Nueva Democracia: 0CT 6 20 ND SIT EC y POL

0CT 6 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

SHART OF THE DEAL - STOCKS & BOND YIELDS PUKE ON TRUMP 'NO STIMULUS' TWEET

Just when you thought it was safe to buy the reflation trade with both hands and feet, Trump takes his ball and refuses to play with Democrats' demands for state bailouts.

Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country.

I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.

I have asked Mitch McConnell not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett. Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers.

We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!

Which prompted this reaction in stocks...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_13-00-13.jpg?itok=lWVXaL-W

Or put another way...

Small Caps were soaring relative to mega-Tech for most of the day until the Trump tweet reversed things... but its notable where the relative level was when it reversed...

See Chart:

Nasdaq 100 vs Russell 2000

https://www.zerohedge.com/s3/files/inline-images/bfm199B.jpg?itok=CE-Pi5vs

S&P broke below its 50DMA, Dow and Nasdaq also pushed down to that key technical level...

See Charts:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_12-48-06.jpg?itok=4mIGoz24

Critically, the S&P failed around its key gamma level at 3410...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_12-56-52.jpg?itok=i8I90JfE

Some notable levels below here...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_12-58-21.jpg?itok=_nahQCBV

Airlines crashed...

Banks were battered...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmE6C.jpg?itok=fz0C3DTG

FANGs stocks fubar...

Growth and Value were both whacked...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm56A7.jpg?itok=hr0PDg3h

Cyclicals were hammered...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm4DD6.jpg?itok=o2NHoLYg

Panic hit retail...

Which prompted Dave Portnoy to explains why traders should "buy the dip."

Bond yields immediately plunged

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmD483_0.jpg?itok=U-ysTc3d

UST 10Y dropped back below 75bps...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfmF406.jpg?itok=CCGn9RE9

Real Yields were notably higher on the day until the Trump tweets hit...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm9C98.jpg?itok=Djj0660u

The B-Dollar Index spiked...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/bfm12A4.jpg?itok=ZAjHEdZN

Gold futures fell back below $1900..

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_12-34-45.jpg?itok=_e_UqolN

Oil prices did drop on the 'no stimulus' tweet but remain higher on the day, bouncing off $40...

See Chart:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_12-35-59.jpg?itok=2q1vu0ev

Finally, one has to wonder what happens to the excited upgrades of EPS expectations if there's no new bailouts...

See Chart:

Dow Consensus 12 m Fwd EPS

https://www.zerohedge.com/s3/files/inline-images/bfm92E5.jpg?itok=6_sAoqF_

Powell was desperately pleading for more fiscal stimulus this morning once again...

Perhaps this is why - he has realized that the liquidity delusion has finally stopped working...

See Chart:

Global Liquidity Proxi

https://www.zerohedge.com/s3/files/inline-images/bfmC2FA.jpg?itok=dWwfFtfG

….

SOURCE: https://www.zerohedge.com/markets/shart-deal-stocks-bond-yields-puke-trump-no-stimulus-tweet

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"ON SOME MEASURES, INFLATION IS ALREADY ABOVE 2.5%": INFLATIONARY LESSONS FROM THE USED CAR MARKET

Last week, when discussing an emerging problem facing the Fed which is desperately trying to find inflation, we said that "inflation is already here" as the latest PCE data showed prices rebounding significantly, rising 0.4% over three months compared with the prior three months, on an annualized basis. CPI was still showing prices falling on that basis, although in August the reopening of the economy pushed three-month annualized CPI inflation above 3%.

See Chart:

Inflation: annualized three –months rate

https://www.zerohedge.com/s3/files/inline-images/inflation%20annualized_0.jpg?itok=FRofla17

Used cars are impacting both inflation and real activity: in July and August combined, used-car prices soared by 7.7%, the biggest two-month increase since 1969. And since used cars and trucks make up 2.75% of the CPI basket, this surge alone has added 0.2% to the overall index, which as BofA notes, is "a lot when inflation is this low."

See chart:

https://www.zerohedge.com/s3/files/inline-images/used%20car%20prices%20bofa.jpg?itok=R56swt6t

And now that a new stimulus bill seems unlikely until the election, and potentially well beyond, it is only a matter of time before the sugar hike spending surge from this summer reverses with a bang, sending prices sharply lower over the coming months.

….

SOURCE: https://www.zerohedge.com/markets/some-measures-inflation-already-above-25-inflation-lessons-used-car-market

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WITH REAL RATES RISING, IS THE FED PREPARING A DIGITAL DOLLAR?

Authored by Tom Luongo via Gold, Goats, 'n Guns blog,

It pays today to never underestimate the venality of the people who think they run the world. It also pays to listen to them when they say the most outrageous things...

