DEC
7 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
[[ To read full article.. go
to the source at the end ]]
"Debt is a drug. The banks have known this for quite some time and have
exploited the opiate of easy money to
leverage entire nations and cultures into servitude or
self-destruction..."
I believe that economic
crisis events are engineered deliberately by the financial elite in order to
create advantageous conditions for themselves.
To understand why, it is important to know the
root of their power.
1-
Without extreme debt conditions, economic downturns cannot be created (or
at least sustained for long periods of time). According to the amount of debt
weighing down a system, banking institutions can predict the outcomes of
certain actions and also influence certain end results. For example, if the Fed
was interested in conjuring a debt based bubble, a classic strategy would be to
set interest rates artificially low for far too long. Conversely, raising
interest rates into economic weakness is a strategy that can be employed in
order to collapse a bubble. This is what launched the Great Depression, it is
what ignited the crash of 2008, and it is what’s going on today.
2-
The massive debt burden
makes recovery difficult, if not impossible, and thus the system becomes
increasingly dependent on the banking elites to resolve the problem.
Debt is the fuel that keeps the
centralization machine running. I am not talking about standard lending, though
this can be a factor. What I'm talking about is debt created through policy;
debt that’s created in an instant through the use of subversive and arbitrary
measures, like central bank balance sheet initiatives or interest rates. And,
debt that’s created through collusion
between central banks, international banks,
ratings agencies, and government using the removal of regulations, or the
implementation of unfair regulatory standards.
3-
Debt is a drug. The
banks have known this for quite some time and have exploited the opiate of easy
money to leverage entire nations and cultures into servitude or
self-destruction. To illustrate this point, let’s look at the debt numbers
today.
The national debt is closing in on
$22 trillion, with over $1 trillion a year currently being added for the
American taxpayer.
Corporate
debt is at historic highs not seen since 2008, with S&P Global
reporting over $6.3
trillion in total debts and the largest companies holding only $2.1
trillion in cash as a hedge.
U.S. household
debt currently stands at around $13.3 trillion, which is $618 billion
higher than the last peak back in 2008, during the credit crisis.
U.S. credit
card debt surpassed $1 trillion for the first time in 2018, the
highest single year amount since 2007 (once again, we see that debt levels are
spiking beyond the lines crossed just before the crash of 2008).
4-
So how can this debt be
exploited to engineer an economic crisis?
Let’s start with
household and consumer debt.
Today,
both in the housing market and the auto market, a crash is indeed taking place
as the Fed raises interest rates and makes holding these loans ever more
expensive.
5-
But what about corporate debt? Let’s
use GE, GM and Ford as litmus tests.
GE is
currently in the red for over $115 billion. And this doesn’t include its pension
promises to employees, which amount to over $100 billion. Given that only
$71 billion has been earmarked to cover the payments, any rate hikes from the
Fed constitute a millstone on the necks of GE. The likely result will be
continued layoffs. Last December, GE announced 12,000 jobs to be cut through
2018, and it is likely cuts will continue into 2019.
GM, with
long term debt of $102 billion (as of September) and cash holdings of around
$35 billion, is now cutting over
14,000 jobs and shutting down multiple factories in the U.S. This is
due, in part, to a combination of interest rate hikes and tariffs. However, the
true point of fracture is because of the expansive debt that GM is responsible
for. Without such debt, neither rate hikes nor Trump’s tariffs would have as
intense an effect on these corporations.
Ford, not to
be outdone by GM, is set to announce up to 25,000 job cuts, though the bulk of
them may be implemented in Europe. Ford has called this report
by Morgan Stanley "premature", but we saw many similar
"non-denial-denials" of these kinds of info leaks during the crash of
2008, and most of them ended up being true. Ford saw its debt rating
downgraded by Moody’s earlier this year to one step above junk. With current
liabilities of around $100 billion and only $25 billion in cash holdings, Ford
is yet another company of the verge of crumbling due to huge liabilities it
cannot afford to pay more interest on.
