MAY 31 ND SIT EC y POL

MAY 31 ND 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

HERE THE 1^ST MANIFESTO for REV in AMERICA

MUST READ IT!

Hugo Adan

5/31/20

….

HERE IS THE STUNNING CHART THAT BLOWS UP ALL OF MODERN CENTRAL BANKING

https://www.zerohedge.com/s3/files/inline-images/lower%20yields%20force%20households%20to%20save%20more.jpg?itok=x0H7NiBV

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OPEN:  HERE THE 1ST MANIFESTO for REV in AMERICA

AT:  https://nd-hugoadan.blogspot.com/

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THIS IS HOW SYSTEMS COLLAPSE   

Flooding the financial system with "free money" 

only restores the illusion of stability...

Authored by Charles Hugh Smith via OfTwoMinds blog,

I updated my How Systems Collapse graphic from 2018 with a "we are here" line to indicate our current precarious position just before the waterfall:

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/systems-collapse5-20.jpg?itok=uDJ-Qy0e

For those who would argue we're nowhere near collapse, consider that over 20% of the Federal Reserve's $2 trillion spew of free money went directly into the pockets of America's billionaires: 

$434 billion by the latest estimates, while most of the rest went into the pockets of the top 10% who own all the assets that the Fed is goosing higher while millions of households are worried about feeding themselves: (American billionaires got $434 billion richer during the pandemic).

In America's system, the solution to soaring, destabilizing inequality is... to goose inequality to new heights. 

Continue reading  at:

SOURCE

https://www.zerohedge.com/markets/how-systems-collapse

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MORE Short News on Economics

THE FAAMGS ARE UP 15% IN 2020; THE REMAINING 495 S&P STOCKS ARE DOWN 8%

YTD the 5 biggest stocks are up 15% while the remaining 495 S&P500 companies are lower by a collective 8%, with the overall S&P400 index is down 5% YTD,

SEE CHART

https://www.zerohedge.com/s3/files/inline-images/five%20largest%20stocks.jpg?itok=HhII0TIr

The lowest market breadth since the tech bubble...

SEE Chart:

https://www.zerohedge.com/s3/files/inline-images/market%20breadth%20april%2026.jpg?itok=LHtAFRGp

Here are Goldman's comments on this bifurcation in the market:

The stellar return of the five largest stocks in the S&P 500 — MSFT, AMZN, AAPL, GOOGL, and FB — is the primary explanation for the large difference between the cap-weighted index and the average stock.

While the FAAMGs may grow further, there is a hard limit on just how much bigger they can get:

At 20%, the current aggregate index weight of the five stocks with the largest market caps is the highest in history, exceeding the previous peak of 18% at the apex of the Tech Bubble in March 2000. 

However, we are approaching the practical maximum concentration of 25% given most long-only portfolio managers have diversification requirements and individual stock position limitations of roughly 5%.

….

SOURCE:  https://www.zerohedge.com/markets/faamgs-are-15-2020-remaining-495-sp-stocks-are-down-8

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STOCKS DANCING ON DECK FOR TITANIC U.S.-CHINA CLASH 

This year’s geopolitical cage-match has the potential to develop into a winner-takes-all affair, as the superpowers spiral into a Thucydides trap

SEE Chart:

https://www.zerohedge.com/s3/files/inline-images/bofa%20superpower_2.jpg?itok=edrJQt9F

….

SOURCE:  https://www.zerohedge.com/markets/stocks-dancing-deck-titanic-us-china-clash

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"A W-SHAPED EPIDEMIC IS NOW EMERGING AS OUR EXPECTED CASE FORECAST"

The forecast date for new cases coming in below 1000 has been pushed back an alarming 40 days to July 29th. 

A "W"-shaped epidemic is now emerging as our expected case forecast, with the economic and social consequences implied.

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/w%20shaped.jpg?itok=tHyH1x5A

SOURCE:  https://www.zerohedge.com/markets/w-shaped-epidemic-now-emerging-our-expected-case-forecast

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THERE IS NOTHING NORMAL ABOUT THE US SAVINGS RATE 

Place your bets...

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/Pic3-2-768x377.jpg?itok=QE0FJbwa

See more charts at:

SOURCE: https://www.zerohedge.com/markets/there-nothing-normal-about-us-savings-rate

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ARE MARKET BULLS TOO OPTIMISTIC?  

