JUN 26 ND SIT EC y POL
ND denounce Global-neoliberal
debacle y propone State-Social + Capit-compet in Eco
There
was no solar storm or geomagnetic
storm to cause the disturbance. So what was it?
“For more than 30 minutes, the local magnetic field oscillated like a
sine wave”
SEE CHART:
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ZERO HEDGE ECONOMICS
Neoliberal globalization is
over. Financiers know it, they documented with graphics
A down
week for stocks? Bad news was not good news and dips weren't bought? Nasdaq was
the least worst on the week as Dow, S&P, and Small Caps all fell in line...
See Chart:
Why? Three reasons stand
out (yes, we know the deluge of
virus resurgence and China tension headlines may have catalyzed it but it's not
like that's anything the market hasn't completely shrugged off for two months):
First, the 'hard
data' jobs picture refused to confirm the 'soft data' surveys that a V-shaped
recovery is here...
See Chart:
Second, the
post-June-op-ex trend was not your friend historically...
See Chart:
Third, and most
importantly, The Fed dared to allow its balance sheet to shrink for the second
week in a row!!!
See Chart:
The Dow
broke below 25k, testing down to its 50DMA...
See Chart:
Nasdaq’s largest companies are on the verge of
completing a comeback that has taken more than 17 years to unfold. As Bloomberg reports, the
turnaround is based on the ratio between the Nasdaq-100
and S&P 500 indexes, which plunged as much as 69% from a March 2000 record
through September 2002.
See Chart:
Interestingly,
it appears institutions finally capitulated on their shorts this week (this
data is as of Tuesday's close, which may explain the early week surge)
See Chart:
FANG
Stocks had a tough week, not helped by the FB boycott...
See Chart:
Banks
had an ugly day after the stress test restrictions last night...
See Chart:
The
dollar managed a big roundtrip on the week to end very marginally higher...
See Chart:
Bonds
were bid on the week with the long-end outperforming...
See Chart:
With
30Y Yield back to its lowest since May...
See Chart:
Nasdaq
vs 10 Y Yield: Quite a gap to fill...
See Chart:
WTI ended
the week below $40...
See Chart:
And finally, we wonder if this may be the 4th reason
for recent vol? With The Fed balance
sheet's growth no longer erasing every fear, the surge in probabilities of a
Democrat win in November seems to have spooked the market...
See Chart:
S&P500
up and
Dems & REPs down in elections forecast
….
SOURCE: https://www.zerohedge.com/markets/stocks-bond-yields-plunge-covid-surge-fed-balance-sheet-purge
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...all
players are assuming that
all other players will act rationally, and no one will push 'the big red button'...
SEE CHART:
The
4th-Bubble
Problems QE Can’t
Fix
There are numerous problems which the Fed’s current policies
can not fix:
- A decline in savings rates
- Aging demographics
- Heavily indebted economy
- Decline in exports
- Slowing domestic economic growth rates.
- Underemployed younger demographic.
- Inelastic supply-demand curve
- Weak industrial production
- Dependence on productivity increases
See many more charts:
….
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...every
time the government has bailed out businesses, they have promised us that this will not create moral hazard...
but taxpayers always foot the bill
on the downside as CEOs benefit from the upside...
The recent economic downturn has created the environment for a new
round of bailouts by the government and the Fed.
Same arguments.. same results:
What is more,
every time the government has bailed out businesses, they have promised us that
this will not create moral hazard.
CHECK
THESE SUBTITLES + 2 CHARTS
Financial Institutions Bailouts 1.0 and 2.0
Automakers Bailouts 1.0 and 2.0
Airline Bailout 1.0 and 2.0
Bailouts Lead to Lower Economic Growth
SEE TWO CHARTS
CONCLUSION:
THE federal government and the Fed are doing anything they can to keep
the debt bubble going.
But until it ends we cannot expect to have the real and
sustainable economic growth we desperately need.