We can see the stress that the Fed is able to place on corporations by
looking at their stock buyback expenditures over the past few years. Until recently, it was the Fed’s low interest rates,
overnight loans, and balance sheet purchases that allowed companies to buy back
their own stocks and thereby artificially prop up the markets. In fact, one
could argue that without stock buybacks, the bull rally that started in 2009
would have died out a long time ago and we would have returned to crash
conditions much sooner.
6. Well, this is exactly
what is happening today. Stock buybacks in the last half of 2018 are
dwindling as the Fed tightens policy and interest rates draw ever
closer to the designated "neutral rate" of inflation. All it
took as a measly 2% increase in interest to create a crisis, but with the level
of debt choking the system, this should not be surprising to anyone.
By lowering interest rates to near zero, what the Fed did was create a
culture of irresponsible risk, and I believe they did this knowingly. Even
Donald Trump has tied himself to the performance of the stock market and
embraced the debt addiction, arguing for the Fed to stop or reduce interest
rate hikes to keep the debt party going. Though, with Trump's White House
crawling with international banking agents and think-tank ghouls there might be
far more than meets the eye as Trump anchors himself to the performance of the
Dow.
The Fed is not going to stop. Why would they? They have created the perfect bubble. A bubble
that encompasses not only corporate debt, consumer debt, and stock markets, but
also bond markets and the U.S. dollar itself. If the goal is a move to
centralize power, then the banking elites have the perfect crisis weapon in
their hands, and they barely need to lift a finger (or raise rates) to trigger
the event.
As noted earlier, it is not only stock investors that are
dependent on Fed interest rates, but also the U.S. government, as
treasury debt becomes less desirable for foreign buyers. The
higher the potential interest barrier for the US, the higher the cost, and the
less faith foreign buyers have in our ability cover our liabilities while the
Fed is still tightening.
Both China and Japan have
been quietly reducing treasury holdings and purchases. Failing
bond auctions have been cited as a trigger for spikes in Treasury
yields since the beginning of 2018. Again, even U.S. debt and the dollar are
embroiled in the “everything bubble”.
Debt in itself is not necessarily just a tool
to gain more wealth; it is also a tool to change and mold societies through
financial leverage and disaster. To
understand who is creating any fiscal downturn, and to understand who benefits
from economic crisis, one
only needs to consider who controls the debt.
….
----
----
US
DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds
& corruption. Urge cambio
THE NEW RECESSION IS ON.. WHAT TO
DO?
Hugo
Adan Dec 7 2018
This is my answer to:
"... the top 10% may never
experience a recession that guts the bottom 90%, who depend on wages
rather than earnings from capital."
My quick answer:
YES we’re
starting the 2nd Global recession.. and this implosion has one center: the US and close NATO allies. We
won’t survive the current trade war and is impossible to stop the fall of USD..
The same FINANCIAL leaders of global neoliberalism are accepting that their
system is collapsing.
Reporters
said that main crypto currencies are on .. but been used only by billionaires to avoid US taxes .. Now small
crypto currencies are now going up and just for workers cooperatives..
Capital
and Labor use to go hand on hand to
sustain the bourgeois system
(capitalism)… NOT anymore.. The labor will create their own system as happens
with the Russian NEP in the last days of Lenin, or with TITO in Yugoslavia –the
first one- who officially mixed socialism with Capitalism via self coup-d-etat.
We –in
the US- got our 1st experience of mixing Labor-Capital with FDR, but we didn’t got the independent
political organization of the labor from the tentacles of big capital-predators.
It was not the fault of FDR.. it was the error of our labor not to create its own
political instruments for class liberation ..
The labor
in the US and at global scale won’t make the same mistake again.. The young socialists leaders who are
emerging now at global level.. are very aware of history (or getting on it)..
and class liberation will happen. This new recession will be the end of Capital
predators and the victory of the Labor worldwide.
