0CT 1 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
STIMULUS?
COPPER,
CRUDE, CRYPTO, & CREDIT CLOBBERED AS STIMULUS HOPES FADE
"Stimulus On, Stimulus Off"...
That was the tale of the tape today as markets shrugged off
various disappointing economic data and the algos just pumped and dumped on whatever keyword was
selected from Pelosi, Meadows, or Mnuchin...From
yesterday afternoon's stimulus optimism highs, The Dow
is down and Nasdaq managing to hold some gains...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_12-48-57_0.jpg?itok=_BPqUA4A
Personal Incomes unexpectedly tumbled, Manufacturing surveys disappointed, and over 830,000
Americans filed for first time jobless claims last week, and Challenger job
cuts screamed higher - probably nothing!
See Chart:
“Layoff”
Story Count
https://www.zerohedge.com/s3/files/inline-images/bfmEEA0_0.jpg?itok=gC6pcFxu
So
layoffs... and stocks... are soaring?
But copper, crude, cryptos, and credit all
suffered...
Extreme positioning and growth fears
combined to crush Dr.Copper's economics PhD forecast...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_12-02-13.jpg?itok=7_e6nGUC
We suspect more than one of these
extreme specs got a tap on the shoulder today...
See Chart:
Copper net non-commercial specs
https://www.zerohedge.com/s3/files/inline-images/2020-10-01%20%283%29_0.png?itok=_WbzL2Q3
Crude oil was clubbed like a baby
seal, back below $40...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_12-01-27.jpg?itok=4DLFylgS
And as goes oil, so goes energy
stocks - dumping to fresh six-month lows today...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_12-22-52.jpg?itok=J88TMVRs
Credit markets refused to play along
with equity's exuberance...
See Chart:
S&P vs HYG
https://www.zerohedge.com/s3/files/inline-images/bfmD856.jpg?itok=uUCxO2Q3
Bonds were bid today, erasing
overnight weakness...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/bfm37F2.jpg?itok=-w2wSIaJ
The B-dollar index limped lower for
the 4th straight day...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/bfm5E94.jpg?itok=SwF4AXhC
While crude and copper were
clobbered, PMs rallied...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/bfmA096.jpg?itok=nFjfD84_
Gold futures back above $1900...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_12-45-56.jpg?itok=XBOG18j4
Finally, there's this - Nasdaq
bounced back up to the level of global central bank liquidity...
See Chart:
Nasdaq vs
Global Central Bank Balance sheet
https://www.zerohedge.com/s3/files/inline-images/bfm81E7.jpg?itok=ryVcSdD_
….
SOURCE: https://www.zerohedge.com/markets/copper-crude-crypto-credit-all-crumble-stimulus-hopes-fade
----
----
"DE-DOLLARISATION
THEME IS INTACT": LATEST IMF RESERVE DATA SHOWS CONTINUED FLIGHT FROM
DOLLAR, INTO GOLD
No currency
stood out as having benefited from the process so far. Instead, many central
banks had turned to Gold.
On Wednesday, the IMF released the
latest Currency
Composition of Official Foreign Exchange Reserves (COFER) report for
Q2 2020. It showed that while the Dollar share of
global reserves had increased in Q1 2020, likely on a combination of valuation
effects and safe-haven demand, trend reversed abruptly in Q2 as shown in the
Goldman chart below.
See Chart:
https://www.zerohedge.com/s3/files/inline-images/dollar%20depreciation.jpg?itok=uhrRCec2
The contraction in dollar reserves
is hardly new: prior to the Covid-19 pandemic, the Dollar share of allocated
reserves had been trending lower over the past two years (chart below, left),
but that trend was interrupted in Q1 2020. However, the
market recovery in Q2 helped to reverse most of the increase in the Dollar’s
share from earlier this year. At the same time, the share of Euro reserves
rebounded somewhat in Q2.
