martes, 27 de agosto de 2019

ND AUG 26 19 SIT EC y POL



ND  AUG 26   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

KEEP IT SILENCE!

NOTE - LOOK AT THE CLOSE!!!
Some serious Gamma sparked chaos at the close as VIX puked back below 20...
See Chart:
ES, 1 Min  vs. $VIX..X.X 1min

But remain well down from Thursday's close...
See Chart:

Futures show the real action as algos lifted markets overnight then snapped higher when Trump talked of "talks"... BUT The Dow could not break above its 61.8% retracement of the Friday plunge...
See Chart:

The Dow bounced off its 200DMA...again
See Chart:

But the yield curve collapsed (2s10s closed at its most inverted since May 2007)... 3rd day of closing inversion in a row...
See Chart:
UST  2s 10s Spread

ut it's the 3m10Y spread that matters most and that has also collapsed to new cycle lows...
See Chart:
UST 3m10Y Spread

The Dollar surged back today, erasing Fib 61.8% of the Friday plunge...

WTI tumbled to a $52 handle briefly overnight, before algos ripped it up to erase Friday's loss, before it dumped all the way back down (reportedly in possible US-Iran tension easing)...
See Chart:

Finally, as Bloomberg's Vincent Cignarella notes, the "McCulley Indicator" is rolling over. In markets speak, that means that the Capital Goods New Orders Non-defense Ex Aircraft & Parts series has been falling since November 2017 and is currently at 0.3%. (The measure is named for former PIMCO managing director Paul McCulley, who viewed IT AS A RECESSION INDICATOR.)
See Chart:
“Mc Culley” indicator
Confirmed:
Over the last 20 years, when the data print has crossed below zero on a three-month Y/Y basis, a recession has followed.
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Is this the beginning of the end?
"Something is going on, and that’s causing I think a total rethink of central banking and all our cherished notions about what we think we’re doing," Bullard admitted. "We just have to stop thinking that next year things are going to be normal... They’ve priced in that there’s going to be uncertainty, there are going to be tweets, there are going to be threats and counter-threats,” said the St Louis Fed president. "And that’s the way it’s going to be."

When he said that "past instances of very low rates have tended to coincide with high risk events such as wars, financial crises, and breaks in the monetary regime" - incidentally, the same low rates that for years central bankers said would save the world and now we learn have doomed it instead, below are 20 blunt questions (with a few implied answers in the questions themselves) for Central Bankers, courtesy of DB's Alan Ruskin, as they prepare to be swept away by the tsunami of history:
  1. If the Philips curve is so flat, and there is no serious alternative model to explain/forecast inflation, is inflation targeting even feasible? What are the intermediate targets to hit the end inflation target?
  2. If goods Inflation drivers are dominated by global variables like international growth/capacity, how can a Central Bank that influences country specific variables pretend to target inflation?
CONTINUE READING AT:
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...and trying to undo the damage through never-ending monetary and fiscal stimulus will not be an option...
There are three negative supply shocks that could trigger global recession by 2020. All of them reflect political factors affecting international relations, two involve China, and the United States is at the center of each. Moreover, none of them is amenable to the traditional tools of countercyclical macroeconomic policy.
The first potential shock stems from the Sino-American trade and currency war, which escalated earlier this month when US President Donald Trump’s administration threatened additional tariffs on Chinese exports, and formally labeled China a currency manipulator.
The second concerns the slow-brewing cold war between the US and China over technologyIn a rivalry that has all the hallmarks of a “Thucydides Trap,” China and America are vying for dominance over the industries of the future: artificial intelligence (AI), robotics, 5G, and so forth. The US has placed the Chinese telecom giant Huawei on an “entity list” reserved for foreign companies deemed to pose a national-security threat. And although Huawei has received temporary exemptions allowing it to continue using US components, the Trump administration this week announced that it was adding an additional 46 Huawei affiliates to the list.
The third major risk concerns oil supplies. Although oil prices have fallen in recent weeks, and a recession triggered by a trade, currency, and tech war would depress energy demand and drive prices lower, America’s confrontation with Iran could have the opposite effect. Should that conflict escalate into a military conflict, global oil prices could spike and bring on a recession, as happened during previous Middle East conflagrations in 1973, 1979, and 1990.
All three of these potential shocks would have a stagflationary effect, increasing the price of imported consumer goods, intermediate inputs, technological components, and energy, while reducing output by disrupting global supply chains. Worse, the Sino-American conflict is already fueling a broader process of deglobalization, because countries and firms can no longer count on the long-term stability of these integrated value chains. As trade in goods, services, capital, labor, information, data, and technology becomes increasingly balkanized, global production costs will rise across all industries.
See Chart:

Moreover, the trade and currency war and the competition over technology will amplify one another.
It is easy to imagine how today’s situation could lead to a full-scale implosion of the open global trading system. The question, then, is whether monetary and fiscal policymakers are prepared for a sustained – or even permanent – negative supply shock.

