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Monday, November 30, 2020

2020-11-30

COVID-19 notes:

source



source

 

Neurological issues during COVID-19: An Overview

While the pulmonary complications have received the most attention, it is the neurological manifestations that are disabling, persistent and common in patients infected with SARS-CoV-2. The entire neuro-axis can be involved resulting in a wide variety of manifestations. While the pathophysiology is not well understood, many of the clinical manifestations seem to be immune mediated. The socio-economic consequences of these complications are dire.

 


Regular Related Fare:

 

Nathan Tankus: What the Hell is Going On With CARES Act “Funds”?



 

 

 

Regular Fare:

 

Inside Janet Yellen’s head is an enormous dove

From a recent speech by Janet Yellen, incoming US Treasury Secretary:

Extreme economic events have often challenged existing views of how the economy works and exposed shortcomings in the collective knowledge of economists. To give two well-known examples, both the Great Depression and the stagflation of the 1970s motivated new ways of thinking about economic phenomena. More recently, the financial crisis and its aftermath might well prove to be a similar sort of turning point. Today I would like to reflect on some ways in which the events of the past few years have revealed limits in economists’ understanding of the economy and suggest several important questions I hope the profession will try to answer.

 

Makoto Sakurai: An essay on Japan’s monetary policy: experience and lessons. Bank of International Settlements.

 

If CPI Measured Actual House Prices, Inflation Would Be 3% Right Now




 

Inheritance, not work, has become the main route to middle-class home ownership

 

 

Bubble Fare:

 

Crescat Capital: As Good As It Gets.

In November, we shared a Crescat macro model that combines 15 fundamental valuation factors to show how US stocks have recently reached their most overvalued levels since 1900. The problem with speculative excess and the risks it poses to unprepared investors is simple to understand. Ultra-easy financial conditions create major manic tops in markets. As we show in the chart below, with both the tech bubble of 2000 and the housing bubble of 2007, the GS Financial Conditions Index reached cyclically low levels that distinctly marked these market tops. Financial conditions today, driven by historic low interest rates and tight credit spreads, are the loosest yet, the easiest of the past thirty years, at the same time as valuations and leverage are the highest. These excesses are clearly unsustainable and mark a potentially timely setup for a major market reversal.


 


 

(not just) for the ESG crowd:

 

Abrupt shift to hotter and drier climate over inner East Asia beyond the tipping point

How anthropogenically driven climate change is affecting heat waves and drought is one of the most important environmental issues facing societies around the globe. Zhang et al. present a 260-year-long record of temperature and soil moisture over inner East Asia that reveals an abrupt shift to hotter and drier conditions (see the Perspective by Zhang and Fang). Extreme episodes of hotter and drier climate over the past 20 years, which are unprecedented in the earlier records, are caused by a positive feedback loop between soil moisture deficits and surface warming and potentially represent the start of an irreversible trend.

 

Other Fare:

The Code That Controls Your Money

COBOL is a coding language older than Weird Al Yankovic. The people who know how to use it are often just as old. It underpins the entire financial system. And it can’t be removed. How a computer language controls the financial life of the world.

 


EXTRA FARE:

 

COVID Fare:

 

What the Covid Vaccine Hype Fails to Mention

Pfizer recently announced that its covid vaccine was more than 90 percent “effective” at preventing covid-19. Shortly after this announcement, Moderna announced that its covid vaccine was 94.5 percent “effective” at preventing covid-19. Unlike the flu vaccine, which is one shot, both covid vaccines require two shots given three to four weeks apart. Hidden toward the end of both announcements, were the definitions of “effective.”

Both trials have a treatment group that received the vaccine and a control group that did not. All the trial subjects were covid negative prior to the start of the trial. The analysis for both trials was performed when a target number of “cases” were reached. “Cases” were defined by positive polymerase chain reaction (PCR) testing. There was no information about the cycle number for the PCR tests. There was no information about whether the “cases” had symptoms or not. There was no information about hospitalizations or deaths. The Pfizer study had 43,538 participants and was analyzed after 164 cases. So, roughly 150 out 21,750 participants (less than 0.7 percent) became PCR positive in the control group and about one-tenth that number in the vaccine group became PCR positive. The Moderna trial had 30,000 participants. There were 95 “cases” in the 15,000 control participants (about 0.6 percent) and 5 “cases” in the 15,000 vaccine participants (about one-twentieth of 0.6 percent). The “efficacy” figures quoted in these announcements are odds ratios.

