Posts Tagged ‘resources’

The Overlapping Crises of Neoliberal Global Capitalism

The Overlapping Crises of Neoliberal Global Capitalism

Courtesy of Charles Hugh Smith, Of Two Minds

Conventional wisdom holds that today's global financial crises are political rather than systemic to Neoliberal Global State Capitalism.

It is tempting to place the blame for the U.S. economy's deep woes at the feet of our corrupt, captured political system of governance and those who captured it via concentrated wealth and power. But that would avoid looking at the crises unfolding in global capitalism itself.

From the "progressive" ideology, the "problem" is inequality of income and wealth, and the "solution" is to take more of the wealth and income away from "the rich" (i.e. those who make more than I do) and redistribute to the "have-less" citizenry.

From the "conservative" ideology, the "problem" is that the Central State, in cahoots with public unions and Corporate Overlords, grabs an ever-larger share of the national income to redistribute to reward its cronies and favorites. In so doing, it mis-allocates the nation's capital away from productive investments and strangles free enterprise, the only real engine of wealth.

There is of course a grain of truth in each point of view. As I describe in Survival+, there is a positive feedback in the process of concentrating wealth and thus political power: the more wealth one acquires, themore political influence one can purchase, which then enables the accumulation of even more wealth as the State/Elite partnership showers benefits and monoplies on those who fund elections, i.e. the wealthy.

This process eventually leads to over-reach, when the nation's capital and income are so concentrated that the economy become precariously imbalanced and thus vulernerable to devolution and collapse. Returns on favoritism and capital become marginal, and it take more complexity and capital to wring ever-smaller profits and power from ever-greater investments.

It is also true that the State and the Power Elites mask their massive redistribution to the wealthy and powerful behind politically popular redistributions to the lower-income and/or unproductive citizenry, garnering their loyalty and complicity.

It is also true that as the State and its private-sector Elites channel an ever-larger percentage of the national income to the Central State and its fiefdoms, both public and private, then the productive…
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Gammon’s Black Holes

All signs indicate Gammon’s Black Holes are about to get bigger… – Ilene

Gammon’s Black Holes

Courtesy of Eric Falkenstein of Falkenblog

In 1968, the poverty rate in the US was 12.8%. Since then, we have introduced or vastly expanded the following:

Black Hole

food stamps
job training courses
community development block grants
urban redevelopment schemes
medicaid
aid to families with dependent children (AFDC)
social security disability income
section 8 housing grants
emergency assistance to needy families with children
college scholarship aid
free and reduced price lunches
child care
housing projects
head start

Currently, the poverty rate is around 12.3%. More importantly, most of our cities have become unlivable, so that most college-educated families simply do not live within the city borders of Cleveland, Detroit, Philadelphia, Newark, etc. More programs, worse results.

Dr. Max Gammon was a British physician who noticed that although government spent significantly more on health care than it had previously in the 1960s, the National Health Service didn’t seem any better for it. After an extensive study of the British system of socialized medicine, Gammon formulated his law: "In a bureaucratic system, increase in expenditure will be matched by fall in production…such systems will act rather like ‘black holes,’ in the economic universe, simultaneously sucking in resources, and shrinking in terms of emitted production."

 


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Running Out

Running Out

Courtesy of Michael Panzner at When Giants Fall

Out of the large universe of so-called experts, there are only a relative few, as I noted in a post at Financial Armageddon, worth paying attention to. One of those individuals is Jeremy Grantham, chairman and co-founder of global investment firm GMO, who I don’t always agree with, but whose opinions I have always respected. In fact, I’ve noted his insights on several occasions — see "For Some, a Total Loss," "Give ‘Em Enough Hope…," "Another Permabear Who Doesn’t Know What He Is Talking About?" and "Words from the Wise" — but I haven’t really strayed to far outside the realm of financial markets and economics. Now, though, Mr. Grantham is out with his latest quarterly newsletter, and it includes a section (excerpted below), entitled "Initial Report: Running Out Of Resources," about a somewhat broader theme that features prominently in my new book, When Giants Fall:

Getting Used to Lower Growth and Higher Prices

As the economy sorts itself out from the recent financial turmoil, we are very likely to have lower growth rates for quite a few years. We described the reasons for this last quarter: writing down excessive loans and curtailing expenditures as we realize we are not as rich as we thought.