Following the stagflationary shocks of the 1970s, monetary policymakers responded by tightening monetary policy. Today, however, major central banks such as the US Federal Reserve are already pursuing monetary-policy easing, because inflation and inflation expectations remain low.
In fact, with firms in the US, Europe, China, and other parts of Asia having reined in capital expenditures, the global tech, manufacturing, and industrial sector is already in a recession.
Such shocks cannot be reversed through monetary or fiscal policymaking. 

Finally, there is an important difference between the 2008 global financial crisis and the negative supply shocks that could hit the global economy today. Because the former was mostly a large negative aggregate demand shock that depressed growth and inflation, it was appropriately met with monetary and fiscal stimulus. But this time, the world would be confronting sustained negative supply shocks that would require a very different kind of policy response over the medium term. Trying to undo the damage through never-ending monetary and fiscal stimulus will not be a sensible option.
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio


As the welfare-warfare-fiat money system collapses, we will see increased violence...and an increase in police state power. The only way to avoid this fate is for good people to unite and replace the extremist ideologies of the mainstream...
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Sus acciones y su bla-bla delatan a Trump.. estamos frente a la típica “circulación de las elites” ..y frente a  la ALTERNANCIA de los LEONES POR LAS ZORRAS.. de las que hablo Pareto. Unos se imponen por la fuerza bruta de su militarismo y los otros por su  ASTUCIA y creatividad. Los 1ros son conservadores y defienden el status quo, con sus billonarios  y su GREED  y los zorros defienden el CAMBIO radical hacia el bien común, que es lo que necesita  la Nation. Es el  NEED vs el GREED lo que está en debate y la alternancia lo que viene. Así fue en la historia y así será hoy. El  Publi-NEED  es  lo que defiende Elizabeth Warren  y su victoria ya esta anunciada, a menos que el fraude del trumpismo cree REVOLUCION popular en un contexto de autonomías Estado-región, la ultima estocada de grandes banqueros y big corp, es lo que a E-Warren le preocupa.La astucia y creatividad se impondrán y los banqueros y Billonarios serán expropiados.
"IT MAY JUST DETONATE..."  dice Trump, sobre el crash que va creciendo
La distorsión de los Trumpist es lo que viene abajo:
...Trump is the greatest stock promoter of our generation and Warren is openly hostile to the stock market. When polls show them sort of close, what do you think the market will do?
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Si detona el crash es por culpa de Trump.. por su incompetencia (ni un mínimo de diplomacia con China), por su corrupción (avala billonarios  que se comen  dineros de la Nacion (QEs-Bailout) generando así una desigualdad explosiva) y p-su anarquía estatal (violencia armada como efecto del contexto que reflejan  las guerras que creamos fuera para vender armas letales y crear terr-genocida)
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"past instances of very low rates have tended to coincide with high risk events such as wars, financial crises, and breaks in the monetary regime."
While the report engages in the type of tortured, goalseeked analysis that we have grown to "love" from central banks for the past decade, the same central banks who did not anticipate that their disastrous bubble-blowing policies would result in the financial crisis of 2008 (which last we checked, has not been blamed on Putin just yet), and presents the following chart to confirm that, indeed, if only the Fed had cut rates to -0.75%, the recovery would have magically been far stronger...

See Chart:
Actual, median alternative projections for FED funds rates

As we concluded then "In short, NIRP would have made the recession shorter and less acute according to the San Francisco Fed, and since it is impossible to argue the counterfactual, we now have "research" that sets the framework for what happens next."
As for the San Fran Fed, that absurd joke of a "research institution" which couldn't see the housing bubble in 2006/2007 despite being smack in the middle of it when it was headed by one Janet Yellen, finally figuring out what we first said ten years ago - when we were broadly mocked as conspiracy theorists -  all we can say is "who gives a shit."
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"This is a tremendous moment in human history. For the first time, Western imperialism is being not only defeated, but fully unveiled and humiliated. Many are now laughing at it, openly..."
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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

Is a rein coming?  Thousands of missiles from diff direction por allies of IRAN
Hezbollah's Nasrallah has vowed to shoot down any Israeli aircraft violating Lebanese airspace...
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Attacking IRAN will have immediate automatic response, said RU before
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"This is a pilot project. We see it as the first stage of launching the Russian OS on Huawei devices..."
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The threshold to an armed conflict around the Persian Gulf just got even smaller.
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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
Ecuador:  En el camino de Macri Juan J. Paz-y-Miño Cepeda
ECOL:  El capitalismo como fin del mundo   David Pavón
OPIN:  Darle cuerda al muñeco  Antonio Lorca
ARG:  Se termina el neoliberalismo?  Marcelo Colussi
US:   Presentes para construir  Álvaro Guzmán
COL:  Qué somos?  Alberto Fuentes
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ALAI ORG

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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

- Can the American Economy Be Resurrected?  By Paul Craig Roberts
- Punishing the World With Sanctions  By Philip Giraldi
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COUNTER PUNCH
Analysis on US Politics & Geopolitics

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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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