Nov 14 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
“Dow desperately seeking support at 25,000. Beyond this land
lie dragons.” - Art
Cashin
Dow lost its 200DMA and back below 25,000...
See Chart:
And a roller-coaster day of crushed
dreams and dashed hopes in the US too as the machines tried to revive stocks...
twice... but failed... twice... (Trannies managed gains on the day, Nasdaq was
the biggest loser)
See Chart:
Futures show US stocks sold during
Asia session, bid during EU session into US open, then dumped into the 2pmET
witching hour of margin calls - panic-bid back to unchanged... then dumped into
the close...
See Chart:
The dollar fell for the 2nd day in a
row (accelerating as cable rallied late on)...back in the red for the week...
See Chart:
Gold and Silver bounced back through
critical price levels...
See Chart:
Finally, we note that the median US
stock (as inferred from the Value Line Geometric Index) is now back to critical
support - unchanged since the DotCom and Financial Crisis highs...
See Chart:
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SOURCE:
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The pace
at which things are changing is..shocking
the experts.
#1 When economic activity is rising, demand for oil
increases, and oil prices tend to go up. But when economic activity is
slowing down, demand for oil diminishes, and oil prices tend to go down.
That is why what is happening to the price of oil right now is
so alarming…
#2 One new poll has found that only
13 percent of Americans plan to buy a home in
the next year. That number has fallen for three quarters in a row, and it
is now down by almost half over
the last twelve months.
#4 California once had the hottest housing market in the
entire nation, but now home prices in the state are plummeting like
it is 2008 all over again.
#5 According to the
latest Bank of America survey, global fund managers are the most bearish
that they have been since the financial crisis of 2008…
#6 America’s ongoing retail apocalypse just continues to
accelerate. According to a
recent Bloomberg article, things are going so
poorly for some mall operators that they “handing over their keys to lenders even before leases end”…
#7 Despite the eruption of a major trade war, the
U.S. trade deficit with the rest of the world is on pace to set a
brand new all-time record in 2018.
#8 One new study discovered that 62
percent of all U.S. jobs do not currently pay
enough to support a middle class lifestyle.
#9 At this point, most Americans barely have any
financial cushion at all. According to one recent survey, 58 percent of all Americans have
less than $1,000 in savings.
#10 Right now, more
than half of all U.S. children are living in
households that receive financial assistance from the federal government.
#11 As the economy slows down, an increasing number
of Americans are being forced into the streets. More
than half a million Americans are currently homeless, and that number
is growing with each passing day.
…
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SOURCE: https://www.zerohedge.com/news/2018-11-14/11-signs-us-economy-starting-slow-down-dramatically
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WTI slipped back to a $55 handle after crude inventories rose more than
expected (up 8.79mm barrels - the most since Feb). This is the 8th weekly crude
build in a row (and Gasoline stocks also rose).
Notably, WTI's
plunge (growth scare and supply glut) has coincided with relative strength in
gold (growth scare, safe-haven) which erased all advantages on the year
as 1 ounce of gold can once again buy around 22
barrels of WTI crude...
See Chart:
For now,
some have argued that Trump is winning once again...
See Chart:
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"This is persuasion,
pure and simple...the president utilizes the Hive Minded’s own orthodoxies
against them."
See
How to create a Socialist
State? By Saul Alinsky
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[[
Todo lo que hoy existe
at the level of neoliberal Econ merece perecer.. No crees? ]]
"There is a wall of
cognitive dissonance when some in the public are confronted with this
notion. They prefer to believe in a set of standard lies rather
than accept that the Fed is a
saboteur of our financial system. Here are those lies..."
Here are those lies, listed in no particular order...
Lie #1:
The Fed Is Unaware Of The Bubbles it Creates
Mainstream economists and Fed officials alike use this lie
regularly. Not once has the Board of Governors of the Fed ever been audited or
punished in light of an economic crisis they created. When central bank culpability
is obvious, they simply claim they had no
idea the fiscal bubble was as inflated as it became. The disaster
“surprised them”.
