NOV 28 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
THE
2021 LIQUIDITY SUPERNOVA: STEP ASIDE FED - US TREASURY WILL UNLEASH $1.3
TRILLION IN LIQUIDITY
It's not just the Fed that will flood markets
with liquidity in 2021. Janet Yellen's
Treasury department will actually inject even more liquidity than the Fed!
Morgan Stanley has
been especially bullish on markets in 2021: as Hornbach summarized it simply:
"When it comes to liquidity, our focus is on both
"narrow" and "broad" measures... We expect both types of liquidity to expand in 2021."
Last Monday we
discussed the expansion of the first type of liquidity, namely that
provided by central banks. The math was, in a word, staggering: combined, the 8 DM central banks are expected
to purchase US$304 billion of securities ($238 billion of which will be
government bonds), on average, from private markets every month in 2021 (with the Fed and the ECB naturally doing most of the buying).
See Charts:
https://www.zerohedge.com/s3/files/inline-images/G10%20central%20banks_0.jpg?itok=8-tFvdDT
Putting this number
in context, in
total these 8 central banks are expected to add liquidity worth 0.7% of annual
nominal GDP, on average, every month in 2021. "That is a rapid pace of global
liquidity injection, the likes of which we haven't seen outside of 2020"
Hornbach casually inserts.
What is even more
striking is that this may not be enough: as we showed two
weeks ago, after the Fed monetized virtually every dollar of net Treasury
issuance in 2020, in 2021 Treasury supply will
significantly outstrip Fed purchases (and this is even without factoring in the
possibility of another major fiscal stimulus).
See Table:
https://www.zerohedge.com/s3/files/inline-images/bofa%20fed%20flows_5.jpg?itok=VlRSg12L
Said otherwise, while the Treasury faces net
Treasury issuance of roughly $2.4 trillion, the Fed is expected to monetize
less than half of this total, or $960 billion. Considering that in 2020
under the auspices of "helicopter money" (from which we remind
readers there is simply no coming back) the Fed will have monetized virtually
every dollar of net issuance, this is a huge cliff and one which could lead to
a shock drop in Treasury prices if the market reprices (lower) its expectations
for Fed monetizations.
In other words, the Fed needs to more than double its scheduled monthly QE in
2021 just to catch up to where it was in 2020; and the Fed is hardly alone - in
just the past month, the RBA, the BOE and most recently, the Riksbank, all
announced expansions to their current QE.
However, as Hornbach
reminds us, 2020 was unique
in that Treasury issued lots of debt without spending the money, resulting in
over $1.6 trillion in Treasury cash available for deployment at a moment's
notice, yet due to Congress' inability to reach agreement on a fiscal stimulus,
this money was never spent (and may have cost
Trump a victory in the election).
See Chart:
Treasury Cash Balance
https://www.zerohedge.com/s3/files/inline-images/Treasury%20cash%20balance%2010.10_1.jpg?itok=89-vVPsz
As a result, the cash
balance in the TGA increased dramatically, resulting in a massive liquidity
drain; in fact were it not for other sources of liquidity injection - such as
the Fed injecting hundreds of billions with monthly periodicity - that may have
been a huge problem for markets. In any event, as the
chart below shows, despite the Treasury's liquidity drain reserves increased in
2020 regardless, surpassing a record $5 trillion.
See Chart:
https://www.zerohedge.com/s3/files/inline-images/reserves%20held%20at%20the%20Fed.jpg?itok=GIdf_10h
With the TGA cash
currently at just under $1.5 trillion, it means that the US Treasury will unlock $1.3 trillion in liquidity over
the next 8 months, more than doubling the liquidity coming from the Fed over
the same time period which will be roughly $1 trillion ($120 x 8 months)!
See Chart:
https://www.zerohedge.com/s3/files/inline-images/Treasury%20cash.jpg?itok=jB-AT1HP
We hope this massive liquidity
injection explains why Biden was so interested in getting a former Fed chair -
Janet Yellen - in charge of the Treasury. After all, the amount of liquidity to be injected by the Treasury Department
will match, almost dollar for dollar, what Jerome Powell will do in 2021.
As we saw ahead of
the US election, US$ 1 trillion found its way into money market funds (MMFs),
given the uncertainty of a well-telegraphed risk event. However, according to
Hornbach, in 2021, the sheer size of
liquidity entering markets will make it hard for investors to keep it sitting
in cash accounts, earning next to nothing. And, given virtual guarantees
that most central bank policy rates will remain at effective lower bounds
(ELBs) in 2021, and many will remain there in 2022 as well, Hornbach concludes
that "investors will have a (performance) incentive to move cash into
higher yielding assets."
