martes, 21 de julio de 2020

JUL 21 20 ND SIT EC y POL



JUL 21  20 ND SIT EC y POL

Here is why the sabotage.The truth hard then.  Les duele la verdad y recurren al Fascismo

Este fue el art usado para sabotear mi reporte diario. Huele a fascism y no pude probarlo

POR QUE LLAMAMOS A LA ABSTENCION?
WHY ABSTENTION?
Hugo Adan 7/19/20
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ABRIR:
Because election in USA has nothing to do with democracy.
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Effects of privatization of the health:
This is not good...
For the first time since May 29, the US suffered more than 1,000 deaths in a single day yesterday, according to the COVID-19 Tracking Project.

CNN Refuses To Show This Video — Watch now Before It's Banned  

NOW it has been BLOCKET from inside .  Perhaps oppening  the original web-site:
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ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics


...the markets are a farce, the dollar is garbage, and it's a toxic depopulationary/ deflationary/ depressionary world...


The current interest rate cycle began in August of 2019 when the Fed cut rates from a cycle high of 2.4% to 2.1%.  The Fed  then fighting the "repo-crisis" in which the Fed was incapable of setting interest rates...and gasp...free-market based interest rates were the result And, shocker".  So, just putting  interest rate cycles in perspective and detail why I anticipate this will be the longest and lowest interest rate cycle with likely zero recovery of those rate cuts.

To begin, the chart below shows interest rate cycles from 1981 through 2020 (and likely through 2040)...and note they grow progressively longer, starting and ending lower, and with less interest rate recovery.  Based on this pattern and the macro's driving this, this current cycle is likely to be decades at zero (or more likely moving to NIRP) with no rate hikes.
SEE CHART:

Again, this the current cycle, we already have 100% cuts and I anticipate something on the order of twenty years of zero rates meaning zero recovery.
SEE CHART

The ZIRP policy coupled with minimal working age population growth (resulting in minimal to no jobs growth over this cycle) will mean a blow-out of federal debt unlike anything nations outside of Zimbabwe or Venezuela have ever seen.
SEE CHART:

To quantify the situation, the chart below shows the parabolic rise in the growth in federal debt per the net growth per full time employee.  I anticipate this current period will see something like a ten fold increase in the growth of federal debt per full time job net gained as debt soars and the US struggles to simply re-employ those who have lost their positions.

SEE CHART:
Growth in Federal Dept per  growth among full time employed

Below are the changes per presidential term since Reagan took office in January of 1981(under Trump, I assume by inauguration day, January 2021 federal debt will be sitting at $28.2 T, GDP of $20.6 T, Fed BS of $7.8 T).  And I assume all three of the trend arrows below will be continuing their path regardless a Trump or Biden victory.
SEE CHART:
GDP, FED Debt,  Fed Reserve  BS  GROWTH PER PRESID

Bonus Chart - Demographic driven interest rates incenting ever more debt / asset inflation, supported by unlimited Federal Reserve balance sheet expansion:

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The Fed can print money and Congress can hand it out, but neither can dictate where the money goes...

The global recession has no precedent in terms of synchronization.
SEE CHART:
World Economy  1871-2020: Percent of Economies in Recession

Deflationary Consequences

Lacy Hunt commented on the four economic challenges central bankers face as noted below.
1-Over 90% of the world’s economies are contracting
2-A major slump in world trade volume is taking place. 
3-Additional debt incurred by all countries
4-2020 global per capita GDP is in the process of registering one of the largest yearly declines in the last century.
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Ten Key Ideas  condensed from the article
1-Recessions are either deeper or longer lasting when a very high percentage of the world’s economies are contracting 
2-Except for the very short run, the Federal Reserve’s lending operations for the corporate bond market are a negative for economic growth
3-By keeping failing players in the game, this prevents the process Joseph Schumpeter called “creative destruction” as well as “moral hazard”.
4-The adverse consequences of an unsurpassed increase in new debt will remain for years to come
5- The relationship between debt and economic growth is non-linear, just as is the law of diminishing returns.
6- A recent Brookings Institute study posits the pandemic will lead to 300,000- 500,000 less births next year
7- In the first quarter, corporate debt jumped to a record 48.7% of GDP, more than 300 basis points higher than during the Lehman crisis 
8- In 1934, Irving Fisher wrote that the velocity of money falls in heavily indebted economies.
9-At the end of the three worst recessions since the 1940s, the output gap was 4.8% in 1974, 7.9% in 1982 and 6.4% in 2009. The gap that existed after the recession of 2008-09 took nine years to close. This was the longest amount of time to eliminate a deflationary gap.
10- Considering the depth of the decline in global GDP, the massive debt accumulation by all countries, the collapse in world trade and the synchronous nature of the contracting world economies the task of closing this output gap will be extremely difficult and time consuming. 
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Conclusion
Nearly all economists expect a huge jump in inflation associated with the Fed's massive balance sheet expansion and government fiscal stimulus.

However, I side with Lacy Hunt. 
My Reasons
  • The demand destruction from Covid will last for years.
  • Demand destructuction is greater than Covid stimulus.
  • Buildup up debt is inherently deflationary. 
  • Demographics are deflationary.
  • By bailing out failed corporations, the Fed is creating more and more zombies. 
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Unwanted Inflation Easy to Find
Actually, inflation is easy to find. Look no further than the stock and bond markets.
The Fed's balance sheet expansion coupled with trillions of dollars of fiscal stimulus (both unprecedented) has resulted in stock market speculation also at unprecedented levels exceeding the housing bubble boom in 2008.
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

LA NACION NO VA A CAER…quienes van a caer son las mafias dueños del poder en US
...turn on the evening news... Watch a once proud country with a resilient and hard-working people come apart before your very eyes...
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La REV no se gana con máscaras, se gana con org y decis de tumbar el poder d los Billon
...law enforcement officials are concerned that facial recognition software could be thwarted, and possibly even broken by people wearing masks.
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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

I don’t care for your Opin on CH. Let’s take of own business  here. If compare be honest
“Beijing actively promotes the reprehensible practice of forced labor and abusive DNA collection and analysis schemes to repress its citizens,”
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Incredible: India favor US manipulation into a war China. IND pone los muertos….
Carrier exercises are in support of "a free and open Indo-Pacific"...
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Y  el US y  China negociaran un ACUERTO DE BENEFICIO MUTUO. Ni una florcita  para la sepultura de los muertos hindúes.  Que vivan los drills (el simulacro de guerra que enriqueció a las grandes Corp asociadas al PENTA). Que mueran + IN
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Analysts believe Russia prevented the IDF from continuing its strikes as the attack was carried out from airspace controlled by the Israeli military.
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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:

Ecol:  NORMALIDAD SANA EN PLANETA SANO  Ecol en Acción
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LO DEMAS PARA MAÑANA
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