Nueva Democracia: AUG 28 20 ND SIT EC y POL

AUG 28 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

POWELL PUMPS S&P TO BEST AUGUST SINCE '86, DOLLAR & BONDS PUKED

August 2020's 6.89% surge in the major US market index is the largest August gain since 1986 (when the S&P 500 rose 7.12%), but as the chart below shows Trannies almost doubled those gains..

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm7B0_0.jpg?itok=wb-jEub1

This is the S&P's 7th straight daily gain, 5th straight weekly gain, and 5th straight monthly gain...

And that strong month sent The Dow back into the green for 2020...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmA7F7.jpg?itok=OV6_S8HZ

All thanks to an epic squeeze in the most-shorted stocks (doubling the S&P's performance)..

See Chart:

S&P500 vs Most Shorted Stocks

https://www.zerohedge.com/s3/files/inline-images/2020-08-28%20%287%29.png?itok=KZ14t-tV

Most shorted Stocks: The 5th month in a row...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmD622.jpg?itok=i52ToIwd

With the strength being concentrated in fewer and fewer stocks...

See Chart:

Nasdaq vs Breadth (advanced- decline Line)

https://www.zerohedge.com/s3/files/inline-images/bfm74F1.jpg?itok=VNvF0kWR

As AAPL nears the same size as the entire Russell 2000!!!!

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-08-28%20%288%29.png?itok=ML4qtEud

VIX was lower on the day after 'unusually' trading higher along with a higher stock market two days in a row...

See Chart:

S&P vs VIX

https://www.zerohedge.com/s3/files/inline-images/bfmCB0A.jpg?itok=HaNYHb0F

It was an ugly month for bonds with the long-end up over 30bps...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm1BDC.jpg?itok=ALaOsWGN

UST 10Y Yields spiked 20bps on the month - the biggest absolute monthly spike since Sept 2018 - back above 70bps (30Y back above 1.50%)...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmD9CD.jpg?itok=LZzPqNFr

Real yields ended marginally lower (down from -1.00% to -1.04% on the month)..

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm7281.jpg?itok=MdxDAKA7

The dollar was pummeled for the 5th straight month to its lowest since May 2018...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm9E33.jpg?itok=u1zNPydW

But Gold ended the month unchanged...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm885B.jpg?itok=6Tv2GBdv

the Gold/Silver ratio cratered (for the 4th month in the last 5)...ending the month at the lowest level (silver strongest relative to gold) since April 2017...

And finally there’s this!

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-08-28%20%286%29.png?itok=aN2mqKij

And this...

See Chart:

The Buffett Indicator

https://www.zerohedge.com/s3/files/inline-images/bfmDB9_0.jpg?itok=vtBFfgfM

And this...

*BULLARD: WANT TO GUARD AGAINST ASSET BUBBLES GOING FORWARD

Because it's different this time..

See Chart:

Dow then and now

https://www.zerohedge.com/s3/files/inline-images/different.jpg?itok=0RG8Uaid

….

SOURCE: https://www.zerohedge.com/markets/powell-promises-push-sp-best-august-1986-dollar-bonds-puked

----

A QUARTER OF ALL PERSONAL INCOME IN THE US COMES FROM THE GOVERNMENT

This is what creeping banana-republic socialism looks like.

https://www.zerohedge.com/markets/quarter-all-personal-income-us-comes-government

====

HEDGE FUNDS START PILING INTO "THE BIG SHORT 3.0"

The trade we first revealed in May of this year as the Next Next Big Short is starting to gain popularity among the hedge fund world.

Back in June we said that as we had reported previously, with commercial real estate failing to benefit from the record rebound in overall risk since the March lows as a result of a tidal wave of retail bankruptcies, CMBX Series 6 which back in March 2017 was dubbed the "Big Short 2.0" trade due to its substantial exposure to malls which were hurting long before the arrival of the pandemic...

