SEP 20 2021 ND SIT ECON y POL Part 1 & 2
ND denounce-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 Fed Has Liquidated Its Entire Corporate Bond Portfolio
by Tyler Durden
Just in time to clean up its balance sheet for the next crisis.
Last March capital markets as we once knew them ceased to exist: that's when the Powell Fed crossed a Rubicon even Ben Bernanke dared not breach and announced that it would start buying single-name corporate bonds and ETFs under its Secondary Market Corporate Credit Facility (SMCCF) with both IG and HY names eligible for purchases in the process effectively nationalizing the corporate bond market.
Purchases under this facility, which were meant to reassure and stabilize the corporate bond market continued until December, at which point - with stocks at new all time highs - the Fed announced the cessation of its corporate bond purchases and entered the beginning stages of fully winding down the Secondary Market Corporate Credit Facility (SMCCF).
At the time, some market participants worried this might translate into a reduction in liquidity, but with purchases amounting to less than $500 million per week since July 2020 ...
See Chart:
The FED sold off its entire SMCCF portfolio over the summer
And after all, the Fed's purchases were merely symbolic: the Fed never wanted to become as BOJ-like whale in the corporate bond market, but merely to signal to the world that it would not allow bonds to drop further and would, if required, buy more. Of course, it was not required as the mere guaranteed backstop by the Fed was sufficient to the get dip buyers out in force.
And sure enough, fast forward to the first week of September, when the Federal Reserve has now been able to sell-off the entirety of its corporate bond portfolio with no effect on the market’s microstructure; curiously this also comes at a time when the latest TIC report showed that in Julye foreign investors were net sellers of corporate bonds for the first time this year.
See Chart:
July brought about this year’s first month of foreign net selling of USD corporate credit
https://cms.zerohedge.com/s3/files/inline-images/july%20TIC%20corporate%20bonds.jpg?itok=OPEslqh-
Yet while the SMCCF has now been closed, we continue to think its legacy will live on as a part of the Fed’s policy toolkit with investors forever expecting its reactivation when another macro shock occurs and sends large gyrations throughout corporate credit markets. Or rather "markets" because a world where corporate bonds have no downside is just as centrally-planned as anything China could come up with, and while stonks continue to ramp up for now, there will come a time when everything will crash again and the Fed will once again remind us just how fake price discovery is in a world where the only thing that matters is the Fed's balance sheet as Citi's Matt King put it so elquqently in his latest report:
Some of the most interesting research of recent months concerns the “price inelasticity” of markets. Interesting, that is, to academic economists and monetary policymakers. For anyone who’s actually tried trading in markets over the past decade, the idea that prices might be determined more by flows and liquidity and certain large, price-insensitive buyers than by a rational discounting of fundamentals sounds less like a revolutionary insight and more like a statement of the blindingly obvious
As one investor put it to us recently, central bankers seem to be the only market participants left who fail to appreciate the stranglehold their policies have over asset prices: everyone else gave up looking at fundamental value in favour of obsessing over the minutiae of central bank balance sheet line items a long time ago.
While we are currently on autopilot, we expect to be reminded quite soon just how critical the Fed's liquidity injections are for a binary world where the alternatives are simple: either the Fed prints hundreds of billions every quarter bringing the fiat system ever closer to its death, or we crash.
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SOURCE: https://www.zerohedge.com/markets/fed-has-liquidated-its-entire-corporate-bond-portfolio
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption.
If Only We Could Find A Cure For Trump Derangement Syndrome
...this 'other pandemic' is far from over...
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The US Desperately Needs To Rethink Its Middle East Strategy
The U.S. seems to be losing the plot of the 4D chess game in the Middle East. It is not too late to rethink strategies.
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J6 'Chaos' Total Bust For Media As Cops, Journalists And FBI Appear To Outnumber Protesters
"Hello fellow insurrectionists..."
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What Is Congress Doing To Retirement Accounts?
This all translates into less choice and flexibility for individuals planning their retirements...
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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
Kabul Should Not Forget: "Turkey Was A Major Part Of The NATO Mission In Afghanistan"
...are Erdogan's post-conflict Afghan ambitions 'Neo-Ottoman' and Islamist, in service of NATO, or wrapped around his 2023 electoral goals?
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Markets have the Lehmany Brothersy feel to them..
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Central Bank Of Afghanistan Says Over $12 Million Cash Seized From Homes Of Former Officials
Comes as Afghanistan experiences a severe cash shortfall...
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SPUTNIK NEWS : https://sputniknews.com/
- Sweden Raises Taxes to Finance Largest Military Investment in Modern Times
- US Man Tells Wacky Story of RU-Made Mi-17 of 'Secretive Agency' Landing in His Backyard
- France Says It Cannot Trust Australia in Trade Talks After Canberra Ditched Joint Sub Deal
- Pentagon Contract Seeks Alternate GPS Using Low Earth Orbit Satellites
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SET 20 2021 PART 2 ND SIT EC y POL SPANISH ++
REBELION
CV: Covid-19 es en realidad un virus clasista M Vandepitte
ONU: Sobre alimentac no beneficia a mill de person con hambre” L G
Econ: Que no se apropien de la reducc de la jornada laboral Gorka M
Alfonso Sastre: Réquiem por un hombre íntegro Paco Azorín
Ecol: Cambio climático puede quintuplicar los desplazados del mundo
España Mafiosa resp de eléctricas a medidas sensatas del Gobierno JT
Ecua: “Yo soy mujer indígena”: tres lideresas hablan de su lucha M C
US: Resistencia a ley antiaborto de Texas Dan La Botz
Mund: Francia “neutraliza” a otro emir Guadi Calvo
PAL: Sabra y Chatila, ¿lo recuerdas, Biden? Ramón Pedregal
PAL: 1.400 prisioneros PAL ván a huelga de hambre
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RT EN ESPAÑOL
Partido gobernante Rusia Unida lidera en elecciones legislativas rusas https://actualidad.rt.com/actualidad/404467-resultados-preliminares-elecciones-legislativas-rusas
Felicitaciones a Putin y su partido: su Nación esta mas unida que nunca
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Francia cancela encuentro bilateral con UK debido a la alianza AUKUS https://actualidad.rt.com/actualidad/404502-francia-cancela-encuentro-ministro-defensa-britanico
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Varios muertos y heridos tras tiroteo en universidad de ciudad rusa de Perm
Tienen derecho al zapateo: NO se los debió abalear. Se sanciona a autores?
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CROSS TALK https://www.rt.com/shows/crosstalk/
Universities during the Covid crisis: Let’s milk those student cash cows!
British university business model: charge students full price for their course and their campus accommodation, then deliver only around 15% of the course while restricting access to their digs. And now the masterstroke: rebrand all this as “blended online learning” and claim ‘because Covid’ there’s no alternative. It’s a massive money-maker!
SOURCE: https://www.rt.com/shows/renegade-inc/535051-british-university-covid-price-course/
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO allies
- Significance of the Nuremberg Code: The Universal Right of Informed Consent to Medical Interventions By Alliance for Human Research Protection
- Escaping the Brave New World: Transhumanism, Utopias and Eugenics By M E K
- The Rockefeller Way: The Family’s Covert ‘Climate Change’ Plan By E E L I
- The Covid Outbreak: “Biggest Health Scam of the 21st Century.” Report by 1500 Health Professionals By United Health Professionals
- Worldwide Corona Crisis: Destroying Civil Society, Engineered Economic Depression, Global Coup d’État and the “Great Reset” By Prof Michel Chossudovsky,
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