...some prudent risk management may be in order.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Market Breaks Above The 200-DMA

In last week’s missive, we discussed how the market remained stuck between the 50- and 200-dma. At that time, we noted the risk/reward ranges, which encompassed a breakout or retracement within that range

The shaded blue area shows the containment of the market between the two moving averages. With the market very overbought short-term (orange indicator in the background), there is downside pressure on prices short-term.

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/risk-ranges-052920.png?itok=_7VQRr8o

See more interesting charts at:

SOURCE:  https://www.zerohedge.com/markets/are-market-bulls-too-optimistic

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US  DOMESTIC POLITICS

Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

IT WAS SET UP by TRUMP & police felons: purpose create fear & submission to facism

"IT'S A SETUP": MYSTERIOUS BRICK PILES APPEAR THROUGHOUT MAJOR PROTEST CITIES  

'Still think these riots weren't coordinated?'  [ Amazing Idiot: you convince me ]

……

I do believe that it was coordinated. The next move is one more protester killed by the fascist system  ( either black, latino  or white) and “The Supreme Court’ will show up his complicity by NO demanding Trump resignation.. then the REVOLUTION  will be granted: millions will die. And they will it for a reason: a matter of radical principles: defeat fascism. If disarmed people is killed, the NATION has the right  to be armed  themselves to defend their life. Who made this calculus? NOT me, JUST YOU and the rulers In power. CLEAN Logic.. CLEAN EFFECTS. Your ‘conspirational “bull ..shit” was OK. Do you sell your ‘crystal ball’ .. How much you received so far? How much will you charge ?  Sell it to BIDEN!

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BURNING AMERICA: BE CAREFUL WHAT YOU WISH FOR

How many times in the past few days have you heard a politician say, “This isn’t who we are.” Sadly, it is exactly who we are. And we’re all to blame for it...

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LOOTERS OVERWHELM POLICE IN SANTA MONICA, TANKER BARRELS INTO MINNEAPOLIS CROWD, AS 3RD NIGHT OF CHAOS BEGINS 

Santa Monica just moved its curfew to 4pm - 30 minutes ago –

because of the looting.

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The terrorist Trump’ regime named ‘antifa’ a terrorist org; it is worse than hypocrisy

TRUMP DESIGNATES ANTIFA "A TERRORIST ORGANIZATION" 

The question is what does this mean in terms of response. 

Deadly force allowed?

…..

Me imagine a Hitler acusando de dictador a Stalin

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ALL THAT IS WRONG WITH THE US HEALTHCARE SYSTEM IN ONE $18,415.00 CORONAVIRUS TEST 

...is it any wonder people are rioting in the streets?

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"GET THE FACTS": HOW TWITTER IS MAKING THE CASE AGAINST ITSELF AND FREE SPEECH 

That frontier of free speech may now be vanishing...

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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

"THE DOLLAR IS OUT OF STOCK EVERYWHERE": HONG KONG MONEY EXCHANGERS TURN AWAY CLIENTS AMID RUN ON US DOLLARS 

"There will be no US dollars for exchange until next Tuesday or Wednesday."

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Stinky xenophobia does not help the needed get along between US-CHINA

POMPEO: CHINA IS INTENT UPON THE DESTRUCTION OF WESTERN IDEAS, WESTERN DEMOCRACIES, AND WESTERN VALUES  

"It puts Americans at risk, whether it’s stealing American intellectual property or destroying jobs here in the U.S."

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Xenophobic abundance creates  stupid comparison

SCHLICHTER: THIS ELECTION IS REPUBLICANS VERSUS CHINA 

"We need to understand and accept that 

a vote for anyone with a 'D' is a vote for Xi..."

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SPUTNIK and RT SHOWS

GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

- Police Use Tear Gas as Protesters Gather Outside White House -

- US Stock Futures Drop Following Consecutive Gains in May

- Protests Continue in Minneapolis Over George Floyd's Death – 

- George Floyd Protest in New York City - Video

- Tanker Truck Drives Into Crowd of Protestors in Minneapolis

- Russia’s Northern Fleet Plans Major Arctic Drills For This Summer

- US Sends 2 Million Doses of Antimalarial Drug to Brazil

- Atlanta, Chicago Prolong Curfews as Unrest Continues 

- Chinese Officials, Media Lash Back at US Over Hong Kong Issue Citing Crackdown on Minneapolis Riots