Lie #2:
The Fed Is Unaware That It's Tightening Policies Cause Extreme Economic
Contraction
So, if the Fed is aware when it causes a bubble, is it aware
when it is popping a bubble? Absolutely. As Ben Bernanke admitted in
a speech in 2002
Lie #3:
The Fed Is The Center Of Establishment Power, Therefore They Need The U.S.
Economy To Thrive
While it is true that the Fed is currently in charge of the
dollar as the world reserve currency, the idea that the Fed is somehow
indispensable to the global establishment has always bewildered me. Everything
the Fed has done since its inception in 1913 has been designed to diminish the
U.S. economy and erode the purchasing power of our currency. I ask, at what
point has the Fed ever taken an action which did NOT result in a bubble or a
bubble collapse? At what point has the U.S. economy ever improved at a
fundamental level because of the Fed, rather than diminished in the wake of a
fake recovery the Fed conned the public into believing in?
What else
does the Fed do besides sabotage?
I believe the truth is that the Fed does not care about the
U.S. economy, or even the survival of the dollar, as is obvious in their
actions. The Fed is merely a puppet entity of larger institutions like the Bank
for International Settlements or the International Monetary Fund. These institutions seek centralization at a
global level, with a global currency system and global economic authority, as
they have openly
admitted to in their own publications. The U.S. economy as we know it
today, and the Fed by extension, are expendable in this pursuit.
The Fed will continue on its current course no matter the
cost, because there is a greater strategy in play. In fact, some elites may
even welcome a shutdown of the Fed at this time because this opens the path for the death of the dollar as the world
reserve currency and the introduction of a new world monetary system,while
all the consequences surrounding the shift can be blamed on political chaos and
coincidence.
To drive the point home, I leave readers with a revealing
quote from Christine Lagarde, the head of the IMF, as she outlines why crisis
in national economies is actually
good for the IMF
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SOURCE: https://www.zerohedge.com/news/2018-11-14/fed-will-continue-tightening-until-everything-breaks
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"It compares to the Volcker tightening from
1979–1981..."
See Chart:
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"Without that central bank support and
transitioning off the fiscal stimulus, our long-term outlook for investment
grade is definitely on the more bearish side over the last two to three
years."
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds
& corruption. Urge cambio
Although Stigliz no longer is lavishing praise on
Venezuelan socialism, he hardly is silent about his belief that
only expanded state power can
“save” the U.S. economy from self-destruction...
Ever since winning
the Nobel Memorial Prize in “Economic Science” in 2001, Joseph Stiglitz has
been a one-man advocacy band for growth of the state. After 9/11, for
example, he called for the formation of a federal agency to provide security
for airline passengers, which he claimed would send a “signal” for quality. (Stiglitz won his prize for
“proving” that free markets are “inefficient” and always result in
less-than-optimal outcomes because of asymmetric information. Only government
in the hands of Really Smart People like Stiglitz can direct production and
exchange consistently to efficient and “just” results.)
Like so many others who have claimed capitalism is destroying the middle
class, Stiglitz turns to the policies created during the Great Depression and
after World War II for salvation, seeing the time from the 1930s to the late
1950s as a supposed golden era of prosperity. He writes:
After the New Deal of the 1930s,
American inequality went into decline. By the 1950s inequality had receded to
such an extent that another Nobel laureate in economics, Simon Kuznets,
formulated what came to be called Kuznets's law. In the early stages of
development, as some parts of a country seize new opportunities, inequalities
grow, he postulated; in the later stages, they shrink. The theory long fit the
data—but then, around the early 1980s, the trend abruptly reversed.
