viernes, 16 de noviembre de 2018

Nov 16 18 SIT EC y POL



Nov 16 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


China had an exuberant week (as the rest of the world limped lower) led by Shenzhen and CHINEXT (the small cap/tech indices)...
See Chart:


Nvidia made the headlines as the crypto-collapse hit demand and sent the stock from being up 50% YTD to down 15% YTD in a few weeks...
See Chart:


Credit markets crashed notably this week (impacted by GE's collapse)... with IG spreads blowing out 10bps - the biggest weekly spread widening since Feb 2016...
See Chart:


Signaling more pain to come for stocks..
See Chart:


Treasuries were well bid all week - especially in the belly...
See Chart:


Notably UST 5s 30s spread…the curve steepened notably this week...
See Chart:


BUT  10Y Yields broke through the 50DMA...
See Chart:


and 5Y yields plunge 15bps on the week - the biggest drop since April 2017 (after worst week since September 2017) - blowing back below 3.00% to close at 2-month low yields...
See Chart:


And before we leave the rates markets, it is notable that the market is rapidly losing faith in The Fed - 2019 rate-hike expectations (red) have collapsed, and 2020 and 2021 are now expected flat or a modest rate cut...
See Chart:


The Dollar Index broke below a key level this week - 97...
See Chart:


Just as credit is flashing red, so are commodity markets - most notably, Lumber...
See Chart:


Finally and, just in case you were banking on buybacks bringing your bullish portfolio back to life, consider this...
See Chart:

$800BN spent on buybacks year-to-date, and the index is... unchanged!
SOURCE: 
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DOES ANY OF THIS MAKE SENSE?


Does any of this make sense? No. But it's so darn profitable to the oligarchy, it's difficult to escape debt-serfdom and tax-donkey servitude.

Lets’ check the points that Hugh Smith make here (go to Source below for explanations)

1-Debt has this peculiar characteristic: it has to be paid back with interest
2- One might reckon that people would be cautious about paying two or three times more for something by using debt rather than cash. 
3- The higher education debt scam is classic TINA: there is no alternative to borrowing a small fortune to buy a (mostly worthless) diploma, unless you favor living in a cardboard box the rest of your life.  ..  TINA drives the trillion-dollar deficits of the US government as well.
4- Tragically, for a lot of low-income working poor households, there really isn't any alternative to high-interest debt.
5- Equally tragically, fiscal prudence, i.e. the avoidance of debt and the exultation of saving, is not taught in our educational system. 
6- What's not taught in our educational system--perhaps because it would undermine Consumption Funded by Debt?) --is opportunity cost.  .. This opportunity cost separates those with decent earnings and little productive wealth and those who earned the same income but acquired real wealth.
7- Pre-easy-credit, people couldn't borrow money for the simple reason they were poor credit risks. 
8- With public debt, the collateral is the tax-donkey's obligation to pay taxes, and with private-sector debt, the borrower's future income.
9- The debtor who has no collateral other than his/her future income has a trick card to play: bankruptcy. 

Does any of this make sense? No. But it's so darn profitable to the oligarchy, it's difficult to escape debt-serfdom and tax-donkey servitude.

Remember: every dollar of debt is an expense to the borrower but a source of income to the lender. Keep that in mind as you study these charts of student loan debt and federal debt.

Chart 1


Chart 2

Future income devoted to paying interest is money that can't be invested productively. On a national scale, that guarantees falling productivity, soaring wealth inequality and eventually, widespread impoverishment.
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One looming threat to President Trump's booming economy besides tariffs, is the... 

There is a reason to believe that consumer spending is starting to stall from the previous two quarters (Q3 and Q2) as consumer debt servicing payments increase.  ..
For Q4 2018, the Refinitiv Same-Store Sales Index is expected to print around 3.0%, well below the 4.9% from Q2, a sign that the consumer might have topped out before the holiday rush

President Trump's deepening trade war with China has been a significant concern for retailers, and are increasingly being mentioned on earnings calls. Retailers started reporting Q3 2018 earnings last month, and more than 25 of them have warned about tariffs.

Refinitiv shows that retailers are much more bearish this year compared to last year for Q4, as some have mentioned consumer weakness and trade wars could produce a weak holiday season.

To date, there are nine negative retail EPS preannouncements and only one positive
See Chart:
Exhibit 1: The Refinitiv Same Store Sales Index: 2017 -2018


Exhibit 2: The Refinitiv Same Store Sales Sector Indices:  2016 -2018
See Chart:


Everything looked great in the report except furniture and home furnishings -0.3%, and food service and retail places -0.2%. 
See Graph:


Finally, the YoY Control Group Retail Sales printed 4.5% - the weakest since April, and perhaps gives some credibility to Refinitiv's claim that retailers could expect a weak holiday season.
See Chart:

The data above shows that consumers might not be able to save the economy, expected to enter a slowdown in early 2019.  
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[[ Mas claro que el agua: NO HAY FORMA de que el Imperio se levante de esta debacle.. ni el resto de la comunidad financiera lo quiere así.. Nos quedamos solos .. El recurso del WW3 solo empeoraría las cosas: 1ro porque él UN está listo a evitarlo en una Asamblea General y 2do, porque si es soboteada.. y si el US ataca, la respuesta RU-China y aliados seria automática y todos sabemos que en esta última guerra quien pierde es la humanidad entera  ]]

Trump told the world he doesn't need its generosity to either fund the US deficit or prop up stocks, and according to recent data, the world has taken up Trump on his dare, and has been actively liquidating US securities.