- RU Protest to US Over Police Use of Pepper Spray on RIA Nov Rep

- US Military in Hawaii Working on Trump's 'Super-Duper' Missiles

- Trump Designate Antifa as Terrorist Organisation

- Civil Rights Lawyer Slams 'Democratic Silence' On Floyd Riots

- US Nat Guard Won’t Be Deployed to Tackle George Floyd Protests

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NOTICIAS IN SPANISH

Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

VIENTO SUR INFO  https://vientosur.info/

Debates  ¿Deseo o necesidad de revolución?  Daniel Bensaïd

Análisis:  POSIBLE REGRESO A LO ANORMAL  Alain Bihr

Coronavirus:  mucho más que un desencadenante de crisis  D T

VEN: contrato que firmó Guaidó para “capturar/matar” a Maduro

CV:  Frente a la crisis, el trabajo debe emanciparse del capital   J B

Debate : Resisten vs. emancip: Foucault, Marcuse, Marx y hoy 

ISR-PAL: Anexión no es solo el robo de territorios. Ahmad Al-Bazz

COVID-19  La infancia y la soledad del confinamien  Naiara y Naia

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CROSS TALK   https://www.rt.com/shows/crosstalk/

On contact

ON CONTACT: COVID-19 & CRITIC OF GLOBALIZATION JOHN RALSTON SAUL

Chris Hedges talks to John Ralston Saul, author and president emeritus of Pen International, about how the Covid-19 pandemic has exposed the weakness of American society, and accelerated the decline of the American Empire.

SOURCE:  https://www.rt.com/shows/on-contact/490174-covid19-john-ralston-saul/

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GLOBAL RESEARCH

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

- Trump Versus Twitter By Dr. Binoy Kampmark,

- Black Alliance for Peace Calls on UN to Address H R Crisis in US

- Turkish Again Turned Afrin City Into Battle Zone By South Front,

- US-Racism: The Afro-American Dystopia   By Germán Gorraiz ,

- US War Machin Needs Oil: War with Iran More Likely Than with Ch

- German Official Denounc CV as ‘Global False Alarm’ By Daniele P,

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HERE THE 1ST MANIFESTO for REV in AMERICA

HERE THE 1^ST MANIFESTO for REV in AMERICA

MUST READ IT!

Hugo Adan

5/31/20

….

HERE IS THE STUNNING CHART THAT BLOWS UP ALL OF MODERN CENTRAL BANKING 

https://www.zerohedge.com/s3/files/inline-images/lower%20yields%20force%20households%20to%20save%20more.jpg?itok=x0H7NiBV

 

Presenting the most diabolical feedback loop of modern monetary policy and economics.

Several years ago, when conventional wisdom dictated that to push inflation higher and jumpstart lethargic economies, central banks have to push rates so low as to make saving punitive and force consumers to go out and spend their hard earned savings, several central banks including the ECB, SNB and BOJ crossed into the monetary twilight zone by lowering overnight rates negative.

Then, year after year, we would hear from the likes of Kuroda and Draghi how the BOJ and ECB will continue and even extend their insane monetary policy, which now includes the purchase of 80% of all Japanese ETFs...

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/BOJ%20owns%2080%25%20of%20ETFs.jpg?itok=-TPsSn4V

Why was this happened if rates were negative? Why were consumers not taking their money out of the bank and spending it, pushing inflation higher?

Nobody had an answer, until in late 2015, we offered a glimpse into what was structurally flawed with this "model": using a report by Bank of America, we showed that not only had household savings rates not declined in countries with negative rates, they had in fact risen. 

There was a simple reason for this, as the BIS had highlighted: ultra low rates may perversely be driving a greater propensity for consumers to save as  retirement income becomes more uncertain.

SEE CHARTs

https://www.zerohedge.com/s3/files/inline-images/europe%20savings%20vs%20rates_0.jpg?itok=5_YPzzqT

What logically followed from this is that inflation would also track rates lower, resulting in a crushing blow to economic orthodoxy where the only weapon central banks had left to spark an economic - read inflationary - recovery was to ease monetary conditions even more in hopes that eventually they would drop low enough to spark the long-awaited recovery.

SEE CHARTS

https://www.zerohedge.com/s3/files/inline-images/europe%20yields%20vs%20deflation.jpg?itok=VckmnzXv

It never happened, even though amusingly it was all the way back in 2015 that we predicted - correctly in retrospect - just WHAT THE MONETARY ENDGAME IS:

FEAR NOT: when even "moar" QE and NIRP do not work, and the economists of the ECB admit the "monetary twilight zone" was a disaster, there is one last "tool" they can and will use - helicopters. 

