ND APR 10 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
Current US Econ Situation: Remain Calm! All is
well!
As US
economic data plunges to almost two year lows, the message from The Fed's
Minutes was clear.
While
The Dow trod water today (not helped by BA and HD), Small Caps soared...
See Chart:
Today's
rebound was brought to you by yet another short-squeeze, erasing all the
short's gains on the week...
See Chart:
“Most
Shorter” Stocks
Today
was the biggest short-squeeze since Feb 27th.
Bank
stocks bounced as Dems led the Congressional circus...
See Chart:
Treasury
yields were notably lower on the day (3bps across the curve), despite equity
gains...
See Chart:
With
10Y back well below 2.50%...
See Chart:
The
dollar index popped briefly after the Fed Minutes, but faded back to the day's
lows as the afternoon rolled on for the 3rd down day in a row...
See Chart:
WTI
rebounded as a big gasoline draw trumped a big crude build...
See Chart:
Finally,
US Macro data plunged to its weakest since July 2017 and US earnings
expectations remain dismally weak as stocks reach back towards record highs...
See Chart:
USA,
USA, USA... is the number 1 worst economic data of the majors...
See Chart:
….
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"not dovish
enough"...
See Chart:
…
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Markets are supposed to be efficient...
Markets failed
to be efficient at the time of the dot.com bubble. And, it appears, they are back at the same game:
See Chart:
% of
IPOS with Negative earning
As the chart above shows, share of IPOs
issued at negative earnings (companies losing money) is now at the levels last
seen during the height of the dot.com bubble.
What can
possibly go wrong?
* * *
Gurdgiev's
view on the future of economic development is outlined briefly in the TEDx talk
I gave on Human
Capital and the Age of Change.
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"The first thing you have to do is make up
what you lost. And it takes years. And
then you have to make up what you didn’t earn on what you didn’t have. It’s a
pretty steep climb."
Municipalities, states and pension
managers the nation over have been - in ponzi like fashion - consistently
trying to bet on the stock market to help solve their pension liability woes.
"Don't worry, stocks will go up enough!" and "Don't worry, we
can take on debt to solve the problem as an investment carry trade!" have
been two popular lines of recent thinking.
For instance, Chicago recently
proposed trying to raise billions in debt to
help shore up its pension liabilities, ultimately betting that the market would
provide returns in excess of what servicing its debt will require. But
even in the midst of a bull market over the last decade, investment gains
simply haven’t been enough to offset pension liabilities. Maine is a great example. Its public pension fund earned double-digit returns in six of the past
nine years but it is still $2.9 billion short of what it needs to afford all
future benefits, according to the Wall
Street Journal.
This leads retirees, like Daniel
Tourtelotte, to ask a simple question: "If the market is doing better, where’s the money?"
Assets in pensions traditionally rose
quicker than liabilities in the five decades starting in the 1950s because the
government was expanding and because the number of retirees was smaller. In the 80s and 90s, double digit stock market
returns convinced governments that they could afford benefit increases. But
shortly thereafter, their assets begin to fall in the aftermath of the
dot com bubble, which was shortly followed by the
2008 financial crisis.
See Chart:
Ten-years return on core
pensions fund investments
Sandy Matheson, executive director of the
Maine Public Employees Retirement System said: “The first thing you have
to do is make up what you lost. And it takes years. And
then you have to make up what you didn’t earn on what you didn’t have. It’s a
pretty steep climb.”
See Chart:
Liabilities and assets for
major US Public Pensions
Cities and states then set out to
increase their yearly contributions to public pension funds to try and make up
for their investment losses. But some simply can’t afford it, as lower tax
revenue and increased demand for government services after 2008 resulted in
budget crunches. New Jersey, for instance, made less than 15% of its
recommended pension payments from 2009 to 2012. Now it has only a little more
than 33% of the cash it needs to pay future benefits.
New Jersey State Treasurer Elizabeth
Maher Muoio said the state is currently: "...on
the long road to addressing our unfunded liability after years of
neglect."
See Chart:
Continue reading & see the last
chart:
While some funds have benefited from the
ten year long bull market, many are still lowering the predictions of what they
can earn in the future. And there doesn’t seem to be
any relief on the horizon.
See Chart:
Average In vestment return
assumption fo major public plans
The state of Maine’s pension fund, which
in the 1980s assumed a long-term investment return of 10%, now assumes a rate
of 6.75%. If that were just 1% higher, the
shortfall of $2.9 billion would drop by more than half to $1.1 billion.
Still, assuming a "guaranteed" 6.75% return per year, for no
reason at all, is certainly optimistic.
The decision to lower the rate was based
on discussions with the fund's actuary and investment consultant as a
result of trying to keep costs predictable. "There’s
also an element of better safe than sorry," the system's executive
director said.
Is it any wonder that central banks
continue to base monetary policy on the stock market, knowing that if these
annual benchmarks aren't hit, pressure on state and local governments will
continue? Yet again, the Fed is trying to solve a problem that it created, by
simply creating more problems. And it's all tied in ponzi like fashion to how the stock market performs.
It makes you wonder who the perpetual line of market dip buyers really are...
….