In the end, it's not possible for us to say
exactly when the liquidity will impact market prices throughout the year.
Still, once the race for returns begins as we enter the new calendar year (the
new fiscal year for many investors), we
expect liquidity to venture out of its safe-haven cash-cave - just as long as
new, unforeseen uncertainties aren't mounting at the same time.
Translation: buy everything ahead of an unprecedented dollar devaluation
orgy.
….
SOURCE: https://www.zerohedge.com/markets/2021-liquidity-supernova-not-just-fed-us-treasury-will-unleash-13-trillion-liquidity-next
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MORAL
DECAY LEADS TO COLLAPSE
Authored
by Charles Hugh Smith via OfTwoMinds blog,
Our national claim of moral superiority is no longer plausible...
A very
strong case can be made that America is now a moral cesspool. Consider just
three cases: Jeffrey Epstein, the CEO of Pfizer and JPMorgan Chase.
Sadly, Epstein is the epitome of America's elite: getting away with abusing children
for years, if not decades; when finally caught a few years ago, escaping with a
legal wrist-slap..
And very par for the course in
America's elite: Epstein's crimes were known by America's intelligence
and law enforcement agencies, but rather than indict him, they made him an
"intelligence asset" that had to protected from exposure to the
consequences of the rule of law.
Pfizer's CEO arranged
a massive sale of Pfizer stock and then timed the release of overhyped vaccine
data to maximize his private gains.
Nothing illegal here, just
another example of what I call legalized looting.
JPMorgan Chase
manipulated markets to maximize its gains, and
its $1 billion fine is just the
cost of doing business in a pervasively corrupt society and economy. Nobody ever goes to prison for
these billion-dollar skims, scams, frauds amd embezzlements; financial
criminals get a get out of jail free card with every crime.
These three examples are just a
few of thousands of examples of insider skimming and gaming the system, abuse
of power, fraud, pay-to-play, embezzlement, racketeering and other forms of
corruption that enrich the few at the expense of the many.
The explosive rise of
elites' wealth and power in the past few decades has been documented and
charted, and I've repeatedly posted charts showing that virtually all the real
income gains of the past 20 years have flowed to the top 0.1%. This RAND study found that America's elites siphoned $50
trillion into their own pockets in the past two generations: Trends in Income
From 1975 to 2018.
See Chart:
The top 0.1% now own more
than the bottom 80%
https://www.zerohedge.com/s3/files/inline-images/wealth-inequality4-20%20%282%29_1.png?itok=BNtyFm1g
READ MORE AT:
https://www.zerohedge.com/political/moral-decay-leads-collapse
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US DOMESTIC POLITICS
Seudo democ duopolico
in US is obsolete; it’s full of frauds & corruption. Urge cambio
CNN
ADMITS THERE ARE "LEGAL & CONSTITUTIONAL" WAYS FOR TRUMP TO STAY
IN OFFICE
The video has caused consternation amongst some Biden supporters...
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PENNSYLVANIA
JUDGE BACKS TRUMP CLAIMS OVER MAIL-IN BALLOTS, SAYS 'UNLIKELY CONSTITUTIONAL'
Plaintiffs "have established a likelihood to succeed on the
merits..."
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PENNSYLVANIA
REPUBLICANS TO INTRODUCE RESOLUTION DISPUTING ELECTION RESULTS
"We’re going to take our power back..."
====
PENNSYLVANIA
APPEALS COURT TOSSES TRUMP LAWSUIT, SETTING STAGE FOR SUPREME COURT SHOWDOWN
"Ballots, not briefs, decide
elections..."
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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
RUSSIA
RAMPS UP BALLISTIC & HYPERSONIC MISSILE TESTS AS START TREATY EXPIRES
Watch: Russia vowed to conduct a series of
hypersonic & ballistic missile tests through end of the year.
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RUSSIA
WARNS US IT WILL "RESPOND" TO FUTURE BORDER VIOLATIONS IN SEA OF
JAPAN
"We warn the US not to repeat the
violation. We reserve the right to respond in the future."
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
Google: Sputnik News
- Trump
Says Fraud 'Big Part' of Pennsylvania Election Case, Team Will Appeal
- Pennsylvania
Supreme Court Rejects Lawsuit Challenging Mail-In Votes
- Melania
Trump Reportedly Likely to Write Memoir on First Lady Experience
- Turkish
Foreign Min Condemns Killing of Iranian Physicist, Calls to Avoid Escalat
- UK's
Typhoon Jets Try to Intercept Two Russian Tu-142 Over North Sea, RAF Says
- Syria
Calls on Int'l Comm to Condemn Killing of Iranian Physicist M Fakhrizadeh
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