MAY 4
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
It's not just airlines...
Here's the real reason why
billionaire investing 'genius' Warren Buffett didn't spend one penny of his
massive cash pile as stocks plunged at record pace...according to his favorite broad market indicator, US
stocks have never been more expensive...
See Chart:
Of
course, airlines themselves were clubbed like baby-seals after Berkshire's boss
dumped them all...
See Chart:
And the
"Virus Fear" trade is notably higher (i.e. fear is rising)
See Chart:
But investors are fickle and despite Buffett's many
clear warnings, they bought the fucking dip in everything else. Nasdaq led on
the day...
See Chart:
Only Trannies were red (on Airlines)
The buying panic started around 1315ET as the following headlines all hit and the machines just
decided to buy the confusion:
Good news...
But...
- American Power Grid 'Vulnerable' To Chinese Cyberattacks, Navarro Warns
- Q1 GDP To Be Revised Drastically Lower To -8%
- NYT Publishes Grim CDC Projections Calling For Daily Coronavirus Deaths To Double By June
Futures
show today's malarkey best...Small Caps were down almost 3% overnight, only to
end higher...
See Chart:
FANG
stocks - of course - which we are sure they will argue that Buffett does not
understand - were bid...
See Chart:
But
bank stocks were also battered for the 3rd day in a row...
See Chart:
And so
much for The Fed's plans to buy HY bond ETFs...
See Chart:
The
yield curve steepened today (2Y -1bps, 30Y +5bps) (Japan was closed last night)...
See Chart:
The B-dollar
Index manage to hold on to gains, though
after an illiquid higher open last night, it was sold all day..
See Chart:
Once
again oil was extremely volatile intraday relative to the rest of the commodity
market (but WTI ended higher)...
See Chart:
And
finally, if you're really buying
this dip on the back of Buffett's "Don't bet against America"
comments... prepare for some pain...
See Chart:
….
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COVID-19
has created an enormous amount of fear, and that fear is doing far more damage to the economy than the actual virus
is...
Here main subtitles in this
article:
COVID-19 has created an enormous amount of fear, and
that fear is doing far more damage to the economy than the actual virus is.
Unfortunately, this coronavirus pandemic has created a wave of fear that
is far greater than what we experienced during the last recession, and that has
enormous implications for the months ahead.
Extremely loose lending standards helped create
debt-fueled “booms” throughout our economy in recent years, but now lending
standards are going in the complete opposite direction very rapidly.
If you own your home, would you have been approved for a mortgage under
the new Chase standards?
So if you remove about a quarter of all buyers from
the marketplace moving forward, what happens to the housing market?
And a lot of companies are also going to be extremely hesitant to “return
to normal” because of the threat of lawsuits.
Buffett understands that fear of this virus is going
to paralyze air travel for a very long time to come, and he is getting out
while he still can.
Now virtually the entire nation is paralyzed by fear, and the once great
U.S. economy is crashing all around us.
….
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... and almost 2.5x the
previous record high borrowing for any fiscal year.
SEE CHART:
the Treasury will
borrow a record $3.7 trillion in the 6 month interval from April to September.
This also explains why the Fed - which has already purchased $2.5
trillion in securities in the past 6 weeks - iscurrently
monetizing double the total Treasury net issuance: because
it is preparing for precisely this eventuality.
SEE CHART:
….
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What is missed by those promoting the use of more debt, is the
underlying flawed logic of using debt to solve a debt problem. At some
point you simply have to stop digging...
SEE CHART:
Debts ,
Deficits & Economic Growth
Why Are
Interest Rates So Low?
Interest rates don’t
operate in isolation.
Rates are a
function of three primary factors: economic growth, wage growth, and
inflation. The relationship can be seen in the chart below. The composite
economic indicator is the composite of the three components.
SEE CHART:
Understanding
that interest rates are a reflection of economic growth, we can view the impact
of debt on the growth of the economy.
SEE CHART:
Inteest
Rates: A Function of GDP growth & Inflation . We are in Deflation
Ben is correct that
rising inflation does diminish the value of the dollar, which is where
inflation comes from. However, inflation also reduces the purchasing power of
wages. This is problematic when wages have not grown
for workers over the past 20-years.
SEE CHART:
Average
Hourly Earning – Nominal vs. Real
We are in the path to
JAPAN crisis. It
is clear is that years of low interest rates, weak economic growth, low
inflation, and ongoing monetary interventions has lead to a massive surge in
debt in the U.S. and globally. While many want to suggests that “debt” isn’t
a problem, we don’t have to go far to see what
ultimately happens.
SEE CHART:
The End
Game
Why is this
important? Because Japan is a microcosm of what is happening in the U.S. As
I noted previously:
“The U.S., like Japan, is caught in an ongoing ‘liquidity trap’ where
maintaining ultra-low interest rates are the key to sustaining an economic
pulse.
SEE CHART:
Japan Is A Template
Should we
worry about the debt? If Japan
is indeed a template of what we will eventually face, THE
SIMPLE ANSWER IS “YES.”
What Japan has shown
us is that financial engineering doesn’t create
prosperity, and over the medium to longer-term, it actually has negative consequences.
There is a key point.
