miércoles, 26 de junio de 2019

ND JUN 25 19 SIT EC y POL



ND  JUN  25 19  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

BONDS, BITCOIN, & BULLION JUMP; STOCKS DUMP ON POWELL-PULLBACK, TRADE-TALK
By Tyler Durden

Ugly US housing and confidence data did not help but the cash open saw immediate selling of the modest overnight gains. The ugly data sent the US Macro Surprise Index near its lowest since June 2017...
See Chart:
S&P vs US Macro SURPRISE iNDEX


And while Richmond Fed's headline beat, expectations for local business has crashed to a record low... (which seems very odd considering the Richmond Fed head said today that "US Consumer dynamics remain great.")
See Chart:


Then these hit and spoiled the party...
  • 1230ET Bullard - no need for 50bps
  • 1300ET Powell - monitoring, won't bow to political pressure
  • 1330ET Trump-Xi meeting at G-20 not expected to produce a deal
All of which sent stocks lower for the second day... Trannies are the week's worst performer followed by Nasdaq and Small Caps. For now The Dow is doing best but still lower since quad-witch...
See Chart:


Not a pretty day at all...
See Chart:


Winners of June have been losers this week...
See Chart 1: S&P  Tech

See Chart 2: SOK Index

See Chart 3: Home builders


VIX and Stocks remain decoupled...
See Chart: S&P vs VIX (inv)


As July odds for a 50bps rate-cut swung violently from 40% (pre-Bullard) to 16% (post-Powell) and back up to 26% after the 'no trade-deal' news...
See Chart:
July Rate-Cut Odds


Credit markets have seen notable decompression in the last few days...
See Chart:


Treasury yields continued to fade today except flat 2Y (despite a spike on Bullard headlines)...
See Chart:


10Y yields tumbled below 1.98%...
See Chart:


The dollar spiked today on Bullard/Powell but faded on trade and in context to the post-FOMC move, it was nothing...
See Chart:
FOMC vs. Bloomberg Dollar Index


Gold was a little noisy intraday on the FedSpeak (pushing the dollar around) but held gains breaking to new 6-year highs overnight...
See Chart:


Gold's "VIX" soared to 3 year highs, decoupling from other asset-classes...


Finally, don't forget, there's only one thing that matters...


And if The Fed doesn't pay up and give-in to the market's 50bps demands, the jaws of death will snap shut...
See Chart:
S&P vs. 10 Y  UST Yield
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Since June 2009 Americans have lived in the false reality of a recovered economy.  Various fake news and manipulated statistics have been used to create this false impression...

However, indicators that really count have not supported the false picture and were ignored.

For example, it is normal in a recovering or expanding economy for the labor force participation rate to rise as people enter the work force to take advantage of the job opportunities.  During the decade of the long recovery, from June 2009 through May 2019, the labor force participation rate consistently fell from 65.7 to 62.8 percent.
See Chart:

Another characteristic of a long expansion is high and rising business investment. However, American corporations have used their profits not for expansion, but to reduce their market capitalization by buying back their stock.  Moreover, many have gone further and borrowed money in order to repurchase their shares, thus indebting their companies as they reduced their capitalization!  That boards, executives, and shareholders chose to loot their own companies indicates that the executives and owners do not perceive an economy that warrants new investment. 

How is the alleged 10-year boom reconcilled with an economy in which corporations see no investment opportunities?

Over the course of the alleged recoveryreal retail sales growth has declined, standing today at 1.3%. 
This figure-not copied- is an overstatement, because the measurement of inflation has been revised in ways that understate inflation. 

See Chart:
American paychecks are bigger than 40 years ago


See Chart:

The propagandistic 3.5% unemployment rate (U3) does not include any of the millions of discouraged workers who cannot find jobs.  The government does have a seldom reported U6 measure of unemployment that includes short-term discouraged workers.  As of last month this rate stood at 7.1%, more than double the 3.5% rate. John Williams of shadowstats.com continues to estimate the long-term discouraged workers, as the government formerly did.  He finds the actual US rate of unemployment to be 21%.


