jueves, 11 de abril de 2019

ND APR 11 19 SIT EC y POL



ND APR 11 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

US Economic situation today

Liquidity drying up?
US equities were mixed with Trannies the biggest clear winner. Every effort was made to get the S&P green and they succeeded...
See Chart:

It was an odd day for stocks - Dow Futures traded in a 30 point range for hours (ignoring the typical chaos around the open), before tanking at the EU close...
See Chart:

The S&P 500 is up 13 of the last 14 days in the last hour of the day (and the only down day was 4/2 with a 0.01% drop in the last hour)...
See Chart:

Treasury yields rose (despite stock weakness), jumping 3-4bps across the curve...leaving the curve flat to higher in yields on the week...
See Chart:

With 10Y back above the 2.50% level...
See Chart:

The Dollar surged on the day - ending a 3-day losing streak - back above 97.00...
See Chart:

Commodities were down across the board...
See Chart:

Finally, amid all the chatter and worries about President Trump, deficits, debt-loads, petrodollar threats, and on and on... USA Sovereign risk (default/devaluation) tumbled to its lowest since Lehman...
See Chart:

Are stocks starting to recognize that the liquidity buffer is fading...
See Chart:
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"It appears that history is being repeated – too tight for too long, slower growth, lower rates..."
The parallels to the past are remarkable, but there appears to be one fatal similarity – the Fed appears to have a high sensitivity to coincident or contemporaneous indicators of economic activity, however the economic variables (i.e. money and interest rates) over which they have influence are slow-moving and have enormous lags.

In the most recent episode, in the last half of 2018, the Federal Reserve raised rates two times, by a total of 50 basis points, in reaction to the strong mid-year GDP numbers. These actions were done despite the fact that the results of their previous rate hikes and monetary deceleration were beginning to show their impact of actually slowing economic growth.

The M2 (money) growth rate was half of what it was two years earlier, signs of diminished liquidity were appearing and there had been a multi-quarter deterioration in the interest rate sensitive sectors of autos, housing and capital spending.
See Chart:
See Full letter below at
...
SOURCE:
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Americans have weaponised the dollar, bringing an urgency to China’s and Russia’s deployment of gold... nothing lasts forever.

Life in the world of gold bullion is full of mysteries. Each mystery is like a straw in the wind, which individually means little, but tempting us to speculate there’s a greater meaning behind it all. Yes, there is a far greater game in play, taking Kipling’s aphorism to a higher level.

One of those straws is Russia’s continuing accumulation of gold reserves. Financial pundits tell us that this is to avoid being beholden to the US dollar, and undoubtedly there is truth in it. But why gold? Here, the pundits are silent. There is an answer, and that is Russia understands in principal the virtues of sound money relative to possession of another country’s paper promises. Hence, they sell dollars and buy gold.

Then there is China. China has started announcing monthly additions to her gold reserves. China is up to her neck in dollars, and the relatively minor monthly additions to her reserves really make little difference. However, the link between the gold exchanges in Moscow and Shanghai strongly suggest Russia and China are coordinating gold dealing activities.

In any event, China now dominates physical bullion markets. 
The next credit crisis could change everything
The transfer from a dollar-centric world to gold-backed roubles and renminbi will continue to be at a pace determined by the monetary mistakes of America.

Politicians are ill-equipped for a monetary crisis

Dream on, folks! They will struggle to extricate themselves with the only means at their disposal. More money. More socialism. More raping the productive economy by accelerating wealth transfer through monetary debasement. They know nothing else. They have not only deceived their voting public, but they have deceived themselves. 

If the world moves only half-way to a 1930s depression, the rate of monetary expansion to bridge the widening chasm between tax receipts and welfare obligations will be so great, it will likely lead to the end of the dollar, the end of the euro and the other currencies which copy them. Even the hitherto Teflon yen will be threatened with immolation.

The wise heads in China foresaw this in the last century, which is why they appointed the Peoples Bank to handle the state’s gold and silver purchases under government instruction.
America cannot escape the consequences of ending Bretton Woods

Reuters reported that Saudi Arabia was considering abandoning the pact as a response to an American threat that OPEC would face anti-trust lawsuits. 

The dollar’s role in pricing and settling all commodity and energy prices has given the US a strong grip on international affairs and capital flows.