There is no evidence, yet, that the vaccine prevented any hospitalizations or any deaths.

There is no information about how long any protective benefit from the vaccine would persist.

There is no information about safety. None.

Many of my colleagues want to see the safety data after a year of use before getting vaccinated; these colleagues are concerned about possible autoimmune side effects that may not appear for months after vaccination.

These announcements by Pfizer and Moderna are encouraging. I certainly hope that these vaccines protect people from the harm of covid-19. I certainly hope that these vaccines are safe. If both of these conditions are true, nobody will need to be coerced into taking the vaccine. However, you should pay even more attention about what is left out of an announcement than about what is stated. The pharmaceutical companies are more than happy for patients to misunderstand what is meant by efficacy. Caveat emptor!

 

Underground parties continue to take place during pandemic

 

The sauce has hit the fan at Toronto's Adamson Barbecue restaurant, where, after opening for a third day in defiance of multiple lockdown orders, owner Adam Skelly was just taken away in handcuffs by police.

 

 

Political Fare:

 

Curtin: The Past Lives On: The Elite Strategy To Divide and Conquer

The truth is that both the Trump voters and the Biden voters have been taken for a ride.  It is a game, a show, a movie, a spectacle.  It hasn’t changed much since 1969; the rich have gotten richer and the poor, working, and middle classes have gotten poorer and more desperate.  Those who have profited have embraced the fraud.

If the Democrats and the Republicans are at war as is often claimed, it is only over who gets the larger part of the spoils. Trump and Biden work for the same bosses, those I call the Umbrella People (those who own and run the country through their intelligence/military/media operatives), who produce and direct the movie that keeps so many Americans on the edge of their seats in the hope that their chosen good guy wins in the end.

...

So what’s changed under Trump?  We are talking about nuances, small changes.  A clown with a big mouth versus traditional, “dignified” con men.

If you were writing this script as part of long-term planning and average people were getting disgusted from decades of being screwed and were sick of politicians and their lying ways, wouldn’t you stop the reruns and create a new show?  Come on, this is Hollywood where creative showmen can dazzle our minds with plots so twisted that when you leave the theater you keep wondering what it was all about and arguing with your friends about the ending. So create a throwback film where the good guy versus the bad guy was seemingly very clear, and while the system ground on, people would be at each other’s throats over the obvious differences, even while they were fabricated.

Variety is necessary.  You wouldn’t want to repeat the film from 2008 when a well-spoken black man came into town out of nowhere to clean up the mess created by the poorly spoken white sheriff who loved war and then the black hero went on to wage war in seven countries while his fans sat contented in the audience loving the show and making believe they didn’t see what was happening on the screen even though their hero jailed whistle blowers and greatly expanded the surveillance state right in front of their eyes.

No, as the years passed, those two guys turned out to be buddies, and their wives hit it off, and a famous photograph appeared of the good guy’s wife hugging the bad guy, which was not a good thing for the script that has the Republicans warring against the Democrats.

A new story line was needed. How about an opéra bouffe, someone suggested, and the rest is history. Or pseudo-history. This is the real matrix. The most sophisticated mind control operation up to this point, with the coronavirus lockdown added to propel it to what the producers hope is a conclusion.

 

Chris Hedges: Here's the Truth: The Oligarchy Loves This Democratic Decay and Politics of Lies

American political leaders display a widening disconnect from reality intended to mask their complicity in the seizure of power by global corporations and billionaires.

 

 

"The Fraud Was Executed By Many Means": Sidney Powell "Releases Kraken" With Dual Lawsuits In Michigan, Georgia

Sidney Powell has finally released the Kraken - filing two lawsuits in Michigan and Georgia late Wednesday alleging massive schemes to rig the election for Joe Biden.

In Georgia, Powell claims in a 104-page complaint filed in the US District Court in Atlanta that the purpose of the scheme was "illegally and fraudulently manipulating the vote count to make certain the election of Joe Biden as president of the United States."

