Daily Archives: November 3, 2020

Economic Update: Capitalism’s Worst Nightmare…


Date: November 03, 2020

01) LINK


“On this week’s show, Prof Wolff explores what major social changes will flow from today’s combination of major economic crash and the viral pandemic (capitalism’s worst nightmare). To answer, we consider how European feudalism changed after its 14th century combination of economic decline and the bubonic plague. The two big changes then were (1) switching from a decentralized to a strong state, monarchical feudalism and (2) transition from feudalism to capitalism. The two big parallel changes now are also (1) switching to a strong state capitalism and (2) transition from capitalism to a worker-coop based economy.”

===

FBI on QAnon: “a domestic terrorism threat”…


….

Date: November 03, 2020

01) LINK

“The House Homeland Security Committee’s annual hearing on “Worldwide Threats to the Homeland” had a domestic focus Thursday, with member questions to FBI Director Christopher Wray directed at the security of the November election and the U.S.-based groups associated with riots and other violence that began this year.

Lawmakers anchored much of the three-hour discussion on topics such as Antifa, QAnon and Boogaloos, which have become major social issues in the presidential race. Protests and counter-protests over the last several months have been blamed for clashes in the streets that have led to multiple deaths, destroyed buildings and instances of violence against law enforcement.

Wray repeatedly said that there is no mechanism under U.S. law for the FBI to label domestic organizations as terrorist groups, and he said the FBI is focused on the violence any group might do, not their ideology.

Wray said the FBI views QAnon, a far-right conspiracy group asserting that there is a secret battle against so-called deep state actors engaged in a global child sex trafficking ring, “as less of an organization and more of a complex set of conspiracy theories.”

The FBI reportedly has dubbed QAnon, which Trump has praised and several Republican congressional candidates had voiced support for, a domestic terrorism threat.”

….
Sub-Blog Archive

These New Houses Will Amaze You!…


Nature_and_Technology
….

Date: November 03, 2020

01) LINK


“Have you ever thought about building your dream home? Of course, we’ve all dreamt about it. Some people never get a chance to build the home of their dreams, but some people find a way. Many innovative homes were built with some really creative ideas, and some are just plain genius. How about a Transformers house, invisible huts or an amazing futuristic man cave? We put together 15 of the most innovative home you’ll ever see, and maybe you’ll even get some cool ideas to build your own!”

….
GreenBoy_SB_Archive

Financial Crisis 2021: This Is What Comes Next…


Date: November 03, 2020

01) LINK


“Financial Crisis 2021: This Is What Comes Next…

We are now in a period where central banks can no longer directly stimulate real growth in the economy. But they can stimulate growth indirectly.

So it’s quite obvious and should come as no surprise here that we are now at the start of the current short term debt cycle.

But more concerning is that I believe we are now at the end of the current long-term debt cycle as well

The reason this is concerning is because the end of a long-term debt cycle only really occurs once in our lifetimes. And the last time we reached the end of the long-term debt cycle was during the great depression of the 1930s, which lasted for a decade

So I’m going to suggest to you today that we may now be in a period of deleveraging as our debt to GDP ratio has now passed 100% and we cannot stimulate our way out of this with lower interest rates, because, well we’re already at as close to zero as we can get

But this doesn’t mean that it’s game over and that we are now trapped in a liquidity crisis with no way out, because there is still a couple of things that can be done as have been been tried and proven in previous situations like this…

So the next couple of things that can be done are as follows:

1. Continued stimulus:
I don’t accept the argument that we won’t see any more stimulus packages or that we are only going to see one more stimulus package. The reason I don’t accept this argument, is because firstly I believe there will be another stimulus package passed sometime after the US election

2. And secondly, now that we’ve run out of monetary policy actions that the Federal Reserve can do, they are now taking a supportive role as opposed to a leadership role.

Another thing that I haven’t heard anyone talk about yet but I can almost be sure will happen later on is a tax cut or a tax break or rebate. This is because they need to stimulate spending in the economy in order to hit their inflation targets. The way they support the government in doing this (and by the way this is any Central Bank), is for the government to issue bonds and the Central Bank will buy those bonds

When new currency is created, it indirectly causes assets already in existence to rise in price, and it happens like this: the central bank will buy assets, using currency that they create, so let’s say that they buy Government bonds, really easy example, they buy the Gov bonds and the Gov then gives this money to the people as something called stimulus.
All they can do is quantitative easing to buy assets like we’re seeing right now, they are buying government bonds, they are buying commercial bonds, housing, and to some extent they are buying the stock market, but not directly. This is because interest rates are at near zero and there is slow demand for credit, so they can’t create demand by lowering interest rates anymore, although they could go negative but that would be a recipe for disaster in the long run. So the only thing they can do is to directly deposit the money into the hands of people, so how do they do that, stimulus

So austerity would only make matters worse because if we cut spending, that will mean a cut in jobs or wages, and a cut in jobs or wages will mean an even bigger drop in GDP

I personal don’t think you need to worry about taxes rising, tax rises are not likely to happen because it would again be deflationary in nature

What is most likely to happen is that the government will tax the richest people, but not the richest companies. This is because by taxing companies, this will only exacerbate things as the stock price tumbles, and the companies would lay off staff

So overall, what we actually have right now is an over abundance of credit, and credit isn’t money. And that’s exactly the problem. Having an over abundance of money is never an issue, having an over abundance of credit is a huge problem, because one person’s credit is another person’s debt.

Overall I believe we are now going into a deflationary period for products and services, but we will also have inflation at the same time in some products such as food. Now how long this depressionary period would last if we did go into a depression, is hard to say. But if we were to look at what happened during the great depression, this came to be known as the lost decade, because it takes roughly three years for the economy to deflate, and then another seven years for it to inflate again…

DISCLAIMER
This video is for entertainment purposes ONLY & designed to help your thinking, not direct it. These videos shall NOT be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.”

===