To reverse this trend of rising inequality – and
rising poverty – Stiglitz calls for a return to the Depression-era policies of
high marginal taxes and using the regulatory structure to recreate the
financial and business cartels built by New Deal regulations that dominated
American production, finance, and transportation at that time. Indeed, apart from the anti-discrimination laws
that now are part of the modern legal landscape, Stiglitz believes that the
only hope for our future is to return to the past:
…we need more progressive taxation and high-quality
federally funded public education, including affordable access to universities
for all, no ruinous loans required. We need modern competition laws to deal
with the problems posed by 21st-century market power and stronger enforcement
of the laws we do have. We need labor laws that protect workers and their
rights to unionize. We need corporate governance laws that curb exorbitant
salaries bestowed on chief executives, and we need stronger financial
regulations that will prevent banks from engaging in the exploitative practices
that have become their hallmark. We need better enforcement of
antidiscrimination laws: it is unconscionable that women and minorities get paid
a mere fraction of what their white male counterparts receive. We also need
more sensible inheritance laws that will reduce the intergenerational
transmission of advantage and disadvantage.
Challenging Stiglitz’s Logic
Stiglitz hardly is the only
modern economist that wants the American economy to be restructured to resemble
how it looked in 1939. Paul Krugman many times called for a “New New Deal” and
actually claims that the U.S.
middle class didn’t even exist until President Franklin D. Roosevelt created
it with his policies.
In reading the Stiglitz “we need” rant, it is clear
that he sees the economy as both mechanistic and deterministic.
Capital will have increasing
returns because, well, capital has increasing returns, which means that over
time, capital will increase the incomes of its owners and everyone else will
become poorer. In fact, as one goes through the entire article, one can
conclude that he believes, like Marx, that a market system is internally
unstable and that it always will implode because a few people will see their
incomes increase, but only at the expense of the masses, who will see their
incomes decrease.
Indeed, if
one follows Stiglitz to his logical conclusions, one would have to assume that
the U.S. economy is a trap of exploitation and misery for American workers, as
they toil longer hours and watch their standard of living slip away. He
writes:
At the time of the Civil War, the market value of the
slaves in the South was approximately half of the region's total wealth,
including the value of the land and the physical capital—the factories and
equipment. The wealth of at least this part of this nation was not based on
industry, innovation and commerce but rather on exploitation. Today we have
replaced this open exploitation with more insidious forms, which have
intensified since the Reagan-Thatcher revolution of the 1980s. This
exploitation…is largely to blame for the escalating inequality in the U.S.
Read more at
…
SOURCE: https://www.zerohedge.com/news/2018-11-14/sorry-stiglitz-its-socialism-thats-rigged-not-capitalism
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Nearby
resident: "Every person on
our street has had cancer"
[[ Imagine the
pollution from WW3 ]]
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"This is crazy!"
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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
It's not what OPEC wants to hear.
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Why is there a convenient platform at the top of the fence?
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Even the US is now
"swimming naked"...
Right now we have the Four Horsemen: the four
drivers of the global economy. They
are:
- the quantity of money, which is falling;
- the price of money, which is rising;
- the price of energy,which is a tax on consumers and is rising;
- and globalization/productivity, which is falling.
So, if you look at the economy as a black box, I really
don’t know what happens inside of it. But I can observe what goes into the
black box: it's these four things.
Globalization
/ productivity, we know that's all about
Trump, trade war and the likes. It's not exactly improving; it's actually
worsening.
As
for the quantity of money,
a lot of people argue with me that the Central Banks are still expanding their
balance sheets, but the fact of the matter is that the QT in terms of the U.S
has been reducing the Federal Reserve balance sheet. And we have a stealth
reduction of the balance sheet in terms of the Bank of Japan. The EBC would
love to cut and is publicly committed to doing so. The Bank of England is doing
its first hike. So the quantity of money is falling.
As
for the price of money, I think Powell is really in the
mold of Volcker. He's a practical guy, and what he's decided to do is pretty
much just to hike interest rates until the market collapses. That would
indicate that pausing from this tightness is probably 5-10% below the recent
low that we saw in the stock markets. If we don’t get to that level again, he's
going to continue the hiking.