The 21% rate makes sense in light of Census Bureau reports that one-third of Americans age 18-34 live at home with parents because they can’t earn enough to support an independent existence.
See Charts:


According to Federal Reserve reports, 40 % of American households cannot raise $400 cash.
See Chart:


 A country with the massive indebtedness of the US government would quickly be reduced to Third World status if the value of the dollar collapsed from lack of demand.
SEE Chart:


There are many countries in the world that have bad leadership, but US leadership is the worst of all.  Never very good, US leadership went into precipitous and continuous decline with the advent of the Clintons, continuing through Bush, Obama, and Trump American credibility is at a low point. Fools like John Bolton and Pompeo think they can restore credibility by blowing up countries.  Unless the dangerous fools are fired, we will all have to experience how wrong they are.

Formerly the Federal Reserve conducted monetary policy with the purpose of minimizing inflation and unemployment, but today and for the past decade the Federal Reserve conducts monetary policy for the purpose of protecting the balance sheets of the banks that are “too big to fail” and other favored financial institutions.  Therefore, it is problematic to expect the same results.

  • Today it is possible to have a recession and to maintain high prices of financial instruments due to Fed support of the instruments.
  • Today it is possible for the Fed to prevent a stock market decline by purchasing S&P futures,...
  • ...and to prevent a gold price rise by having its agents dump naked gold shorts in the gold futures market. 
  •  
Such things as these were not done when I was in the Treasury.  This type of intervention originated in the plunge protection team created by the Bush people in the last year of the Reagan administration.  Once the Fed learned how to use these instruments, it has done so more aggressively.  

Market watchers who go by past trends overlook that today market manipulation by central authorities plays a larger role than in the past. They mistakenly expect trends established by market forces to hold in a manipulated economic environment.
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It doesn’t take much calculation to see that the Fed’s position on quantitative tightening (QT) is blatantly inconsistent with its position on quantitative easing (QE)...

Here are the answers in chart form:
See Chart:

Awkwardness Alert: Here Comes a Chart that Really Excites Me

Two questions that seemed reasonable to ask:
  • How rapidly do banks and broker–dealers (BDs) expand credit during QE periods (QE1, QE2 and QE3) compared to QE pauses (all other times)?
  • How does bank and BD credit expansion compare to the Fed’s credit expansion during the same periods?
Here are the answers in chart form:
See Chart:  WHY SAME CHART??  BLOCKED OR INTENTION DISTORTION?
https://www.zerohedge.com/s3/files/inline-images/testing-the-Feds-narrative-1_thumb-1.png?itok=Qjc6VyI7


All of which brings us from QE to QT. As of this month, the Z.1 shows four consecutive quarters of the Fed reducing its net lending, thanks to QT. So the argyle effect is necessarily over, because the Fed no longer alternates between only two options—QE and not-QE. The pattern has to change, but to what? Well, here’s the answer:
See Chart:

Three Possibilities

So what exactly does the new QE–QT pattern tell us? I’ll suggest three possibilities, ordered from my least likely to my most likely:

  1. QT might have caused the total amount of credit supplied to the nonfinancial sector to fall, a result that would be intriguing largely because of what it would say about the central bank’s expectations. If the private financial sector fully offset QE’s credit creation but not QT’s credit contraction, which is the conclusion you might reach if relying on nothing but the chart, then Bernanke and Yellen got it completely backwards. You’ll never see that conclusion in the Wall Street Journal, for the reasons noted above, but it actually fits the data.
  2. We might not have enough QT data to reach a firm conclusion just yet. In other words, we might find that the picture changes with a few more QT quarters, especially as the volatility of these figures is quite high. That’s why I waited for four quarters of data before publishing my chart, but four still might not be enough.
  3. Total net lending might have declined over the last four quarters even without QT, such that any QT effects were negligible, notwithstanding my chart. Instead, debt-saturated borrowers might have decided to take a rest after nine years of expansion and independently of monetary policy. This view lines up nicely with the Fed’s loan officer survey, which shows weakening demand for most types of loans during the last four quarters. It’s also consistent with the idea that monetary policy makers neither manufacture nor extinguish creditworthy borrowers, who travel to loan and underwriting desks from all corners of the economy, just not from the front steps of the Eccles building as the Fed adjusts its bond holdings.

For what it’s worth, my last point above ties into what I believe to be one of the biggest flaws in the Fed’s make-up. That is, scholars like Bernanke and Yellen reason from theories that require people to respond slavishly and robotically to every adjustment in public policy, however odd, circular or obscure the adjustment might be. In Bernanke and Yellen’s world, it’s no exaggeration to say that central banks really do manufacture creditworthy borrowers, as if the term open market account describes a freakish assembly line, not a simple bond portfolio.