Foreigners have already started selling dollars, evidenced in recent data from the US Treasury. 
The free ride at foreigners’ expense appears to be over, and domestic US investors will have to start buying and pricing US debt realistically in the face of foreign divestment.

A golden haystack is around the corner

The dollar’s plight is reminiscent of the events that led to the collapse of the London gold pool in the 1960s. Too many dollars were in foreign hands, driving foreign governments (notably the French but also the Germans) to swap dollar surpluses into gold under the Bretton Woods Agreement. Gold’s relative valuation in dollars is remarkably similar today, illustrated in the chart below.

See Chart:
USD Gold Price adjusted for FMQ since 1934

In this chart, the price of gold is deflated from its 1934 fix at $35 by the increase in the quantity of fiat money, which includes money in circulation as defined by the Austrian Money Supply metric, plus money not in public circulation but held at the Fed, principally as bank reserves. Adjusted in these terms, the gold price is close to the level seen in August 1971 (shown by the pecked line), when America was forced to abandon the Bretton Woods Agreement. The tensions from a valuation perspective therefore confirm a far higher gold price is very likely.

All that’s needed is a trigger. China has cornered the bullion market. Russia is selling dollars for gold and appears to be paving the way for gold to circulate domestically. A deep recession, perhaps replicating the 1930s depression, is becoming more likely by the day. Massive monetary inflation will be required to prop up Western governments. Foreigners own too many dollars for these developing conditions. The world’s impending economic failure is entirely down to the continual debasement of fiat currencies, a practice that will be brought to a head by the ending of the current credit cycle.

Golden straws in the wind? They appear to be blowing off a haystack of them just around the corner.
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Investors are inexplicably pulling more money from the biggest emerging-market bond ETF than at any time in the past year.

See Chart:
CHART of  THE DAY: Cross- Assets Vol Testing the Lows

Meanwhile: FX flows shows a bigger part of the FX vol weakness may be attributed to a falling VIX. Indeed, CFTC positioning data show a significant build-up of speculative VIX future shorts, which has coincided with falling FX vols. As a percentage of the open interest, VIX shorts are exceeding levels prior to major de-risking episodes in January and October 2018.

See Chart:

As Bloomberg shows in the chart below, even with the S&P back near all time highs, and with global stocks at 6 month highs, investors are inexplicably pulling more money from the biggest emerging-market bond ETF than at any time in the past year - even more than during the depth of the December mini-bear market.

The $16.5 billion J.P. Morgan Emerging Markets Bond ETF, the biggest ETF dedicated to EM debt, is heading to its worst week of outflows since February 2018, when the so-called volmageddon wrecked vol shorts and crushed EM longs. And while the catalyst is still unknown, the signal is there as investors have pulled $482 million from the EMB fund.

See Chart:
Bond Bears
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Given the latest data points, the Fed is clearly not on the same page as everyone else... it is more negative on growth...

See Chart:

Perhaps this explains why 10-Year US Treasury growth expectations are making a new break lower for the year as 10-Year TIPS are ticking to new low yields for the year as of this writing.
….
SOURCE:
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio


Who controls the past controls the future. Who controls the present controls the past.”
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"Curious eyes never run dry in my experience."
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"it's not my thing..."
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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


It will "be really good to get him back on United States soil."
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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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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

REBELION

Siria       “No hay vuelta atrás”   Zouhir Al Shimale
Mex       Ent a Norma Ortega: Cuando el Gob defien megaproyec, hace vuln a  activ” 
Opin      Detengamos el holocausto  ¿?  Donde
              Angustia y política en el siglo XXI  Jesús García
ALC      Autonomías indígenas en repúblicas criollas  Ollantay Itzamná
Peru       Mina Las Bambas generan detención prelim de PPK  César Zelada
Mex       Historia: Manifiesto a la Nación  Emiliano Zapata 
COL      Plan Nacional de la Desigualdad   Chavela Villamil
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ALAI ORG
COL      La onda de la Minga    Horacio Duque
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RT EN ESPAÑOL
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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts that favor WW3

- Read the Julian Assange indictment  By ICH and Agencies
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COUNTER PUNCH
Analysis on US Politics & Geopolitics

Teresa L. Ebert – Mas’ud Zavarzadeh  What is Socialism?
Manuel García, Jr.   What’s Wrong With The United States? 
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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..


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