domingo, 22 de septiembre de 2019

ND SEP 22 19 SIT EC y POL



ND  SEP 22  19  SIT EC y POL 
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco


Insólito : el colmo de burla a Leyes Internacionales. A cambiar UN cede immediately
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ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics



And this is how big it will be.    MUST READ!

One of the reasons for the sharply hawkish initial response to Wedensday's FOMC meeting - one which saw both the dollar and yields spike - is that as we pointed out just before Powell's statement, in the hours ahead of Powell's press conference, Wall Street consensus quickly shifted with many expecting the Fed to announce some form of permanent repo facility or restart of POMO (or QE for those who call a spade a spade) to push reserves back to a level where the funding market is stable. This, as we showed with the following chart, would require some $400 billion in new reserves for the FF-IOER spread to normalize.

See Chart 1
Cnaging dynamics in reserve demand


However, and the reason why stocks shot up just before 3pm ET on Wednesday, is that that's when Powell added that “it’s possible that we’ll need to resume the organic growth of the balance sheet, earlier than we thought. ... We’ll be looking at this carefully in coming days and taking it up at the next meeting” in late October. Said otherwise, while the Fed may not have announced QE4 yesterday, but it will likely announce it in the very near future.

See Chart:
FOMC Stat: is possible to resume organic growth of balance sheet sooner

And while the Fed also moved to broadly expand its balance sheet late on Friday by preannouncing continued daily open market repo operations, together with at least three, $30 billion term repos to ease funding conditions around quarter end, which confirms that the rebound in the Fed's balance sheet - the first in almost five years - is anything but temporary...

See Chart:
Federal Reserve Balance Sheet


Goldman, and then Simon Potter, the former head of the NY Fed's market desk, signaled that the Fed will have to buy more debt, potentially as early as November.

As a reminder, Goldman now assumes a roughly $15bn/month rate of permanent OMOs, enough to support trend growth of the balance sheet plus some additional padding over the first two years to increase the size of the balance sheet by $150bnrestoring the reserve buffer and eliminating the current need for temporary [P]OMOs.

See Chart:
We expect the FED resume Trend Growth of Balan Sheet in Nov


Which addresses the question that everyone has been quietly asking: if the current level of reserves, at roughly $1.4 trillion as broken out by bank cash levels which we discussed last night, is too low...
See Chart:
Cash Balance at Banks  vs. Total FED Reserve Balance

[ It seems we are going to ‘a la merda’: no to sheet-balance-growth BUT to  cheet Bal’]


One more Chart to confirm it:
 In other words, and as the chart at the top showed, "the steeper this sensitivity, the more the tightening in liquidity conditions."
See Figure 3:


One final observation: the ratio of reserves to banking system assets has collapsed over the past five years to its lowest level since the end of 2009 i.e. a ten year low... although of course, prior to that it was 0% so this is only a financial crisis artifact, in large part sprung by changes to the regulatory regime demanding banks hold on to much more reserves.

See Chart 7
FED reserve balance as % of US Banking System assets
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"One possible way to defer this clash involves the oldest trick in the book. And that is more money for everyone; for the GND, for Medicare, Medicaid, Soc Sec, tax cuts. Enter MMT."
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“We do not know, but we do know what we know, and we know that current investor behavior is unsustainable...”

For the bulls, the good news is, they will cut rates anyway.”
“All the bulls need now is the Fed to ‘cut’ rates at the meeting next week.” 

This is probably a mistaken conclusion.
To illustrate this point, the chart below shows excess reserves, required deposits, and currency in circulation. As you can see, everything went “pear-shaped” in 2008

See Chart:
Balance sheet growth overtime based on growth of Economy


However, let’s zoom in a bit and add the Federal Reserves balance sheet. Prior to 2008, notice the Fed’s balance sheet was growing directly proportionate to the growth rate of the currency in circulation (which follows the growth rate of the economy.)

See Chart:
Economy growth: normal financial period vs abnormal financial  period


Therefore, what the Fed is suggesting is NOT more Q.E. but rather, just the normal “organic” expansion of the balance sheet in relation to the growth of the economy and the currency in circulation. 

 BUT, Bulls Remain In Charge
The question we posed last week was:
“Is it all priced in?”

The risk/reward does not favor the bulls short term. The market is back to very overbought conditions, the upside to the top of the bullish trend channel is about 1.9%. The downside risk is about 5.5%.
(Chart updated through Friday. Shows the overbought condition as been slightly reduced.)