See Charts:
https://www.zerohedge.com/s3/files/inline-images/share%20of%20dollar%20reserves%20GS%201.jpg?itok=GKR-G8sA
Additionally, the share of Yen
reserves declined both on a headline basis and after adjusting for FX valuation
changes. Meanwhile, the share of CNY reserves continues
to steadily but slowly increase in what may be the most ominous trend in global
reserve flows.
See Charts:
https://www.zerohedge.com/s3/files/inline-images/share%20of%20CNY.jpg?itok=hh0v-Cus
From the perspective of reserve
holders, BofA calculates that total FX reserves rose to over $12 trillion as
global central banks aggressively intervened in FX markets, with more than half
of all allocated reserves in US currency. Indeed, most major countries experienced a rise in FX reserves through Q2, with
the exception of Turkey which continues to bleed reserves in order to stabilize
its currency
See Charts:
https://www.zerohedge.com/s3/files/inline-images/bofa%20fx%20reserves.jpg?itok=gaTYqzbG
Echoing the Goldman observations
above, BofA also writes that "the de-dollarisation theme appears intact", adding that the share of US holdings has declined to 61.3%, slightly more than
expected based on FX, bond and equity valuation changes. The next two charts show the
divergence vs USD performance, and the theoretical
evolution of USD share based on valuation changes since 2014.
See Charts:
https://www.zerohedge.com/s3/files/inline-images/USD%20TWI.jpg?itok=3ptp_WcE
This divergence between the level
of USD reserves and that of USD TWI is expected to persist, as the world is
decoupling from the USD as the notional reference peg.
Curiously, according to the BofA FX
strategists, a deep dive into reserve flows highlights that there
was no currency stood out as having benefited from the process so far. Instead, many central
banks had turned to Gold. However, it now also appears that the
pace of Gold purchases was levellng off.
See Chart:
USD vs FIAT
vs USD vs Gold
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_0.jpg?itok=J8chGnOk
So, against the backdrop of global
yields heading towards zero, the question of what assets/currency central banks
would buy next remained open. Some of BofA's observations:
·
The outlook was becoming more balanced in terms of CB demand for EUR
bonds. The yield
differential vs USTs had reduced, and new supportive factors were emerging -
notably the political stability provided by the EU recovery fund and the growth
in EUR-denominated Green bonds, but
·
The synchronized shift towards QE and further unconventional policy
measures would likely focus reserve managers' attention on a wider
spectrum of assets, and, in the absence of a viable alternative to the USD, we
might be entering into a multi-polar reserve currency world, with currency
dominance det
The IMF's Q2 COFER breakdown supports
both theories:
·
The build-up of reserves in Q2 was most significant in EUR, at c. $23bn. This has allowed a slight
increase in the EUR share of FX reserves, even as valuation adjustments would
have projected a stable share (Chart 7). But, this increase is still extremely marginal. As BofA puts it, "the evidence so far suggests that reserve
managers do not currently see any of the above as ready-made single alternative
to the USD (instead, what was observed is a
small build-up in each currency, except the JPY)."
See Charts:
https://www.zerohedge.com/s3/files/inline-images/5-7.jpg?itok=c8WsSt7f
The "other currencies" component has risen markedly. Q2 saw the largest build-up of reserves in RMB and
"other currencies" since 2Q18 (Chart 6, and Chart 8). The
IMF does not provide a breakdown of "other currencies" but as with
CAD and AUD in 2012, it may not be long before another currency is individually
reported.
It is
likely that this will be an emerging market currency.
See Charts:
https://www.zerohedge.com/s3/files/inline-images/6-8_0.jpg?itok=eYjaoSlV
One final point: while the
accumulation of the Chinese yuan continues, it remains at a very muted pace and
hardly a threat to the dollar's reserve status any time soon. Indeed, as BofA
noted above, "the evidence so far suggests that
reserve managers do not currently see any of the above as ready-made single
alternative to the USD."
As shown in the chart below,
foreign investors now account for 9.2% of outstanding Chinese government bonds. China will be included into the WGBI next October 2021, after
China was awarded a maximum score of 2 for "bond market
accessibility" (which is hilarious and is why foreign investors are in for
a shock once the next default cycle hits China).
