Nueva Democracia: 0CT 29 20 ND SIT EC y POL

0CT 29 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

VON GREYERZ: "GET READY FOR THE BIGGEST COLLAPSE IN HUMAN HISTORY"

This will be the grand finale of this financial era...

Get ready for the biggest collapse in the history of mankind. It will be devastating and reach all parts of society, economic, financial, political & social.

But wait, it won’t happen just yet. Because before that the world will experience a LIFTOFF in markets of gigantic proportions. This will be the grand finale of this financial era. It will involve inflationary liquidity injections of proportions never seen before in history and lead to a massive explosion in many asset markets.

The convenient excuse they have is of course Covid. Individuals not working need money, companies need money, municipalities, states and the Federal government need money.

But we mustn’t forget how the end of the final phase of this economic era started. This was back in Aug-Sep 2019 when the Fed and the ECB shouted out from the roof tops that were going to do what it takes to save the system. They didn’t tell us what the problems were, but it was clear to some of us who understood the fragility of the financial system that it was in dire straits. When the last crisis started in 2006, the Fed’s balance sheet was $830b. At the end of the Great Financial Crisis in 2009, the balance sheet had grown to $2t.

See Chart:

FED Balance Sheet 2003-2020

https://www.zerohedge.com/s3/files/inline-images/fed_bal-1.jpg?itok=AS4NK74x

But no one must believe that the problem had been solved by 2009. All it was, was a temporary stay of execution. Why otherwise would the Fed’s balance sheet have grown by another $5t since 2009. Just looking at the predicted budget deficits in the next 4 years, plus accelerating problems in the financial system the Fed’s balance sheet is likely to explode in coming years.

LIQUIDITY INJECTIONS WILL GIVE SHORT TERM BENEFIT TO THE ECONOMY

So the conditions are in place for the biggest liquidity injection in financial history.

FROM BOOM TO BUST

So let us look at a possible scenario of events following the election:

New president will flood the economy with money & boost stocks

Initial market volatility will settle down quickly and investors will respond optimistically to the new president’s promises of support to every corner of the economy.

Stock markets will surge and could double over a 9-18 month period. No cash will be left on the sidelines. Both institutions and retail investors will throw all the cash they have at the stock market. There will be a frenzy which will surpass the tech stock boom in the 1990s. There will be fanfares and blazing guns as the market seems unstoppable.

But after the likely short-term boom, there will be tears as markets fall by over 90% in real terms. And sadly most investors will ride the stock market all the way down. The big difference this time is that central banks will not and cannot save them.

COMMODITIES WILL BOOM

The biggest beneficiary of this coming boom will be commodity markets which are at a 50 year low versus stocks. Looking at the chart below, the minimum target would be commodities outperforming stocks by 4 to 1. Eventually a new high in commodities against stocks is likely.

But the final phase will be when general stock markets collapse and commodities continue to strengthen. Goldman Sachs expect commodities to rise 28% in 2021. They expect inflation plus a commodities deficit will drive prices higher. And this is of course what the chart below tells us.

See Chart:

Commodities vs Stocks 1971-2020

https://www.zerohedge.com/s3/files/inline-images/com.jpg?itok=_byUWg2W

PRECIOUS METALS WILL SHINE

Gold, silver and platinum will vastly outperform stocks. The Dow – Gold ratio will initially reach 1 to 1 where it was in 1980 when gold was $850 and the Dow index 850. Eventually the ratio will reach at least 0.5 to 1 which means that the Dow will lose 97% against gold in the next five years

See Chart:

Central Banks have created false market since 1913

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

Goldman Sachs expects gold to reach $2,300 in 2021 but I believe that target is too conservative. Before gold breaks out above the August high at $2,074, a correction down to $1,800-20 is possible and would not change gold’s unstoppable rise. In this latest phase, gold is in a bull market or more correctly, the currencies are in a bear market since 1999. The continued debasement of the currencies is guaranteed by the central banks since they only have one option – TO PRINT AND PRINT AND PRINT until money dies.

PRECIOUS METALS MINING STOCKS

For the smart investor, this is where more money will be made than in any area of stocks or other investments.

The chart below shows XAU gold – silver index against the Dow since 1983 when the XAU was introduced. Since then the XAU has lost 95% against the Dow. This fall is likely to be reversed in the next few years with the XAU going up 20x against the Dow . For Dow investors this means losing 95% against mining stocks.

And sadly, this is what will happen to 99% of investors as they stick to their ordinary stocks and miss the most incredible opportunity.