Bottom Line
You’ll form your own views on all of the above, but my advice is to filter the Fed’s narrative with a healthy skepticism, however deferentially the media chooses to endorse it. I’m not saying the narrative is always wrong, just that monetary policy is notoriously difficult to evaluate. But not impossible—the Fed’s data can help separate fact from fallacy. Dig into the Z.1, and you might find that the best reality-check is a single chart—call it the Burberry truth—modest in ambition but scintillating nonetheless.
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Retail investors will soon be able to trade CDS and CDOs (both cash and synthetic). What can possibly go wrong?
See Chart:
NOW THE CHART IS BLOCKED
OPEN THE TITLE ABOVE TO SEE IT
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Unfortunately, the world is now entering a new “dis-saving” phase, as the baby boomers start to live off their past contributions into 401(k), pension plans and the like. History suggests this phase is likely to be inflationary...
It doesn’t make sense to copy charts
Open the title above
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

In a speech today, Fed Chair Jerome Powell took a swipe at Trump, then patted himself and the Fed on the back...
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Beginning in 2008 and continuing through 2014, precious metals traders employed by MLCI schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market
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"digital demand for all things Trump dropped 29%..."
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"The legislators assert Trump’s receipt of benefits through his far-flung business holdings -- including his luxury hotel just blocks from the White House -- violates a U.S. constitutional provision barring American presidents from accepting so-called emoluments."
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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



... countries with "geopolitical tensions with the US" are buying everything...
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"You were really worried about 150 people?" 
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La Carrera armamentista en el otro laso RU: self defense or just business as US

Pentagon officials are concerned US stealth jets and satellites at risk from Russia's next-generation system.
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FACT: BOTH OF THEM  are putting the world peace at risk: one mistake &..
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

   Look who is talking on “decency” ..
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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

REBELION

Ecuador   Etnoeducación  Ibsen Hernández
Cuba   ¡Y seremos millones!  Rafael Hernández
Mund  Trump ordenó atacar a Iran y, tras girar la cabeza 360º como la niña del exorcista, dijo “Stop”  Javier C Si la gira de nuevo..se auto-devora como l Serpiente
Mund Todos los caminos de Trump conducen a China  Guadi Calvo No lo creo: T y su Team (TTs) no saben adónde van, solo que hay que producir más armas y venderlas para dar vida al terror imperial..Si eso causa el WW3 y US es hit, los TTs dirán fue RU y los Chinos vendrán a ayudar en la reconstrucción y pasaran la cuenta a los billonarios y si no pueden pagar, se quedaran con sus bancos y sus empresas, ‘según pre-contrato’. Y si incumplen, serán China y RU quienes les den el bombazo final. El camino es al US.
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ALAI ORG
BLOCKED
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RT EN ESPAÑOL

Por supuesto: armar la paz es justicia, autodeterminación y soberanía. El único problema es cuando declararla públicamente. Pero armarla: desde ahora! Si ocurre el WW3 se estaría prepar para evitar otra expropiac de territ.. y para ..
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INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts that favor WW3

U.S. Citizens Would Approve Preventive Nuclear Strike On North Korea
By Moon Of Alabama.
Solo un tercio según datos oficiales. Pero eso es ya más que la población de N-Korea. El problema es que US nunca sufrió lo que paso en Hiroshima y Nagazaki. Esta vez hay evidencias de que si será bombardeado. Y cuando eso ocurra muere el patrioterism y es el “sálvese quien pueda” lo que viene. N-K debe prepararse para golpear sitios claves de la OTAN a su alcance. Jamás debe entregar sus armas. Get new ones, instead. Si hay que morir,  hay que hacerlo de pie, no de rodillas.
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You Are Being Trolled   By Dmitry Orlov  What do you think will happen when the next financial collapse hits?  Esta víspera es mas cercana que el WW3, pero es esto lo que  viene inmediatamente luego del colapso económico. Eso lo saben todos.. no el pueblo americano. In Short: we’re not ready for WW3,, only billionaires have bunkers, no you..
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We Have Less Than a Millisecond Left  By Lee Camp  in macro geological time
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The Diminishing American Economy  By Paul Craig Roberts
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The Geopolitics of World War III   By StormCloudsGathering
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COUNTER PUNCH
Analysis on US Politics & Geopolitics

Binoy Kampmark  Bill Clinton in Kosovo
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO  allies


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DEMOCRACY NOW
Amy Goodman’  team

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PRESS TV
Resume of Global News described by Iranian observers..

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