"Old-fashioned ballot-stuffing" has been "amplified and rendered virtually invisible by computer software created and run by domestic and foreign actors for that very purpose," the suit continues, adding that "Mathematical and statistical anomalies rising to the level of impossibilities, as shown by affidavits of multiple witnesses, documentation, and expert testimony evince this scheme across the state of Georgia."

In Michigan, Powell filed a 75-page complaint seeking to set aside the results of the election, claiming that "hundreds of thousands of illegal, ineligible, duplicate, or purely fictitious ballots" enabled by "massive election fraud" facilitated Biden's win in the state.

"The scheme and artifice to defraud was for the purpose of illegally and fraudulently manipulating the vote count to manufacture an election of Joe Biden as president of the United States," the suit alleges, adding that the most "troubling, insidious, and egregious ploy” involved “systemic adaptation of old-fashioned ‘ballot-stuffing.'"

As Mimi Ngyuen Ly of The Epoch Times notes: The complaint alleged “an especially egregious range of conduct” in Wayne County and the City of Detroit and similar conduct throughout the state, which it attributed to direction from Michigan state election officials. It noted that the “same pattern of election fraud and voter fraud writ large occurred in all the swing states with only minor variations” in Pennsylvania, Arizona, and Wisconsin.

 

The 'Smartest Man In The Room' Just Joined Sidney Powell's Team

So what does the brilliant Dr. Kershavarz-Nia have to say?  This:

1. Hammer and Scorecard is real, not a hoax (as Democrats allege), and both are used to manipulate election outcomes.

2. Dominion, ES&S, Scytl, and Smartmatic are all vulnerable to fraud and vote manipulation — and the mainstream media reported on these vulnerabilities in the past.

3. Dominion has been used in other countries to "forge election results."

4. Dominion's corporate structure is deliberately confusing to hide relationships with Venezuela, China, and Cuba.

5. Dominion machines are easily hackable.

6. Dominion memory cards with cryptographic key access to the systems were stolen in 2019.

Although he had no access to the machines, Dr. Kershavarz has looked at available data about the election and the vote results.  Based on that information, he concluded

1. The counts in the disputed states (Pennsylvania, Wisconsin, Michigan, Arizona, Nevada, and Georgia) show electronic manipulation.

2. The simultaneous decision in Pennsylvania, Wisconsin, Arizona, Nevada, and Georgia to pretend to halt counting votes was unprecedented and demonstrated a coordinated effort to collude toward desired results.

3. One to two percent of votes were forged in Biden's favor.

4. Optical scanners were set to accept unverified, un-validated ballots.

5. The scanners failed to keep records for audits, an outcome that must have been deliberately programmed.

6. The stolen cryptographic key, which applied to all voting systems, was used to alter vote counts.

7. The favorable votes pouring in after hours for Biden could not be accounted for by a Democrat preference for mailed in ballots.  They demonstrated manipulation.  For example, in Pennsylvania, it was physically impossible to feed 400,000 ballots into the machines within 2–3 hours.

8. Dominion used Chinese parts, and there's reason to believe that China, Venezuela, Cuba interfered in the election.

9. There was a Hammer and Scorecard cyber-attack that altered votes in the battleground states, and then forwarded the results to Scytl servers in Frankfurt, Germany, to avoid detection.

10. The systems failed to produce any auditable results.

Based on the above findings, Dr. Keshavarz-Nia concluded with "high confidence that the election 2020 data were altered in all battleground states resulting in a [sic] hundreds of thousands of votes that were cast for President Trump to be transferred [sic] to Vice President Biden."

 

What you've been asking for: A (fairly) complete list of (some of) the most significant claims of 2020 election miscounts, errors or fraud.

 

Anomalies in Vote Counts and Their Effects on Election 2020

A Quantitative Analysis of Decisive Vote Updates in Michigan, Wisconsin, and Georgia on and after Election Night

This report studies 8,954 individual updates to the vote totals in all 50 states and finds that four individual updates — two of which were widely noticed on the internet, including by the President — are profoundly anomalous; they deviate from a pattern which is otherwise found in the vast majority of the remaining 8,950 vote updates. The findings presented by this report [28]suggest that four vote count updates — which collectively were decisive in Michigan, Wisconsin, and Georgia, and thus decisive of a critical forty-two electoral votes — are especially anomalous and merit further investigation.

