ND MAR 21
19 SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social +
Capit-compet in Eco
ZERO HEDGE ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented
with graphics
We continue describing the neoliberal collapse in US & the World
After The Fed folded in the most
aggressively dovish manner ever, the dollar and stocks rebounded heroically
today - as if nothing had happened - while Treasury yields shrugged off the
plunge protection team's plans and reflected Powell's clearly dismal economic
expectations...
See Chart:
We just have a feeling that this
won't end well...
NO
queda otra que recoger la inmensa carpa y cerrar el circo. Lo hizo el UK y se
salvo
Overnight saw China stocks shrug
off US weakness...
See Chart:
And here is the catalyst that
ignited today's momentum...the same analyst who upgraded AAPL today to 260
(with it trading at 220) only to see the stock plunge to 140...
See Chart:
Big short-squeeze today...
See Chart:
“Most shorter” stocks
But Semi stocks (SOX Index) soared
to a new record high, seemingly knowing something that South Korean exports
don't...
See Chart:
Financials kept falling...
See Chart:
Credit markets did rally today but
not very impressively...
See Chart:
30Y Yields refused to play along
with the equity market buying panic...
See Chart:
The Dollar soared higher after
China closed, retracing all the post-Powell losses...
See Chart:
WTI oscillated around $60 all day...
See Chart:
Finally, we offer the following from reader KW: A pre-market Kudlow conversation
Larry : You guys need to upgrade something big to
turn the negative futures
Wall Street : Larry , what do you have in mind ?
Larry : Upgrade BA.
Wall Street : Larry ! Give us a stock that won’t
fall out of the sky ! We can’t manipulate that .
Larry : okay , AAPL
Wall Street : Good one !
Larry : gotta run , I’m on PPT duty today .
Steven has off .
Wall Street : shit Larry ! Last time you bought
too fast at open ?
Larry : get ready !
And that might have been how this
happens...
See Chart:
Apple added over $36 billion market cap
today, topping its 200DMA for the first time since Nov 19th.
….
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Let’s be very clear what yesterday’s full frontal
capitulation by the Fed means: It’s
coming.
To visualize the extent of the capitulation
look where the Fed’s “normalization” process will now end in September:
See Chart:
Compare to now:
Yield curves have already
flattened significantly and as history shows an inversion can happen suddenly
following such periods of consolidation and a recession follows shortly. And
what does the 30 year vs 5 year yield curve suggesting here in context of
markets and cyclical low unemployment?
See Chart:
Fedex
this week suggested the slowdown is not over. The Fed yesterday suggested the
same. Yesterday’s drop in financials following the Fed announcement
suggested someone is paying attention. Will the rest of
the market? The next few weeks will provide a lot more clarity as Q1
earnings and outlook adjustments come in.
..
For the latest
public analysis please visit NorthmanTrader
….
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"You
might think the argument is ridiculous. After all, do we really
want to become Japan? But in important ways, the MMT crowd has the upper hand in the debate."
Yesterday I discussed modern monetary theory (MMT) and how it’s become
very popular in Democratic circles.
That’s because it allows
for much greater government spending without having to raise everyone’s taxes.
And everyday citizens could get behind it because it promises to fund lots of
programs without seeing their taxes raised.
What’s not to like?
If MMT were just a fringe idea with a few fringe followers, I wouldn’t
waste my time or your time on it. But it’s coming your way, so it is important to
understand it.
If you missed yesterday’s reckoning, go here for a refresher.
The people who are thinking about MMT, who understand it at least in
some superficial way, are the people who are driving the policy debate or
running for president.
Many mainstream economists and
money managers have attacked MMT, including Fed Chairman Jay Powell, Larry
Summers, Paul Krugman, Kenneth Rogoff, Larry Fink, Jeff Gundlach, Jamie Dimon
and Ray Dalio.
But
much of their criticism is unjustified (see below for more). I’m an opponent of
MMT — but for different reasons. As far as I know, I’m the only analyst who’s
raised the objections I list below.
Today, I’m going to
show you what I believe to be the real problem with MMT.
Again, it’s easy to see why so many politicians on the Democratic side
would be such big supporters of MMT.