See Chart:
https://www.zerohedge.com/s3/files/inline-images/fx%20holdings.jpg?itok=mb2zO5W6
….
SOURCE https://www.zerohedge.com/markets/de-dollarisation-theme-intact-latest-imf-reserve-data-shows-continued-flight-dollar-gold
----
----
AMERICANS
BURN THROUGH A STAGGERING $724BN IN ANNUALIZED SAVINGS IN AUGUST AS STIMULUS
FADES
At this
rate - absent a new fiscal stimulus deal - personal savings will be back to
pre-covid levels in 2-3 month at the most.
Here lies the problem: lower income coupled higher spending in a time when the vast
majority of Americans were looking forward to more stimulus meant that US
consumer rapidly burned through savings. According to the BEA, in August, the
amount of annualized savings tumbled by $723 billion to $2.435 trillion, the
lowest since March and far below the $6.4 trillion peak in annualized personal
savings hit in April.
See Chart:
https://www.zerohedge.com/s3/files/inline-images/monthly%20change%20savings.jpg?itok=hFh_EEbv
….
SOURCE: https://www.zerohedge.com/markets/americans-burn-through-staggering-724bn-annualized-savings-august-stimulus-fades
----
----
STOCKS
& BOND YIELDS SUDDENLY PLUNGE ON HOUSE STIMULUS HEADLINES
Confirming
"no deal" today, headlines stating that a House vote on Democrats' stimulus deal is
expected today, US equities and bond yields tumbled
The Dow is red while Nasdaq holds
some gains for now...
See Chart:
https://www.zerohedge.com/s3/files/inline-images/2020-10-01_11-03-24.jpg?itok=xlXGBmbi
….
SOURCE:
https://www.zerohedge.com/markets/stocks-bond-yields-suddenly-plunge-house-stimulus-headlines
----
----
US
DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds
& corruption. Urge cambio
JIM
QUINN: THE ONLY THING 'SYSTEMATIC' IS THE DESTRUCTION OF AMERICA, PART 2
"...the truth is, there
is something terribly wrong with this country...Cruelty and injustice...
intolerance and oppression... where once you had the freedom to object... you now have censors and systems of
surveillance, coercing your conformity..."
The employees laid off by small businesses will be forced to beg for
jobs at the mega-corps. This coordinated destruction of small businesses is a
major step in our digression into a corporate fascist dystopian hellscape. This
blatant war on the little guy has been lost with barely a whimper from the
fearful masses.
This transfer of wealth from small business owners to the likes of
Bezos and other mega-corps is small potatoes compared to the pillaging of the
little guy by the Federal Reserve over the last century, and particularly over
the last six months. The $3 trillion of debt created
out of thin air since March and the ongoing $1 trillion per year have not
benefited you or anyone you know.
See Chart:
Fed Balance Sheet
https://www.zerohedge.com/s3/files/inline-images/macrobond-1100x490.png?itok=Yvu3sd60
These trillions have been funneled directly to the vampire squid –
Goldman Sachs and the rest of the Wall Street criminal cabal, along with billionaire hedge fund managers, and various
connected Davos elite.
The Fed and the Davos elite depend upon the indoctrinated ignorance
conveyed by government schooling to implement their relentless plundering of
the people’s wealth.
Anyone living in the real world, not the fantasy model world of the Fed
and Davos elite, knows they are being hammered by rising prices on everything
they need to survive.
The massive inflation in stock
prices since April has benefited the top .1%, while the unemployed and senior
citizens have seen inflation in food, fuel, housing, medical care and used
cars. These are the rates of inflation for a few things
you might need since May, according to CNN:
- Corn
– 12%
- Soybeans
– 12%
- Beef
– 16%
- Coffee
– 27%
- Sugar
– 22%
- Cocoa
– 12%
- Cotton
– 12%
- Unleaded
Gas – 68%
- Natural
gas – 36%
Gasoline was priced low when we weren’t allowed to drive. As
soon as people were allowed to go back to work, prices soared. With the poor struggling to get by, used car
prices have soared by double digits since May. Home prices have continued their
relentless increase, up 64% since 2012, pricing young families out of the
market.
