0CT 10 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
50 RICHEST AMERICANS NOW WORTH MORE THAN POOREST 165 MILLION
Covid-19 has exacerbated the already worsening inequality issues...
Earlier this week, Swiss bank UBS and accounting firm PwC published a new report that showed the wealth of the world's 2,189 billionaires jumped to a new record high of $10.2 trillion in July, surpassing the $8.9 trillion record at the end of 2017.
It was only when the world's central banks aggressively expanded their balance sheets, beginning in March, that the rich got richer...
See Chart:
Central Bank balance sheets, total assets
https://www.zerohedge.com/s3/files/inline-images/2020-10-07_11-58-59.png?itok=5ethsjmq
50 Richest Americans Wealth Surge
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-09_13-39-08.png?itok=pqFI4lVy
Bloomberg Billionaires Index
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-09_13-40-07.png?itok=DGnaqI7o
The wealthiest 1% saw their wealth erupt earlier this year as they own about 50% of all stocks and mutual funds. The top 9% own about a third of stocks, which means the top 10% of Americans own about 88% of stocks.
See Charts:
https://www.zerohedge.com/s3/files/inline-images/2020-10-09_13-39-16.png?itok=YhnKjXaT
Fed Chair Jerome Powell warned Tuesday that the "pandemic is further widening divides in wealth and economic mobility," calling for more "government aid" to thwart a waning recovery.
"A long period of unnecessarily slow progress could continue to exacerbate existing disparities in our economy," Powell said.
The system is deeply flawed. The "K" recovery is the result of capitalism and central planning. The Fed and federal governments coming blowback by enriching the elites via failed policy during the virus pandemic on the backs of the financially crushed working poor could result in additional social instabilities.
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SOURCE: https://www.zerohedge.com/personal-finance/50-richest-americans-now-worth-more-poorest-165-million
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A NEW PROBLEM EMERGES IF CONGRESS CAN'T AGREE ON A FISCAL STIMULUS DEAL
The Treasury may end up dumping some $600 billion in cash into the banking system in the coming weeks.
Back on May 4, in its then-latest estimate of Marketable Borrowings the US Treasury shocked markets when it unveiled that in the April-June quarter it would borrow a humongous $2.999 trillion, exponentially higher than what it had expected to borrow during the quarter in its previous estimate in February when it forecast a $56 billion decline in debt. And while the projected debt number stunned the market, it barely registered on the price or yield of US Treasurys for the simple reason that just weeks earlier the Fed announced it would monetize all gross debt issuance for the US when it unveiled Unlimited QE, something it has been doing since.
This massive surge in debt issuance would also result in a far higher Treasury cash balance which would be used to pre-fund various fiscal stimulus programs, and as the chart below shows, that's precisely what happened with the Treasury cash balance exploding from $400BN at the end of March to an record high just above $1.7 trillion currently, an amount that is just waiting to be spent as soon as Congress gives the green light.
See Chart:
Treasury Cash Balance
https://www.zerohedge.com/s3/files/inline-images/Treasury%20cash%20balance%2010.10.jpg?itok=xyaTVhkI
In retrospect the cash surge was too much: in fact, more than double what the Treasury had expected on May 4. While the Treasury had forecast a $3 trillion increase in marketable borrowing for the quarter ending June 30, it also expected the cash balance to grow to $800 billion on that same date (shown highlighted in yellow on the table below).
See Table:
Sources and Uses Reconciliation Table
https://www.zerohedge.com/s3/files/inline-images/May%20sources%20and%20uses.jpg?itok=sI_eN_vB
And yet the final number ended up being approximately $900 billion higher, meaning that the Treasury had substantially overshot its funding need and suddenly found itself with a record cash buffer.
So with all this extra cash in hand, did the Treasury reduce its debt needs? As shown above, five months ago the Treasury expected that it would need to borrow $677BN in the final fiscal quarter of the year ending Sept 30, which while a massive number, was still well below the $2.753 trillion it ended up borrowing (just shy of the $2.999 trillion initial forecast, a number which was not hit due to "lower-than-projected expenditures and higher receipts largely offset by the increase in the cash balance.")?