Some or all of them have come out in support of the following
programs:
Free college tuition, student loan forgiveness, Medicare for all, free
child care, universal basic income (UBI) and a Green New Deal. Some support
them all.
Needless to say, that’s going to cost a lot of
money. Just consider the Green New Deal alone.
Some analysts have estimated that the Green New Deal would cost around $97 trillion. That’s trillion, not billion — or
nearly five times annual U.S. GDP.
When critics hear that a Green New Deal could potentially cost
something like $97 trillion, or proposals for Medicare for all, free tuition,
free child care or guaranteed basic income, they say, “That
all sounds nice, but we just can’t afford it.”
Even the Keynesians like those I
mentioned earlier, who generally favor large amounts of government spending to
stimulate the economy, have come out against MMT…. Besides that claim that we
can’t afford it, even the Keynesians say MMT would be
highly inflationary.
But the MMT advocates have an
answer to these objections. They’re not the least bit
intimidated by critics who say we can’t afford it.
They say,
“Yes, we can, and Modern Monetary Theory proves it. Just print the money and monetize
the debt. Japanese debt is 2.5 times the United States’ debt, and China’s is
higher than ours.”
They haven’t collapsed, so we can take on far more debt than we have
today. Furthermore, QE
did not create much inflation. In fact, the
Fed would like to see more inflation than it has. It still can’t produce
a sustained 2% inflation rate after all these years.
You might think
the argument is ridiculous. After all, do we really want to become Japan?
But in
important ways, the MMT crowd has the upper hand in the debate.
….
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"That
this may be the time for helicopter money drops, a temporary fiscal stimulus
funded by a permanent increase in the stock of central bank money."
Assuming the current leverage of the US and assuming 2% in nominal
growth, the short-run
equilibrium real interest rate is just about 0.57%, something which the Fed now
appears to have discovered on its own.
See Table:
Of course, none of this is news either to
us, or to our readers - although it certainly appears to be news to Fed Chair
Powell who less than 6 months ago stated that there is a "long way"
to the neutral rate, when in reality the real Fed Funds
rate was already on top of it, as the Fed found out the very hard way in
November and December.
See Chart:
Forward Real Yields for US and
EUR
As Ruskin concluded, "The natural constraints are inflation. The question is,
what point do you hit inflation?" Well, when it comes to
traditional risk assets, we already have runaway inflation. When it comes to
conventional inflation as measured by the flawed CPI or PCE baskets, by the time
it does register, it will be too late to reverse it,
and the consequence will be the end of the monetary system as we know it.
….
SOURCE:
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The only
thing that even comes close to this sharp of a deceleration was circa-2007.
Very few regions escaped a significant
deceleration with some prominent regions like San Jose and San Francisco even
getting crushed on a year-over-year absolute basis.
The only thing that even comes close to this sharp of deceleration was
circa-2007.
It was data like these I have been tracking that led to my call last
year that there was no way the Fed could continue to hike in 2019.
For certain housing and related names, this is a killer unless prices
re-accelerate quickly.
See Table
https://www.zerohedge.com/s3/files/inline-images/House-Price-Deceleration-Feb-2018.jpg?itok=IGorIP80
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete;
it’s full of frauds & corruption. Urge cambio
The crisis we're facing now is not a result of some built-in demographic
phenomenon. It is, rather, a
problem with government pensions, entitlements, and transfers from productive
workers to non-productive retirees...
January's
report on fertility from the CDC set off a new wave of speculation in the media
about the alleged "fertility crisis."
For continue
reading get these subtitles:
Fewer
People Can Mean More Resources per Person
Economic Growth
Comes from Productivity Growth
A
Government-Created Crisis
This is where
the problem gets big.
The
results then would be a true crisis.
Conclusion
So, we find that a declining population
is not necessarily an economic problem — but it is a big political problem. The
crisis we're facing now is not a result of some built-in demographic
phenomenon. It is, rather, a problem with government pensions, entitlements,
and transfers from productive workers to non-productive retirees.
….
SOURCE: https://www.zerohedge.com/news/2019-03-21/americas-fertility-crisis-government-caused-crisis
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In reality, hardly any of
this spending is "defense". It's primarily
"offense"...We need to make enemies to support perpetual war.
