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AutomaticEarth<>Debt Rattle December 6 2016

Posted by Raúl Ilargi Meijer at 10:01



John M. Fox Midtown Dealers Corp. and Hudson showroom, Broadway at W. 62nd Street, NY 1947

• Mark Carney: World Is Facing The “First Lost Decade Since The 1860s” (BBG)

• Trump Must Fire Janet Yellen – First Thing! (Stockman)

• Matteo Renzi’s Resignation Temporarily ‘Frozen’ By Italian President (G.)

• Italian Bank Shares Slump as Renzi Loss Adds to Uncertainty (BBG)

• Italy Already Requested Monte Dei Paschi Bailout Before Referendum (R.)

• Could Renzi’s Exit Lead To An Italian Bank Rescue? (G.)

• How Italy Became This Century’s ‘Sick Man Of Europe’ (G.)

• Standing Rock Is A Modern-Day Indian War. This Time Indians Are Winning (G.)

• Trump Advisors Aim To Privatize Oil-Rich Indian Reservations (R.)

• Naked Capitalism Demands Retraction, Apology Over WaPo Fake News Story (NC)

• Russia Remains The Only Target Country Of NATO’s Nuclear Weapons (SC)

• The Deepening Deep State (Jim Kunstler)

• Eurozone Agrees Debt Relief For Greece Amid IMF Row (AFP)

• Greek Home Sellers Getting Paid In Banks Abroad (Kath.)

• Greek Court Rejects Extradition Of 3 Turkish Officers Accused Of Coup (AFP)





But he had nothing to do with it!

• Mark Carney: World Is Facing The “First Lost Decade Since The 1860s” (BBG)

Mark Carney launched a defense of globalization and set out a manifesto for central bankers and governments to boost growth and make the world economy more equal. The Bank of England Governor said they must acknowledge that gains from trade and technology haven’t been felt by all, improve the balance of monetary and fiscal policy, and move to a more inclusive model where “everyone has a stake in globalization.” Carney’s speech in Liverpool, England, comes amid rising disquiet about the state of the world economy and political status quo that helped propel Donald Trump to victory in the U.S. presidential election and boost support for the U.K.’s exit from the European Union.

Trump isn’t right to favor more protectionist policies in response to globalization, Carney said in a television interview broadcast after his speech. The answer is to “redistribute some of the benefits of trade” and ensure that workers are able to acquire new skills. “Weak income growth has focused growing attention on its distribution,” Carney said in the speech. “Inequalities which might have been tolerated during generalized prosperity are felt more acutely when economies stagnate.” Describing the world as facing the “first lost decade since the 1860s,” the BOE governor said public support for open markets is under threat and rejecting them would be a “tragedy, but is a possibility.”

Carney also defended the central bank’s current policy stance. The BOE has faced criticism from politicians after officials took measures including cutting interest rates and expanding asset purchases in August to support the economy after Britain’s June vote to leave the EU. “Low rates are not the caprice of central bankers, but rather the consequence of powerful global forces, including debt, demographics and distribution,” he said, adding that they helped to prevent a deeper economic downturn.

Read more …

“Essentially, the United States is held to be a closed economy resembling a giant bathtub.” Stockman says the Trump team have contacted him.

• Trump Must Fire Janet Yellen – First Thing! (Stockman)

The Keynesian statists at the Fed think the devastating financial busts we’ve suffered since 1987 were due to a mix of too much investor exuberance, too much deregulation, a one-time housing mania and a smattering of Wall Street greed and corruption, too. And that’s not to overlook some of the more far-fetched reasons for the two big financial meltdowns of this century. Foremost among these is the Greenspan-Bernanke fairy tale that Chinese workers making under $1 per hour were saving too much money, thereby causing low global mortgage rates and a runaway housing boom in America! Needless to say, not only are these rationalizations completely bogus; but so is the entire underlying rationale for Keynesian monetary central planning.

The claim that market capitalism is chronically and destructively unstable and that the business cycle needs constant management and stimulus by the state and its central banking branch is belied by the historical facts. Every economic setback of modern times, including the foundation events of the Great Depression — was caused by the state. The catalyst was either inflationary war finance or central bank fueled credit expansion, not the deficiencies or inherent instabilities’ of market capitalism. Nevertheless, the Fed’s model robs the millions of workers, entrepreneurs, investors and savers who comprise the ground level economy and the billions of supply-side prices for labor and capital through which they interact and ultimately generate output, income and wealth.

Instead, the Fed focuses on the macroeconomic aggregates as the key to achieving its so-called dual mandate of stable prices and maximum employment. Essentially, the United States is held to be a closed economy resembling a giant bathtub. In the pursuit of “full employment,” the central bank’s job is to keep it pumped full to the brim with “aggregate demand.” But the domestic macroeconomic aggregates of employment and inflation cannot be measured on an accurate and timely basis. Neither can they be reliably and directly influenced by the crude tools of the central bank, such as pegging the money market rate, manipulating the yield curve via QE, levitating Wall Street animal spirits via wealth-effects and various forms of open-mouth intervention such as “forward guidance.”

Read more … briefs or link out at https://www.theautomaticearth.com/2016/12/debt-rattle-december-6-2016/