At virtual Jackson Hole this year FOMC Chair Jerome Powell redefined inflation for the third time in my lifetime. By removing the Phillips Curve from the landscape Powell will now guide monetary policy by the desire to create inflation expectations, a kind of first derivative of inflation under the mostly irrelevant Quantity Theory of Money (QTM).

I talked about Powell’s dilemma and why he had to make this change in a post right after that speech. And I outlined what the Austrian criticism of the QTM was — a myopic focus on the supply of money rather than the interplay of it with the demand for money.

The better definition of inflation expectations is to think of it as the velocity of human action.

Now I’m sympathetic, for argument’s sake, to define inflation expectations as the first derivative of action. If you expect things to get better than you may make choices which lead to lower time preference behavior which, in turn, boosts investment in larger projects and an expansion of the division of labor.

Economic growth.

But that growth is dependent on your starting point. If things truly suck, making things somewhat better doesn’t mean you’ll put a new roof on your house or start a new business but it may mean that you spend a little more money on better food.

Because of this systemic degradation of inflation expectations and the squeezing out of available investment capital, the Fed would always reach a point where it could not use interest rates to manipulate aggregate demand and boost GDP — Gross National Spending.

The economy always reaches a point where interest rates are irrelevant to creating confidence to take on new debt. I like to use the term ‘debt saturation’ to describe where we are.

Now with Jay Powell’s speech from virtual Jackson Hole, we have him openly admitting this, validating the Austrian criticism. And so, we have the new definition of inflation, freed from the shackles of the Phillips Curve.

It’s still all about prices today but now the Fed is admitting that the economy runs on the time preference of individuals rather than arbitrary definitions of full employment.

Powell uses the term ‘inflation expectations’ but time preference is still better.

This change by Powell was presaged by a recent white paper which Zerohedge and others brought to wide attention about creating inflation through helicopter money, so-called digital dollars.

This is nothing new now, we’ve been talking about this for weeks.

Those digital dollars will be given to you to spend and you won’t be able to convert them to physical cash. Cash will be sunsetted and there will be no hiding from whatever policy The Davos Crowd wants to implement.

To roll this ball forward there has to be a major impetus to change things and that means another phase to the financial crisis. So, with that in mind I bring you this tweet from Danielle DiMartino Booth from ten days ago, that finally showed up on my radar neatly reminding me that Twitter doesn’t have my best interests in mind.

Now why would the Fed be buying TIPS if not to manage inflation expectations?

See Chart:

The Fed has bought a yuuuge corner of the TIPS market

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_10-13-45.jpg?itok=FoXoDxLH

TIPS are weird because both their price and their yield rise with rising inflation and conversely with deflation. Buying TIPS means the Fed is propping up their prices to tell everyone that real interest rates are not rising!

Pay no attention to the deflation behind the curtain!

But they are. And rising real yields is a real problem for the Fed if it wants to keep the monetary system from melting down globally. TIPS prices wouldn’t need supporting if real yields weren’t rising, which means inflation expectations are falling.

And what happened in the all-important 10-year Treasury market in recent days after the end of Q3 ended with a Fed-induced whimper?

See Chart:

https://www.zerohedge.com/s3/files/inline-images/image-7%20%282%29_0.png?itok=ID6vhgoj

Now we have nominal yields rising, TIPS prices supported and one of the winners over the past few days has been gold? Gold is supposed fall with rising real yields, and yet, it’s rising because this notion that the Fed is buying TIPS means we’re getting safe haven inflows, not investment inflows into gold.

This furthers the argument that gold only follows real yields when markets aren’t under stress. When faith in governments begin to fail for real, gold de-couples from financial assets of all types and trades to its own beat.

See Chart:

https://www.zerohedge.com/s3/files/inline-images/image-8%20%282%29.png?itok=OzNXXX09

But back to this week’s bond market carnage. So, did the Fed finally stop buying TIPS or have we entered another short-lived reflation trade now that Q3 is behind us, thanks to Trump surviving COVID-19?

I think, honestly, it doesn’t matter no matter how explosive all of this may actually be. As the stimulus game of chicken continues on Capitol Hill the markets keep hoping for some sign of help. But the best they have is that Biden’s chances of winning the election are fading along with his cognition.

Wall St. may be coming out trying to spin a Biden victory as good for the markets but that would only be because Pelosi will blackmail them with endless stimulus and the promise of the new Fed e-dollar.

But what is most obvious to me is there is no appetite to give Trump any help in getting re-elected. Whether Powell bought tons of TIPS to keep the markets from crashing into the end of the quarter or not is a mostly academic question.

