Nueva Democracia: FEB 5- 2021 ND SIT EC y POL

FEB 5- 2021 ND SIT EC y POL

ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco

….

METEOROLOGISTS WARN 'DEEP FREEZE' FOR THE US BEGINS NEXT WEEK

The official week 2 forecast "got even colder." Brrrr

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2021-02-05_07-06-59.png?itok=v-Xlfoek

….

ZERO HEDGE ECONOMICS

Neoliberal globalization is over. Financiers know it, they documented with graphics

THE TOP 10% IS DOING JUST FINE, THE MIDDLE CLASS IS DYING ON THE VINE

Authored by Charles Hugh Smith via OfTwoMinds blog,

...one term describes the accelerating erosion of America's middle class: decapitalization.

To understand decapitalization, we need to start with the fundamentals of any economy between labor (wages) and capital and between investment and speculation. Although it's tempting to oversimplify and demonize one or the other of these basics (speculators bad! etc.), they each provide an essential role in a healthy economy, one which is in dynamic equilibrium, a state analogous to a healthy ecosystem with constantly changing interactions of numerous species, individuals and inputs (weather, etc.). This variability enables the order of fluctuations (to use Ilya Prigogine's profound phrase), a dynamic stability / equilibrium.

In modern social-capitalist systems, the core stabilizer of the system is the wage-earning middle class which provides the stable workforce driving production and the stable pool of consumers needed to borrow money and consume enough to soak up the production of goods and services at a profit to producers.

Without a stable, dominant middle class, capital has few opportunities to invest in productive capacity. Without a stable, dominant middle class, the economy stagnates and is prone to collapse as it is far from equilibrium.

The process of middle class decline is best explained as decapitalization because the middle class is fundamentally a means of transforming labor into capital via savings and investment.

There are a number of factors driving this decapitalization:

1. Wages' share of the national income has continued a five-decade downtrend. (See chart below) National income since 1973 has shifted from labor (wages) to capital and more specifically, to debt and speculative gaming of the system, a.k.a. financialization.

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/wages-share-income7-19a_5.png?itok=Ha0gP5_M

Total household income in the U.S. in 2018 was $17.6 trillion. The decline in wages' share of the national income from 1973 to 2018 is about 8.5%, which equals $1.5 trillion, the sum shifted from labor to capital every year. (See chart below)(source: https://www.statista.com/statistics/216756/us-personal-income/)

See Chart

https://cms.zerohedge.com/s3/files/inline-images/wealth-disparity3-17_0.jpg?itok=05tGnT7o

2. Within the workforce, wages have shifted to the top 10% who now earn 50% of all taxable income. Financialization and globalization have decapitalized the skills of entire sectors of the workforce as automation and offshoring reduced the human capital of workers' skills and experience and the value of their social capital. When the entire industry is offshored, skills and professional relationships lose their market value.

See Chart:

Distribution of Taxable income from 1975 to 2018

https://cms.zerohedge.com/s3/files/inline-images/wealth-distribution-RAND9-20_0.jpg?itok=TXu0ExCV

In a fully globalized economy, every worker producing tradable goods/services is competing with the entire global workforce, a reality that reduces wages in high-cost developed nations such as the U.S.

Financialization has heavily rewarded workers with specialized gaming the financial system skills and devalued every other skill as only the skills of financialization are highly profitable in a globalized, financialized economy.

See Chart:

Wall Street now 6x the size of main street

https://cms.zerohedge.com/s3/files/inline-images/gdp-financial1-21a%20%281%29.jpg?itok=-a8rm2U2

3. As the high-wage jobs and capital shifted to coastal urban centers, middle class owners of homes and capital elsewhere saw the value of their assets decline.

4. As capital siphoned off income and appreciation from labor (human and social capital), the gains accruing to capital accelerated.

This is a key reason why the rich got richer and the poor got poorer. Those with capital accrued the majority of gains in income and wealth, leaving the bottom 90% in the dust.

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/wealth-top10a_0.jpg?itok=l25CFgwd

The 3% of income from capital collected by the bottom 90%--which includes the middle class-- is basically signal noise: the middle class collects inconsequential crumbs of income from capital.

Prior to the Fed's ZIRP and financialization of the economy, the middle class could both collect income from capital they owned and they could afford to acquire assets that yielded low-risk solid returns. Now they can do neither.

This is why The Top 10% Is Doing Just Fine, The Middle Class Is Dying on the Vine

….

SOURCE: https://www.zerohedge.com/personal-finance/top-10-doing-just-fine-middle-class-dying-vine

----

CHIEF ECONOMIST: THE UNPRECEDENTED SCALE OF US FISCAL STIMULUS WILL LEAD TO EPIC 2023 BUST

What's the economic and financial endgame? It's hard to see anything but a "boom-bust" scenario playing out with fast growth and rising market interest rates in 2021 and early 2022, followed by a bust in late 2022/23 when the fiscal

Suppose Congress passes something close to Biden's Administration stimulus proposal of $1.9 trillion. In that case, that will lift the cumulative amount of fiscal stimulus in the past 12 months to $5 trillion---three tranches $2.2 trillion, $900 billion, and $1.9 trillion.

In the past year, nominal GDP totaled $21 trillion, so the cumulative injection of fiscal stimulus amounts to almost 25%.

Nothing in modern times comes close, especially during peace times. CBO published a report in 2010 on the military costs of significant wars. The military war costs of World War 1 amounted to 13.6% of GDP and World War 11 35.8%----so the current spending/stimulus is in the middle of the two World Wars.

See Chart:

US Budget deficit to hit 18% of GDP in 2021

https://cms.zerohedge.com/s3/files/inline-images/budget%20deficit%20hartnett.jpg?itok=e74FcKfn

During World Wars, activity in the private sector is depressed. That's not the case today. The housing sector is booming, with housing starts at the highest levels in 15 years, and prices are rising double-digit to record levels. At the same time, the manufacturing sector is experiencing a mini-boom in orders and production.