SEE CHARTS:

https://www.zerohedge.com/s3/files/inline-images/CMBX%20matrix_2.jpg?itok=w7H8fG6g

... and especially the BBB- tranche, has been stuck in purgatory, and after surging to 75, is back to where it was in mid-April as investors signal that the worst is yet to come for commercial real estate.

See Chart:

CMBX6 BBB-

https://www.zerohedge.com/s3/files/inline-images/CMBX%206.jpg?itok=1Jsb13si

As we said all the way back in May, the answer to all those seeking the next Big Short, or Big Short 3.0, is CMBX 9. This is what we wrote:

... with CMBX 6 now done, keep a close eye on CMBX 9. With its outlier exposure to hotels which have quickly emerged as the most impacted sector from the pandemic, this may well be the next big short.

This week we are back to hone in on CMBX 9.

What Makes CMBX 9 Unique?

For one, it's the only CMBX index backed by 2015 deals. Before the COVID-19 crisis began, the last meaningful hiccup in CMBS lending came in early 2016. In late 2015, volatility in the US equity markets picked up considerably and oil prices fell to under $30 a barrel. The sharp price decline in black gold led investors to fear a wave of forthcoming bankruptcies from energy companies.

The 2015 CMBX 9 reference obligations consist of deals issued before any of that drama emerged. (The 2016 oil downturn in CMBS also led to several defaults of hotel and multifamily loans backed by "man-camps" in the shale regions of North Dakota and elsewhere.)

Other Attributes of CMBX 9?

It has the highest concentration of multifamily loans of any CMBX series with 14.7%. (The only other series that is close is CMBX 13 with 14.1%.)

See Chart:

CMBX 9 Collateral Breakdown by Property Type

https://www.zerohedge.com/s3/files/inline-images/cmbx%209%20trepp.jpg?itok=F5_KqpOV

CMBX 9 also has the highest concentration of hotel loans with 16.7%.(CMBX 11 is next with 13.8%.) In terms of protection premiums, CMBX 9 BBB- costs about 725 basis points to insure. That's well inside of the 925 basis points for CMBX 8 BBB- but wider than the 675 for CMBX 10 BBB-. (Those spread levels are from IHS Markit).

Furthermore, as we most recently showed in late June, there was a lot of potential downside for CMBX Series 9 BBB-. In fact, if the hotel world suffers a perfect storm of pent up defaults coupled with waves of covid-related shutdowns which send the hotel industry into another tailspin, the potential downside here could be even greater than for Series 6.

See Chart:

CMBX9 BBB-

https://www.zerohedge.com/s3/files/inline-images/CMBX%209.jpg?itok=xzNDdN1O

Today, Bloomberg has caught up and writes - three months after us - that hedge funds are "beginning to set their sights on a U.S. credit-derivatives index with outsized exposure to hotel debt as the pandemic sinks the hospitality industry into distress." Actually, they "began" to set their sights in May but who's counting.

Liquidity could also be a concern: With one in four hotels in CMBS already in default and revenue per available room still down nearly 50% year-over-year, defaults are likely to pile up as forbearance agreements with lenders roll off.

“From a thematic viewpoint, IT MAKES SENSE TO SHORT HOTELS,”

….

SOURCE: https://www.zerohedge.com/markets/hedge-funds-start-piling-big-short-30

----

US DOMESTIC POLITICS

Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

SILENT MAJORITY: OVER 10% OF TRUMP VOTERS WON'T ADMIT PREFERENCES TO POLLSTERS

Between that and oversampling

====

Fascist distortion to suppress free press: only 1 view is allowed, said dictator in charge

CNN HAS TURNED ITSELF INTO AMERICA'S "BAGHDAD BOB"

For Americans fed up with a deeply dishonest media, this week's CNN chyron seems to have been the last straw...

====

"By the afternoon, executives were panicking about the brewing rebellion"

----

NBA WALKOUT PROVES LEBRON JAMES NOW A "POTENT POLITICAL FORCE", MEDIA CLAIMS

"He has the respect and the credibility with the Black community, so he’s a tremendous asset."