So you almost have a
self-feeding process by which, ultimately, the stock market will have to
collapse because behind the scene, the pragmatic way that Powell does his
policy really means the interest rate is going up and, hence, you haven't seen
your move to safety yet in terms of Treasurys.
And then, the final one, which is
often ignored, the price of energy.
Before the dramatic drop over the past few weeks, the price of energy was up at
15 to 20 percent this year in terms of the oil price input. But, if you add to
the fallout from the emerging market selloff and the currency-negative impacts,
you will have prices on petrol in energy-intensive countries like India,
Indonesia, China where the prices are up somewhere between 50 and 100 percent.
Imagine how much of the purse that expensive energy takes away from these
developing economies in terms of the purchasing power.
So I think the full force of these Four Horsement
that drive the world economy is now going to slow economic growth dramatically
after this recent boost from the twin tailwinds of the tax cut and repatriation
of capital. So even the U.S. now seems to be swimming naked.
Listen interview with Steen
Jakobsen
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SOURCE:
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DEBATE:
Bear markets and steep
corrections reveal the bad actors...
“Only when
the tide goes out do you discover who’s been swimming naked.” – Warren Buffett
The recent market schmeissing has uncovered these
market Fugazzis. I have in the past (and in today’s opening
missive) hit these bad actors hard because of the damage they deliver. But,
like Warren Buffett, I prefer to criticize by category and not by the
individual. We should learn from this reveal in order to better navigate the
market’s noise going forward:
* Corporate
managements who never met an outlook
they didn’t like. In my more than four decades I have interviewed hundreds of
managements and observed, in the business media, thousands more.
* Business
media moderators who have no skin in
the game and are quick to criticize when an investment professional makes an
investor boner – reminding me of a wonderful (and oft repeated) quote by Mickey
Mantle, “I never knew the game of baseball was so easy until I entered the broadcasting
booth.”
* “Talking
heads”– guests who parade in the media –
and too often make smug observations and confident market forecasts.
* The
“special sauce” guys who have a
special formula to beat Mr. Market. The most venomous are the “unusual call
activity” crowd – a constant diet of which will end most up in the poor house.
Most have little skin in the game.
* “Long only” investors who rationalize poor performance in a steep
market decline to their “charter” and take credit for good performance in a
broad market advance. (They will reappear in the next up cycle – ignore
them and remember ‘what they have learned from history is that they haven’t
learned from history.’)
*
The hedge fund community that
is again, despite a sky-high fee structure, underperforming the S&P Index.
* Leveraged players who
dramatically underperform when the tide goes out and exhibit superior returns
when the tide comes in. (They mostly will be entirely wiped out and
typically will never reappear – as they have likely changed careers.)
* Market strategists who
parade in the business media, like self professed investment icons, when
the going is good – only to disappear at the end/close of every Bull Market
when the seas get rough. (They, too, will return in the next cycle but hide
your children and your portfolios from them.)
Bottom Line
“When
we ask for advice we are looking for an accomplice.” – Saul
Bellow
Continue reading at:
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While energy credits are
outperforming this year and have reverted to pre-2015 levels, the equities have
not kept pace... who's right?
See Chart:
SEE More chart at
SOURCE:
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"We are at $250 billion [in
tariffs] now; we can more than
double that" - VP Pence
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO
..Focus on neoliberal expansion via wars & danger of WW3
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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
RT
EN ESPAÑOL
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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal
conflicts that favor WW3
War Criminals in High Office Commemorate the
End of World War I By Prof
Michel Cho
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U.S. Soldiers Died for Nothing in WW I By Jacob G. Hornberger
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Decoding the Hypersonic Putin on a day of
Remembrance By Pepe Escobar
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United States Will Bring Assange to US in Chains By Ann Garrison
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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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