….
SOURCE: https://www.zerohedge.com/political/never-ending-story-bailouts-moral-hazard-and-low-economic-growth
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Real socialist project: Public need + Private competit work together
hand on hand
China can
escape the fate of a dollar collapse by tying the yuan to gold... but her interest is to preserve the dollar, not destroy it, because
it is the principal means of Chinese foreign interests being secured...
This
article describes how China can
escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to
sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the
principal means of Chinese foreign interests being secured .
Furthermore, a
return to sound money requires China to reverse its interventionism under Xi,
returning to Deng Xiaoping’s original vision. Sound money can only last if the relationship
between the state and the wider economy is properly addressed.
Of all the major
economies, China’s is best placed to implement a sound money solution. At the
moment it seems unlikely the necessary reforms will be forthcoming; but a general collapse of the
global fiat currency regime presents the opportunity for reassessment and
change.
READ THESE
SUBTITLES:
-Introduction
-China’s gold
-China’s
interest in the dollar
-Establishing a sound
currency
These are the three
immutable ground rules for a gold-backed currency, all of which must be obeyed:
·
The state currency must be an accountable gold substitute; that is to say every unit of currency
expansion must be fully backed by gold at the fixed exchange rate.
·
It must be freely convertible into physical gold on demand by everyone.
·
It must be freely convertible for the settlement of domestic transactions
and imports and exports.
To these we can add
an addendum, and that is to reform the banking system so that there is no
expansion of unbacked bank credit.
-Sound money works best with free markets
- The state and the economy
- Functions of the state to be restricted
- Mercantilism must be abandoned
- Regulation must be abandoned, allowing the public to set the parameters
of its own demand
- Banking must be reformed
- Accumulation of private wealth to be embraced
- Digital money
- The return to sound money
To be
successful in defending the yuan from the gathering global monetary crisis,
when the decision is taken to go ahead the following announcements should be
immediately made. [SUMARIZED: only introduction words ]
1. The State is transferring its
undeclared bullion to monetary reserves, announcing a figure which we believe
could exceed 20,000 tonnes.
2. Following the defining date the
quantity of yuan in circulation will be set by market demand, and any increase
in the quantity will be fully backed by gold reserves held and allocated for
that purpose by the Peoples Bank.
3. The announcement will also state
that conversion terms will be offered for all government debt (currently about
40 trillion yuan) into a new perpetual loan, interest payable at the holders’
choice in yuan or gold at the yuan/gold fixed rate, which will be set at the
defining date.
4. All holders of yuan will be free to
exchange their yuan for new gold coin at the rate set on the defining date.
5. All exchange controls to be removed
with immediate effect.
6. China’s withdrawal from all
international cooperation at G7, G20 meetings etc., currency and economic
management being no longer appropriate.
7. Digitising plans, if any, will be
discarded as unnecessary for the circulation of a gold-backed yuan.
8. Consultation with the banks will be
initiated to phase in over an appropriate period a restructured banking system.
The objective will be to separate deposit-taking as a custodial function from
investment funding of bonds and equities on an agency basis.
The markets
can then set a gold exchange rate which will be adopted as the fixed rate of
exchange for the yuan.
- And
finally, China should cease to provide the statistics beloved of neo-Keynesian
macroeconomists, for they only serve to provide reasons for state intervention.
….
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US DOMESTIC POLITICS
Seudo democ duopolico in US is
obsolete; it’s full of frauds & corruption. Urge cambio
"DC should be a state. Pass it on."
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The Fed
is the danger. None
of what we are seeing here is normal nor healthy
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This is what creeping banana-republic socialism looks like.
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In
reality, Navy commander Wyatt and other US officials knew that the islanders would never be allowed to return to
what was certain to be a heavily-contaminated former paradise.
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THE DECLINE OF US EMPIRE
Hugo
Adan.
