WE ARE ON EDGE OF ECONOMIC
COLLAPSE
Hugo Adan March 29 2019
The Title is the conclusion I got after
reading 2 articles:
1.
By Tyler Durden
Brace for
more fireworks in the repo market.
See Chart:
https://www.zerohedge.com/s3/files/inline-images/march%20quarter%20end%20GC.jpg?itok=u3YzpZZ2
THE warning of Tyler Durden in 1,
reads: “keep a
close eye on repo GC tomorrow “ :
IF the financial system liquidity shortage has
gotten worse since Dec 31, and it likely has as the Fed's balance sheet
has shrunk by over $100 billion since then, THEN
EXPECT FIREWORKS. Just how big those
fireworks will be will indicate how bad the overall liquidity shortage in the
system is, which provides a critical glimpse into the overall systemic weakness
that exists on US bank balance sheets if one eliminates the roughly $1.5
trillion in Fed-created excess reserves.
And, by same author:
2.
In the other article Tyler Durden describe a nasty game
between bankers & the FED
He concludes this way:
Banks continue to be the beneficiary of the Fed's rate hikes, which
allows them to capture the spread between what they charge on loans and what
they give out on deposits, also known as the net
interest margin. Deposits at banks like JPMorgan continue to rise, despite
the low rates. That said, after the latest curve
inversion, it is generally expected that bank interest income is about to take
a major hit.
Thasunda Duckett, who leads consumer banking
at JPMorgan, said:
“The incremental deposits we acquired in this time
alone would be enough to create the seventh largest U.S. bank. We’ve been
successful because we’ve won at both acquiring new relationships and satisfying
existing ones."
Ironically, this perhaps best indicates that despite Americans' ongoing
complaints about low interest rates, when rates do go up, few savers actually
take advantage. And now, that more are finally starting
to take advantage of better deposit conditions the Fed is preparing
to start cutting rates again.
My opinion:
WHAT A GAME.. in our false economy:
Now Interest rate is determining the
amount of savings to growth the
economy. Just what L von Mises said:
“Capital goods come into existence by saving. A part of the goods produced is
withheld from immediate consumption and used for processes the fruits of which
will only mature in a latter day” [[ when? Never, of course]].
So, nothing ironical in this game.
The fed now will return to the
Keynesian Economics where spending drives Econom growth. Here we have four actors: A- The consumer who will spend all his money in stores. IF s/he don’t
like this product the next day, the waste will
be donated to the poor in the world and they will feel compassion &
solidarity in their mind.. a game just welcome and
clapped by Corp media. But, is/he are just giving the crams of the table
not to cockroaches, not to the garbage bag but to the poor in VEN whose oil is
been blockaded worldwide.
B- The Govt expending will go back to the non-sense
process of creating more weapons & wars abroad while the Corp press will
continue hiding the damage to our soldiers in non-sense wars- abroad. The nation
demand that this spending should go to the best education and health for all.
C- The productive
investor will be again downplayed and obliged to surrender to US big
transnational monopolies.. if don’t wanted, they
will be taxed while the big ones exonerated. Middle investor are been forced to get
out of our country.. some of them are already investing
in China or elsewhere.
D- The NX, or
import-export balance .. the base for the power of USD.. is negative for
US. We tried to force deals by using nuke-war threats.. and this blackmail
doesn’t work any-longer. We forced other nations to create their own ballistic
and nuke power and that is a cul-d-sac about to be broken.. there are huge
chances of total world destruction. The survival of WW3 -if any- will retaliate
against all Americans in the world. Their companies and wealth will be
expropriated and vandalized everywhere.
In
Short: The five columns of US economy, including Keynesian
& Mises economics are condemned to fail ( Interest rate from Mises, followed
by 4 of Keynesian Econmics: C=Consumer
spending + G= Govt expending +I=productive Invest + NX =import-export balance).. all of them don’t work anymore.. WW3 is the only
choice for neoliberal expansion ant that will accelerate the collapse and
decomposition of this system
We have to re-think about post-neoliberal agenda.. and we wanted or not democratic socialism –as balance between capital and labor- is the only
choice we have for our future. We have to re-take the
unfinished plan of FDR : mixing both economics with a new set of NEW DEAL. But without
making his mistake: left alive the political-judicial
power of the by-polar system= Dems & Reps. We have to take them out
of the political game.. the Dems are already in the dump-trush of politics.
They both (dems & Reps) are already out
of the Economic game: the Keynesian-Mises approach
doesn’t work any longer. They have not program to offer, But they still have
bureaucratic political power .. more and more
people are abandonig both parties.
The Reps are expected to win with Trump. They are offering the best health system for all and
we know the ties of the nasty pharma conglomerate with Reps. The money need for new health system depend on
dismantling big Corp (Mili-Indust-Complex) profiting from weapon-manufacture
and wars abroad. Trump won’t touch them, he will
prefer to put the whole nation at risk of nuke war. A big Mov for peace must be
organized asap. Then he will be impeached (reasons
abound).
The other way is depowering his rule with massive ABSTENTION and
then continue the fight to delegitimize his rule via REFERENDUMS
across the nation..
With him re-elected either
a REV from top-down or a Rev bottom up
will follow, that is for sure. He has not other choice
than legitimize the 3rd option .. with socialism as third one to
create a balance in power..
IF
he is unable to do so, the nation will be
explosively divided after elections. His hands full of
blood will create another scenario: NATION vs.
FASCISM. Then he will be forced to resign.
That is what comes with him in
power –if re-elected- . Meanwhile people is getting ready for REV..either top down or bottom up.. but REVOLUTION.
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