In particular, the finding that the broader data follows general patterns and our ability to measure just how much any individual vote update does — or doesn’t — follow this pattern allows us to make concrete claims about both how extreme any given vote update is and about what any particular vote update might have looked like, had it been less extreme one one axis or another.

We further find that if these updates were only more extreme than 99% of all updates nationally in terms of their deviation from this generally-observed pattern, that, holding all else equal, Joe Biden may very well have lost the states of Michigan, Wisconsin, and Georgia, and that he would have 42 fewer Electoral votes — putting Biden below the number required to win the Presidency.  Either way, it is indisputable that his margin of victory in these three states relies on four most anomalous vote updates identified by the metric developed in this report.

 

 

President Swamp.

In a just universe, the SCOTUS would invalidate the election results in several states and send the matter into the House of Representatives as the constitution stipulates. Heads would explode from sea to shining sea as heroes of the Resistance — Brennan, Comey, Weissmann, Strzok, and many more — realize they will not be getting their get-out-of-jail-free cards after all. Hunter B would retreat to the Chateau Marmont with his crack pipe for one last lost weekend. Nancy Pelosi would melt into a puddle of rage, prednisone, and hairspray in the capitol rotunda. And for Ol’ White Joe Biden it would be just another day of fog and stillness.

But then, suppose the election is not overturned and Joe Biden glides into the Oval Office on those marvelously greased skids set up for him, propelled by a mighty tail-wind of Woke hopes and dreams for a golden era of work-optional free stuff and renewed overseas nation-building. Be careful what you wish for, DNC. Unlike Mr. Trump in 2016, Joe Biden will not even enjoy the perception that he was somehow legitimately elected, if only by a fluke. In fact, the Swamp gang’s credibility will erode daily because independent, entrepreneurial investigators will be out in the swing state thickets figuring out exactly how the election was managed, and how all those Dominion voting machines were gamed, and how exactly this shady company, with origins and operations all around the world, won state contracts with money changing hands. A day will not pass when Joe B is off-the-hook for all that, and meanwhile he will not evade being revealed as the empty shell of what he was before the axons in his brain-pan demyelinated — a third-rate grifting pol available to all comers with an open checkbook.

 

Trump must pardon Snowden & Assange for helping expose ‘deep state,’ says Tulsi Gabbard amid chorus against war on whistleblowers

 

 

[Political] Quotes of the Week:

 

Dominion Executive: “Trump is not going to win. I made f***ing sure of that.”

 

Trump: “this is an election we won easily. We won it by a lot. This election has to be turned around.” “What we saw on November 3rd was not the United States of America. Democrats cheated. It was a fraudulent election. It would be very easy for me to wait 4 years and try again. We can’t wait for 4 years. Don’t be intimidated by these people. They don’t love our country!” “They kept poll watchers in pens in Philadelphia and then they threw them out of the building. You couldn’t see a thing on those cameras. They could have been playing a baseball game.” “It’s a disgrace this is happening to our country. We got 11 million more votes than we did 4 years ago. At 10pm in the evening we were way ahead. Everybody knows we won it. The whole world is watching us. We can’t let them get away with this. We have more votes than voters!” Trump ends his remarks by telling Giuliani over speakerphone: “This is going to be your crowning achievement because you’re saving our country.”

 

Yarvin: “It is useless to speculate on the details of a Philadelphia election. One need only say the words, “Philadelphia election,” and anyone on or near the grave of Mark Twain will experience a little earthquake. Has Philadelphia ever had a free and fair election?  (This country, for what it is, takes itself too seriously. Have you ever considered the possibility that America has always been a joke? I’m sure most historians have.)”

 

[ESG] Quote of the Week:

Re: Kerry, another career sell-out like Biden: “The only conclusion you can draw is that Biden, having vowed to make fighting climate change a top priority, simply wants someone who’ll look like he’s trying hard — but won’t actually get anything done.”

 

 

Satirical Fare:

Walmart Thanks Government For Completely Obliterating Their Small Business Competition


 

[RIP] Tweet Vid of the Week:

The epitome of cool is THIS warm-up routine.

