Nueva Democracia: JAN 26-2022 Part 1-2 SIT ECON y POL

It started off well enough: milliseconds after the Fed statement and associated Fed balance sheet "principles" were released, algos quickly skimmed the key bullet points before they realized that there were no landmines in the statement: indeed, all the biggest hawkish fears had been defused with the Fed not announcing an early end to tapering, an early start to rate hikes and certainly nothing on the fears 50bps rate hike

Drilling into the statement, the Committee announced the final two reductions in the amount of their monthly asset purchases, which will bring purchases to an end in “early March” and the Committee now expects that it will “soon be appropriate” to raise the funds rate - which will almost certainly happen at the next FOMC meeting in March—and updated the statement to note that inflation is “well above” the FOMC’s two percent target (previously characterized as “having exceeded 2 percent for some time”) and that the labor market is “strong,” dropping the judgment that the economy is short of full employment.

So far so good, because there was nothing here that the market did not anticipate or had priced in.

And then Powell started talking... and all hell broke loose...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_14-37-38.jpg?itok=jjfnT_La

...as stocks, bonds, and gold all tumbled post-Fed as the dollar rallied.

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-41-21.jpg?itok=HKFZt_w2

So what exactly did Powell say to upset the algos so much?

Well, a few things, starting with Biden's admission that the Fed is launching the most historic tightening cycle with virtually zero visibility, when he said "the outlook is quite uncertain."

Powell apparently did have enough visibility to provide soft guidance: asked whether rate increases can undercut inflation without harming the labor market, Powell was optimistic, and issued a comment that immediately took the wind out of equity markets’ sails by signaling, inadvertently or not, a more lengthy tightening cycle than expected: "I think there’s quite a bit of room to raise interest rates without without threatening the labor market."

Powell continued his double-speak...

“Economy no longer needs sustained high levels of monetary support.”

“Of course, the economic outlook remains highly uncertain.”

And for those hoping for the Fed Put, Powell curb-stomped that idea being anywhere near:

“Asset prices are somewhat elevated,” Powell says.

They don’t now pose a threat to financial stability, he says.

But the final straw was when Powell admitted that the Fed is “willing to move sooner” and “perhaps faster” than last time in shrinking the balance sheet. adding that “we want the balance sheet to be declining in a predictable manner,” by adjusting the reinvestment of maturing debt, to try to clam the panic.

But that didn't help as stocks all puked into the red for the day (and week), only to bounce the moment Powell stopped speaking

And yes, we have another historic milestone: the S&P 500 erased a 2% advance for first time since April 2020 and was down 0.3% at the close. The Nasdaq managed to desperately scramble back to unchanged on the day...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-59-04.jpg?itok=495s1Sw5

This was the market's worst performance on an FOMC day in at least a year...

See Charts:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-49-44.jpg?itok=_K93PtSk

Indeed, as Bloomberg put it, “A predictable normalization path should help engineer an easy landing, but if financial conditions tighten too sharply between now and then, particularly in the credit markets, the Fed risks inducing a sharper economic slowdown than they may deem desirable.”

But for now algos are selling first, and asking questions later as the dismal market reaction to Powell's presser confirms, which manifests itself not only in the puke in risk assets which have wiped out all intraday gains and are now down on the day, but also in the far more ominous, and recession pre-signaling collapse in the yield curve.

Bonds were a bloodbath with the short-end dramatically underperforming...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-33-13.jpg?itok=kQO8ylWk

This was the biggest jump in 2Y Yields since March 2020...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-44-18.jpg?itok=-GpxRmkr

The yield curve flattened significantly - some might it collapsed - to its flattest since April 2020...This is screaming a Fed policy error is imminent.

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-18-58.jpg?itok=vrV2jing

The dollar surged above yesterday's highs, back near its highest level of the year...

See Chart:

FOMC

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-21-38.jpg?itok=K2MAACXD

Real yields (rising) have recoupled with gold for now...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_13-26-08.jpg?itok=P4ioePLy

Oil prices remain higher, despite weakness post-Fed as geopolitical tensions dominated. WTI made it back above $87 intraday - its highest since Oct 2014...

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-40-12.jpg?itok=87XsUT4Z

Finally, we note that a crashing stock market will probably not help the situation in this chart..

See Chart:

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_10-11-21_0.jpg?itok=uHgKFADr

Additionally, Bloomberg's Ye Xie raised the specter of Powell's rookie mistake in 2018... Back then, his hawkish comment that Fed policy needs to “go past neutral,” and “we’re a long way from neutral at this point, probably” caused market turmoil. Well, this comment today is likely to have taken the euphoria out of the stock market:

“I think there’s quite a bit of room to raise interest rates without without threatening the labor market.”

That's certainly wasn't music to ears of stock investors then and likely won't be now either.

See Chart:

S&P Powell’s Rookie Mistake

https://cms.zerohedge.com/s3/files/inline-images/2022-01-26_12-08-47.jpg?itok=IOmzOCQ_

Time to unleash the FedSpeak!

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SOURCE: https://www.zerohedge.com/markets/stocks-bonds-puke-powell-hints-sooner-faster-qt

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US DOMESTIC POLITICS

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

PAT BUCHANAN ASKS: IS BIDEN RIGHT? DOES THE LEFT OWN THE FUTURE?

...despite the imperiled position of Biden’s party today, it has relative strengths and long-term trends in its favor...