Economic expansion will also be held back by the decreasing growth of available man hours. Since 2000, this growth has declined to below 1% per year from an average of 1.62% for the prior 50 years. Over the next 30 years, it is almost certain to continue to decline to about 0.5%, ignoring the temporary cyclical bounce in employment that we will get as the current severe recession ends.

Behind these two issues, however, lurks another longer-term and more important factor affecting future growth, and that is the increasing limitations on resources: we are simply running out of everything at a dangerous rate. We apparently have trouble processing numeric issues of this kind, and this missing faculty will cause considerable grief. We do not understand the implications of exponential or compound growth rates: the main implication being that they are impossible to sustain.

No better example of resource limitation in the face of both denial and strong efforts can be found than


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Phil's Favorites

Investors Will Never Get the Answer to "Why Now?"

 

Investors Will Never Get the Answer to “Why Now?”

Courtesy of Joshua Brown, The Reformed Broker

Andrew Lo’s heuristic to understanding why markets are resistant to rules is that we can’t think about them as though they’re governed by physics or mechanics. He refers to markets as biological systems, which are highly susceptible to unpredictability, adaptation and evolution. I think that’s right, based on everything I’ve seen, read and experienced over the last twenty years. Or, I should say, this is the best explanation I’ve seen anyone make.

Attempts to understand...



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Insider Scoop

Earnings Scheduled For December 11, 2017

Courtesy of Benzinga.

Companies Reporting After The Bell
  • Quanex Building Products Corporation (NYSE: NX) is estimated to post quarterly earnings at $0.29 per share on revenue of $232.47 million.
  • KMG Chemicals, Inc. (NYSE: KMG) is projected to post quarterly earnings at $0.63 per share on revenue of $106.60 million.
  • Peregrine Pharmaceuticals, Inc. (...


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Zero Hedge

A Gift From The Oldies

Courtesy of ZeroHedge. View original post here.

By Chris at www.CapitalistExploits.at

I bumped into a friendly bloke at my local gym last week. Jim is his name.

Jim tells me he just started because, and I quote, "my doctor says I'm going to die unless I do something".

Now, I assure you it doesn't take a doctor to figure this out.

One glance in Jim's direction and you can tell that underneath all that weight there's a big struggling heart in there... just ready to explode. He was surprisingly fr...



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Digital Currencies

All You Need To Know About Today's Bitcoin Futures Contract

Courtesy of ZeroHedge. View original post here.

CBOE Global Markets Inc and CME Group Inc will launch futures contracts on bitcoin on Dec. 10 and Dec. 17 respectively. Here are some of the differences between the products to be offered by the exchange operators.

CONTRACT UNIT
  • The Cboe Bitcoin Futures Contract will use the ticker XBT and will equal one bitcoin.
  • The CME Bitcoin Futures Contract will use the ticker BTC and will equal five bitcoins.
PRICING AND SETTLEMENT
  • Both Cboe’s and CME’s bit...


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Chart School

Time for a funny

Courtesy of Read the Ticker.

Many countries who are neighbors, have digs at each other.

Taking a dig at the Aussies.

Asking an Aussie to work the weekend with his mates.




A 'smoko' is a union tea break for blue collar workers. A song from a Aussie kid!





NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

.."Anyone who buys or sells a stock, a bond or a commodity for profit is speculating if he employs intelligent foresight...



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Biotech

DNA has gone digital - what could possibly go wrong?

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

DNA has gone digital – what could possibly go wrong?

Courtesy of Jenna E. GallegosColorado State University and Jean PeccoudColorado State University

Modern advances come with new liabilities. Sergey ...



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ValueWalk

Tax Bill May Spark Exodus From High-Tax States

Courtesy of FinancialSense.com via ValueWalk.com

The following is a summary of our recent podcast, “Exodus – The Major Wealth Migration,” which can be listened to on our site here on on iTunes here.

It’s looking increasingl...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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Mapping The Market

Puts things in perspective

Courtesy of Jean-Luc

Puts things in perspective:

The circles don't look to be to scale much!

...

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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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