See Chart:
$SPX  S&P 500 Large Cap Index


However, on an intermediate-term basis, all of our primary indicators are beginning to reach levels which have typically denoted short-term market peaks
See Chart:


We discussed the reasoning for an additional hedge with our RIAPRO subscribers this week:
See Chart:

The debate continue & you can see more charts at:
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The population at large has come to believe it can get something for nothing – including free food, free drugs, free retirement, and free money – via the ‘power of the purse’... Voters couldn’t be more wrong.

An Odd Combination of Serenity and Panic

The United States, with untroubled ease, continued its approach toward catastrophe this week.  The Federal Reserve cut the federal funds rate 25 basis points, thus furthering its program of mass money debasement.  Yet, on the surface, all still remained in the superlative.
See Chart:
SPX , WEEKLY


 Zero Hedge documented the chaos real time. 
This was followed up with additional repo operations on Wednesday and Thursday – at $75 billion a pop, and both oversubscribed.  Perhaps Fed repo operations will be a daily occurrence, at least until the Fed launches QE4

See Chart:
US overnight REPO rate


US overnight repo rate – as Fed chair Jerome Powell remarked: “Funding pressures in money markets are elevated this week”. Evidently, nothing escapes his eagle eyes. [PT]

At the same time, the effective federal funds rate – the upper range limit of the federal funds rate – continues to push above the rate the Federal Reserve pays on excess reserves (IOER).  In other words, the Fed’s primary tool for price fixing credit markets is not behaving according to plan.  Greater Fed intervention will be needed to keep things in line.

See sarcasm in cartoon:


Voters couldn’t be more wrong.  Deficits do matter
The U.S. budget deficit has already topped $1 trillion for the first time since 2012, and there is still one month in the fiscal year to go.  When the economy slips into reverse deficits could easily jump to $2 trillion.  Interest rates could also slip and slide even lower, perhaps into negative, like in much of Europe and Japan.

Failure of the debt based fiat money system is at stake. The Fed will do everything it can to keep it alive.  It will keep at it, debasing the dollar around the clock, until the precise moment it cannibalizes itself.
Holding some gold – or silver – at this juncture is of supreme importance.
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio


"The question is: Do we have a right to know when the government is collecting information on us?" 
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Artificial Intelligence, programmed by power hungry individuals, is steadily taking over our society...
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Whatever they do to deceit the Nation –lies +cover-up- we’l l know the truth
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The report concludes by warning Hawaii doesn't have countercyclical buffers in place to weather an economic downturn...
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For you to be real anarchist you must say: Imperial State is a parasite to world society

"The State is a dead hand that imposes itself on society, mainly benefitting those who control it, and their cronies. It shouldn’t be reformed; it should be abolished. That belief makes me, of course, an anarchist..."
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In a country of FRAUDS everybody can be assaulted legally & illegally

A scathing report has revealed the DMV offices across the country have been selling out American citizens, while making millions doing it...
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The crasher? Math.
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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


Who said that NED (CIA disguise) is inefficient.. Now they show they can use terrorism

"A group of protesters in the centre of Sha Tin's New Town Plaza have taken a Chinese flag and are walking over it and dragging it across the bottom floor of the mall..." 
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What China can do –besides closing US embassy- concede to US trade deal? IF tit for tat, what will be the most appropriate to not disrupt global context?
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IF Saudis promote WW3 they won’t have oil nor riches in London’ banks, not even Stat

That it may take "up to eight month", rather than 10 weeks company executives had previously promised, to fully restore operations at Aramco damaged Abqaiq facility, which could send Brent up to $10 higher.
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Flipping futures in Brazil is a horrible career choice. 
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Soon they will be invaded & lead by French policy then the ‘yellow’ vest will ch color

The Yellow Vest movement is now in its 10th month.
Nothing serious, just satira: Police is nor well paid there: they may dress Yello
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Coming from Trump nothing is insane, he is saint: anything he does is just normality

For all the standard neocon alarmism of the Trump team, Iran’s conventional military power is actually quite limited, especially in comparison with the United States’.
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September's data is a major red flag for the global economy's accelerating downturn.
See Chart:
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SOURCE:
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A combination of Saudi comments on the length of time repairs to their key refinery will take and Chinese comments talking down Friday's canceled farm-land trip have sparked a bid for stocks, yuan, and crude in early trading Sunday night.
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We can say: China is in severe Econ-crash-now. FACT: they don’t need US help
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

Insolito : el colmo de burla a Leyes Internacionales. A cambiar UN cede immediately
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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

RT EN ESPAÑOL

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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO  allies

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PRESS TV
Resume of Global News described by Iranian observers..

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