 

Pic of the Week:




Monday, November 23, 2020

2020-11-23

COVID-19 notes

 

More people are getting COVID-19 twice, suggesting immunity wanes quickly in some

 

To Save the Economy, Save People First

 

Reply from Authors of “To Save the Economy, Save People First” Regarding “Lockdowns Work”

 

Count me skeptical, but, fwiw:


 


Just the headlines:

After Big Thanksgiving Dinners, Plan Small Christmas Funerals, Health Experts Warn

 

 

WFH Fare:

 

Blinking hell: how to keep tired eyes healthy during a pandemic

 

 

 

Regular Related Fare:

 

Bonds Aren't Buying The "Light At The End Of The Tunnel" Narrative

 

‘We Basically Made Recovery Much, Much Harder Than It Has to Be’

CounterSpin interview with Josh Bivens on pandemic unemployment

 

12 Million Workers Facing Jobless Benefit Cliff on December 26

 

The Endemic Mindset

The endemic mindset is the world of abstractions we see under the influence of learned helplessness. There are only so many days in which death or hospitalization counts may still function as information for the human mind. There are only so many descriptions, images or videos of hospitals in the early stages of being overwhelmed which will be able to change anyone’s perspective. There is a point of diminishing informational returns from another story about a lost small business, or a struggling low income family. In the real world, the difference between 1,500 deaths in a day and 1,000 is staggering, real and personal. To the endemic mindset, they are functionally identical. In the real world, the difference between a 60% drop in revenue and a 30% drop in revenue is breathtaking. To the endemic mindset, they are functionally identical. In the real world, the difference between being out of work for 9 months and being out of work for 4 months may be nearly existential. But if we are not the one affected, to the endemic mindset, they are functionally identical. In short, the endemic mindset is one in which our default expectation is that our world has become permanently worse in a way that we are helpless to do anything about. I don’t think I miss the mark by saying that ALL of us are suffering from this just a little bit.

 

"Surreal Debt Tsunami": IIF Shocked To Forecast Global Debt Hitting $360 Trillion In Ten Years


 


Don't Blame Covid: The Economy is Imploding from Over-Capacity (and Corrupt Cartels)

Here’s the fantasy: if we stop the shutdowns, the economy will naturally bounce back to its oh-so wunnerful perfection of Q3 2019. This is a double-dose of magical thinking and denial. The U.S. economy was unraveling in 2019 from 11 long years of Fed-induced over-capacity in almost everything (except integrity, competition, transparency and social cohesion) and the bone-crushing burden of corrupt, greedy cartels that have the nation by the throat. The reality nobody dares mention is that thanks to 20 years of the Federal Reserve’s easy money, there’s rampant over-capacity everywhere you look: there’s too many cafes, bistros, restaurants, fast-food outlets, hotels, resorts, AirBnBs, unprofitable Tech Unicorns, airline flights, Tech startups, office towers, retail space, malls, absurdly overpriced apartments for rent, storage facilities, delivery services, office sublets, colleges, attorneys, unemployed workers with multiple credentials–the list of too much, too many is endless. Thanks to the Fed, the most profitable venture was borrowing to increase capacity, then borrow some more to extract the phantom value created by the greater capacity…

 

Zombification in Europe in times of pandemic

The COVID-19 crisis has prompted extraordinary financial support to firms by governments and central banks. This support has taken the form of public credit guarantee schemes, debt moratoria, direct support to firms via financial aid programmes, central bank lending and purchase programmes, and a loosening of micro- and macro-prudential supervisory rules. While this support is crucial to keep a cash-strapped economy afloat, it has invigorated a debate on whether such policies are promoting ‘zombie’ lending and ‘zombie’ firms. Zombie lending is generally defined as lending to non-viable (i.e. zombie) firms. The literature proposes different methods to measure zombies, which remains challenging, however. The ‘zombification’ of the economy refers to a situation where public support programmes and bank lending actions keep unviable firms alive. This term gained widespread prominence following the Japanese crisis of the 1990s, when a collapse in real estate prices followed by a prolonged period of low growth resulted in many weak banks and firms, with weak banks preserving their lending relationships with weak firms, rolling over credits to unviable firms. Why would banks lend to alleged zombie firms? The literature has put forward two main explanations. On the dark side, banks may want to engage in the ‘evergreening’ (i.e. rolling over) of existing loans to avoid loan loss recognition. Recognising loan losses implies a deterioration of capital buffers. It therefore follows that especially low-capitalised banks have an incentive to lend to zombies. On the bright side, banks may lend to zombies to preserve valuable relationships. To the extent that relationship lenders have an informational advantage over their customers, this may allow them provide credit to illiquid but viable firms in crisis times. Provision of such liquidity to firms in distress has the positive externality that it can avoid disruptions of supply chains.

