MAY 3
20 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
The size and scope of the current
assault on free markets makes all previous central bank and government
interventions look insignificance in comparison.
With the central banks going
all in on debasement of money by all means of quantitative easing and money
printing, the QE Defender Game is more relevant than ever. We have therefore
updated the characters of the game which can be played
for free without registration here.
QE COVID
Over the last two months, major
central banks and governments across the globe have unleashed a series of
monetary and fiscal interventions on markets and economies which are
unprecedented in their magnitude and which are bordering on the destruction of
the current financial system.
Helicopter Drops
In this scenario, helicopter
money, analogous to a helicopter dropping cash directly to the population,
comes into play. Essentially helicopter cash represents
direct methods of boosting consumer demand by the distribution of currency
directly to the public into their bank accounts and into their pockets. Like
quantitative easing, direct cash drops pave the way for
destruction of currencies and can be the touch-paper to trigger hyperinflation.
Quantifying QE - USA: Whatever it takes
After cutting interest rates to
zero via two emergency decisions during March (March 3 here and
March 15 here),
the US Federal Reserve then announced
on 15 March that over the coming months it
would ramp up QE by buying at least $500 billion of US Treasury securities and
at least $200 billion of agency mortgage-backed securities.
That’s $700 billion of Fed debt
buying from banks and the Treasury across a cross section of widening of risk
categories. At the same time, the Fed begun flooding
the Fed system with credit in an attempt to
boost liquidity, including $1 trillion in repurchase operations per day.
This new unprecedented and
unlimited QE by the Fed over March and April can
already be seen in the huge explosion in US money supply, where the monetary
aggregate measure M2 (which includes cash, demand deposits, time
deposits and money market mutual funds) has rocketed higher from the new money
"out of thin air" that has no bearing on underlying economic growth. This can be seen in the below Federal Reserve chart. As a
closely watched indicator in forecasting future inflation, this M2 chart speaks
volumes.
See Chart:
In the same vein, as architect
of this rampant QE, the money out of thin air hits the Fed's bottom
line,showing up in the rapid expansion of the Fed's balance sheet, which has
ballooned from $ 4.17 trillion at the end of February to $6.4
trillion now. That's an insane $2.2 trillion added since the start of
March, or in other words, a 50% expansion in the Fed's balance sheet since
the end of February. This is neatly illustrated in the
blow out of the Fed's total assets since early March.
SEE Chart:
Turning to US fiscal
interventions, at the end of March the US federal government pushed through a
staggering $2.2 trillion economic bailout package titled the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act), an intervention so large that
it's equivalent to 10% of US GDP. This CARES Act (which was ready and waiting
in the wings) covers everything from loans to large and small corporations
($750 billion), the bailout of the US airline industry ($26 billion), loans to
states and local governments ($340 billion), and most controversially, direct
payments to individuals ($300 billion).
HYPERINFLATION
In an interview in 2010, then
Fed chairman Ben Bernanke tried to dissuade concerns over Fed money printing,
QE and market interventions, saying that:
“This fear of inflation I think is way overstated ...What
we’re doing is lowering interest rates by buying Treasury securities. And by
lowering interest rates, we hope to stimulate the economy to grow faster.
The trick is to find the appropriate moment when to begin to unwind this
policy. And that’s what
we’re going to do.”
Fake words then from Bernanke,
fake words now. There was no real unwind. Tapering was trick and a distraction.
This is the same Bernanke who explained how the Fed's lending is merely
electronic printing, creating money out of thin air, and in so doing, inflating
the money supply.
CONCLUSION
Under
this possible scenario, physical gold will become one of the few trusted assets
to remain a secure store of value and wealth preservation when paper
currencies crash and burn. Universally trusted as a safe harbor in
times of crisis and emergency, physical gold is both the proven last man
standing and the go to asset in a world at risk of hyperinflation.
….
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OPIUM
DREAMS?
We readily admit that many unknowns concerning the virus remain,
but we do expect additional waves
of infections to occur.
The Fed’s balance
sheet will expand by 38 percentage points of GDP, more
than the 20 percentage points during QE1, 2 and 3 combined.
SEE CHART:
Federal Reserve Balance Sheet
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Here another stunning statistic from
Goldman: YTD the 5 biggest stocks are up 10% while the remaining 495 S&P500
companies are lower by a collective 13%.
SEE CHART:
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...economies
that face the sudden stop will sell
those Yuan to buy US dollars and repay loan commitments which could
create a risk of capital flights
in China that the country cannot afford...
SEE CHART:
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"Then as now, he says, “central
bankers were pushing on a string”, trying in vain to whip up a real economic
recovery with monetary policy."
The latest "Lunch
with the FT" feature by the FT's Rana Foroohar may be of interest to
readers curious about Sokoloff's background and how over the past four decades
he became one of the most closely sought after independent thinkers and
strategists on Wall Street.
As the FT notes,Sokoloff "has been trying to make the
financial elite see the dangers of seeking to solve the
problems of debt with more debt",
something we too have been doing since 2009 but obviously to absolutely no
success.