====

THE 7 PILLARS OF URBAN PREPAREDNESS

These pillars are meant to be built together, incrementally, and consistently so the main structure stays level. You don’t want to build one pillar to its highest possible height when you haven’t yet started on the other six...

What are the 7 Pillars?

· Pillar One: Water

· Pillar Two: Shelter

· Pillar Three: Fire

· Pillar Four: Food

· Pillar Five: Signaling | Communication

· Pillar Six: Medical | Hygiene

· Pillar Seven: Personal Safety

SOURCE: https://www.zerohedge.com/personal-finance/7-pillars-urban-preparedness

====

Not enviro-contamination?. We will see it. MY God –the Sun- can be upset. It happen!

BILL GATES NEXT PROJECT: BUILDING NUCLEAR POWER PLANTS ACROSS THE PACIFIC NORTHWEST

Nonproliferation experts warn that these plants could become targets for attack because their uranium fuel would be even more highly enriched...

….

If this project hides nuclear war intention, that will be the worse. I hope not!

====

APPLE REVOKES EPIC GAMES DEVELOPER CREDENTIALS AS ANTI-TRUST BATTLE HEATS UP

IT'S ON.

====

One opinion taken as ‘The Chicago Teacher Union’ opinion: Huge Distortion?

CHICAGO TEACHERS UNION "ENDORSES" GUILLOTINE BUILT BY PROTESTERS OUTSIDE JEFF BEZOS' HOUSE

"We are completely frightened by, completely impressed by and completely in support of wherever this is headed."

….

Seeing the stunt, the Chicago Teachers Union, which organized a teachers' strike last year and ended up shutting students out of classrooms for 2 weeks, tweeted its support "in solidarity" with the workers of the world (though they missed an excellent opportunity for a pun with "be headed"

We are completely frightened by, completely impressed by and completely in support of wherever this is headed

Nic Rowan: @NicXTempore

Protesters build a guillotine outside of Jeff Bezos’s house. Yesterday the Amazon billionaire was reported to become the first man worth $200 billion.

….

SOURCE: https://www.zerohedge.com/technology/chicago-teachers-union-endorses-guillotine-built-protesters-outside-jeff-bezos-house

====

Incredible: Rand Paul supporting fascism in US based on NO happen fact just his fear

"THEY WOULD HAVE KILLED US" - RAND PAUL DESCRIBES ATTACK BY "UNHINGED" MOB

"If we allow them to take over the White House, we are going to become Portland, the country will be on fire, we have to have law and order and we have to support the police."

….

FACT is that racist policemen DID KILLED black Americans. For RP they r not A Incredible: Republicans like Rand Paul supporting fascism. Will you vote them? I will not vote either Dems-Reps. I prefer ABSTENTION if there is not 3^rd choice.

====

CHAOS ERUPTS IN DC AFTER GOP CONVENTION; RAND PAUL AND WIFE CHASED DOWN STREET BY BLM PROTESTERS

"If we don't get it, burn it down."

====

STOP FASCISM: IF you don’t trust teachers, they won’t trust you, nor parents either.

TENNESSEE TEACHERS ARE WORRIED YOU'LL OVERHEAR WHAT THEY TEACH YOUR KIDS

A Tennessee school district asked parents to sign a form agreeing not to listen in or “eavesdrop” on online classes...

….

Fascism will spy online classes too. Besides, it aggravate privatization of schools and the worse: online classes will kill the ‘social being’ of students: their belonging to our society. That is the opposite to solidarity and peace among americans: that is the source of violence and anarchy later on.

====

New York’s Metropolitan Transportation Authority MTA has $45.4 billion in debt

THE MTA IS PREPARING FOR A "DOOMSDAY SCENARIO" THAT INCLUDES HIGHER FARES, 40% CUT IN SERVICE

“Our economic quality of life and way of life is going to be drastically impacted. Our ability to provide essential services is going to be drastically impacted.”