See Chart:

XAU Gold & Silver index vs DOWN 1983-2020

https://www.zerohedge.com/s3/files/inline-images/xau.jpg?itok=QwZDiS4N

DOLLAR

Printing unlimited amounts of money always has consequences. Since 1971 the dollar has lost 98% in real terms which means against gold since gold is the only money that has survived in history.

See Chart:

The Currency race to the Bottom

https://www.zerohedge.com/s3/files/inline-images/bottom.jpg?itok=lG7vXwmF

The dollar is now starting its final journey to ZERO and as the table shows, even a weak and artificial currency like the euro will outperform the doomed dollar.

A falling dollar will accelerate US inflation until it leads to hyperinflation.

INTEREST RATES

Interest market is probably the most contrarian of all trades today. The whole investment world, including the Fed and the ECB believe that rates will stay at zero or below for years to come. Normally when consensus is that strong, the opposite is more likely to happen.

Also, rising a weaker dollar will cause higher inflation which will put upward pressure on rates. As investors start selling the long end of the bond market, short rates will eventually follow.

Precious metals normally benefit from negative real rates which means that inflation is higher than interest rates. Gold can still rise strongly with high nominal rates as long as inflation is higher. We saw this happen in the 1970s to the early 1980s when rates reached 20% and gold went from $35 to $850. During that time, inflation remained higher than rates.

FROM BOOM TO BUST

So there is now an opportunity for all investors to double their money in the stock market in the next 9-18 months as ever more liquidity will fuel stock markets.

But a Caveat Emptor (Buyer Beware) warning is in place here. Asset markets are already in a major bubble and the financial system is so fragile that it could break at any time.

I have outlined them above. Physical precious metals and precious metals stocks will outperform all other markets. And these all present the best risk. Both the metals and the metal stocks will boom in the final phase of the stock market boom. And as stock markets top and then crash, the precious metals sector will continue to perform extremely well as currencies are debased.

Holding gold and silver stocks will be the investment opportunity of a life time. But since they are held within a vulnerable financial system, we believe that a these holdings should represent a much smaller percentage than physical metals.

To hold physical gold, silver and platinum outside the fragile banking system is the ultimate form of wealth preservation and insurance against a debt infested and unsafe financial system.

With a portfolio of some precious metals stocks and physical metals, investors will be able to ride out the coming storm and volatility in markets and also benefit financially. Of course there will be volatility also in the metals market but the trend in the next 5+ years is virtually guaranteed.

So better to avoid the coming boom and bust in the general stock markets and stick to metals.

….

SOURCE: https://www.zerohedge.com/markets/von-greyerz-get-ready-biggest-collapse-human-history

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'ALICE' DOESN'T WORK HERE ANYMORE

What the political class and the Financial Nobility don't yet grasp is that'ALICE' will never go back to her insecure, low-wage job, ever...

Authored by Charles Hugh Smith via OfTwoMinds blog,

Lacking capital and any realistic means of acquiring any, the debt-serf has only labor to sell, and in a globalized world in which everyone selling their labor is competing globally for work producing tradable goods and services, ordinary labor has lost purchasing power for the past 45 years.

See Chart:

Shares of gross domestic income

https://www.zerohedge.com/s3/files/inline-images/wages-share-income7-19a_2.png?itok=xdG3I1OE

Meanwhile, the owners of the Financial Nobility's fiefdoms and Big Tech monopolies have enjoyed unprecedented gains in income and wealth as wages' share of the economy has declined for decades, in effect transferring trillions from labor to the Financial Nobility.

See Chart:

Top 0.1 % earning grew fifteen times faster than bottom 90% earning

https://www.zerohedge.com/s3/files/inline-images/inequality-income1-20_0.jpg?itok=rHjQn9ZH

As I've noted here many times, the cash / informal economy beckons. All sorts of labor arrangements can be made on ALICE's terms, not the Big Tech monopolies' terms. No wonder the Financial Nobility is so desperate to eliminate cash. But other currencies may fill the need if the Neofeudal Overlords try to eliminate cash dollars.

See Chart:

Distribution of taxable income from 1975 to 2018

https://www.zerohedge.com/s3/files/inline-images/wealth-distribution-RAND9-20.jpg?itok=qQod8pZL

Liberty and freedom are not just lofty academic abstractions; what matters is being freed of the neofeudal chains of Big Tech monopoly platforms and the Financial Nobility's other fiefdoms.

….

SOURCE: https://www.zerohedge.com/political/alice-doesnt-work-here-anymore

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FUTURES TUMBLE, ERASE DAY'S GAINS AFTER TECH EARNINGS TURMOIL

...things have gone just a little bit turbo after hours.

It wasn't pretty with only GOOGL shares higher:

-Twitter sinks in late trading after user growth expectations were off.