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GALLUP: BIDEN SEEN AS LIKABLE, SMART; NOT STRONG LEADER

At the end of his first year in office, with his approval rating at a personal low of 40%, less than half of adults think Biden possesses five other positive character qualities, least of all being a strong and decisive leader (37%) and able to manage the government effectively (38%).

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POST FED - WHAT NOW?

still about the dip…

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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

YEMEN CONFLICT: BLOWBACK OF OBAMA'S BOTCHED SYRIA POLICY

Trump later voiced the unspoken truth on Saudi Arabia: "They wouldn't last a week if we're not there, and they know it."

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CCP EXPELS 1ST OFFICIAL FOR BEING TOO RICH & CORRUPT AS XI PUSHES "COMMON PROSPERITY" CRACKDOWN

"Zhou Jiangyong has lost his ideals and beliefs...[h]e covertly opposed central government plans, colluded with capital, supported the disorderly expansion of capital, engaged in superstitious activities and deliberately resisted probes."

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WHITE HOUSE, UKRAINE AT ODDS OVER THREAT OF RUSSIAN INVASION IN AWKWARD BACK & FORTH

Ukraine's Defense Ministry: "In fact, there have been no radical changes in the security situation recently."

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SPUTNIK NEWS : https://sputniknews.com/

- How Legal Are Israeli Police Spying Methods?

- California Struggles to Cope With Increasing Train Robberies

- US Actively Asking Russia for Cooperation in Cybersecurity, Unlike Other Areas

- Research Reveals Best Ways to Obtain 'Super Immunity' Against COVID-19

- Amongst Record Cases Of COVID-19, More Than 1.1 Million Children In A Week

- Budd Asks Blinken to Clarify Plan on US Citizens Evacuation From Ukraine in Case of War

- US Fed 'Too Late' in Bid to Contain Inflation After Years of Printing Money

- Anti-Asian Hate Crime up 567 Percent in San Francisco

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JAN 26 2022 PART 1-2 ND SIT EC y POL SPANISH ++

REBELION

ALC: BANCOS: LA HISTORIA POR CONTAR J J. Paz-y-M Cepeda

África: El golpe de Burkina Faso tiene trasfondo geopolítico J A

US: LA RUTA DEL CRACK COMIENZA EN LA CIA Daniel Finn

Opin: Ya asesinaron la verdad. ¿la posverdad asesin la democr? A A

Perú: “Repsol minimizó el vertido y se porta de modo irresponsable”

ARG: ANTE EL FMI POR APOYO FINANCIERO

E Snowden EN DEFENSA DE BUKELE Y ADOPCIÓN DEL BITCOIN

Hond Crisis en el Congreso, amenaza gobernabilidad Dardo Justino

Assange PODRÁ APELAR ANTE SUPREMA CORTE BRITÁNICA

Perú UN ARDIENTE VERANO Gustavo Espinoza

ARG: EL PROBLEMA ES LA INCLUSIÓN Patricia Davolos

ARG: LA VERDADERA ENDEMIA ARGENTINA Andrés Pabón

BOL: LAS MUJERES QUE DERROTARON A BANZER Miguel Pinto

BRAl EL MUNDO EN EL UMBRAL DE LA MEDIANOCHE NUCLEAR LM

Chile: CODELCO: EL SUBIMPERIALISMO MINERO AA y CZ

COL: USO llama al Gob y grupos armados a respetar población civil

España: MOVIMIENTO DE PENSIONISTAS VASCO Mikel de la Fuente

España: Un siglo de comunismo con acento asturiano Diego Díaz

US: Decepción e ira ante fracaso de Biden sobre reforma migratoria

África: Cultivo orgánico: emancipacion d agricultoras d Costa de Marfil

Kazajistán: ¿REV DE COLORES O REBELIÓN POPULAR? Mario Hernand

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RT EN ESPAÑOL

US y OTAN dan a Rusia sus respuesta: respetaran el principio de "puertas abiertas" https://actualidad.rt.com/actualidad/418101-eeuu-otan-dan-rusia-respuestas

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Corea del Norte lanza dos misiles hacia el mar de Japón https://actualidad.rt.com/actualidad/418107-corea-norte-lanzar-misil-mar-japon

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Marina del Perú confirma 2do derrame de petróleo en costas ya afectadas por Repsol https://actualidad.rt.com/actualidad/418125-marina-peru-confirma-segundo-derrame-petroleo

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Kamala Harris en la toma de posesión de Xiomara Castro en Honduras https://actualidad.rt.com/actualidad/418056-eeuu-harris-toma-posesion-castro-honduras

Lo que busca Kamala es fortalecer el Mov FEM de Izquier en el US: clave par derrot a Trump. Aquí en el US el MOV feminista es poderoso solo falta radicalizarlo, unirlo y toman el poder. Por PAZ, DEMOCRACIA y JUSTICIA, las mujeres vencerán esta vez, lo dicen así Kamala y AOC

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CROSS TALK https://www.rt.com/shows/crosstalk/

- WATCH Russian Navy kicks off wargames in Arctic

- Russia unveils military plans in Cuba & Latin America

- Biden makes new Putin threat

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GLOBAL RESEARCH

Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO allies

- Video: War Coming to Europe? By South Front

- A Letter to the Unvaccinated By Dr. Angela Durante

- 20 Facts about Vaccination Your Doctor Forgot To Tell You By Dr. Vernon Coleman