ND SEP 16 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
There
will be blood
Black gold meet black
swan
Brent
soared almost 20% initially but faded a little during the day, breaking above
all its major moving averages...
See Chart:
Brent
Crude
And
don't forget the machines wreaked havoc overnight...
See Chart:
Energy
stocks all soared...
See Chart:
Both
Momentum and Value stocks were weaker today..
See Chart:
UST 10Y
Yields reversed at the critical downtrend line...
See Chart:
Bloomberg
Dollar soared from the opening kneejerk lower, back to pre-Draghi levels...
See Chart:
Finally, as
we detailed here, something
much more significant broke today than the oil market... Repo rates exploded to 7% intraday (according to one repo
trader)
See Chart:
….
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Generally, Oil positively correlates with S&P 500 when Oil prices
are stable... But,
for large % increases in Oil, this correlations weakens, and eventually turns negative...
See Chart
Correlation
of OIL and S&P 500
….
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"One day is not a big deal, if
funding pressures persist, it implies a loss of control of funding
markets."
Late last Friday, we warned
that a "dollar
funding storm" is set to make landfall in the US amid a series of
converging sources of pressure that we said would result in "secured
funding markets breaking higher", among which:
- elevated UST supply,
- bloated dealer balance sheets and year-end regulatory constraints, and
- a banking system near reserve scarcity.
Ironically, it was the rising
recession concerns in August - manifesting in the form of an inverted yield
curve, cash hiding in repo, and a slow build in UST supply - that kept secured
funding pressures at bay. However, as we explicitly noted last Friday, "clear signs of funding
pressure could emerge starting next week with sizeable coupon settlements and
the mid-September corporate tax date."
Fast
forward to today, i.e. "next week" when the dollar funding
storm we warned about has just made thunderous landfall and the overnight
general collateral repo rate, an indicator of secured market stress and by
extension, dollar funding shortages, soared from Friday's close of 2.25% to a high
of 4.750%, a spike of 250bps...
See Chart:
Overnight Repo Rate
... and its biggest one day move since the
bizarre GC repo explosion on December 31, 2018.
See Chart:
GC Repo
But the biggest reason for the
sudden dollar shortage is that as discussed
extensively, following the recent debt ceiling deal, the Treasury is
aggressively pushing its cash balance higher while depleting the amount of bank
reserves in the system.
See Chart:
US
Treasury Actions will likely tighten USD liquidity
The problem for the Fed is that
following today's massive move in repo higher, it now
appears that the Fed is once again behind the curve, and this time the funding
squeeze could have dire consequences for not only the economy but the market,
as the broken repo plumbing means that despite $1.4 trillion in excess
reserves, one or more banks are suddenly left without liquidity, which
as we explained over a month ago in "Forget
China, The Fed Has A Much Bigger Problem On Its Hands", the only
alternative Powell may soon have is to restart QE.
….
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...and
finally, nobody believes bubbles
can burst until it’s too late to get out unscathed...
Financial bubbles manifest three dynamics:
The one we’re most familiar with is
simple human greed,
the desire to exploit a windfall and catch a work-free ride to riches.
The second dynamic gets much
less attention. Financial manias arise when there is no other
more productive, profitable use for capital. And these periods occur when there
is an abundance of credit available to inflate the bubbles.
This is driving the third dynamic of bubbles:
As the bubble continues inflating beyond any rational valuation, rational investors throw in the
towel and join the frenzy. Once
again, this willingness to abandon rationality is partly fueled by greed and
also by a dearth of other more attractive investments.
A bubble economy is a sick economy, for bubbles are
proof there is too much capital chasing too few productive uses for that
capital.
Here’s the problem: All bubbles burst, regardless of other conditions.
All of America’s bubbles will pop, and sooner rather
than later
We can add a fourth dynamic of
bubbles: Nobody
believes bubbles can burst until it’s too late to get out unscathed.
….
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US DOMESTIC POLITICS
Seudo democ duopolico in US is
obsolete; it’s full of frauds & corruption. Urge cambio
I was instructed that if a client
wished to sell futures I should
simultaneously place both bids and offers with the intent of canceling the bids
prior to execution..."
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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
"Russians were able to intercept, record and eventually crack the
codes to FBI radio communications."
====
The times
that we are living in are about to
become a whole lot more serious, but most
Americans are not even paying attention to these absolutely critical global
events...
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Beijing urges "conclusive investigation" and
avoidance of needless escalation. .
====
“The Iraq
War, President Trump has said, was the biggest geopolitical blunder of the last generation,”
====
Makes perfect sense...
See Chart:
….
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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
Chile: Chile 1970-1973, ¿era
posible la victoria? Pablo Torres
COL: Es hora de que la
humanidad diga ¡Basta! Rodolfo Bueno
Mund Hacia el desbarajuste
nuclear? Alberto
Piris
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ALAI ORG
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RT EN ESPAÑOL
- Putin cita al Corán y alienta a Arabia Saudita a tomar "una sabia decisión" y adquirir sistemas antiaéreos rusos
- A Trump le "parece" que Irán está detrás del ataque contra las refinerías sauditas
- Revelan la filtración masiva de datos sensibles de millones de ecuatorianos
- Conmoción en Argentina por el asesinato de tres mujeres
- Venezuela: fotos de Guaidó con paramilitares confirman el "vínculo" con "una de las bandas más sanguinarias de Colombia"
- Maduro sobre el acuerdo con la oposición: "Es un paso necesario que abre las puertas a la paz"
- Submarino nuclear ruso dispara un misil y destruye un buque durante una prueba en el Pacífico
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INFORMATION
CLEARING HOUSE
Deep on the US political
crisis: neofascism & internal conflicts that favor WW3
-China Slaps Britain: You Can’t Afford Hostility By Finian Cunningham
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COUNTER
PUNCH
Analysis on US Politics &
Geopolitics
Jeff
Mackler Trump,
Trade and China
E Vallianatos
The
Democrats and the Climate Crisis
Tim
Butterworth Socialism
Made America Great
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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..
Yemeni
drone attacks for 'legitimate 'self-defense'
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