-Facebook’s shares are modestly lower.

-Amazon shares are down despite reporting profit and net sales that beat quarterly estimates.

-Apple sales plunge 29% in China

- Alphabet returned to growth in the third quarter after a decline in the previous period

All of which sent futures tumbling...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-29_15-13-20.jpg?itok=FlwwXDmX

Erasing all the day's gains in the S&P and Dow...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-29_15-15-50.jpg?itok=VW0iCoyF

Of course, it's early yet and we would strongly expect some dip-buyers to charge in. Just bear in mind that "large lot" sellers have been active all week..

See Chart:

https://www.zerohedge.com/s3/files/inline-images/image006%20%284%29_0.jpg?itok=_1uwKXfN

Trade accordingly.

….

SOURCE: https://www.zerohedge.com/markets/futures-tumble-erase-days-gains-after-tech-earnings-turmoil

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DOUBLELINE: DIGITAL CURRENCIES WILL END THE DOLLAR'S STATUS AS THE WORLD'S RESERVE CURRENCY

Central banks and the BIS envision a network of multiple cross-border payment systems featuring direct bilateral exchanges in the world’s different currencies. Such a regime would discard the decades-long mediation through the world’s reserve currency, the U.S. dollar.

" In short, central banks are preparing to launch cross-border payment systems which represent a new global order which poses a "major threat to the dollar and its status as the world’s reserve currency."

Below we republish the full note in whole due to its accurate and succinct assessment of how profoundly CBDCs will change the existing monetary architecture once they are launched in a few years (or earlier):

Bilateral Digital Currency Payments and the Twilight of the Dollar

by Bill Campbell, fixed income Portfolio Manager at DoubleLine (link)

King Dollar: A Brief History

New conditions might be converging to depreciate the dollar in the forex markets and even one day topple its crown as the world’s reserve currency. In that event, the past of the British pound might not be prologue for the dollar. If central banking and the BIS dethrone King Dollar, I suspect no single currency will seize the crown of reserve currency. Instead, cross-border payments would be mediated by a conglomeration of bilateral arrangements

See Chart:

USD, Euro, Yen: % of total World Foreign echange reserves

https://www.zerohedge.com/s3/files/inline-images/2020-10-29_13-58-00.jpg?itok=UtI81PHq

SWIFT and Usurpers in the Wings

A key to the longevity of the dollar’s reign as the world’s reserve currency is its occupation as the principal medium of exchange by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the dominant provider of cross-border payment settlements.

We have already started to see movement on these initiatives. China and Russia have already rolled out competing settlement systems to SWIFT, and both are looking into more bilateral settlement capabilities with their trading partners. In 2014, Russia implemented an alternative to SWIFT called the System for Transfer of Financial Messages (SPFS).

Beijing is encouraging its financial sector to make the switch from SWIFT. As more central banks work on their own settlement systems, Russia and China have shown that implementation can be a realistic goal.

“Uneasy lies the head that wears a crown.”

I foresee several big implications of the implementation of a new global payments system based on the bilateral regimes, all of which would put structural pressure on the dollar.

First, such a decentralized global payments system would take the world a big step toward removing the need for the dollar, or for that matter any other currency, to remain as the world’s reserve currency.

Second A, The U.S. imports much more than it exports. These large current-account deficits create the need to have foreigners put their excess savings into U.S. assets to help stabilize the dollar. If foreign savings cease flowing into the U.S., the dollar will depreciate unless the import-export imbalance is corrected. (Figure 2)

See Chart:

Twin deficits and the USD

https://www.zerohedge.com/s3/files/inline-images/2020-10-29_13-58-25.jpg?itok=UA7o30th

Second B- Global central banks would no longer need to stockpile dollars and instead could diversify their foreign exchange (FX) reserves to a mix more commensurate with the countries with which they trade and conduct financial transactions. Dollar debt remains a large source of financing for many countries around the globe, but sovereign, corporate and other institutional borrowers have already begun to move some of this external financing into other denominations such as the euro and the yen

Third, disintermediation of the dollar in cross-border payments could erode the greenback’s central role in pricing commodities and invoicing global trade. This would reduce a structural buyer of dollars. Outside the U.S., central banks have been forced to build up their dollar FX reserves in order to prevent a disorderly sell-off if exporters do not repatriate their dollar profits. In addition, Central banks might increase the portion of their reserves allocated to gold, whose finite supply could help reduce debasement fears with respect to infinitely creatable CBDCs

The End of a Single World Reserve Currency?