Given the scale of fiscal stimulus, one would expect the Fed to be thinking of "leaning against the wind." But not this Fed--the Fed is using the same playbook from the Great Financial Recession, providing unneeded stimulus to the red-hot housing market.

The US experienced mild recessions following the sharp drop in government military spending after the Korean and Vietnam wars----and back then, the scale of military expenditures amounted between 2% and 4% of GDP. The "sugar-high" today is unprecedented, raising the odds of a harder landing.

….

SOURCE: https://www.zerohedge.com/economics/chief-economist-unprecedented-scale-us-fiscal-stimulus-will-lead-epic-2023-bust

----

MISUNDERSTANDING NEGATIVE YIELDS & WHY LOW RATES DON'T JUSTIFY HIGH PRICES

...it is not correct to infer higher stock prices are justified as a function of low bond yields; perhaps everything is too expensive, and bonds are the only instrument capable of objectively and unambiguously transmitting that

====

JPMORGAN FEARS GAMMA-IMBALANCE 'FRAGILITY-EVENTS' IN THESE STOCKS

Typically, an unexpected or underappreciated event

sparks this fragility feedback loop.

====

US DOMESTIC POLITICS

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

Bud-sign: stupid autonomism can create path to dismember the FED-Union

NEVADA GOV PUSHES PLAN TO LET COMPANIES RAISE TAXES, CREATE LOCAL GOVERNMENTS

...porn-u-topia?..[ create “local Goverments” is more than a porn ]

….

That Nevada Govt sell themselves for fist of USD is more than porn.. it opens the door to nasty dismembering of the UNION. IF the Supreme Court do not stop the coming division, what about other Courts besides Nevada? . Nevada Govt’case is anti-american and must be treated as betrayal to our nation.

====

HOUSE IMPEACHMENT BRIEF AGAINST TRUMP THREATENS FREEDOM OF SPEECH OF ALL AMERICANS: DERSHOWITZ

“So, no, the First Amendment does not exist only to ‘protect our democratic system.’ It exists to protect our liberty, regardless of what system we choose...”

====

The enraged DEMS lost the war.. who cares?

A QUESTION OF INTENT? HOW THE TRUMP TRIAL IS DESIGNED TO ENRAGE BUT NOT CONVICT

Both sides’ filings bode poorly for this trial, which could become a raw reflection of our age of rage. No minds will be changed - just more weeks of political winter...

====

Selling-buying guns is part of our freedom… We mut used to defend Nation freedoms

BIGGEST GUN CONTROL BILL IN HISTORY TARGETS THE POOR, WILL MAKE MILLIONS OF FELONS OVERNIGHT

The new gun control measure would create an $800 annual license, ban magazines over 10 rounds, force all owners to register guns in public database...

====

CALLING FOR AN AMERICAN MINISTRY OF TRUTH - THE US MEDIA'S DYSTOPIAN 2021

In today’s America, Big Brother mass surveillance, police state control, and ministry of truth Big Lies are part of the national fabric...

====

Corruption ZERO?

DID YOU MAKE JANET YELLEN RICH?

...where did Citadel get the money to pay Yellen?

====

California military base is creating terrorists?

10 POUNDS OF HIGH POWERED C-4 EXPLOSIVES DISAPPEAR FROM CALIFORNIA MILITARY BASE

"One pound alone could blow up a vehicle..."

====

SENATE DEMS PUSH THROUGH $1.9TN STIMULUS BLUEPRINT AS HARRIS CASTS FIRST TIEBREAKER

Democrats are moving to push through President Joe Biden's $1.9 trillion stimulus plan with or without - and most likely without - Republican support.

====

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

We must respect China sovereignty: Hon Kong is part of China, whether we like or not

"NO ROOM FOR DEBATE": BEIJING IMPOSES SWEEPING PRO-CHINA CURRICULUM ON HONG KONG SCHOOLS

Overhaul of all subjects to emphasize "an affection for the Chinese people" which further aims to weed out disloyal students & teachers..

….

We debate our Nation problem & China their problems. What happened in Viet Nam is a sad lesson for all nations. We don’t want more US interference abroad

====

We are champions creating ‘scandals’ to derail other nation’ vital events. STOP IT!

TOKYO OLYMPICS GRIPPED BY NEW SCANDAL AFTER HEAD ORGANIZER MAKES "SEXIST REMARKS"

"Some members of the committee reportedly laughed at Mori’s remarks"

….

If we don’t stop it, we’re going to create the most hated nation of the world and just before WW3, if happens. One radical Org in Brasil said : If WW3 starts, we’re going to bomb all US embassies in BRA & Latin America. I med mariguelas in Chile and I know this could happen.

====

IS A SPACE MINING WAR INEVITABLE?

“There have already been examples in history when one country decided to start seizing territories in its interest - everyone remembers what came of it,”

====

GRETA THUNBERG TRIGGERS CRIMINAL INVESTIGATION IN INDIA AFTER TWITTER DEBACLE

"The call was to wage economic, social, cultural

and regional war against India."

====

SPUTNIK and RT SHOWS

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

- New Nationwide 'Internet Blackout' Reportedly Hits Myanmar

- Can BBC Compete With Netflix or Are People Paying for It Because Law Requires Them to Do So?

- Revoking CGTN's Licence is Attack on Freedom of Speech, Part of Broader UK-China Row

- Australian Adviser to Myanmar's Aung San Suu Kyi 'Being Detained' Days After Military Coup

- Blinken Says US Will Hold China to Account for 'Efforts to Threaten Stability in the Indo-Pacific'