“Workers
United will never be defeated” use to be said by the 1st
International leaders.. but
they were defeated .. until the Russian & China revolution sparked a new
way of liberation .. Bud they failed too when they start a pacific coexistence
with monster of Capitalism: the speculators.
We have
to expropriate them if they do not accept the New Deals set by labor leaders and if they insist in prohibiting workers to
have their own political instruments –new ideology included- for self-
liberation.
THE 2ND
RECESSION IS ON & THE 2ND WAVE OF NEW REVOLUTIONS IS ON TOO.
----
----
"... the most important and economically
significant aspects of the surveillance model in business is that Google and Facebook users are not the customers. The real
customers are the advertisers..."
----
----
"The United States took a long time to recover... But FDR escaped blame. Today we should
remember that it’s not just December 7,
1941, that should live in infamy, but Roosevelt’s reputation as well..."
----
----
"You can't build the
Empire and drain the Swamp at the same time. That's because the Swamp is
largely the fruit of Empire. And it's also the reason that the Donald is being rapidly undone..."
----
----
"But we are the good guys!" says
the Joint Chiefs Chairman.
----
----
"...Steamboat Geyser is erupting
at unprecedented rates, matching decades-old records for the amount of
scolding water spewed from the ground... continuing to be an enigma, one in
which sparks fears of a massive
supervolcano eruption."
----
----
US-W ISSUES (Geo Econ, Geo Pol &
global Wars)
Global depression is on…China, RU, Iran search for State
socialis+K-, D rest in limbo
War with China
Meng is facing 30 years for each of
her "multiple" fraud counts.
[[ How many US Corp will suffer the
same in China?.. is the less we can expect.. The other
is for China to nationalize the US Corp. They have no life en in the US… they
have immense chances with China network, if they pay taxes over there, not in
US. At the end Capital does not have 1 nation and China’ market-network has not
limits. The fact is that with neoliberal
globalization we create our empire.. and we are isolated now. But we are still
on it.. So, if we break the global system .. we will be the first who
suffer its effects. ]]
----
----
The New Cold War is more dangerous than the one the world
survived...
[[ That will be the fastest END of the US Empire.. to start with ]]
----
----
"Make no mistake, the mainstream left and state serving-media
voices are trying to gaslight an entire
generation into believing any candidate that wants peace with Russia may be a
foreign conspirator worthy of prison, shame, and family
persecution..."
----
----
SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO
..Focus on neoliberal expansion via wars & danger of WW3
RELATED 1
RELATED 2
----
----
----
----
----
----
----
----
----
----
----
This Peru FM will be fired soon. We protect sovereignty of
all L-AM count
----
----
----
----
----
----
----
----
----
----
----
----
----
----
RT SHOWS
----
ICYMI with Polly Boiko Yellow
vests are all the rage on the sidewalks of Paris, as Macron slams into reverse
----
----
----
----
----
----
NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes &
terrorist imperial chaos
REBELION
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
Debiera
apoyar Frente Indep y apoyar Mujer Socialista.
Eso
supone pedir perdón por apoyo a los Dems before
----
----
----
----
----
----
RT EN
ESPAÑOL
----
----
----
----
----
----
El Zoom Trump: ¿Un nuevo orden mundial?
----
----
INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal
conflicts that favor WW3
U.K. Assures Julian Assange Can Leave Embassy
Safely By Olivia Garrett
----
----
----
----
----
COUNTER PUNCH
Analysis on US Politics & Geopolitics
----
Jason Hirthler Laws
of the Jungle: The Free Market and Continuity of Change
----
----
Rob Urie Degrowth:
Toward a Green Revolution
----
Ron Jacobs Getting
Pushed Off the Capitalist Cliff
----
----
GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more
business-wars from US-NATO allies
----
Syria
Government Forces Campaign against Al Qaeda and ISIS Militants, Evacuations via
“Humanitarian Corridors” By South Front
----
----
PRESS TV
Resume of Global News described by Iranian observers..
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
===
No hay comentarios:
Publicar un comentario