Outside the U.S., central banks and governments appear to foresee a future untethered from the dollar. The technology for such a delinking is here or soon will be. Central banks will possess the infrastructure to match their FX reserves to the currency mix and weightings of their balance of payments – and one day displace the dollar without the need to crown a new reserve currency.

Despite most of these initiatives still being in their theoretical design phase, global coordination among central banks will speed up their development and potential implementation. Armed with these currency and payment technologies, the world could rescind the exorbitant privilege the U.S. has enjoyed as printer of the world’s reserve currency and place structural pressure on the dollar to depreciate (& gone)

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SOURCE: https://www.zerohedge.com/markets/doubleline-digital-currencies-will-end-dollar-worlds-reserve-currency

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US DOMESTIC POLITICS

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

PETER SCHIFF: THE FED HAS NEVER BEEN RIGHT

"The world is going to return to gold-backed paper money...”

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THE ACLU IS SUING POLICE ACROSS THE COUNTRY FOR "BRUTALITY" IN RESPONSE TO RIOTS AND LOOTING THIS SUMMER

Also known as "peaceful" protests...

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NINE COVID CONTROVERSIES

...some might call them 'facts', but that would get them censored...

Authored by Jeff Harris via The Ron Paul Institute for Peace & Prosperity,

Ever since the alleged pandemic erupted this past March the mainstream media has spewed a non-stop stream of misinformation that appears to be laser focused on generating maximum fear among the citizenry. But the facts and the science simply don’t support the grave picture painted of a deadly virus sweeping the land.

Here the controversies

1) The PCR test is practically useless

2) A positive test is NOT a CASE

3) The Centers for Disease Control dramatically lowered the Covid-19 Death Count

4) CDC reports Covid-19 Survival Rate over 99%

5) CDC reveals 85% of Positive Covid cases wore face masks Always or Often

6) There are inexpensive, proven therapies for Covid-19

7) The US Death Rate is NOT spiking See Chart: If Covid-19 was the lethal killer it’s made out to be one would reasonably expect to see a significant spike in the number of deaths reported. But that hasn’t happened. https://www.zerohedge.com/s3/files/inline-images/bfmC5E9_0.jpg?itok=pK0aOKlP

8) Most Covid-19 Deaths Occur at the End of a normal Lifespan

9) CDC Data Shows Minimal Covid Risk to Children and Young Adults The CDC reported in their September 10th update that it’s estimated Infection Mortality Rate (IFR) for children age 0-19 was so low that 99.97% of those infected with the virus survived. For 20-49 year-olds the survival rate was almost as good at 99.98%. Even those 70 years-old and older had a survival rate of 94.6%. To put this in perspective the CDC data suggest that a child or young adult up to age 19 has a greater chance of death from some type of accident than they do from Covid-19.

Taken together it should be obvious that Covid-19 is pretty similar to typical flu viruses that sicken some people annually.

….

SOURCE: https://www.zerohedge.com/medical/nine-covid-controversies

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The "ADULTS IN THE ROOM" With Trump Weren't Adults At All

...the adults turned out to be idiots. They fought the president at every turn when he sought to withdraw from endless wars...

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CHICAGOANS CATEGORICALLY REJECT PROGRESSIVE/BLM DEMANDS TO DEFUND THE POLICE

The support for BLM has also failed to translate into political support for wholly disbanding the CPD. Only 26% of Chicagoans polled would be more likely to vote for city council members that support disbanding the police.

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COLUMBIA PROF SAYS AMERICAN FLAG IS A "SYMBOL OF GENOCIDE"

"...unless centuries of slavery and the vanquishing of Native American nations doesn't figure into your equation..."

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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

~~CHINA REVEALS FIRST GLIMPSE INTO ITS ECONOMIC PLANS FOR NEXT FIVE YEARS~~

The summary reiterated the increasingly challenging environment for development and rising uncertainties in external conditions, and highlighted major problems at the current phase of development.

NOTE: THE LINE CROSSED THE TITLE , is NOT my: It is from zerohedge.com

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XENOFOBIA BY ex-CHINESE GAY ? Incredile this money-maker .. How much Quay got?

New Research Points To The People's Liberation Army Hospital In Wuhan As Origin For Global Coronavirus Pandemic

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TOP MANEY MAKERS vs TOP MONEY CHASERS

TRUMP QUASHED CRIMINAL PROBE INTO TURKISH BANK THAT FUNNELED BILLIONS TO IRAN

Trump's special bond with Erdogan under scrutiny after intense clash deep within DOJ comes to light..

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SPUTNIK and RT SHOWS

GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars & danger of WW3

- Armenian PM Says Deployt of RU Peacekeepers in Karabakh is 'the Best Option'