Sokoloff is, of course, referring to this:
SEE CHART:
Federal Reserve
Balance Sheet
https://www.zerohedge.com/s3/files/inline-images/fed%20balance%20sheet%20expansion.jpg?itok=gRmVzfXy
Sokoloff has a primer for our age, since it covers how central-bank
actions contributed to the debt-driven run-up to the stock market crash of 1929
and the Great Depression."
And here is what Sokoloff believes what
will happens when, again, "central banks push on a string":
See Chart:
One-upping Sokoloff, we have created a better chart that more clearly lays out what happens if one tacks on the Great
Depression outcome to the current Dow Jones. In short, we should see the Dow
dropping to the Great Depression-equivalent low of roughly 10,000.
See Chart:
There is good news: after its plunged to all time
lows, the Dow traded in a tight range for several years
before eventually blasting off to unprecedented highs.
Which is why any true comparisons to the Great Depression era
should also consider the cataclysmic event that ended
it, and look forward to a similar outcome over
the next few years.
….
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“It's not
like we're vicious, money-hungry large corporations. We have families
to feed, too."
====
...we
are beginning to see some
important divergences develop between the stock market and other
data that suggest we are not out
of the woods yet...
SEE CHART:
See more charts
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US DOMESTIC POLITICS
Seudo democ duopolico in US is
obsolete; it’s full of frauds & corruption. Urge cambio
...this
sort of behavior by the FBI and DOJ is business as usual, whichunderscores the corruption. This is not a couple of
renegades. This is just how things
are done by the government.
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Is Trump the one who lie &
we’re ones who die if he cont with stupid WW3 xenophoby
Another bombshell intelligence report shows once again that
China lied...and people died...
….
Now China is not the one who creates the CV virus, but still the
one who hide info on the severity of this pest, is the official story. The
FACT is that China immediately act to isolate & avoid the spread of this
virus, even though the virus was
fastest than the State responds & they lost many citizens.
China’ scientist
elaborate the 1st code to
elaborate vacines agaisnt the virus & gave it free of charge to
different nations of the world (including US).
They didn’t spend time in stupid conspiracies
like Trump. What Trump wants is that corp of PENTA & MIC (military
Industrial complex) benefit from the
business of death with this pandemia (manufacturing weapons
& wars abroad).
Trump want also that big profiteers of the
neoliberal system (Pharma &
speculators from Wall Street) get billion of USD to recycle the fake Economy that is in ZERO
GDP growth now.
Trump already start these actions
and his
final aim in attacking China is to start WW3. I don’t think US
has the capacity to attack RU-China
without a severe response already
announced.
But at least this threat
point to neutralize RU & China if US bomb IRAN. A recent pact among these 3
nations has already agreed.
WW3 will be the last
genocide in a long list but this time a suicidal genocide.
WW3 and its
horrible effects will be total responsibility of Trump regime.
That is why we are
demanding Senators & the entire nation
to sign petition to Supreme Court to demand Trump resignation as soon as possible .
SO: REPS STOP YOUR IRRATIONAL BELLICOSITY AGAINST CHINA.
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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
RT EN
ESPANIOL
la
frustrada incursión en Ven: "Fue un plan del US. con apoyo del
narcotráfico" https://actualidad.rt.com/actualidad/352004-diosdado-cabello-frustrada-incursion-venezuela
Fuerza
Armada VEN expresa "absoluta lealtad" a Maduro tras intento de
incursión marítima https://actualidad.rt.com/actualidad/352014-armada-bolivariana-expresa-lealtad-maduro
Le Monde:
El CV-19 mostro que US. "ya no tiene liderazgo mundial" https://actualidad.rt.com/actualidad/351995-coronavirus-eeuu-perder-liderazgo-mundial
"Hambre,
desempleo, miseria": son efectos del CV y Bolsonaro vaticina terminarlo https://actualidad.rt.com/actualidad/352028-hambre-desempleo-miseria-bolsonaro-efectos-confinamiento-terminarlo
Científicos
surcoreanos: los pacientes que superan el CV ya no podrán infectarse
https://actualidad.rt.com/actualidad/352000-cientificos-surcoreanos-aseguran-pacientes-recuperados-no-pueden-reinfectarse-coronavirus
Trump:
Inteligencia USA advirtió el CV a finales de enero sin darle importancia https://actualidad.rt.com/actualidad/352024-trump-inteligencia-coronavirus
CHINO se
burla con Lego de la respuesta US a las
alertas sobre el CV-19 https://actualidad.rt.com/actualidad/351938-medio-chino-burla-respuesta-eeuu-amenaza-covid
Multimillonarios
se enriquecen con 282.000 mill de USD durante la pandemia https://actualidad.rt.com/actualidad/351971-eeuu-multimillonarios-enriquecerse-coronavirus
Brasil
sigue siendo el país de América Latina más afectado por la pand https://actualidad.rt.com/video/352013-brasil-pais-mas-afectado-pandemia
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GLOBAL
RESEARCH
Geopolitics & Econ-Pol
crisis that leads to more business-wars from US-NATO allies
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