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Can Sanders Beat Trump In Capitalist America?

Can Sanders Beat Trump In Capitalist America? Authored by Bruce Wilds via Advancing Time blog, The Democrats are searching for the candidate best able to defeat Trump in the forthcoming Presidential race. The question on the mind of many democrats is whether Bernie Sanders can beat Trump in a capitalist America? Considering the surge in inequality the answer is, yes. It is difficult to underestimate the anger building under the surface as Trump makes his rounds declaring this the “best economy ever.” The reason for the discontent is many Americans are not feeling all that blessed. Wealth inequality has soared in recent years and now stands at the worst it has been during the entire U.S. post-war period. Simply put, statistics show many Americans lack the money to pay for a $500 repair. Driving a decent car doesn’t make a person middle-class or economically equal, especially if they are up to their eyeballs in debt to do so. As for whether Sanders could beat Trump, a couple of issues rapidly come to mind. First, Trump is not as loved as he indicates, matter of fact  the President has a way of ruffling the feathers of both friends and foes. The word braggadocios has been used to describe Donald Trump, synonyms for this word according to are blowhard, boaster, bragger, show-off, and windbag. None of these are very flattering and over time such behavior has...

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Beijing Crashes The Party: Chinese Media Warns Austerity Is Coming After FinMin Says “Proactive Fiscal Policy” No Longer Feasible

Beijing Crashes The Party: Chinese Media Warns Austerity Is Coming After FinMin Says “Proactive Fiscal Policy” No Longer Feasible One of the top reasons why stocks have continued to hit new all time highs despite the ongoing economic shock that has crippled China’s economy, which according to Goldman will push its GDP to zero (or lower)… … and frayed global supply chains, is the investing public’s absolute certainty that China will unleash an unprecedented fiscal stimulus to offset the collapse in economic output (which to those who mistakenly claim that this is “contrarian view” we urge you to carefully review the definition of contrarian when everyone is convinced it will happen). And in all honesty, until today there was little reason to believe otherwise. After all, with China’s economy disintegrating, as we showed on Friday, courtesy of real-time indicators that show there has been zero economic uptick since the lunar new year as the economy remains paralyzed, it would appear Beijing has little choice but to unleash the proverbial stimulus flood, or rather continue unleashing stimulus, as shown in the timeline below. Furthermore, with articles such as this one in Bloomberg “China Vows More Fiscal Support as Virus Roils a Slowing Economy“, a stimulus appears a done deal. There is just one problem: none of it is true based on what China’s finance minister Liu Kin actually wrote today...

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Record Highs And Raging Risks – The Mother Of All Head-Scratchers

Record Highs And Raging Risks – The Mother Of All Head-Scratchers Excerpted from Doug Noland’s Credit Bubble Bulletin blog, Confirmed coronavirus cases almost doubled over the past week to 67,000. Part of the spike was the result of including a group diagnosed through CT imaging scans rather than with typical coronavirus testing. The ballooning number of patients with viral symptoms has overwhelmed the capacity for normal testing. Troubling news came Friday of 1,700 Chinese healthcare workers having been infected (with 25,000 deployed to Hubei Province). Also, quarantines were further tightened in Wuhan and Beijing. Returning Beijing residents are to remain isolated in their homes for 14 days. As the NYT put it, “It was the latest sign that China’s leaders were still struggling to set the right balance between restarting the economy and continuing to fight the coronavirus outbreak.” Staring at a rapidly unfolding economic and financial crisis, Beijing has made the decision to move forward with efforts to get their faltering economy up and running. This comes with significant risk. Global markets, by now fully enamored with aggressive monetary and fiscal stimulus, are predisposed to fixate on potential reward (keen to disregard risk). That future students of this era will be more than a little confounded has been a long-standing theme of my contemporaneous weekly chronicle. Booming market optimism in the face of what has been unfolding in...

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Sino-US Trade Flows Reveal The Next Market Crash Could Be NearingĀ 

Sino-US Trade Flows Reveal The Next Market Crash Could Be Nearing  China and the US have enjoyed two decades of increasing trade flows that have jumped from $61 billion a year in 2000 to $540 billion in 2019. But the ugly end of globalization is starting to be realized, as trade flows have plunged from Nov 2018 of $635 billion to $540 billion in Dec 2019, or about a 15% drop.  The end of the cycle, or the end of decades of globalization, started around the time, President Trump’s protectionist trade policies went into effect against China. Capital Economics published a fascinating piece last Nov, detailing how the third wave of globalization began in the late 1980s, mostly driven by technological advancements and shifting labor and capital around the world to the most cost-effective regions (i.e., out of the US and into China).  Capital Economics indicates that the third wave of globalization has recently transformed into a corrective fourth wave, which has produced a period of de-globalization.  Trump’s trade war with China was one of the drivers behind de-globalization, as supply chains were moved out of China, to other Asia Pacific countries, along with a few factories returning to the US.  De-globalization looked chaotic under the trade war and certainly gained momentum in disrupting supply chains in 2018 through the end of 2019. Still, it has been the Covid-19 outbreak, that has sent...

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Dark Towers: Deutsche Bank, Donald Trump, And An Epic Trail Of Destruction

Dark Towers: Deutsche Bank, Donald Trump, And An Epic Trail Of Destruction Submitted by Chris Whalen of Institutional Risk Analyst This week in The Institutional Risk Analyst, we review the new book by David Enrich, “Dark Towers: Deutsche Bank, Donald Trump, and an Epic Trail of Destruction.” Enrich is currently financial editor at The New York Times and was previously an editor at The Wall Street Journal covering financial institutions. This important book puts in perspective the history of Deutsche Bank AG (NYSE:DB), one of the most mismanaged and politically tainted global banks in modern history. “Dark Towers” also tells the story of how Deutsche Bank provided $2 billion in financing to President Donald Trump, cash that enabled the former real estate developer to continue in business despite his many poor business decisions and credit defaults. As the book makes clear, the only reason that Donald Trump was able to win the American presidency was due to the financial support of Deutsche Bank over more than two decades. Reading “Dark Towers,” one is left with the impression that Deutsche Bank is less a financial institution and more an ongoing criminal enterprise. We published a negative credit profile of DB earlier this year, but frankly our assessment was far too generous. Deutsche Bank cut a swath of destruction “and is about the consequences—dead people, doomed companies, broken economies,” Enrich writes,...

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