Earlier this week, DoubleLine's Jeff Gundlach warned that as a result of rising hedging costs, US Treasury bonds have become increasingly unattractive to foreign buyers. This can be seen in the chart below which shows the yield on the 10Y US TSY un-hedged, and also hedged into Yen and Euros. In the latter two cases, the yield went from over 3%, to negative as a result of the gaping rate differential between the Fed and ECB or BOJ.

See Chart:                                                                    

This is also why, as the next chart from Gundlach showed, foreign holdings of US Treasurys have been declining in recent years, and dropped to just over 36% as a percentage of total holdings, the lowest in over a decade, as domestic holdings of US paper have risen to just shy of 50%, and near all time highs.
See Chart:


Which brings us to today's latest monthly TIC data which showed that, as Gundlach would expect, the holdings of the two largest foreign US creditors, China and Japan, declined to multi year low.

As shown in the chart below, China’s holdings of U.S. Treasuries fell to the lowest level since mid-2017 as the world’s second-largest economy sold US reserves to stabilize the yuan which has been depreciating in recent months due to the ongoing trade war.

See Chart:


Chinese holdings of U.S. Treasuries declined for a fourth month to $1.151 trillion in September, from $1.165 trillion in August, a $14 billion decline. Despite the drop, China remained the biggest foreign creditor to the U.S., followed by Japan whose Treasury holdings also dropped by $2 billion to $1.028 trillion, the lowest since 2011.

See Chart:


Going down the list, while Russia's Treasury liquidation was well documented in June and July, two new aggressive sellers of US paper emerged in the latest data: France, whose Treasury holdings declined from $118.4BN to $97.7BN...
See Chart:

Finally, away from US Treasuries, and looking at total flows, foreigners added a total of $7.5BN in long-term US securities, led by nearly $30BN in Agencies..
What was perhaps more notable is that in September, foreigners sold another $16.9BN in US stocks, the 5th consecutive month of selling, matching a record long stretch of foreign sales of US equities, and one during which official and private foreign investors sold a total of $102 billion over the past 5 months, a record high.
See Chart:

The bottom line: Trump told the world he doesn't need its generosity to either fund the US deficit or prop up stocks, and according to recent data, the world has taken up Trump on his dare, and has been actively liquidating US securities.
Source: TIC
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

Hillary is putting in trouble the Sec System that protect her.. from time to time
"who decided to create the system?"
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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

In one single Chart:
Trump told the world he doesn't need its generosity to either fund the US deficit or prop up stocks, and according to recent data, the world has taken up Trump on his dare, and has been actively liquidating US securities.
See Chart:
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“Treat their incessant optimism, in the future, with skepticism. Watch what they do not what they say.”

LO DEJAMOS PARA EL SABADO
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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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[[ Those who plan to kill him are against world system’ freedoms & HR.  How many US embassies are going to be burned if happens?.. Nobody Knows. ]]
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[[  This is the other place in which WW3 could star ]]
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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos


REBELION

Chile     Pueblo mapuche Repudia asesinato de Camilo Catrillanca ODHA
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ALC        Salvador: De refugiados de guerra a comunidad campesina  E LL
                Guatem  Libertad para el defensor ambientalista Bernardo Caal
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Ecua       El cimarronismo político   Juan Montaño
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ECOL      Raf Custers:  "Las multinacionales buscan hacerse invisibles" 
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OPIN     Para qué filosofía en tiempos de fascismo?  Antoni Aguiló
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Europ    La desintegración de Yugoslavia (1991-2001)  Jordi Córdoba
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Cuba      Una mirada a La Habana de antes y de ahora  Wilkie Delgado
                Otra vez: sindicatos y huelgas en Cuba  Alexandra Torres
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ALAI NET

                La Jungla y la Ley del mismo nombre  Aldo Torres Baeza
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                Colombia oprimía y explotaba a Panamá? Olmedo Beluche  
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                Destrucción de ARG y BRA: regalo a Trump  Emir Sader
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RT EN ESPAÑOL

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Peso      El kilogramo cambia para siempre .. lo reemplaza la Libra?
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                Solo los nazis sentenciaban en ausencia a sus victimas políticas
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                En este teatro del desencanto ambos se necesitan como uña y mugre
                El crudo no cuenta en este lio: es la compra-venta de armas lo que los une
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                Si el Penta se auto-disuelve o es disuelto no existirán esas “amenazas” inventadas
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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts that favor WW3



“If wars can be started by Lies. Peace can be started by truth” Julian Assange
La verdad jamás podrá ser encarcelada ni asesinada. Quien lo intente creara muchos Wikileaks
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Yo creo que le debieron dar también el Premio Novel de la Paz en honor a sus gen……s
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COUNTER PUNCH
Analysis on US Politics & Geopolitics


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Leiste los NEW DEALS de FDR.. El creo una Rev que duro casi 50 años (1935-85). Laugh excused
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO  allies


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DEMOCRACY NOW
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Econ


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PRESS TV
Resume of Global News described by Iranian observers..


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