Nueva Democracia: MAY 19 2021 ND SIT EC y POL

MAY 19 2021 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

FED ALERT: OVERNIGHT REVERSE REPO USAGE SOARS ABOVE COVID CRISIS HIGHS

by Tyler Durden

The Fed is taking Treasurys out of the market through QE purchases and putting them right back in via the RRP

In today's FOMC Minutes there was a brief section that received little focus amid the broader analysis of the Fed's tapering, inflation language, yet which could be far more important in coming weeks in light of the violent move higher in overnight reverse repo usage.

This is what the Fed said in its discussion of money market rates and the Fed's balance sheet:

Reserve balances increased further this intermeeting period to a record level of $3.9 trillion. The effective federal funds rate was steady at 7 basis points. However, amid ongoing strong demand for safe short-term investments and reduced Treasury bill supply, the Secured Overnight Financing Rate (SOFR) stood at 1 basis point throughout the period. The overnight reverse repurchase agreement (ON RRP) facility continued to effectively support policy implementation, and take-up peaked at more than $100 billion.

Although few survey respondents expected an adjustment to administered rates at the current meeting, more than half expected an adjustment by the end of the June FOMC meeting."

This language confirms what we said last night when we discussed the spike in overnight reverse repo usage as part of the coming QE endgame...

See Chart:

Reverse Repo Usages: Covid Crash vs QE Endgame

https://cms.zerohedge.com/s3/files/inline-images/reverse%20repo%20usage_0.jpg?itok=3xMRMiBu

We concluded with the following bottom line: "keep a close eye on the daily reverse repo facility usage: at the rate it is rising it may soon surpass its all time high of $475BN reached at the end of 2015. At that moment the Fed will have no choice but to start the long overdue "tapering talk."

And just in case there was confusion, we elaborated that "it also means that every tick higher in RRP usage means we are that much closer to the next, and far more violent, taper tantrum."

Which is why the biggest news of the day may not be the crash in cryptos or even the Fed Minutes, but what the Fed published at 1:15pm ET when it revealed that in the latest overnight repo, 43 counterparties parked reserves worth $294 billion with the Fed, a number which not only surpassed the March 2020 covid crisis highs, but was the highest since 2017!

See hart:

O/N RRP

https://cms.zerohedge.com/s3/files/inline-images/On%20repo%205.19.jpg?itok=Oel6qUiM

As Pozsar noted on Monday, "use of the facility has never been this high outside of quarter-end turns, and the fact that the use of the facility is this high on a sunny day mid-quarter means that banks dont have the balance sheet to warehouse any more reserves at current spread levels."

In short: the US financial system is starting to groan at every incremental new reserve created by the Fed's QE... and considering that there is at least $1 trillion more in QE to go, even with tapering, things could turn ugly soon.

See Chart:

We expect the Taper Timeline to keep rate hikes off the table until Mid 2023

https://cms.zerohedge.com/s3/files/inline-images/FOMC%20taper%20goldmanj_3.jpg?itok=3WUSBgIm

This, much more than any flip-flopping commentary from the Fed, confirms that we are rapidly approaching a critical moment when the Fed will no longer be able to conduct $120BN in QE every month, as sooner or later someone will figure out that the Fed buying up hundreds of billions in securities only to turn around the then repo out the resulting reserves each and every day, amounts to outright debt monetization with potentially calamitous consequences for yields and the US dollar.

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SOURCE: https://www.zerohedge.com/markets/fed-alert-overnight-reverse-repo-usage-soars-above-covid-crisis-highs

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CRYPTO, CRUDE, & 'CRAPPY' STOCKS DUMP'N'PUMP AS FED SPARKS DOLLAR SPIKE

by Tyler Durden

... in the past 7 sessions, stocks have suffered 3 of the largest bouts of concentrated selling pressure in history.

The headlines of the day were without doubt made in cryptoland as the entire space saw $1 trillion of wealth destroyed at its nadir today..

See Chart:

Total Market Capitalization

https://cms.zerohedge.com/s3/files/inline-images/2021-05-19_12-21-30.jpg?itok=3ZaKDcNQ

the following tweet explain.

See Chart:

Bitcoin

https://twitter.com/zerohedge/status/1395063498137292800/photo/1

But for the HODLers, this has all been seen before...

See Chart:

Bitcoin (Log scale)

https://cms.zerohedge.com/s3/files/inline-images/bfmC098_2.jpg?itok=4Y9urRPk

Bitcoin bounced back off $30,000, rallying all the way back to its 200DMA...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/bfm573D.jpg?itok=fDQ9rsZ1

Stocks also saw a big dump-n-pump day with Nasdaq outperforming (seemingly finding a magic bid after The Fed said it was thinking about thinking about tapering). Small Cap slagged...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2021-05-19_12-59-56.jpg?itok=bYze8qHW

All sectors ended red with Tech the best and Energy the worst...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/bfm202A.jpg?itok=agmm-n2n

Treasuries were sold along with stocks today for the 3rd day in a row (and 6th day of the last 8 days)...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/bfmC6F8.jpg?itok=BuB9tx5V

10Y yields rose once again off that pre-CPI level...