A zombification of the economy is of great concern because it can lead to a drop in productivity through credit misallocation. This credit misallocation channel can operate both directly and indirectly. The direct channel arises mechanically because keeping zombies alive reduces aggregate productivity, or through a crowding-out effect when zombie lending tightens the credit constraints of high-productivity.

This time is different

The COVID-19 pandemic has given rise to unprecedented policy support to firms, which has also intensified the debate on a potential zombification of the economy. There are at least three reasons to believe that this time may be different from some of the earlier experiences.

1.        First, the pandemic shock is hitting firms in sectors that are otherwise generally viable. The shock was not caused by excessive risk-taking by firms or banks, as in previous financial crises. Many sectors that have gone into (partial) lockdowns, such as tourism, will rebound after the pandemic. For these sectors, this shock is therefore a liquidity squeeze not a solvency shock.

2.        Second, banks entered this episode with relatively high capital positions and therefore should be able to absorb loan losses to a larger extent. This should, at the same time, reduce adverse incentives.

3.        Third, the health and economic ramifications of the pandemic have brought about exceptionally large-scale government support, which has mitigated the liquidity squeeze and the risk that illiquidity turns into insolvency.

 

Is There Really A China Economic Miracle?

What is behind the Chinese miracle compared to the poor eurozone?

A planned GDP. The GDP of China is dictated by production, not demand. It is not an observed GDP, but rather planned by the government together with the provinces. For this reason, many analysts scrutinize the data and deduct various factors, including the increase and valuation of inventories. It is not by chance that inventories of iron ore, automobiles and finished goods have risen to the highest level in seven months as the economy recovers.

If the economic situation were in the announced expansion, inventories would be falling rapidly when sold.

Much is produced that is then not sold and remains in warehouses. Thus, it is not surprising that industrial prices fell 2.1% in September, export prices 0.9%, and the country’s debt soared 13.5% amid an apparently miraculous recovery.


James K. Galbraith Says More…

As for the economic effects, the US has experienced the partial rebound I predicted in March. But I believe now, as then, that this will be followed by a long struggle, for three fundamental reasons, beyond the pandemic itself. First, there is the collapse in global investment, which affects the economy’s advanced sectors. Second, the impulse to save in the face of economic anxiety will devastate services providers, and the jobs and incomes they provide, affecting millions of workers. And, third, unpayable debts are piling up, affecting the entire system. Trump may have lost the election, but truly effective responses still lie outside the scope of the current political debate. One may safely predict, therefore, that they will not be pursued – at least not until facts force ideas to change.

… The progressive goal now should be to define a wide-ranging agenda. Beyond measures to address COVID-19, this should include an energy transformation, improved infrastructure, a job guarantee, universal health care, a $15 minimum wage, union rights, and mechanisms for debt restructuring that prevent families from losing their homes. Progressives should ignore the tired chatter about “excessive” deficits and public debt,..

… The weakness shared by all three of those books was that they pulled their punches on policy. The US economy is not an equilibrium engine (or system) that needs only a bit of tinkering and some fuel (stimulus) to keep it going. We are in serious trouble, and nothing is guaranteed. The only way to address the sources of discontent is with far-reaching changes that recognize the severity of the health crisis, the poor state of economic and environmental conditions, and the country’s declining relative power. This is why today’s rhetoric – which depicts “recovery” as inevitable – is so misleading.

 

«Central Banks Keep Shooting Themselves in the Foot»

Interview with William White, former chief economist of the Bank for International Settlements

Q: After the Financial Crisis, there was a lot of talk about deleveraging the system. Nothing happened. Why?