What is
missed by those promoting the use of more debt, is the underlying flawed logic
of using debt to solve a debt problem.
….
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Debt cancellation didn’t make the commoners more wealthy, it
just made the wealthy poorer, and everyone hungry...
====
US DOMESTIC POLITICS
Seudo democ duopolico in US is
obsolete; it’s full of frauds & corruption. Urge cambio
It was expected the alliance of
“mafia Clinton” and Trump: Moscas around Merda
"The goal of contact tracing is
to identify nearly all cases of COVID-19, isolate infected individuals, find
and alert their contacts, and then quarantine
all the contacts."
….
To them the Health of our NATION.. don’t matter. They look
for the billion behind the issue CV-19. How
they gona operate? .. remains to be seen, b alert
====
Who was behind this
poison? Guess.. & I will send you
evidences on this regard
Google and Facebook adhered to WHO on everything related to COVID-19.
Together with Twitter,
they purged information favorable
to HCQ. This is outrageous behavior...
Among other warnings .. read this one
FDA
Warning
(FDA WARNING, 2020), issued on April 24, piggybacks on the
COVID-19 Panel Guidelines. It says:
Hydroxychloroquine
and chloroquine can cause abnormal heart rhythms such as QT interval
prolongation and a dangerously rapid heart rate called
ventricular tachycardia.
====
Like other States in the US..
this could create armed rebellion too.
"Effective at 12 p.m., May
1, all roads into Gallup are
closed..."
====
Sign of inflation? Inflation could be the worse in our decadent
economy
Fresh meat purchases are temporarily
limited to a total of 3 items per member among the beef, pork and poultry
products.
….
I guess these prices has been manipulated.. so easy to
control it.
====
The
tragedy in human affairs is when
policies chosen to reduce human suffering, especially among the
most vulnerable, fail to do so, and
in the process also reduce the
opportunity for human flourishing...
====
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
It is Trump and MIC Corp ( Military Industrial Complex) who look for WW3
China’s version of the "Novikov Telegram"
….
CH-RU of course will respond to Trump’ WW3, don’t the
interpretation the US gave to Novikov Telegram now. Trump’s bellicosity on CH
has this intention
====
"There is a
whole of government push on this."
President
Trump's trade war is back. It's an election year, and the efforts
by the administration to 'turbocharge' an initiative to deglobalize that
world by removing critical supply chains from China could be seen with new
rounds of tariffs to strike Beijing for its handling of the COVID-19 outbreak,
US officials told Reuters.
This could suggest President Trump is about to unleash
tariff hell on Beijing as it would do two things: First,
it would pressure US companies with supply chains in China to exit, and second, the president can say the tariffs are a
punishment for the more than 68,000 Americans that have died from the
virus. [ Since there is not scientist evidence supporting the guess, Trump administ is becaming very
irresponsible and liable in International Courts ]
This also suggest that geopolitics
could soon become major headaches for global markets. President Trump's
latest comments have stirred new concerns that an economic war with China is
about to restart. This could be potentially dangerous
for investors who are looking for V-shaped recoveries.
SEE CHART:
====
Nordea believes that news on prices and wages will be the next negative
surprise during H2-2020 and in to 2021 (in Q1 and Q2 activity data has
been the negative surprise).
SEE CHART
So faced with record unemployment coupled with growing labor
class anger, Trump's weapon of choice to win over the workers again, will be de-escalation
of his China-bashing strategy and to
stop renewed isolationism.
Larsen concludes, "Before the March melt-up in markets, USD/CNY was THE global bellwether
for risk appetite, and it may very well return as such very soon. You should
buy USD/CNY (and sell risk assets), no tariff threats."
====
To start the WW3 in IRAN is condemned to failure. RU
respond will be immediate
Russian Resonance radar system first
exported to Iran,
and now goes live in Egypt.
====
Are we going to accuse CH of
sending ‘honets’? US stupid
xenophobia will b funny
That doesn't look fun...
====
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
US: LEONES David
Brooks
====
ALAI ORG
OPIN: NAZIONALISTAS Jorge
Majfud
====
RT
EN ESPAÑOL
7 claves
para entender el fallido ataque marítimo del US a Ven https://actualidad.rt.com/actualidad/352113-detenidos-intento-fallido-incursion-venezuela
Quién es el
exboina verde USA que se atribuye el frustrado operat en Ven? https://actualidad.rt.com/actualidad/352116-jordan-goudreau-exmilitar-estadounidense-venezuela
Goldman
Sachs y Morgan S consideran que la Econ mundial "toco fondo" y se recupera https://actualidad.rt.com/actualidad/352141-goldman-morgan-stanley-economia-tocar-fondo
Corresponsal
RT recibe amenazas de muerte de empresa USA que organizó l incursión en Ven https://actualidad.rt.com/actualidad/352086-corresponsal-rt-recibe-amenazas-muerte-incursion-venezuela
Hallan anticuerpos " humanos" capaces de
bloquear la infección del nuevo CV https://actualidad.rt.com/actualidad/352076-hallan-anticuerpos-humanos-bloquear-coronavirus-celulas
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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
-“It’s
Very Scary”: COVID Surges in Meat Plants as Activists Demand Worker Safety
& Meatless Mondays
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