See Chart:

UST 10 Y Yield

https://cms.zerohedge.com/s3/files/inline-images/bfmB9D0.jpg?itok=lMGt_mBf

And as Nomura noted that the abrupt reversal btwn ES and TY from “negatively correlated” for the vast majority of the post-GFC era (a rolling 60d corr low of -74.8% in Nov ’11, with the low since start of 2020 being -62.3% on 2/24/20) to now, the most “positively correlated” since 1999 (60d rolling now @ +54.1) - all thanks to last year’s pandemic response-driven macro regime shift (“From Duration to Reflation”)...

See Chart:

Stock-Bond Correlation

https://cms.zerohedge.com/s3/files/inline-images/bfm5335.jpg?itok=2wze7rIg

...has meant a frustrating bleed for risk-parity-types and 60/40 “balanced fund” models, where bonds have traditionally played the role as the perceived “low vol” / “risk-off” hedge.

See Chart:

Risk Parity Fund

https://cms.zerohedge.com/s3/files/inline-images/bfm5A32.jpg?itok=CfDTFQW9

The dollar was quietly doing its thing until The Fed's taper talk sent it vertical

See Chart:

Bloomberg Dollar Index

https://cms.zerohedge.com/s3/files/inline-images/bfm51BB.jpg?itok=rjfrzALn

Finally, we note that, as @sentimentrader pointed out, in the past 7 sessions, stocks have suffered 3 of the largest bouts of concentrated selling pressure in history.

· May 11: Largest all-time

· Today: 4th-largest

· May 12: 19th-largest

Makes you wonder just how nervous everyone really is.Maybe this is why...

See Chart:

US Macro Surprise Index

https://cms.zerohedge.com/s3/files/inline-images/bfm722B.jpg?itok=XAFJwQtU

We're gonna need a bigger (stimmy) boat!

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SOURCE: https://www.zerohedge.com/markets/crypto-crude-crappy-stocks-dumpnpump-dollar-treads-water

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US DOMESTIC POLITICS

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

"GOVERNING AS LOOTING" IN WASHINGTON & BEYOND

At what point does a democracy become a kleptocracy?

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WALGREENS CLOSES 17 SAN FRANCISCO STORES DUE TO "OUT OF CONTROL" SHOPLIFTING

"People are scared..."

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US Xenophia agst depend countries like Japan ha not limits: Time to remove US troops

US BLOCKS SHIPMENT OF JAPANESE SHIRTS ON SUSPICION THEY WERE MADE IN XINJIANG

A shipment of shirts for Japan's Uniqlo chain was blocked from entering the U.S in January on the suspicion they were made with forced labor in China's Xinjiang region.

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This is instead a nice utopia: not pollution pro CV.. all families using bikes= new unity

THE DYSTOPIAN FUTURE IN WHICH ALMOST NO ONE OWNS A CAR

It is not difficult to see how this could go very wrong.

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You are wrong: lack of imagination + possible family problems

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They don’t need ‘police brutality. They need the high% of good policemen

NEARLY 20% OF SEATTLE COPS QUIT AMID NATIONAL PROTESTS, BUDGET CUTS

"The support that we had in my generation

of policing is no longer there."

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Your generation don’t belong to this time: you don’t have sense of future

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Close the vaccines that spread CV-19 & send to jail to its profiteers: they kill many

JOHNS HOPKINS DOCTOR: CLOSED-SCHOOLS ARE AN "AMERICAN DISGRACE"

"...from a medical standpoint, from a public health standpoint, kids need to be in school."

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Just tit f tat’ game for teenagers. T accuse Biden of stealing elect & he resp w criminal c TRUMP RESPONDS AFTER NEW YORK GOES AFTER TRUMP ORG, LAUNCHES CRIMINAL INVESTIGATION

"A continuation of the greatest political Witch Hunt in the history of the United States."

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US-WORLD ISSUES (Geo Econ, Geo Pol & global Wars)

Global depression is on…China, RU, Iran search for State socialis, D rest in limbo

Biden is supporting ISR genocide agst PALs, his blab on negotiating peace is hypocrisy

BIDEN CONDEMNS ERDOGAN'S GAZA TIRADE AS "ANTI-SEMITIC" & "REPREHENSIBLE"

Erdogan had gone after Biden personally as having "blood on his hands"

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The one who has blood in this hands is Biden. What he did today is what he does in International forums: support ISR & accuse Palestine

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US STIMULUS HAS CREATED A BOOM... IN CHINA

Maybe maximizing corporate profits isn't all that matters. Maybe national security and resilience matter, too, and if they do, then reshoring critical supply chains should be a higher priority than Corporate America's [ See Chart ]

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SPUTNIK NEWS: https://sputniknews.com/

- US Secretary of State Blinken: Washington Has Waived Sanctions Against Nord Stream 2 AG, CEO OPEN PROVOCATION TO WW3

- Beijing Says US Warship Illegally Entered Its Territorial Waters in South China Sea

- Colombian Defense Minister Rejects NGO Figures on Death Toll From Protests

- US Capitol Police Deny Letter From 'USCP Officers' on Creation of Capitol Riot Commis

- Blinken Tells Israeli FM Ashkenazi US Backing on Gaza Cannot Last Much Longer

- AOC Leads 'Progressive' Dems' Push to Block US Arms Sale to Israel

- US National Guard Troops Deployed After Capitol Riot Will Return Home Sunday

- Lavrov After Meeting With Blinken Says Hopes Putin, Biden Will Determine Further Steps to Improve Russian-US Relations

- Kamala Harris Breaks Election Pledge by Hiding Wealth in Tax-Dodge Trust

- New York State Police Swarm House of Rochester Mayor