A: In 2008, the ratio of global household, corporate and government debt to GDP was 280%. Early 2020, this ratio had grown to 330%. And it’s not just the quantity of that debt, it’s the quality. Most of the new corporate debt is BBB-rated, covenant light, low quality stuff. The reason for that is the ultra easy monetary policy we have seen post-2008. Governments made the mistake of embracing fiscal austerity too early. By that, they left the job to the central banks to frantically try to create economic growth. This is a mistake we must avoid after this crisis. Fiscal policy will have to play a much larger part going forward. …

Q: Looking forward, can there be such a thing as normalization in monetary policy?

A: There is no return back to any form of normalcy without dealing with the debt overhang. This is the elephant in the room. If we agree that the policy of the past thirty years has created an ever-growing mountain of debt and ever rising instabilities in the system, then we need to deal with that.

Q: How?

A: In theory, there are four ways to get rid of an overhang of bad debt. One: Households, corporations and governments try to save more to repay their debt. But we know that this gets you into the Keynesian Paradox of Thrift, where the economy collapses. So this way leads to disaster. Two: You can try to grow your way out of a debt overhang, through stronger real economic growth. But we know that a debt overhang impedes real economic growth. Of course, we should try to increase potential growth through structural reforms, but this is unlikely to be the silver bullet that saves us. This leaves the two remaining ways: Higher nominal growth – i.e. higher inflation – or try to get rid of the bad debt by restructuring and writing it off.

Q: Which way will it be?

A: Probably a combination, but they are all very hard to achieve.

Q: What about the fourth way: write-offs?

A: That’s the one I would strongly advise. Approach the problem, try to identify the bad debts, and restructure them in as orderly a fashion that you can

Q: It almost seems the easiest way is to just keep doing what we are doing?

A: You are right. My colleagues at the BIS and I have been warning of this debt trap issue for twenty years. I am reminded of the economist Herb Stein who once said that, if something cannot go on forever, it will stop. To which Rudi Dornbusch quipped: Yes, but it will go on for a lot longer than you anticipate.

Q: Knowing that complex adaptive systems are prone to tipping points: What could derail this system?

A: I don’t know. One of the conclusions of the complexity literature is that the trigger itself is irrelevant. If the system is unstable, anything could be a tipping point, even if the instability goes on without incident for years.

 


 

Regular Fare:

 

Architecture billings, Housing starts, Real estate loans



 


The Oldest President Ever Will Confront a Generational Wealth Gap


 


 

Bubble Fare:

 

Hussman: Pushing Extremes

 

2021: Fastest Earnings Recovery Ever

#1: Analysts expect 2021 to be a record year for S&P 500 profitability, the fastest return to new-high earnings since at least the 1980s. Based on the latest FactSet data, the Street is looking for $168.38/share on the S&P next year. This would be 3.9 percent higher than 2019’s all-time high of $163.02/share. The more typical recovery time to new-high profits is 3 ½ to 4 years,

The important thing to note here is just how much 2021’s expected earnings growth outpaces revenue growth everywhere except Real Estate …

The only time you can pencil in 14 points of leverage (as the Street is doing now for 2021) is very early in an economic cycle.

… We’ll close on this thought, though: if you don’t believe US corporate earnings can show dramatic operating leverage in 2021 then now is the time to consider lightening up on risk exposure.

 

You’ve got to ask yourself one question. Do you feel lucky?




On a price to sales basis, stocks are at the highest level in history (at 2.71x).




Quote of the Week:


Jeremy Grantham, on CNBC: “The one reality that you can never change is that a higher-priced asset will produce a lower return than a lower-priced asset. You can’t have your cake and eat it. You can enjoy it now, or you can enjoy it steadily in the distant future, but not both – and the price we pay for having this market go higher and higher is a lower 10-year return from the peak.”