The answer, as we pointed out in August, was a resounding no because as it disclosed in its latest estimate of Marketable Borrowing needs, the Treasury once again surprised markets by announcing it would borrow a whopping $947BN last quarter, $270BN more than it had forecast a quarter ago, even though the Treasury started this quarter with a cash balance that is $922 billion higher than it had expected one quarter ago!
See Table
Sources and Uses Reconciliation Table
Why this unexpected increase in debt even though the Treasury was starting off with nearly $1 trillion more in cash than originally budgeted? This is how it explains it.
During the July - September 2020 quarter, Treasury expects to borrow $947 billion in privately-held net marketable debt, assuming an end-of-September cash balance of $800 billion. The borrowing estimate is $270 billion higher than announced in May 2020. The increase in privately-held net marketable borrowing is primarily driven by higher expenditures, due to a shift from the prior quarter and anticipated new legislation, largely offset by the higher beginning-of-July cash balance and higher receipts.
In other words, not only will the Treasury draw down on $922 billion in cash in the calendar quarter the ends in less than two months...
See Table
https://www.zerohedge.com/s3/files/inline-images/sources-uses-q3-2020.png?itok=3NrdJaUY
According to the Treasury, "these estimates assume $1 trillion of additional borrowing need in anticipation of additional legislation being passed in response to the COVID-19 outbreak."
So what does this mean?
First, when putting together the actual data for the first three quarters of fiscal 2020 and adding the Fiscal Q4 estimate of $947BN in new issuance, the Treasury will borrow a record $4.5 trillion in Fiscal 2020, more than it borrowed in the previous view years combined!
See Chart:
Marketable Debt Borrowed by Fiscal Year
https://www.zerohedge.com/s3/files/inline-images/total%20debt%20issuance%202020_0.png?itok=MyYDrMXe
Second, it means that for calendar Q3 and Q4, the Treasury planned on spending almost $3 trillion consisting of:
- i) a drawdown in cash from $1722 billion to $800 billion, for $922 billion, in the quarter ending Sept 30
- ii) new debt issuance of $947 billion in the same quarter and
- iii) new debt issuance of $1,216 billion in the quarter ended Dec 31
... for a grand total of $3.085 trillion in new funds (either from spending cash or raising debt).
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Alas, a problem emerged: with less than 4 weeks left until the elections, Congress and Trump remain hopelessly deadlocked on when - and if - a new stimulus will take place. And while that in itself is a major problem for an economy and for Trump's re-election chances (which explains why Democrats are playing hardball on a new deal and will only accept it if it includes bailouts of insolvent state pensions in Democratic states), something we explained two weeks ago, "Failure To Launch New Fiscal Stimulus Would Have Catastrophic Consequences For The US Economy", another major problem has emerged.
The growing uncertainty over a new, fifth fiscal deal raise significant questions about the Treasury’s plans for managing its cash balance - which as shown above, is at $1.69 trillion and remains more than double its projected target of $800 billion at Dec 31 - between now and year end.
See Chart:
New Treasury Cash Balance
The implications of a few bill supply scenarios are listed below:
Pre-election stimulus: In Q4 ’20 bill
supply would likely total $250-$300bn. The Treasury
will drop their cash balance to $1tn, which would add ~$600bn of cash into the banking system. The
expected increase in banking system cash would likely overwhelm bill supply
& keep front end rates stable to lower.
Base case (no stimulus pre-election, $1.5tn post inauguration): In Q4 ’20 bill supply will likely be flat or slightly negative with a Treasury cash balance at year-end of $1.6tn. This is lower vs prior forecasts due to a downward revision in deficit estimates and the TGA ending September higher than BofA had previously anticipated. In 1H ’21 bill supply will also likely be flat on net but there may be one notable variation; Cabana "might anticipate" $200-$300bn bill supply after stimulus is passed in Feb or March but expect this would be paid down after the April tax date. The decline in Treasury cash balance will limit the need for elevated bill supply.
