed continues to drain liquidity from the system, target
a neutral rate, normalize (whatever that is), all of us
as investors may finally
understand how painful it can be for stocks, again."
Haven’t most
Americans benefited from the triple-digit returns of the stock market since
March 2009?
Not really.
Main
Street or the middle-class’ primary motivation is wages and wage growth. Appreciation of primary residences is a strong second. Finally, signs
of life exist with inflation-adjusted wages (red line), exceeding 1999 levels.
Notice the average (blue line), skewed by higher wage earners.
See Chart:
One of the most aggressive FDR
initiatives was to aggressively deflate debt for those who held farm and home
mortgages. In 1933, the economic life of your everyday Americans simply
couldn’t pay mortgage interest at 1929 levels. The plan
was to lower interest rates dramatically from 1929 to 1933 levels. At the time,
the action was deemed ‘heroic,’ by advocates.
However
The lenders to receive Federal
Land Bank bonds at 4.5% as against 7-10% on present mortgages with the Federal
government to guarantee the interest. Business could not revive within an
environment choked by debt. The overall
deflation of debt was inevitable.
See Chart:
Interest rates as represented by call
loan and discount, began their ascension in 1928 to cool off speculation in
securities markets. By 1930, the discount rate fell from 6% to 2.5% as the Fed
realized they may have overdone it to tighten the money supply.
One theory is that the Fed kept rates too
low in the 1920s which was a catalyst for errant lending that lead to the great
bust. Another is the money supply was too tight during the early 30s as the
monetary base suffered a great decline. Deflation was a culprit, not inflation.
Consequently,
the discount rate should have been close to 1% or less! In other words, The
Federal Reserve’s monetary policy and interest rates were catalysts to boom and
bust in the economy and markets.
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US Econ situation today:
And take your pick in US stocks
- Dow dumped, Nasdaq and Small Caps managed nothing... Cash equities were a
choppy, gappy mess all day...
See Chart:
Furtures show the chaos even
better...the US ramp as China closed (and National Team stepped in), the dump
at the cash open and ramp after EU closed... then chaos after The Fed...
See Chart:
Post-Fed, equities initially
dipped, recovered, then faded along with bonds leaving the USD the only asset
higher
See Chart:
Focus on 30Y TSY vs S&P
The S&P, Dow, and Nasdaq
all failed to extend gains above the next technical level...
See Chart:
Bond yields accelerated higher
after The Fed - recoupling with stocks as bopth got sold...
See Chart:
Dollar strength sent PMs lower
but WTI plunged extending losses after inventory data...
See Chart:
https://www.zerohedge.com/sites/default/files/inline-images/2018-10-17_12-11-45.jpg?itok=pHf0bnol
Finally, we note that
yesterday's massive short-squeeze seems to have expended all the momentum
algos' ammunition...
See Chart:
….
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In
an odd reversal from normal, it is the US equity market that is reacting and bond and FX markets that are
ignoring the extreme hawkishness of the Fed Minutes...
See Chart:
….
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"BRUTALLY
from a performance-perspective, despite yesterday’s whopping-rally, Hedge Funds
only saw a very modest lift as “shorts” EXPLODED HIGHER, negatively offsetting
the tectonic move higher in your longs."
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete;
it’s full of frauds & corruption. Urge cambio
"Speaking
truth to power has ruined Darin Jones, a former FBI contract
specialist who reported evidence
of serious procurement improprieties. He should be the last federal whistleblower
victimized..."
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Residents
of the Empire State sent roughly $24 billion more to the federal government
last year than the state received back in federal spending.
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"Trump
is playing a special role in the globalist screenplay - that of the
bumbling villain; the guy who had too much hubris and destroyed
everything..."
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[[ Come on.. you forgot US phobias.. RU
& China ar coming at the speed of asteroid
]]
"...why
all the fuss if NASA is confidentthat there are no major threats on the
horizon?"
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US-WW ISSUES (Geo Econ, Geo Pol
& global Wars)
Global depression is on…China, RU, Iran
search for State socialis+K-, D rest in limbo
WTI
extended losses this morning after abrief
bounce on API's unexpected crude draw, pushing down to one-month lows below a $70 handle after DOE reported an
unexpectedly large crude build.
See Chart:
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"Shelling hospitals, mosques, schools, school
buses, weddings, and funerals is one thing... but killing a Washington Post
columnist, however, will not be brooked. "
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People are leaving LA, Chicago, New York,Miami, D.C. and San Jose, in droves, for places with cheaper housing...
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
Iranian Foreign
Minister Mohammad Javad Zarif slammed the US, saying that its latest economic
sanctions against Iranian banks and companies violated International Court of
Justice (ICJ) orders.
RELATED:
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RT SHOWS
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NOTICIAS IN SPANISH
Lat Am search f alternatives to
neo-fascist regimes & terrorist imperial chaos
REBELION
FEM? Por
qué Bolsonaro crece entre las mujeres?
Vanessa Dourado
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ALAI NET
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RT EN ESPAÑOL
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INFORMATION CLEARING HOUSE
Deep on the US political crisis:
neofascism & internal conflicts that favor WW3
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The U.S Is Authoritarian By Design By Paul Street Continue
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Israel’s - America’s - Legal Justifications
for Assassinations Don’t Add Up
By Murtaza Hussain
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Newly Published Files Confirm Plan to Move
Assange to Russia By Raphael
Satter, AP
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Another Financial Earthquake in the Making By Nick Beams Continue
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The Dark Story Behind Global Warming aka
Climate Change By F. William
Engdahl
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COUNTER PUNCH
Analysis on US Politics & Geopolitics
Frank
Stricker Wages
Rising?
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Mel Gurtov Getting
Away with Murder
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that
leads to more business-wars from US-NATO
allies
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PRESS TV
Resume of Global News described by
Iranian observers..
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