The Big Lie is the BLS reported
inflation in medical care of less than 1%. Everyone knows that’s a lie. Medical
premiums, co-pays, and deductibles have been rising at double digits for the
last decade. We are being systematically destroyed by evil sociopaths in suits,
pretending to be looking out for our best interests.
….
SOURCE:
https://www.zerohedge.com/political/jim-quinn-only-thing-systematic-destruction-america-part-2
----
----
THE EMPIRE OF
UNCERTAINTY
There are no roads out of the the Empire
of Uncertainty nor are there any safe havens of absolute certainty within
its shifting borders...
Authored by Charles Hugh Smith via OfTwoMinds blog,
====
INCREASING
NUMBER OF AMERICANS BELIEVE VIOLENCE IS JUSTIFIED IF 'OTHER SIDE' WINS
"The
events of this summer are especially
worrying..."
====
GALLUP
FINDS MAJORITY OF AMERICANS BELIEVE TRUMP WILL WIN RE-ELECTION
STORY HIGHLIGHTS
·
Trump's job approval is up from 42% earlier in
September
·
Except for approval on economy, issue
approvals are below 50%
·
56% expect Trump will win the election; 40% think
Biden will
====
PETER
SCHIFF WARNS OF "FOURTH QUARTER FIREWORKS"
"... the dollar is going to go down
regardless of who the next president isand which party controls Congress. I
mean, that should be abundantly clear based on the debate..."
====
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
POPE REFUSES
POMPEO MEETING, SUGGESTS PLOT TO DRAG VATICAN INTO US ELECTION
Pompeo
blasts Vatican's record of 'compromise'
with Chinese Communist government in letting Beijing select bishops
====
TRUMP
SLASHES CAP FOR REFUGEE ADMISSIONS TO 'RECORD LOW' 15,000
Trump
suspended processing of refugees between March and July, and the pace hasn't
exactly rebounded.
====
SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO
..Focus on neoliberal expansion via wars & danger of WW3
-Trump Confirms His Top Adviser Hope Hicks
Tests Positive for COVID-19
-Leaders of EU Countries Agreed During EU
Summit on Sanctions Against Belarus
-Macron Says 300 Syrian Militants Sent to Baku
via Turkey
-Turkey Must Prove It Is Ready for
Constructive Cooperation, or EU Will Act in More Decisive Manner
-EU
Calls for Transparent Probe Into Alleged Poisoning of Navalny,
-US
House of Representatives Passes Democrats' $2.2 Trillion COVID-19 Relief Bill
-GOP
Fraud Face Charges Over Robocalls Aiming to Suppress Mail-In Ballots By
Minorities
-US
Drugmaker Says COVID-19 Vaccine Won’t Be Ready Before 2020 Election
-US
Court Refuses to Dismiss Trump Admin Lawsuit Seeking Bolton’s Book Proceed
-Venezuela
Calls EU Terms for Sending Election Observers 'Unacceptable'
-Biden
Urged to Cancel Debates with Trump after ‘Fiasco’ in Ohio
-US
Cadet Sues Naval Academy Following Expulsion Over ‘Racist’ Tweets
-Greenland’s
Ice Sheet Melting at Fastest Rate in 12,000 Years
-Beijing
Denounces US Air Force Patch Showing Grim Reaper on Drone Over China
-Trump
Says May Not Accept Amended US Presidential Debate Rules
-Trump
is Biggest Source of COVID-19 Misinformation, Study Finds
-Fox
News Journo Goes Off on Trump Defenders Over White Supremacy Remarks Trump stated
during Tuesday night’s debate that the right-wing political activist group
Proud Boys must "stand back and stand by"
====
====
The rest for tomorrow