Extreme scenarios: in 1H ’21 a “supersized” or “skinny” deal could see bill supply range from positive $350-$400bn to negative $1tn. In a “supersized” scenario the bill supply increase would likely be greatest after a bill is passed in Feb or March ’21. In a “skinny” deal the risk of sharply negative bill supply stems from a potential “forced” reduction of the Treasury cash balance.
See Table:
Financing need in different stimulus scenarios
The bottom line is that depending on the outcome of the ongoing stimulus discussions, the Treasury may end up injecting approximately $600 billion of cash into the banking system as existing Bills mature and are not rolled over, which according to Cabana "would likely overwhelm bill supply & keep front end rates stable to lower." It would also mean that banks suddenly have to allocate a massive amount of excess cash into various securities, which if previous instances of such capital reallocation inflection points are an indicator, would - together with the Fed's ongoing injection of at least $120BN in reserves each month courtesy of QE - result in a wholesale meltup across the entire risk spectrum.
The irony of all this is that should there be no fiscal deal, and with Trump-Biden elected, the market may end up exploding higher in the last weeks of the year... just as the US economy - starved for more stimulus capital - careens into a double dip depression.
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SOURCE: https://www.zerohedge.com/markets/new-problem-emerges-if-congress-cant-agree-fiscal-stimulus-deal
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio
"SCHOOLS AREN'T SUPERSPREADERS" - THE ATLANTIC EXPLAINS WHY STUDENTS SHOULD BE BACK IN SCHOOL, NOW
"We do not want to be cavalier or put people at risk. But by not opening, we are putting people at risk, too."
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Market prices for all items could go up:
TRANSPORTATION CAPACITY HITS NEW LOWS, "NO RELIEF IN SIGHT" FOR PRICING
The lack of available capacity was also “reflected in the premium firms are paying.” The transportation pricing sub index increased 410 basis points in the month to 87.9%, the highest reading since October 2018.
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FLINT COUNCILMAN PROPOSES SHUTTING DOWN GAS STATIONS, LIQUOR STORES AT NIGHT TO REDUCE CRIME
"If they can get an ordinance passed to close down liquor stores, and gas stations at 9 o'clock I wouldn't be mad..."
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Neoliberal QEs & bailouts will kill our Nation.. the only solution is SOCIALISM
AMERICA HAS AN EPIC CHOICE [ a fake one or false flag is this: ]
The choice, by all measures, is heinous. But sometimes, like Aron Ralston, one must cut off their hand if they want to live. By this, voluntary abandonment of further credit expansion is the way out of the current financial predicament...
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Another Trump-ist gift besides racism & fake RU-phobia
"VICIOUS IDEOLOGY": MARINE'S VIDEO RANT AGAINST CHINA NOW FOCUS OF CHINESE STATE REPORTING
State media is highlighting the racial expletive-filled clip: "TRUMP AND THE US POLITICAL ELITES...HAVE CREATED THIS IDEOLOGY."
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We're sure MSM corrections are forthcoming...
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'NON-PARTISAN' CHAIRMAN OF PRESIDENTIAL DEBATE COMMISSION LINKED TO STEELE DOSSIER & MORE...
Fahrenkopf, is both a co-founder and current board member of the International Republican Institute (IRI), a top “Color Revolution” propaganda outfit... closely linked to the thoroughly discredited Steele Dossier at the center of the Russia Hoax.
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Pro WW3 trend in Trump’ policies
THE US PLANS TO DELIVER WEAPONS ANYWHERE ON EARTH IN 1 HOUR
Pentagon teams up with SpaceX to develop aircraft theoretically capable of hauling military cargo through orbit...
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Police brutality shoots at random
"PATRIOT RALLY" ATTENDEE KILLED BY SECURITY GUARD IN DENVER
"Further investigation has determined the suspect is a private security guard"
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DOUG CASEY ON WHAT HAPPENS AFTER THE ELECTION
...what the US seems to be facing isn’t so much political, or religious, or ethnic as it is cultural, which is much more serious. The country is on the cusp of a full-blown cultural revolution...
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There are two ways to equalize everybody... You can raise people up from the bottom or or bring them down from the top...
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Absolute malarkey...