 Because when it comes to printing money, whether in digital reserve format, or physical paper format, there is literally no limit how much can and will be created to achieve what is the endgame of the current monetary dead end: the total destruction of fiat as a store of wealth in order to preserve the global equity tranche while wiping away a few hundred trillion in debt.

Thanks to covid-19, we have now moved beyond merely the "twilight" and are now in the "helicopter" zone.

But what about the relationship between rates and savings, and by extension inflation? After all that is the topic of this post. Well, we can now confirm that our intuition from 2015 that negative rates are not only not inflationary but outright deflationary, and encourage consumers to save even more, was correct all along.

Below we post a chart from the latest Research Investment Committee report by BofA titled "Stagnation, stagflation or elevation", which with just one image blows up everything that is flawed with monetary policy. 

It shows that while lower rates indeed stimulate spending and lead to lower savings, this effect peaks at around 4% and then goes negative. IN FACT, the lower yields - and rates - drop below 4% - not to mention to 0% or below - the lower the propensity to spend and the higher the savings rate!

SEE CHART:

Lower yields force households to save more

https://www.zerohedge.com/s3/files/inline-images/lower%20yields%20force%20households%20to%20save%20more.jpg?itok=x0H7NiBV

There is another reason why this chart of such epic importance: it confirms what so many have known but were afraid to voice as it ran against decades of flawed economic theory: it demonstrates without a shadow of doubt, that hyper-easy monetary policy is not inflationary but is deflationary. 

Which is catastrophic for central banks, who publicly state that the only reason they are pursuing ultra easy monetary policy which includes QE and negative rates, is not to goose the market higher (even though by now we all know that's the real reason) but to stimulate inflation.

This is how Bank of America summarizes this stunning observation:

As low growth & inflation make low-risk-asset income scarce (e.g. from government bonds), households are forced to reduce consumption and increase savings in order to meet retirement goals.

Forced saving further depresses demand in a vicious cycle.

This means that the lower (and more negative) central banks push rates, the lower (not higher) the spending, the higher (not lower) the savings rate, the lower the inflation, the higher the disinflation (or outright deflation), which in turn forces central banks to cut rates even more, to add QE, yield curve control, buy junk bonds, buy ETFs, or pursue any of a host of other monetary policies that are even more devastating to consumer psychology, forcing even more savings, resulting in even more disinflation, causing even more intervention by central banks in what is WITHOUT DOUBT THE MOST DIABOLICAL FEEDBACK LOOP OF MODERN MONETARY POLICY AND ECONOMICS.

Said otherwise, monetary easing is deflationary. Let that sink in.

In effect, what the chart above shows, is that once trapped by NIRP, there is no way out, and the more central banks pursue inflation to offset deflation via monetary policy, the more pronounced the deflationary outcome resulting in even more central bank deflationary "stimulus"!

Meanwhile, as central banks spark even more deflation with their policies, the one place where all those trillions in liquidity they conjure out of thin air ends up in, is what was once known as the "market" and is now, in the words of BofA the "FAKE MARKET" or as DB calls it "administered markets", leading to ever higher fake asset prices, and ever greater wealth and income inequality, WHICH ULTIMATELY TEARS THE FABRIC OF SOCIETY ITSELF.

In fact, just look at what's happening to America right now: rioting, looting, pillaging, Americans fighting other Americans and while the media is spinning self-serving narratives that frame the bad guy as Trump, or China, or Russia, or this political party, or that, or some social movement, the truth is that the culprit behind the upcoming collapse of the US is just one, the same one that Thomas Jefferson warned the brand new nation about more than two centuries ago:

I believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power of currency shall be taken from the banks and restored to the people, to whom it properly belongs.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."

And sure enough, looking at what's happening in any major city today, we see a lot of homeless and desperate people. And as a further reminder, the Fed - as the Bank of England was so kind to remind us - was and remains a private institution, no matter its claims otherwise.

SEE CHART:

https://www.zerohedge.com/s3/files/inline-images/who%20owns%20central%20banks_0.png?itok=D3TY_SuG

Now if only someone could explain to all those millions of angry Americans that the source of virtually all of society's ills is to be found in the building below (which just happens to house an unknown amount of freshly printed dollar bills), it would be a much-needed to START THE RESET of THE US so desperately need it TO AVOID COMPLETE DESTRUCTION.

 [ In our language:  START A SOCIALIST REV ]

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SOURCE: https://www.zerohedge.com/markets/here-stunning-chart-blows-all-modern-central-banking

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