6/26/20
When I
read the title & Introduction of the art
below , immediately came to my mind the transatlantic projects we had in
South Am. We planned to unite all the south part (BRA-N/PARAG-PE-BOL
& CHI) with trains & roads crossing from the Atlantic to Pacific
Oceans. And in the North part we
planned to unite Ecuador – Peru – Ven
& COL with BRA with roads &
trains and then using the AMAZON RIVER to unite pacific cost with Atlantic cost
of BRA.
Opium
dreams? NO. We started the roads & trains ruts in BRA & Peru.
BUT the US cut this project with the
pro-yanki regime of Alan Garcia. This ominous criminal regime (he killed
prisoners of war already in Jail) cut the budget because US investors were not available & nor
included in the project. Garcia was indicted for corruption and commit
suicide.
Now
China is interested in financing & re-starting both projects but there is another puppet of
the US putting problem. Fortunately the Bolsonaro regime –the US puppet in BRA-
is losing power & soon he will be defeated. Then the decline of US
in South America will open doors for real development of the South.
Full potentials for Development
are waiting in South –Am. It is with all this in mind that I read the article below and this is my reaction to it:
The
fundamental problem of the Third World is that the concept of reason is conspicuous by its absence. Without
“reason,” intellectual and financial capital is not accumulated...
….….
IT IS THE
DECLINE OF IMPERIAL POWER THAT IS COMING. After US final collapse (either via armed REV inside or via CIRCULATION OF ELITES as designed by W
Pareto (1921): the alternancia, cooptation &
replacement of all oligarchical elites will take place. A world without
empires will emerge.
All is needed is to
create a PEOPLE FRONT where the unity of the
differences may prevail and the final aim of HOMEOSTASIS
is achieved (point of equilibrium ) as named by Pareto.
The Marxists Richard
Wolf & Stephen Resnick (1987) called this aim a “Paretian
optimum “ and use it in
current debates on economics.
I n 1999 the German Niklas Luhmann & his team
added the quality of AUTOPOIESIS or
self-reproduction (plus other qualities) to the Homeostasis equilibrium. Luhmann never called himself a Socialist, but
the Chilians in his team YES. They were the real creators of “autopoiesis”.
It is in
this perspective that we have to see & understand the previous article on China : A Collapsing
Dollar and China's Monetary Strategy . This article in my
view is incomplete (it needed a macro system approach in reference to Us Econ & Politics today
and I’m waiting for a debate on this topic) .
Meanwhile this article left clear that China is going back to pure socialism. In fact we
needed another MAO after the cultural Rev in China. Lin Piao didn’t clean the remains of oligarchy in Taiwan.
The US empire stop the REV over there and the owners of this system can
still stop the process of China to a new stage of Socialism.
That is why we need to defeat Trump’s oligarchy in America.
Biden belongs to the same rotten pack and we hope that a 3rd option
manage to register the PROPLE FRONT for as to go to the ballot box.
Otherwise we will continue the nascent REV in America without the
distraction of fake and fraudulent (buying votes by billionaires) .. election process with Trump & Biden.
The old Paretian project
of Homeostasis has been renewed with the NEW DEALs with
FDR . Neither Pareto nor FDR called Socialism their project for obvious &
similar reason: billionaires phobia on socialism predicated up to nausea in
their press-titute.
Now SOCIALISM became the dominant view among today rebels
& we keep in mind Pareto & FDR as icons of our socialism, besides
classical socialist among Marxist and Anarchist.
More on this
background I will provided in my working
book PERSPECTIVE
of SOCIALISM in the US.
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...the
evidence coming in shows that the lockdowns were neither economically nor medically effective...
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Major shot across the bow after China warned of "red lines crossed"
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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
Israeli tells Hamas: You'll
be first to pay for any aggression ahead of July 1st target date for West
Bank annexation.
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"The small [PLA] outpost
has grown hugely in size... Indian troops aren't dismantling this
one."
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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
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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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