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Pedo SI, Pedo NO.. ambos apestan feo. Ni ella los resiste: se los lanza a Trump
"ONE STEP FORWARD, TWO STEPS BACK" - PELOSI REJECTS TRUMP'S LATEST COVID STIMULUS OFFER
"From start to finish, the Trump Administration refuses to honor our heroes and respect the safety our workforce. The funding for state and local remains sadly inadequate..."
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Trump is the one who urgently need BRAIN SCREENING in a psychiatric hospital
2,000 invitations have reportedly been issued, and attendees will be required to bring (and wear) masks, ALL ATTENDEES MUST COMPLETE COVID-19 SCREENINGS.
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"BIG TECH HAS BECOME A TOOL OF TOTALITARIAN FASCISM"
"When you have hitched your wagon to "credentialism" from buffoons like fauci and brix and ding and topol and then the REAL credentialed crowd shows up and calls you out, what can you do?"
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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
WESTERN ALLIES BLOCK EX-OPCW CHIEF'S EXPLOSIVE TESTIMONY ON SYRIA CHEMICAL WEAPONS
UN watchdog group caught suppressing evidence related to the 2018 Douma incident that resulted in America bombing Syria...
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VISUALIZING THE STATE OF 5G NETWORKS WORLDWIDE
By 2025, the world will reach 1.8 billion 5G connections - led by Developed Asia and North America,two regions that could each see nearly half of mobile connections operating on 5G networks...
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CHINA BLASTS LATEST US NAVY DEPLOYMENT NEAR PARACEL ISLANDS: "HALT PROVOCATIONS!"
PLA tells Pentagon it must ask 'permission' for South China Sea maneuvers
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IS GOLD CHEAP AT $2000 AN OUNCE?
...in addition to M-1 and M-2, there are tens of trillions of dollars held outside the US that will come home to roost if we have the Misesian “Crack-Up Boom”
If you want to be more rich, read this: is written by a master in speculation.
The recent breakout in the price of gold is just the beginning. Gold is set to skyrocket in the months ahead. That’s why legendary speculator Doug Casey just released this urgent new video which outlines exactly how he is positioned to profit from a rare opportunity, and how you could join him in making enormous profits. Even a small amount of money put into the right stocks today could deliver life-changing rewards. Click here to watch it now.
[ That click could make Doug Casey more rich. Look like ‘trumpism’ ]
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Does this creates ‘panic’ among the rich in America. I don’t think so.
North Korea Unveils "Previously Unseen ICBM" At Rare Military Parade
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Piggish game: Trump’ tax evasion ++ and Biden action in Ukraine= Pigs morality
WHY THE TRUTH BEHIND HUNTER BIDEN'S ACTIONS IN UKRAINE MATTERS TO US ALL
Surely, no responsible person would argue that Joe Biden and his family should be exempt from scrutiny or should be given license simply by virtue of his candidacy for President... Indeed, just the opposite is true.
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We don’t need 50,000 bullets to solve the problem: only 5=3 for Trump, 2for Biden
NEARLY 50,000 VOTERS RECEIVE WRONG BALLOTS IN OHIO
The board said it will mail postcards to all affected voters.
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Do we need something else to solve FRAUD? YES : GOOD SNIPERS. IF you are PACIFIST, then get out of the stupid CIRCUS called election and don’t vote. Just play ABSTENTION & be ready to join the PEOPLES FRONT to depose both Reps & Dems via REFERENDUMS at local & State level across the Nation.
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DO WE NEED CHINA NOW? Too late: BRA will sell soybean to China very soon
SOYBEAN PRICES HIT MULTI-YEAR HIGH ON INCREASED EXPORTS AND WEATHER WOES
Traders indicated rising U.S. soybean exports are due to weather woes in…
The only solution is manufacture diff derivatives from soybean besides oil, it is what china does with the rest not consumed directly by citizens.
CBoT Soybean futures soared to multi-year highs this week after export sales data, weather woes that threaten production & selling (US political phobias included).
See Chart:
CBoT Soybean Now
https://www.zerohedge.com/s3/files/inline-images/2020-10-09_07-16-38.png?itok=PvOmEEbI
Reuters, citing a U.S. Department of Agriculture report, said soybean export sales "remain robust" as Mexico and China continue to book large purchases.
