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

The westernmost end of the border between the United States and Mexico.  Railroad rails form more a symbolic than real barrier into the ocean from the beach.

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 class suffers a decline in energy, wealth and income. It is also true that the State makes its investment decisions based on favoritism (lobbies, political…
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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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Zero Hedge

Guest Post: Trump Can Win The GOP Nomination

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Bruce Bartlett via The Fiscal Times,

To save myself from answering this question repeatedly, these are the thoughts I have had about Trump since he became a presidential candidate, which were partly expressed in a Politico article over a month ago.

First of all, I think his support is firm and shows no sign of diminishing. He has already weathered storms such as his criticism of John McCain that would have doomed any other candidate. Anyone who thinks he is the current version of Cain, Bachmann, Santorum or other nutcase that briefly led the GOP field in 2012 is dead wrong.

Keep in mind also that in...



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Phil's Favorites

Beige Book Highlights: Will They or Won't They? Still Undecided?

Courtesy of Mish.

The Fed's Beige Book is a summary and analysis of economic activity and conditions, issued roughly two weeks prior to monetary policy meetings of the Fed.

"Book" is an adequate expression. This month, the Beige Book is 50 pages long. It's prepared with the aid of reports from the district Federal Reserve Banks.

Don't bother reading the book. It's not worth the slog. 

Beige Book Highlights

Bloomberg offers these Beige Book Highlights.
The Beige Book, prepared for the September 17 FOMC meeting, is not underscoring any urgency for a rate hike. Eleven of 12 districts report only moderate to modest growth with the Cleve...



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All About Trends

Mid-Day Update

Reminder: David 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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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Charting the Markets: Volatility Persists (Bloomberg)

Markets continue their wild swings as investors consider the health of the world's two biggest economies. China set the tone on Tuesday with its official manufacturing gauge slumping to a three-year low. A U.S. factory report expanded at the slowest pace since May 2013, co...



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Kimble Charting Solutions

Long-Term bull market still alive, trend support is where?

Courtesy of Chris Kimble.

The S&P 500 is now down around 7% on the year. Is the very long-term bull market still in play? Yes it is!!!

The chart below looks at the NYSE Composite on a monthly basis, dating back to 1965.

CLICK ON CHART TO ENLARGE

As you can see, since the mid 60’s, the NYSE composite has remained inside of rising channel (A). The last time the top of the channel was touched was in the late 1990’s and the last time the bottom of the channel was touched took place back in 2009.

Despite the quick down turn of late, this long-term rising channel remains in ta...



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Insider Scoop

Look Beyond Q3 For This Digital Marketing Leader

Courtesy of Benzinga.

Related ADBE Benzinga's Top Upgrades Baird: Now's The Time To Buy Adobe The Vetr community has upgraded $ADBE to 4.5-Stars. (Vetr)
  • Shares of Adobe Systems Incorporated (NASDAQ: ADBE) have risen over 5 percent year-to-date.
  • Oppenheimer’s Brian Schwartz has initiated coverage of Adobe Systems with a Perform rating.
  • While expr...


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Chart School

Distribution Selling Returns

Courtesy of Declan.

After the late recovery last week, sellers again made markets their home. Sizable losses were accompanied with higher volume distribution, although volume was down on earlier panic.  Another pass at August lows looks likely.

The S&P is again heading to the 10% 200-day MA envelope. Relative performance is shifting away from Large Caps to more speculative indices, which is bullish in a rising market, but in a falling market suggests a lack of sanctuary.


The Nasdaq is also in the early stages of a retest of the August low. Technicals are weak, although stochastics crept above the bullish mid-line, but not enough to suggest ...

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OpTrader

Swing trading portfolio - week of August 31st, 2015

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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Sabrient

Sector Detector: Finally, market capitulation gives bulls a real test of conviction, plus perhaps a buying opportunity

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

Courtesy of Sabrient Systems and Gradient Analytics

The dark veil around China is creating a little too much uncertainty for investors, with the usual fear mongers piling on and sending the vast buy-the-dip crowd running for the sidelines until the smoke clears. Furthermore, Sabrient’s fundamentals-based SectorCast rankings have been flashing near-term defensive signals. The end result is a long overdue capitulation event that has left no market segment unscathed in its mass carnage. The historically long technical consolidation finally came to the point of having to break one way or the other, and it decided to break hard to the downside, actually testing the lows from last ...



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ValueWalk

Some Hedge Funds "Hedged" During Stock Market Sell Off, Others Not As Risk Focused

By Mark Melin. Originally published at ValueWalk.

With the VIX index jumping 120 percent on a weekly basis, the most in its history, and with the index measuring volatility or "fear" up near 47 percent on the day, one might think professional investors might be concerned. While the sell off did surprise some, certain hedge fund managers have started to dip their toes in the water to buy stocks they have on their accumulation list, while other algorithmic strategies are actually prospering in this volatile but generally consistently trending market.

Stock market sell off surprises some while others were prepared and are hedged prospering

While so...



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Digital Currencies

Bitcoin Battered After "Governance Coup"

Courtesy of ZeroHedge. View original post here.

Naysyers are warning that the recent plunge in Bitcoin prices - from almost $318 at its peak during the Greek crisis, to $221 yesterday - is due to growing power struggle over the future of the cryptocurrency that is dividing its lead developers. On Saturday, a rival version of the current software was released by two bitcoin big guns. As Reuters reports, Bitcoin XT would increase the block size to 8 megabytes enabling more transactions to be processed every second. Those who oppose Bitcoin XT say the bigger block size jeopardizes the vision of a decentralized payments system that bitcoin is built on with some believing ...



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Pharmboy

Baxter's Spinoff

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

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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Promotions

Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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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