What’s clear now is the agenda I’ve outlined previously as the Democrats’ and The Davos Crowd’s strategy for the future. If you want to eat, give us all the power. If you want to keep your house, give us all the power.

And, more importantly, accept the new reality that is coming whether you like it or not. There’s a Great Reset coming and it won’t matter who you vote for.

Jay Powell is just the bag man, folks. He’s a bystander in all of this.

….

SOURCE: https://www.zerohedge.com/markets/real-rates-rising-fed-preparing-digital-dollar

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US DOMESTIC POLITICS

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

SNYDER: OUR SOCIETY IS IN THE PROCESS OF BREAKING DOWN ALL AROUND US

Chaos and violence in our streets has become the norm, and our society now teaches us that it is perfectly okay to hate one another...

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BILL GATES CONTRADICTS TRUMP, SAYS WEALTHY WEST WON'T GET 'BACK TO NORMAL' UNTIL LATE 2021

"By late next year you can have things going back pretty close to normal - that's the best case,"

Watch the full interview below:

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"THERE ARE TRILLIONS AT STAKE..." - HOW WASHINGTON REALLY WORKS, & WHY ITS DENIZENS DESPISE TRUMP

With 30-days left before the election perhaps it’s worthwhile remembering what all of this opposition is about... Something 99% of American voters do not quite understand...

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ONLY FULL TRANSPARENCY WILL SAVE THE CIA AND FBI NOW

Haspel and Wray are doing the reverse of safeguarding their vital institutions. They are increasing public distrust of them, a distrust so great that many of us see our society moving inexorably in the direction of China...

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"POLITICAL HIT JOB!" - TRUMP SLAMS FDA'S GUIDANCE PRECLUDING COVID-19 VACCINE BEFORE NOV. 3

"The FDA has already communicated with individual manufacturers about its expectations, data the agency intends to consider, and what we expect to see in a request for an emergency use authorization to demonstrate safety and efficacy..."

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BIDEN SAYS "WE SHOULDN'T HAVE DEBATE" NEXT WEEK IF TRUMP STILL HAS CORONAVIRUS

"I think if he still has Covid we shouldn’t have a debate"

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IN BLOW TO DEMOCRATS, SUPREME COURT REINSTATES SOUTH CAROLINA WITNESS RULE FOR ABSENTEE BALLOTS

"Courts are not equipped to second guess the health and safety determinations of South Carolina’s elected representatives."

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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

DE-DOLLARIZATION TREND REMAINS INTACT

Global de-dollarization resumed in the second quarter according to data recently released by the International Monetary Fund (IMF).

While the dollar share of global reserves increased in the first quarter of 2020, it fell sharply in Q2, resuming a more than two-year trend downward...

SEE CHART:

The reported share of Dollar fell as markets recovered

https://www.zerohedge.com/s3/files/inline-images/share-of-dollar-reserves-GS-1.jpg?itok=-SSKIHCj

There has been a decoupling between the level of dollar reserves and the Trade Weighted USD index – a measure of currency strength weighted by the country’s amount of trade.

See Charts:

https://www.zerohedge.com/s3/files/inline-images/2020-10-06_6-08-57.jpg?itok=NEt7dnf0

According to ZeroHedge, “This divergence between the level of USD reserves and that of USD TWI is expected to persist, as the world is decoupling from the USD as the notional reference peg.”

Some analysts believe both China and Russia will resume adding to their gold-holdings next year. Both countries have been aggressive in reducing their exposure to the dollar but recently put gold purchasing on hold.

We’ve been watching this de-dollarization trend over the last several years, and have written extensively about a push to minimize dollar exposure by countries like Russia and China and their desire to undermine the ability of the US to weaponize the dollar as a foreign policy tool.

The dollar’s slowly shrinking share of reserves doesn’t yet threaten its status as the world’s reserve currency, but it could be a canary in the coal mine. It’s definitely a trend to keep a close eye on.

….

SOURCE: https://www.zerohedge.com/markets/de-dollarization-trend-remains-intact

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SPUTNIK and RT SHOWS

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

-Trump Authorizes Declassification of All Docs on 'Russia Hoax', 'Hillary Clinton Email Scandal'

-Swedish Jewry Urges Internet Giants to Purge Messages About 'Jewish Power'

-Two Terrorists Killed in Ongoing Encounter in Jammu & Kashmir

-How the Gas-Rich & Geostrategically Important Eastern Mediterranean Has Turned Into a 'Powder Keg'

-Live Updates: Stepanakert and Other Karabakh Cities Shelled by Azerbaijani Forces, Armenia Says

-Unidentified People Reportedly Trying to Break Into Office of Kumtor Gold Company in Bishkek

-'Wonder How Jesus Feels About This': Eric Trump Claims POTUS 'Literally Saved Christianity'