lunes, 22 de junio de 2020

JUN 21 ND SIT EC y POL



JUN 21 ND SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco

...the US was the second-largest contributor with 36,617 cases...
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ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics


While it is relatively easy to predict that the post-corona economy will suffer from high unemployment, the outlook for price inflation is not so certain. On the one hand, there will be high government deficits and more public debt; on the other hand, given the weak economy, consumers and companies may refrain from taking on new debt and could begin to lower their debt burden.
CHECK SUB TITLES  & READ COMPLETE ART:
Monetary Expansion Doesn't Always Lead to Price Inflation
Problems with Measures of Price Inflation
QE Forever?
A Credit Contraction—until the Dam Breaks
The Importance of Sound Economics
More Intervention Will Bring Even More Economic Damage
Conclusion
1-The lockdown of the economy and the imposition of social isolation have led to large-scale economic disruptions.
2- The upcoming challenge requires the reconstruction of the capital structure and the restoration of global cooperation.
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Friday's skittish mood has carried over into the Monday early trades.
For once, the spread betting estimate of where Dow futs would be on Sunday was correct, and with IG expecting a drop of -230 points several hours ahead of the market open...
SEE CHART:

... that's precisely what we got at 6pm ET when Dow futs opened down 250, Spoos were -30 and the Naz -80.
SEE CHART:

Why the early encounter with gravitation? Because as Amplify Trading writesthe market still remains wary of a second wave of coronavirus with nationwide cases in the US up 15% in the last two weeks and cases rising in 18 states across the South, West and Midwest, according to the NYT. Over the weekend, new cases in California rose by a record (4,515) and Florida infections up 3.7% from a day earlier, compared with an average increase of 3.5% in the previous seven days.
SEE MAP:

As a reminder, on Friday stocks slumped after Apple said that it will again close almost a dozen stores in the US because of a recent rise in coronavirus infections in the South and West, and although the tech giant can still operate effectively online the move was an ominous sign for brick and mortar retailers across America and a dent to the optimism that the US recovery is in full swing.
What to expect this week
According to Amplify, one of the most important data sets this week is the latest flash PMI data due on Tuesday. While a rising headline number may give some cheer that confidence is returning the data in itself is forward looking which brings about two interesting points.
·         It could be highly subject to change depending on the developments of a second wave virus (a la Apple on Friday).
·         As analysts at ING note, looking at other data, including Google's mobility index, the economy still appears to be operating well below its pre-virus level.
SEE CHART:

Finally, here is a calendar of the week's events courtesy of NEWSSQUAWK FROM   MONDAY TO FRIDAY
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

No matter who ends up victorious on Nov 3, there is no stopping the Brrrrrr.
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Two weeks ago we reported that with PredictIt showing growing odds of a Democratic Sweep after the November election...
SEE CHART:
2020 us Election Odds

Goldman strategist warned that if Biden's tax proposals are enacted, this wouldreduce Goldman's S&P 500 earnings estimate for 2021 by roughly $20 per share, from $170 to $150, resulting in a substantial hit to the bank's S&P forecast.
SEE CHART:
Tax Reform could reduce S&P 500 EPS By 12% ($20) in 2021

Furthermore, Kostin explained that according to a general rule of thumb, every percentage point change in the effective corporate tax rate should change S&P 500 earnings by 1.2% or $2 per share.
SEE CHART:

This ominous Goldman assessment was among the various reasons cited why in the subsequent two weeks the markets have become increasingly shaky as Biden's PredictIt lead over Trump has continued to grow.
SEE CHART:
Trump vs. Biden

But now, according to a follow up response from Morgan Stanley, the bulls have nothing to fear even if Biden wins for one simple reason: no matter who ends up victorious on Nov 3, there is no stopping the Brrrrrrrrrr.
In other words, fiscal policy in the US is now completely independent of who is in charge and the US president is now nothing more than a figurehead; the only thing that matters is the Fed and whether it will continue monetizing all US debt issuance as it is doing in 2020...
SEE CHART:
Fed Balance Sheet vs Treasury Debt

US Election: The Art of the Plausible
The election could resulted in a Republican sweep, but their plausible policy path for governing was limited by what they could deliver. That included tax cuts and deregulation, but not the spending cuts and healthcare repeal they also promised. This added up to an economically supportive fiscal expansion, and it only took hours for the markets to put two and two together.
SEE TABLE

Election outcomes remain uncertain, but we think their influence on current policy choices and future policy paths is supportive of risk assets today [ZH translation: no matter who the president is, they won't allow stocks to drop].
SEE TABLE:

More fiscal expansion this year bolsters our economists’ call for a V-shaped recovery, and further fiscal support in a range of election scenarios could pave the way for sustained economic recovery. While this poses a challenge to US Treasury duration, we think it helps to extend recent gains in US equities and US credit. At the equity sector level, we highlight the potential for financials – an out-of-consensus favorite of our equity strategists – to outperform. They expect value stock outperformance and see positive exposure to a steeper yield curve from fiscal expansion, factors that we think would endure in a variety of November outcomes.
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Bolton writes in his book he urged Trump to pursue military force on Iran as the "only lasting solution"...
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Meanwhile the NYT's Nikole Hannah-Jones promotes a conspiracy theory about "government forces" and BLM...
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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 sharp divergence between credit and activity observed in the US, the eurozone and China is particularly unusual and highlights how different this crisis is relative to the GFC."
Yared is referring to the following chartsfirst, the US credit impulse.
SEE CHART:

For those who missed it, here is our recent analysis on why "QE No Longer Stimulates The Economy And Only Leads To Higher Stock Prices".
Even some of the most ardent supporters of the fraud that is Keynesian economics now admit the entire modern economic system is on the verge of collapse for one main reason: the marginal utility of debt is collapsing, with ever more debt required to generate an increase in underlying GDP.
SEE TABLE
Latest Evidence of Diminishing returns: GDP generates capacity of global DEBT

And tied to that, is another reason why any day now the current system may be the last: the marginal utility of every new QE is now declining to the point where soon virtually none of the money created by the Fed out of thin air will enter the economy and instead will be stuck in capital markets, resulting in hyperinflation for asset prices even as the broader economy collapses.
In an expansionary phase, prices and consumption are increasing. Because prices and investment opportunities are high, demand for money among consumers/businesses is high, and interest rates (r) increase alongside borrowing. When r rises to the rate of r*, consumption slows, earnings fall, and a recession ensues. R* falls as uncertainty and risk aversion grow. This is a “business cycle” recession (and as long as the Fed is around, we will never have one of those again as the Fed has now also killed the business cycle... just as the USSR tried to do).
CONTINUE READING THIS INTERESTING ANALYSIS AT
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RISK OF WAR between Egypt-Turkey
Sisi issued a 'red line' for military intervention which Tripoli and its backer Turkey took as a declaration of war...
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The timing of a Russia-India-China summit this week could not be more apt following a deadly skirmish in the disputed Himalayan region which resulted in dozens of military casualties...
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Beijing is stuck between a rock and a hard place, on one hand urgently needing more rate cuts, and on the other unable to implement them without causing another round of bank-sector impairments and potential failures.
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THIS NATION WILL NOT SUBMIT
IT IS GOING TO REVOLUTION
Hugo Adan
6/21/20

George Floyd riots are moving beyond anti-racism.
It is now a Mov that goes against neoliberalism & militarism:
the real cause of the initial anti-racism. 
Here my opinion on the Art. below:
The coronavirus response, monetary debasement, and George Floyd riots have clearly demonstrated to the honest and the productive that governments offer them less than nothing...
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WHERE WE ARE GOING TO?  ADONDE VAMOS?

Neoliberalism (monetary debasement, you called) is the system that creates explosive inequality in favor of the !%. The 1% exclude other social classes & etnias including the blacks. Only the alliance of this oppressed people in an  ARMED FRONT for radical change or REV will defeat the power of the 1% .
Their power is based on nasty militarism (production of weapons to create war terrorism abroad). But foreign wars are arriving to its end. They can’t move  further toward WW3, because it will create our destruction too (MAD Thesis )
Our threats and blackmails to other nations & to our Nation are now debased:  
A-it became very expensive to start a war & kept it to its end. Foreign nations are buying sophisticated weapons, missiles included, even semi-nukes pointing to our nation.
B- Our nation is buying arms too, they need to equip People’ brigades against state terrorism.
 Our soldiers outside will soon come back to our Nation (it is expensive to keep  it abroad) & they will join the resistance against our  system of power. They are not going to accept any longer the story-tell that their sacrifice served to our country and not to our billionaires. They will join the Rev against them.
WORLD HISTORY SAID SO, AND IT WILL HAPPEN IN THE US  TOO!!
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

- India 'Seeks Early Delivery of Ru's S-400s', Fighter Jet Spare Parts Amid Border Stand-Off With China  I don’t think  RU will betray China for a fist of arms-money. But  it c/b
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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

REBELION
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LO DEMAS PARA MAÑANA
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