Nueva Democracia: NOV 28 20 ND SIT EC y POL

NOV 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

THE 2021 LIQUIDITY SUPERNOVA: STEP ASIDE FED - US TREASURY WILL UNLEASH $1.3 TRILLION IN LIQUIDITY

It's not just the Fed that will flood markets with liquidity in 2021. Janet Yellen's Treasury department will actually inject even more liquidity than the Fed!

Morgan Stanley has been especially bullish on markets in 2021: as Hornbach summarized it simply: "When it comes to liquidity, our focus is on both "narrow" and "broad" measures... We expect both types of liquidity to expand in 2021."

Last Monday we discussed the expansion of the first type of liquidity, namely that provided by central banks. The math was, in a word, staggering: combined, the 8 DM central banks are expected to purchase US$304 billion of securities ($238 billion of which will be government bonds), on average, from private markets every month in 2021 (with the Fed and the ECB naturally doing most of the buying).

See Charts:

https://www.zerohedge.com/s3/files/inline-images/G10%20central%20banks_0.jpg?itok=8-tFvdDT

Putting this number in context, in total these 8 central banks are expected to add liquidity worth 0.7% of annual nominal GDP, on average, every month in 2021. "That is a rapid pace of global liquidity injection, the likes of which we haven't seen outside of 2020" Hornbach casually inserts.

What is even more striking is that this may not be enough: as we showed two weeks ago, after the Fed monetized virtually every dollar of net Treasury issuance in 2020, in 2021 Treasury supply will significantly outstrip Fed purchases (and this is even without factoring in the possibility of another major fiscal stimulus).

See Table:

https://www.zerohedge.com/s3/files/inline-images/bofa%20fed%20flows_5.jpg?itok=VlRSg12L

Said otherwise, while the Treasury faces net Treasury issuance of roughly $2.4 trillion, the Fed is expected to monetize less than half of this total, or $960 billion. Considering that in 2020 under the auspices of "helicopter money" (from which we remind readers there is simply no coming back) the Fed will have monetized virtually every dollar of net issuance, this is a huge cliff and one which could lead to a shock drop in Treasury prices if the market reprices (lower) its expectations for Fed monetizations.

In other words, the Fed needs to more than double its scheduled monthly QE in 2021 just to catch up to where it was in 2020; and the Fed is hardly alone - in just the past month, the RBA, the BOE and most recently, the Riksbank, all announced expansions to their current QE.

However, as Hornbach reminds us, 2020 was unique in that Treasury issued lots of debt without spending the money, resulting in over $1.6 trillion in Treasury cash available for deployment at a moment's notice, yet due to Congress' inability to reach agreement on a fiscal stimulus, this money was never spent (and may have cost Trump a victory in the election).

See Chart:

Treasury Cash Balance

https://www.zerohedge.com/s3/files/inline-images/Treasury%20cash%20balance%2010.10_1.jpg?itok=89-vVPsz

As a result, the cash balance in the TGA increased dramatically, resulting in a massive liquidity drain; in fact were it not for other sources of liquidity injection - such as the Fed injecting hundreds of billions with monthly periodicity - that may have been a huge problem for markets. In any event, as the chart below shows, despite the Treasury's liquidity drain reserves increased in 2020 regardless, surpassing a record $5 trillion.

See Chart:

https://www.zerohedge.com/s3/files/inline-images/reserves%20held%20at%20the%20Fed.jpg?itok=GIdf_10h

With the TGA cash currently at just under $1.5 trillion, it means that the US Treasury will unlock $1.3 trillion in liquidity over the next 8 months, more than doubling the liquidity coming from the Fed over the same time period which will be roughly $1 trillion ($120 x 8 months)!

See Chart:

https://www.zerohedge.com/s3/files/inline-images/Treasury%20cash.jpg?itok=jB-AT1HP

We hope this massive liquidity injection explains why Biden was so interested in getting a former Fed chair - Janet Yellen - in charge of the Treasury. After all, the amount of liquidity to be injected by the Treasury Department will match, almost dollar for dollar, what Jerome Powell will do in 2021.

As we saw ahead of the US election, US$ 1 trillion found its way into money market funds (MMFs), given the uncertainty of a well-telegraphed risk event. However, according to Hornbach, in 2021, the sheer size of liquidity entering markets will make it hard for investors to keep it sitting in cash accounts, earning next to nothing. And, given virtual guarantees that most central bank policy rates will remain at effective lower bounds (ELBs) in 2021, and many will remain there in 2022 as well, Hornbach concludes that "investors will have a (performance) incentive to move cash into higher yielding assets."

In the end, it's not possible for us to say exactly when the liquidity will impact market prices throughout the year. Still, once the race for returns begins as we enter the new calendar year (the new fiscal year for many investors), we expect liquidity to venture out of its safe-haven cash-cave - just as long as new, unforeseen uncertainties aren't mounting at the same time.

Translation: buy everything ahead of an unprecedented dollar devaluation orgy.

….

SOURCE: https://www.zerohedge.com/markets/2021-liquidity-supernova-not-just-fed-us-treasury-will-unleash-13-trillion-liquidity-next

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MORAL DECAY LEADS TO COLLAPSE

Authored by Charles Hugh Smith via OfTwoMinds blog,

Our national claim of moral superiority is no longer plausible...

A very strong case can be made that America is now a moral cesspool. Consider just three cases: Jeffrey Epstein, the CEO of Pfizer and JPMorgan Chase.

Sadly, Epstein is the epitome of America's elite: getting away with abusing children for years, if not decades; when finally caught a few years ago, escaping with a legal wrist-slap..

And very par for the course in America's elite: Epstein's crimes were known by America's intelligence and law enforcement agencies, but rather than indict him, they made him an "intelligence asset" that had to protected from exposure to the consequences of the rule of law.

Pfizer's CEO arranged a massive sale of Pfizer stock and then timed the release of overhyped vaccine data to maximize his private gains.

Nothing illegal here, just another example of what I call legalized looting.

JPMorgan Chase manipulated markets to maximize its gains, and its $1 billion fine is just the cost of doing business in a pervasively corrupt society and economy. Nobody ever goes to prison for these billion-dollar skims, scams, frauds amd embezzlements; financial criminals get a get out of jail free card with every crime.

These three examples are just a few of thousands of examples of insider skimming and gaming the system, abuse of power, fraud, pay-to-play, embezzlement, racketeering and other forms of corruption that enrich the few at the expense of the many.

The explosive rise of elites' wealth and power in the past few decades has been documented and charted, and I've repeatedly posted charts showing that virtually all the real income gains of the past 20 years have flowed to the top 0.1%. This RAND study found that America's elites siphoned $50 trillion into their own pockets in the past two generations: Trends in Income From 1975 to 2018.

See Chart:

The top 0.1% now own more than the bottom 80%

https://www.zerohedge.com/s3/files/inline-images/wealth-inequality4-20%20%282%29_1.png?itok=BNtyFm1g

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US DOMESTIC POLITICS

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

CNN ADMITS THERE ARE "LEGAL & CONSTITUTIONAL" WAYS FOR TRUMP TO STAY IN OFFICE

The video has caused consternation amongst some Biden supporters...

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PENNSYLVANIA JUDGE BACKS TRUMP CLAIMS OVER MAIL-IN BALLOTS, SAYS 'UNLIKELY CONSTITUTIONAL'

Plaintiffs "have established a likelihood to succeed on the merits..."

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