The MTA says it is now preparing for a "doomsday scenario" that could include a 40% cut in service for both commuter trains and busses, resulting in longer wait times, lane closures, fare hikes and massive job cuts.

New York’s Metropolitan Transportation Authority says this will be the new reality for New Yorkers if the government doesn't come up with $12 billion in aid that it needs to cover a budget shortfall that has emerged as a result of the coronavirus pandemic. The MTA has an astonishing $45.4 billion in debt.

….

Cut US military budget but don’t cut this basic service for Econ & social Develop

====

What is wrong is the disastrous pro-war regime in power: it create violence & fascism

AMERICANS SENSE SOMETHING IS WRONG: GUN SALES UP 72%

...with first-time buyers leading the pack.

….

Cruel State violence on disarmed protesters creates insecurity for everybody. There is not other solution but to armed own security. It is not illegal to do so.

====

Good news:

FELONY WARRANT AGAINST JACOB BLAKE HAS BEEN VACATED, HANDCUFFS REMOVED AT HOSPITAL BED

The deputies have reportedly left his room at Froedtert Hospital...

Blake's family says he's been paralyzed from the waist down after the police shot him in the back seven times after a severe altercation with police, which has sparked violent riots over the past multiple days.

Jacob Blake's lawyer confirms to ABC News he is no longer handcuffed to his hospital bed. The warrant has been vacated, the cuffs have been removed and the criminal charges filed are pending.

….

IF the police who commit this atrocity is not jailed, the violence will be worse. They are not protecting the “order” they instead are creating more disorder. The police who did it must be placed in jail. It is the only way to stop fascism in America. The right to protest in streets must be protected by police as happens in some countries in Europe & in Latin Am countries too, not to crackdown with arms disarmed civilians, otherwise they will use similar arms Agst police too. Crime is a crime and who commit it must be placed in jail.

====

THE FED AND THE LOOMING CAPITAL MARKET MELTDOWN

...and then, mayhem.

….

We have been watching the “shock-and-awe” bailout of the financial system by the Federal Reserve with astonishment. Never before has a central bank tried single-handedly to rescue both the financial system and a large proportion of U.S. corporations. We were taken aback then by Fed actions and are now just as worried about what it has given birth to.

We are unfortunately now in a situation where we cannot speak of “markets” anymore.

More worryingly, corporations continue to gorge on debt. U.S. corporate bond issuance is currently estimated to top (incomprehensively!) $2.5 trillion this year. At the same time that U.S. GDP has crashed, the corporate debt-to-GDP ratio has exploded

SEE FIGURE

US Corporate Debt as a share of GDP: 1952 Q1--2020 Q2

https://www.zerohedge.com/s3/files/inline-images/US-corp-debt-2020Q2-BLOG.jpg?itok=CMpHZmBu

This is against the backdrop of an economy which is unlikely to heal anytime soon. Regrettably, we appear to be in just the first innings of this crisis.

The combination of massive central bank meddling in a suffering economy creates an extremely precarious situation for the capital markets.

….

SOURCE: https://www.zerohedge.com/markets/fed-and-looming-capital-market-meltdown

----

EXPOSING THE WASTE IN THE DEMOCRATS' "HEROES ACT"

Taxpayers of America, you may soon be funding a $500 billion bailout of the 50 states, all U.S. territories, and the District of Columbia. But where is this vast sum of money going?

====

Nice Utopia

IF S&P HITS 3,630 BY ELECTION DAY, THIS WOULD BE THE GREATEST RALLY OF ALL TIME

It would only take another 130 points in the S&P, pushing it less than 4% higher to 3,630 by Election Day, to make this rally Greatest Of All Time in both speed & magnitude, surpassing the rally off the 1938 lows.

