viernes, 26 de junio de 2020

JUN 25 ND SIT EC y POL



JUN 25 ND SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco

"This isn't confined to a handful of states anymore...It's going to be difficult now to get this under control."
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ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics

TRUMP CAN WIN RE-ELECTION : piece of cake to him, BUT
Most Presidents not convicted in Court won re-election.

Hugo Adan.  6/25/20

That is Why I said Trump can win re-election, if the Supreme-Court  allowed.
FDR won the 3rd consecutive election, he wasn’t convicted but Supreme Court but his 3rd victory  was nullified for extra-legal micro & macro reasons. FDR accepted such decision.

 My comments are based on:
In the relentlessly circular world of MMT, government is the source of all finance and in effect all wealth...
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Economy & Politis don’t move in closed circles, they move in spiral & toward a better way of political system.  That is called “development” or progressive move.
What happen with FDR is that Law prohibited a 3rd round . Even when he win the election, the Supreme Court  canceled his election for extra “legal reason” though the internal &macro-political reason  were most  important  factors to nullify results (the opposition accused FDR of being communist). BUT the main reason was the bomb to JAPAN and the chances of Stalin to respond (they were about to produce a nuke-bomb).
The Supreme Court used this  ‘legal reason’ to nullify the third victory of FDR and new round of elections were set. 
Trump is going the 2nd round (re-election) and there not real  legal charges on him.  Trump was help by Mrs Pelosi’s fake impeachment. 
Besides, comparing the US with other world  nations affected by the pandemia and Economic crisis, Trump accept that US is not good  but is not in horrible situation compared to big west nations.
Now he can simply use the machine to print USD and target  key sectors of the National electorate. He may start with  the young people who finished University studies and have big debts.  So, with a decree of ZERO DEBT he will get  many, many  new votes for him.
The same with other sectors of the population (his advisors may’ve working on other isues).
Some political scientist can create an index with the 8 requisites for real democracy in America  [.Source? How much you pay?..]  to give science base for new opinion POLLS , now manipulated by the billionaires  supporting Biden.
If so, in less than a month Trump can change the direction of votes among those who decided to go to the ballot-box. That will assure his victory.
In short: if well guided,Trump can easily win his re-election.. piece of cake. Politic Scientist can do this Index need & in 15 days he can get it for no less than $2 mill USD.
Presidential-Election depends on money.. on right inversion. So, business is business, the political scientist will say... and he will pay it.
See this way his victory will be piece of cake.
 Now Trump is 17 point behind Biden but with the ZERO DEBT ++ they will be tie at the end of July and at the end of Aug  Trump will be 5 points ahead  and so on.
In the coming debate with Biden,..  Trump is expected to continue his attacks on Libya’ issue: the stolen GOLD from Gadhafi ‘ Nation. Plus his complicity in the assimilation of 4 members of Benghazi US Embassy and the PACT with Saudis to create ISIS, the Saudi terrorist group to destroyed Syria. There are of course many other felonies in which the VP Biden was involved.
Trump has already started this campaign and he need to present  clear evidences during the Public Debates Coming. There are other felonies committed by VP Biden when he was in power. Trump may show No mercy with Biden , and he will wins.  Piece of cake to him.
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BUT
There are two factors that will decree his failure: First the war with China & 2nd the war with VEN & IRAN. China & RU are allies & are in much better economic and political situation than the US with Trump regime. Our Economy is really in horrible situation and Biden can get the data to confront Trump on this issue. Trump political cohesion inside his party REPs is going down. His misuses of the military (crimes against blacks) proved his inefficiency as Govt and total lack of minimal ethics (mobilize the military for his personal political interest) revealed no sense of moral. He lost not only the black electorate but also the young whites and there is not way to rescue them, even if he decree the ZERO DEBT. 
With this internal division of the nation no way to confront an external war with China (even if the Senate & House approve this war) the chances to get national cohesion for war are weak and US-military division will start once this war with China-RU is delared. This will be WW3 with nukes & millions of casualties in both sides. No winner is expected, MAD will prevail. 
Many pandemias will decimate the rest of global population not in war. Many US embassies & US companies at global level will be bombed by civilian brigades. We are not ready for WW3. It was a very stupid act to send 3 destroyers to foreign waters. 
Simple solution to this chaos: bring the 3 destroyers back to US and asap. Trump has to stop also his threats to VEN & IRAN. There is not context for WW3, much less for fascistic dictatorship.  
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Let’s go back to:
Modern monetary theory (MMT) has a new champion, and a new bible. Stephanie Kelton, economics professor at SUNY Stony Brook, is the author of The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy. Professor Kelton was an advisor to the Bernie Sanders presidential campaigns, and her ideas increasingly find purchase with left progressives.
Kelton's essential argument, first advanced by MMT guru Warren Mosler in the 1990s, is quite simple: federal spending is unconstrained by revenue. Taxes function only to regulate demand and hence inflation; federal borrowing functions only to regulate interest rates. Sovereign government treasuries can create and spend as much money as they like to stimulate growth, especially when the economy is underperforming. If inflation spikes, taxes can be imposed to take money out of the economy.
Thus the only constraints on unlimited government spending are political.
THREE QUICK POINTS:
MMT is not modern.
MMT is not monetary.
MMT is not a theory.
In the relentlessly circular world of MMT, government is the source of all finance and in effect all wealth. Taxpayers don't fund government, because after all government first provides the "tokens" (currency) taxpayers need to pay their IRS bills! Government funds taxpayers, which is broadly speaking what the American left really believes. It's a version of Obama's "You didn't build that" rewritten into policy.
But let’s not kid ourselves: the US federal government already finances its operations of MMT. 
The promise of something for nothing will never lose its luster. MMT should be viewed as a form of political propaganda rather than any kind of real economics or public policy. And like all propaganda, it must be fought with appeals to reality. MMT, where deficits don't matter, is an unreal place.
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Read the full article at:
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In states like Arizona, Texas, Oklahoma, and South Carolina, where the virus is spreading rapidly, JPM's spending tracker is starting to slow.
Two weeks ago, in the immediate aftermath of renewed fears that various sunbelt states are seeing growing coronavirus infections, we showed that restaurant booking as measured by Opentable seated diners posted its biggest daily drop on its path to gradual recovery since the lockdowns were imposed in March.
SEE CHART:

Since then there was a modest stabilization in the trend, until another sharp drop took place on Monday amid new concerns of rising cases in states such as Texas, Arizona, Florida and California.
SEE CHART:

That said, two one-day drops in the closely watched restaurant index hardly is confirmation that the economy is starting to shutdown again. While that may be true, according to JPMorgan's tracker of spending on the bank's own debit and credit card, the bank said today that it can now detect a relative slowdown in spending growth in recent weeks in states where the virus has begun to spread again, even if differences across states are fairly subtle so far.
However, in states like Arizona, Texas, Oklahoma, and South Carolina, where the virus is spreading rapidly, the tracker is up by less than 4%-pts. Still, total spending has been increasing even in these
places thus far
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Elsewhere in the data, JPM notes that recent rebounds in spending in states like New York have been concentrated among  Millennial and Gen Z cardholders and in card-present spending, suggesting that younger generations are leading the way in returning to normal offline life.
SEE CHART:

Chase Consumer Card spending by State and card presence
SEE CHART:
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Meanwhile the Fed is buying around $350MM in corporate bonds/ETFs every single day.
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After three months of record gains, which saw an increase of $3 trillion to $7.2 trillion, the Fed's balance sheet has posted its second consecutive weekly decline since the start of the corona crisis according to the latest H.4.1 statement.
SEE CHART:

Meanwhile, with the S&P500 closely tracking the Fed's balance sheet in the past three months, which has served as the primary factor behind the rebound in the market, the latest weekly drop coincides with the period of heightened volatility in the past three  weeks.
SEE CHART:

The shrinkage comes at a time when the Fed's monthly liquidity injection has been tapered to approximately $120 billion, which suggests that while the balance sheet is likely to resume growing in the next week, it will be at a more gradual pace.
SEE CHART:

Finally, those keeping track of how much corporate bonds the Fed has bought, the latest total for the Fed's Corporate Credit Facilities LLC which includes purchases of both ETFs and corporate bonds, the Fed disclosed that as of June 25, there was $8.3 billion in book value of holdings (the Fed does not break out how many actual bonds it has bought vs ETFs), and increase of $1.7 billion from the $6.6 billion a week prior. Which means that the Fed is now buying around $350MM in corporate bonds and/or ETFs every single day.
SEE CHART:
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..big banks will be required to suspend share buybacks and cap dividend payments at their current level for the third quarter of this year.
BANK STOCKS ARE NOT HAPPY...
SEE CHART:

Wells Fargo and BofA are the worst hit after hours...
SEE Chart:

Discover, Capital One, Barclays, and Amex face the biggest loan losses...
SEE CHART:

Credit Suisse is the most exposed to losses from Commercial Real Estate...
SEE Chart:

The Federal Reserve Board on Thursday released the results of its stress tests for 2020 and additional sensitivity analyses that the Board conducted in light of the coronavirus event.
"The banking system has been a source of strength during this crisis," Vice Chair Randal K. Quarles said, "and the results of our sensitivity analyses show that our banks can remain strong in the face of even the harshest shocks."
Full Results below:
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

"Take a full glass of coronavirus, shake in a shot of riots and another of this defund police notion, and everything goes crazy."
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Once you allow your economy to become dependent on extremes of debt, leverage, inequality, legalized looting,monopoly, pay-to-play politics and speculative asset bubbles, a depression is inevitable.
Once you allow your economy to become dependent on extremes of debt, leverage, inequality, legalized looting, monopoly, pay-to-play politics and speculative asset bubbles, a depression is inevitable. The only question is "when," and that's been answered, though nobody wants to hear it: 2020 and beyond.
It didn't have to end this way. If our leadership / Power Elites had acted to reduce all these painfully obvious speculative extremes, dependencies and fragilities and made even modest efforts to limit It didn't have to end this way. If our leadership / Power Elites had acted to reduce all these painfully obvious speculative extremes, dependencies and fragilities and made even modest efforts to limit the exploitation of predatory parasites that generated unprecedented inequality and corruption over the past 12 years, the economy would have been much less brittle / fragile..
SEE CHART:

Unfortunately, the pandemic chart I composed on February 2, 2020 is still playing out, increasing uncertainty.
SEE CHART:

What's the price of systemic fragility and uncertainty? I fear it will be steeper than we're prepared to pay.
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After yesterday's chaotic headlines, today was far calmer - despite similar headlines - making for one of the lowest range days of the year, until...
See Chart:

Until a huge buy program hit at 1530ET...(no news catalyst)
See Chart:
NYSE TICK

Sparking a dramatic short-squeeze...
See Chart:

Lifting everything ahead of tonight's stress test. Four major buying moves in today's actions but the late-day one is the most notable for its total lack of reason...TOTAL PANIC BID!!!!
See Chart:

Yes, small caps rallied 1.5% in the last hour of the day on nothing but bad news from a virus perspective and no news on anything else. 9th positive day in the last 10 for Nasdaq.
This seems to sum things up rather well.
The big banks all jumped nicely at the open on the Volcker Rule easings (ahead of tonight's stress test results)...
See Chart:

Notably financials outperformed (driving Small Caps) despite a flattening in the yield curve...
See Chart:

And derivatives are implying a cut next and then a flat dividend yield from banks for the next 12 months
See Chart:

Bonds were barely alive today with the long-end very marginally lower in yield...
See Chart:

The B-Dollar Index ended marginally higher, but slipped late on back into the red on the week...

Oil prices rebounded today but WTI was unable to get back to the $40 Maginot Line...
See Chart:

But gold ended the day marginally lower, but appears to be coiling for a move...
See  Chart:

And finally, sometimes you just gotta know when to fold 'em... Warren Buffett is going through “the worst patch” of his investing career, Jim Bianco, president and founder of Bianco Research LLC, wrote Wednesday in a Twitter post.
As Bloomberg notes, Bianco cited a total-return ratio, including dividends, between Buffett’s Berkshire Hathaway Inc. and the S&P 500 Index.
See Chart:

The ratio closed Tuesday at its lowest level since November 2001 after dropping 23% from this year’s high, set March 16, according to data compiled by Bloomberg. The current reading was first reached in 1995, as cited by Bianco, who wrote that “Berkshire has turned into a mediocracy” for the past 25 years.
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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

What’s going on now is a mockery – or an intentional shift in programming. Both SAFE and the PBOC report that foreign assets have been stable; in terms of the monetary base of the latter, suspiciously stable...
PBOC was involved because of its own balance sheet figures. Each month SAFE would first report lower levels of foreign “reserves” which then got confirmed by the PBOC’s balance sheet lines, a central bank system which begins and often ends at the number for forex.
SEE CHART:

What’s going on now is a mockery – or an intentional shift in programming. Both SAFE and the PBOC report that foreign assets have been stable; in terms of the monetary base of the latter, suspiciously stable. I mean, hardly any variation month to month, a trend that’s gone on so long now it’s really year to year.
But what, exactly, is going on isn’t showing up anywhere. Not even on the one or two lines where in the past we could link them to hypothetical backdoor activities (the ubiquitous and useful “other”).
See Chart:

The ticking clocks became too noticeable and obvious? I think so; as did the decline in visible “reserves” which created the opposite effect of what was intended, amplifying negative monetary pressures market-wide (the nightmare scenario). The PBOC, unlike Western Economists, may just have found out that following the orthodox textbook where these things (the basics like money and dollars) are concerned will get your economy killed.
Reserves aren’t insurance against a dollar shortage, they are confirmation you’re the big target. Maybe better not to so blatantly advertise your dollar struggle?
Purposefully or not, a straight line isn’t expansion, either. And that still means the same thing in China: very little room for monetary growth. In what to me looks like more Xi vs. Li, currency growth has been bumped up for COVID-19 and the shutdown depression; bank reserves have not.
Quality growth in the real economy as opposed to quantity growth led by flooding banks.
See Chart:
Bank of China Balance Sheet 1

Bank of China Balance Sheet 2

Even the Chinese yuan has become far more stable despite the rash of nasty economic indications and even more uncertainty about what the PBOC might or might not do about it. In other words, forget what is happening in China, the yuan is all about the “dollar” in the purest financial sense.
Especially when there are, curiously, no more muddy footprints at all.
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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

REBELION

España   PARADOJA FEDERAL   Lluís Rabell   

ALAI NET ORG:

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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts that favor WW3

-Netanyahu's annexation plan is a sham  By Richard Silverstein
-May All Be Revealed  By Caitlin Johnstone
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As the cultural war rages unabated, the billionaire class is only getting wealthier. Their wealth has skyrocketed 20 percent, or $584 billion, since the start of the pandemic/lockdown. How will this fact shape the coming economic recovery? And, is a permanent underclass the new normal?  CrossTalking with Richard Wolff & Todd Horwitz.
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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

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