See the list:
Top Ten Defense Expending Recipients
If this funding is examined as a component of the states’ economies, a
slightly different picture emerges. On average, defense spending accounted for
2.3 percent of all states’ GDP in FY 2017, ranging from 0.5 percent in Oregon
to 8.9 percent in Virginia. The defense spending of $1.3 billion in Oregon, for
example, was a small portion of its $240.7 billion GDP, while Virginia’s $46.2
billion in defense spending accounted for a relatively larger segment of its
$517.6 billion GDP.
Top Defense Contractors
See List and Charts:
Top expending Locations.
See Maps:
Vote Buying
This is how and why people support perpetual war.
Anyone who does not support perpetual war is labeled "weak on
defense". And of course, no Congressmen ever turn down projects in their
own district.
Finally, much defense spending is hidden. Homeland security costs are
not considered "defense".
Perpetual War
In reality, hardly any of this spending is
"defense". It's primarily "offense".
We need to make enemies to support perpetual war.
….
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WELCOME GUN OWNERS! .. AMERICA IS GETTING FOR
READY FOR SOCIALIST REV!
Sanctuary
cities aren’t just for immigrants anymore...
…
[[ YES they are for
immigrants too.. if they buy guns ]]
States that respect the Second Amendment:
Colorado
Illinois
Maryland
Nevada
New Mexico
New York
North Carolina
Oregon
Washington
There are even 3 sanctuary STATES.
Alaska
Idaho
Kansas
The second amendment to the constitution of the
United States reserves to the people, individually, the right to keep and bear
arms as that right was understood at the time that Kansas was admitted to
statehood in 1861, and the guaranty of that right is a matter of contract
between the state and people of Kansas and the United States as of the time
that the compact with the United States was agreed upon and adopted by Kansas
in 1859 and the United States in 1861. (source)
….
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...being hard-working and
wealthy won't be enough to save nations from coming apart as it seams.
….
[[ Those States that
adopt cooperatives and Socialist policies will proper soon]]
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Monetary policy
is dead...
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US-WORLD ISSUES (Geo
Econ, Geo Pol & global Wars)
Global depression is on…China, RU, Iran search for State socialis+K-,
D rest in limbo
"The easiest and safest way would be to deal
with it after the fact via phone calls and/or fines. Nobody wants an incident out at sea involving
2 million barrels..."
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Over
the past seventeen years, the forces at the disposal of U.S. Special Operations
Command (SOCOM) have grown exponentially, more than doubling in size in
numbers, with a budget that has also expanded four fold in that same period of
time.
See
Map
….
SOURCE
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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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SHOWS
RT
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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist
imperial chaos
REBELION
Mun M Hudson: “El Imperio usa el dólar como instrumen de
dominación”
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ALAI ORG
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RT EN ESPAÑOL
- Ven: Detienen agente Guaidó por supuesto nexo con "una célula terrorista"
- Correa sobre Moreno: "Están ocultando casos de corrupción muy graves"
- Detienen al expresidente de Brasil Michel Temer
- La UE establece dos posibles fechas límite para el Brexit
- US desarrolla misil antirradar para destruir defensas aéreas enemigas
- Bolton: El arresto del asesor de Guaidó "no quedará sin respuesta"
- USA advierte a la OTAN de la amenaza que representa China
- Keiser Report "En US hay una especie de guerra civil a nivel político"
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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts
that favor WW3
-N Z Mosque Massacre:
White Supremacy and Western Wars By
James Petras
- Trump
Threatens to Unleash Paramilit Violen in US
By Sasha Abramsky
- Chelsea Manning and
the New Inquisition By Chris Hedges
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COUNTER PUNCH
Analysis on US Politics & Geopolitics
Renee Parsons The
Supreme Court and Dual Citizenship
Eric Draitser The
Danger of Red-Brown “Anti-Imperialism”
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars
from US-NATO allies
- For
Whom the Bell Tolls? Capital and Labor and the Global Financial Crisis By Prof. James Petras and Prof. Henry
Veltmeyer
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DEMOCRACY NOW
Amy Goodman’ team
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PRESS TV
Resume of Global News described by Iranian observers..
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