According to one hypothetical scenario - and certainly a plausible one - proposed by BofA's Michael Hartnett, with the S&P already at 3,500, it would only take another 130 points in the S&P, pushing it less than 4% higher to 3,630 by Election Day, to make this rally Greatest Of All Time in both speed & magnitude, surpassing the rally off the 1938 lows.

SEE CHART

https://www.zerohedge.com/s3/files/inline-images/SPX%20GOAT.jpg?itok=34--mu2t

And speaking of the Fed, the genie is now well out of the bottle with even Hartnett admitting that "central banks are encouraging asset price inflation/moral hazard in attempt to use wealth effect to reduce unemployment & “trickle down” inflation to Main St; at some point race to $3000 gold, $3tn Apple, 300bps HY bond spreads will cause bond yields to jump; but unlike 1999, Fed not tightening in 2020."

There is nothing Trump would want more than to tell the world on the eve of the election that the S&P just enjoyed the biggest and fastest recovery in history. Whether 99% of the population would care is a different story...

….

SOURCE: https://www.zerohedge.com/markets/if-sp-hits-3630-election-day-would-be-greatest-rally-all-time

----

THE SOCIAL AND ECONOMIC SIDE EFFECTS OF NEGATIVE INTEREST RATES

The monetary distortions and the economic distortions caused by them aremainly to the detriment of human mental states...

Authored by Pascal Hügli via The Mises Institute,

Our world is currently suffering from acute schizophrenia. Banks are pushing impact and sustainable investing like crazy, companies are subordinating their production sites and supply chains to the noble goal of sustainability, and more and more parts of our society are discovering ecologism as the most meaningful political religion of our time.

SEE CHART

https://www.zerohedge.com/s3/files/inline-images/negative-interest-rates-wire.jpg?itok=Qa9BVZoC

At the same time - and this reveals the extent of the schizophrenia - our current economic structure is showing serious anomalies that are diametrically opposed to meaningful sustainability - first and foremost negative interest rates, which are increasingly eating into the structure of the economy and are turning the world upside down.

See Chart:

Percent of advanced Economy: Gvt Bonds outstanding by YIELDS

https://www.zerohedge.com/s3/files/inline-images/hugli1.jpg?itok=aEnp0JJ-

In a world of negative interest rates, the arrow of time runs backward. With negative interest rates, the present is more valuable than the future, the now seems more desirable than the tomorrow. The attraction of providing for the future is dwindling and with it the very care for the future. However, once the future is neglected, the very present degenerates into stagnation, throwing you back ever more.

Low to negative interest rates make previously unprofitable investments and projects suddenly appear profitable. At the same time, falling interest rates mean that later investors and companies can get into debt at "more favorable" interest rate conditions. The result: economic activity is fueled even more.

See Chart:

Case Switzerland

https://www.zerohedge.com/s3/files/inline-images/hugli2.png?itok=Hzz06g8J

Negative interest rates ultimately also cloud hopes of fundamental structural adjustments. They cement, indeed reward, the inability to learn and undermine the sustainable foundations of productivity. The economy and financial markets are increasingly becoming zombified constructs in which sustainability becomes a real farce and any meaning for individual economic actors is quickly lost. The monetary distortions and the economic distortions caused by them are mainly to the detriment of human mental states.

….

SOURCE: https://www.zerohedge.com/markets/social-and-economic-side-effects-negative-interest-rates

----

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

Good intention… Let’s see if happens

"TERMINATE BUSH'S WAR": TRUMP TO REDUCE TROOPS IN IRAQ BY ONE-THIRD JUST AHEAD OF ELECTION

Time to terminate Bush's bloody & criminal blunder...

====

RUSSIAN TROOPS ACTIVE IN BELARUS WAR GAMES AS PUTIN UNVEILS "LAW ENFORCEMENT RESERVE" STANDING BY

"Putin said Thursday that he created the reserve of Russian personnel from unknown units at Lukashenko's request."

====