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"Our incentive
structures are now so distorted I don’t see any way out. A much bigger crisis is coming and
it’s going to hurt. You can either deny
it or prepare for it. I know which I’m doing..."
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"The
price was a bit inflated as there was a lot of excitement and even hubris
around this issue and I would imagine that some of the buyers may have flipped
it in the market today."
While the bonds did rise modestly in
early trading, Aramco’s longest-dated tranche, the $3 billion bond due in 2049,
eventually faded and was last trading at 99.3 cents on
the dollar, just barely above the break price of 98.553.
See Chart:
….
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete;
it’s full of frauds & corruption. Urge cambio
Alternative
title: "FOMC Minutes show market is now in charge"
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Misleading tactics are often used as a tool for
those that need tojustify something
that makes little to no sense and violates moral code...
See Graphic:
U.S. government and the Fed are engaged
in misreading the optics of a series of measures in the economy to justify
their actions as evidenced by the following:
- Fed policy is influenced by the constituents of the Central Bank which includes the federal government, major global banking institutions, and the wealthiest 1%
- U.S. interest rates, the global benchmark for the price of money, are manipulated by Fed policy
- Stock market valuations are heavily influenced by manipulated interest rates and currencies
- Stock market prices are manipulated higher by share buybacks facilitated by low-interest rates
- The federal government, through advocacy of the Securities Exchange Commission’s (SEC) share buyback Rule 10b-18, endorses stock price manipulation policies
“We tend to fight the next war in the same way we fought the last one. We are prisoners of our own experience. It was a kind of
oversimplification of the problem combined with our overconfidence that caused
us, I think, to be arrogant. And it’s very, very difficult to dispel ignorance
if you retain arrogance.” – Lieutenant General Sam Wilson, Army
Federal Reserve actions and the Vietnam
War are worlds apart, but the thinking in the mind of the bureaucrat is very
similar. Misleading tactics are often used as a tool
for those that need to justify
something that makes little to no sense and violates moral code.
….
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Really?
One woman "was separated from her
breastfeeding baby daughter, who was less than two months
old"
====
"Bash a banker day" has finally
arrived on Capitol Hill.
====
...RACIST?
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It
would be long overdue...
====
...pay
attention to when the 'outrage'
of the onlookers begins...
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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
"There
are two kinds of people who argue that the dollar cannot be dethroned: those
with an agenda who
seek to keep the masses oblivious to
the threat, and the useful
idiots who have attached their egos to fiat like it is some kind of national flag."
====
Émile
Coué was a French psychologist and pharmacist who introduced a popular method
of psychotherapy and self-improvement based on optimistic autosuggestion, known
as La Méthode Coué (The Coué Method).
====
They
tell us that we are “free”, but it
is just a lie.
====
It
last held the title for two months beginning in April 2015...
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It
looks like the EU and UK split the difference between a short extension and a
long one.
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After
a nearly two year hiatus, North Korea may soon be launching test nukes across
the Pacific again, much to the chagrin of Japan which tends to be right below
the flight path, and this time Kim Jong Un may have the backing of both Xi
and Putin.
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
-‘We
Are Not Occupiers’: US Top Envoy to Iraq Warns Militias Against Collaborating
With IRGC: Islamic
Revolution Guards Corps
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NOTICIAS IN SPANISH
Lat Am search f alternatives to
neo-fascist regimes & terrorist imperial chaos
REBELION
USA INAGUANTABLE David Brooks
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ALAI ORG
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RT EN ESPAÑOL
- La Unión Europea acepta una prórroga "flexible" del Brexit hasta el 31 de octubre
- Maduro: "Venezuela acuerda con la Cruz Roja Internacional recibir ayuda humanitaria"
- La primera foto de un agujero negro fue posible gracias a esta joven investigadora que desarrolló un nuevo algoritmo
- Descubren una nueva especie humana, el 'Homo luzonensis'
- Maduro: "Mike Pence me comparó con Hitler, pero los fascistas están gobernando en el Norte"
- EE.UU. reanuda importación de petróleo venezolano
- El sionismo más violento se disputa el poder en Israel A Rodríguez
- El Zoom Trípoli: La gran batalla del mariscal
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INFORMATION CLEARING HOUSE
Deep on the US political crisis:
neofascism & internal conflicts that favor WW3
-Trump's Neocons See Erdogan as Their Ticket
to a Region By Mike Whitney
- Yet Another Senator from Israel By Philip Giraldi
- America Is No Longer A Nation By Paul Craig Roberts
- Financial Tyranny: America’ Exercising in
Fascism By John Whitehead
- The Path To Liberating Humanity Is The Same
As The Path To Liberating The Individual
By Caitlin Johnstone
By Caitlin Johnstone
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COUNTER PUNCH
Analysis on US Politics & Geopolitics
Nina Markovic K The
Tragedy and Fallacy of NATO’s Balkan Experiment
Andrew Bacevich The
Trump Era as an Occasion for Truth Telling
Andrew Stewart Two
Incisive Marxist Accountings of Past and Present
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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
Amy Goodman’ team
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PRESS TV
Resume of Global News described by
Iranian observers..
Programs A
study of an Irony Pol Rights
vs. Civil Liberties
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