The USDA, in a daily export sales announcement, said private importers sold 374,000 tonnes of the oilseed to China, 152,404 tonnes to Mexico and 132,000 tonnes to undisclosed destinations. The combined deals made for USDA's largest daily soybean export sales announcement since Sept. 8, agency data showed.
The daily sales announcement came as the USDA also released export data showing net sales of 2.591 million tonnes last week, the fifth straight week in which sales have topped 2 million tonnes. More than 1.5 million tonnes of last week's sales were to China. - Reuters
Traders indicated rising U.S. soybean exports are due to dry weather conditions in Brazil, the world's top soybean exporter, and the number one supplier to China, which has forced a delay in planting. The delay will likely increase demand for U.S. beans in 1Q21 when Brazilian bean shipments usually begin to displace U.S. exports.
But with U.S. exporters only booking 21.5 million tons of soybeans to China for the first nine months of 2020, about 2 million tons less than the same period in 2017, the probability, overall, that Beijing would fulfill its agriculture pledge under the Phase 1 trade deal remained low.
A summary of China's monthly purchases (as of August) of U.S. goods covered by the trade deal, derived from Chinese customs (China's imports) and the U.S. Census Bureau (U.S. exports) data, presented by Peterson Institute for International Economics (PIIE), shows China is severely behind in purchases of not just US farm goods, but also nearly every covered good under the trade agreement.
See Chart:
China’s purchases of US goods
https://www.zerohedge.com/s3/files/inline-images/2020-10-09_07-27-28.png?itok=I4qfXXGj
Rising soybean prices and increasing exports are great, though President Trump's "greatest ever" trade deal has no enforcement mechanism that works, which makes you wonder if the whole trade deal was just for show ahead of the presidential elections. [ With Trump in power US will lose money, with Biden may be different]
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SOURCE: https://www.zerohedge.com/commodities/soybean-prices-hit-multi-year-high-increased-exports
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars & danger of WW3
- Soyuz Rocket Rolled Out to Launch Pad Ahead of Record-Breaking Flight to ISS
- Ghislaine Maxwell Once Attended an Anti Sex-Trafficking Fundraiser in New York
- Turkey's Military Presence in Qatar 'Emergency' for Gulf States, UAE Diplom Says
- Gas Explosion Flattens Building Near Market in Iran, at Least Three People Killed
- Palestinian Curriculum Won't Embrace Israel Unless It Moves Away From Violations
- Two Chinese Vessels Enter Japan's Waters Near Disputed East China Sea Islands
- Facebook’s Privacy Changes Might Jeopardise Unmasking of Sexual Predators
- Live Updates: Armenian Defence Ministry Denies Reports About Shelling of Azerbaijan’s Ganja
- At Least 5 Dead, 28 Injured in Ganja Shelling by Armenian Forces
- Trump Reportedly Planned to Wear Superman T-Shirt When Leaving Hospital
- One Person Killed Amid Opposing Rallies in Denver, Two Suspects Detained
- US to Reportedly Open 'Safe Travel Corridors' Between NYC and London
- Trump No Longer Contagious After COVID-19 - POTUS Personal Physician
- Too Soon? [ Vs too fake ]: Trump Nominated For 2021 Nobel Peace Prize
- N Y Police Seek Suspect Who Attempting to Steal MAGA Hat in Manhattan
- ISR Demonstrators Clash With Police as Tens of Thou Protest Against Govt
- Taliban Endorsement of Trump Blows Twitter Away [He got the Nobel PP ]
- Iranian Diplomat Held for Trial in Belgium Over Alleged Bomb Plot Reportedly Warned of 'Retaliation' [Trump put Germany + Belgic + in a sac for ‘chulidos’]
- Michigan Sheriff Alleges Gov. Whitmer 'Kidnap Plot' Was 'Arrest Attempt'
- Afghan's Taliban Concern With Trump's Health, Hope He'll Prevail Over Biden
- Postmaster-Gral Gave $685K in Donations to Republican National Convention
- J Biden Says Voters 'Don't Deserve' to Know His Stance on Supr Court Packing
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