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Old 02-07-2019, 04:02 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,606
China --U.S. liquidity flows,,,life is unfair,,,debt exhaustion

Here is a Zero Hedge article that makes 2 points. I have claimed that Powell is trying to do a controlled demolition of U.S. markets to avoid an uncontrolled collapse.
"And while stocks continue to levitate on hopes of a tide of liquidity washing up as soon as 2020 once the Fed starting cutting rates again (perhaps going all the way to negative"
I wouldn't bet the farm that Powell will cut the rates. The high rates attract capital from low-rate economies. The article goes on to prove that Chinese capital is what is holding up U.S. markets.
"And just to demonstrate how critical to US stocks is "China-sponsored" liquidity to global market, look no further than the below stunning chart of PBoC open market operations (on a cumulative 30 day moving average basis) relative to the key Value/Growth ratio for US stocks. If there was ever any doubt that the relative performance of US stocks - and especially FAANGs/growth names - is a function of Chinese liquidity, it can quietly be put to rest."
https://zh-prod-1cc738ca-7d3b-4a72-b...?itok=lXv6rV0L
Powell can hold off pumping in FED liquidity as long as Chinese liquidity is sucked out of China and, into U.S. markets. I'm sure that the Chinese don't like this development. They have to keep printing to support Chinese markets but, the money runs away.

This is a good article from Armstrong. He finally shows some awareness of failing job markets.
https://www.armstrongeconomics.com/w...-to-socialism/
Re: the job market. The lefties are all screaming that life isn't fair.
"Society judges people by what they can do for others.":
We judge ourselves by our thoughts.

“I’m a good person”. “I’m ambitious”. “I’m better than this.” These idle impulses may comfort us at night, but they’re not how the world sees us."
https://oliveremberton.com/2014/the-...a-of-fairness/

Armstrong, "Will Russia’s economy eventually exceed that of Germany? The answer is yes, just as China will surpass the United States. The West is collapsing. World GDP has been in a bear market since the late 1970s. The economy is moving into a recession as we spiral toward 2020. We will then enter STAGFLATION — rising prices with declining economic growth — between 2020 into 2024 with another hard decline thereafter into 2028.

It does appear that the economic decline will be much more severe with respect to Germany than Russia. "
https://www.armstrongeconomics.com/i...-anytime-soon/

2/07 Public pensions are the Trojan horses of US entitlements – The Hill
The growing problem is; we continue to live on long after we are unable to work.
2/06 UN warns of currency wars and widespread protectionism – CNBC Everybody is trying to export deflation & unemployment.
2/07 The “retail apocalypse” isn’t over: It is only just getting started – Zero Hedge
2/06 U.S. mortgage applications fall despite lower borrowing costs – Reuters

No kidding !!. The lower loop ran out of money.
It's called "debt exhaustion"
https://seekingalpha.com/article/423...ebt-exhaustion
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