 

 

(not just) for the ESG crowd:

 

New study aims to quantify climate change risks for Canada’s banks, insurers

 

Don’t Depend on Wall Street for Renewable Energy Investment (transcript of interview available, as well as video of interview)

 

1% of people cause half of global aviation emissions – study

 

An earth system model shows self-sustained melting of permafrost even if all man-made GHG emissions stop in 2020

 

Expert IPCC Reviewer Speaks Out

 

 

Other Fare:

 

Top 10 Emerging Technologies of 2020

 

The way we train AI is fundamentally flawed

 

 

Fun (satirical) Fare:

 

'We Must Cancel Thanksgiving,' Says CDC Scientist Who Looks Suspiciously Like A Turkey In A Lab Coat

 

 

Tweeted Pics of the Week:

 

Between now and Dec 21 Saturn & Jupiter approach each other on the sky until a mere tenth of a degree separates them. Last time this happened Galileo was alive. The solar system: A Cosmic Ballet, choreographed by the forces of gravity.




Astonishing heat for November in Asia right now

 


 

 

Tweet Vid of the Week:

 

CBSNews: Thousands of cars lined up to collect food in Dallas, Texas, over the weekend, stretching as far as the eye can see.

 

 


EXTRA FARE:

 

 

Socio-political Fare:

 

Talkin’ Turkey

Only a few years ago, the nation seemed sturdy enough that its very existence would not be called to question. Now, not so much. In 2016, the elite, blue, coastal oligarchy was too smugly self-satisfied with its correctness-in-all-things — especially its right to power — to bother rigging the election beyond the usual urban ward-level hijinks in the usual places. But then, Hillary lost to Mr. Trump via the inside straight of his bagging the swing states electoral votes without winning the national popular vote.

They sure weren’t going to let that happen again, and thus the weird spectacle this time of wee hour vote-tallying suspensions followed by improbable ballot pump-and-dumps in favor of Ol’ White Joe Biden, the most inert, empty, uncharismatic presidential candidate ever conjured by any conclave of scheming cabalists in US history. (Next to Joe Biden, Warren G. Harding was an American Augustus.) And so, the 2020 vote was rigged to the rafters, just to make sure that the outcome this time would bend towards the Democrats’ beloved arc of justice.

The legal battle over that brazen theft has incited some exciting fightin’ phrases, mostly coming from freelance attorney Sidney Powell, an informal adjunct to the president’s official lawyers, Jenna Ellis and Rudy Giuliani. Miz Powell has promised to “release the kraken” and “blow up Georgia” in a “Biblical” firestorm of fatal writs, “fixing to overturn the results of this election” — leaving us early this week in the spooky eye of post-election sturm-and-drang, with the real action yet to come.

The president and the RNC lost a bunch of state court cases the past week and, naturally, that discouraged the pro-Trump troops across “red” America — which is mostly everything between Hackensack and Fresno. But these weak pleadings might have been designed to simply speed the process through the states so as to get the main arguments before the US Supreme Court, namely, that the foreign-owned Dominion vote tabulation company was pre-programmed to overcome any Trump lead; that the Dominion software was originally created to queer elections and indeed used many times to do just that in foreign lands; and that US election officials with their poll-worker grunts in select states connived to cover the fraud with as many unverifiable write-in votes as the job required. And then, evidence-as-proof!

….

It’s not known exactly what further evidence Miz Powell and the president’s lawyers will bring to the SCOTUS — beyond what has already surfaced on the Internet, which is pretty eyebrow-raising. The news media has made a big show of calling for it, and caviling loudly when the lawyers say they’re holding back until the court is ready to entertain the case. It’s hard to imagine that Miz Powell and Mr. Giuliani would sacrifice their reputations on some kind of bluff. Anyway, what’s to bluff in this game? I don’t believe this trio would bring a wiffle bat to a gunfight.

One result of these final innings in the contest will be the delegitimizing of Ol’ White Joe Biden as president, should his forces finally prevail. Half of America will not only refuse to buy it, but it will incite a counter-resistance on the right as determined as Hillary’s pussyhat brigades and bureaucrat activists of the post-2016 era, and possibly more bloodthirsty, especially if the left makes a move to confiscate guns. The prospect of Joe Biden functioning as president is a joke, anyway. Have you forgotten his non-campaign campaign? The empty parking lots with the white circles? The pitiful gaffes? And lurking in this fog of war is all that odious monkey business selling influence abroad involving crack-head son Hunter and the rest of the Biden family. Think that’s going away?

What you’d actually get with a Biden “victory” is a Deep State junta of malicious, coercive, and vengeance-crazed characters such as John Brennan, Andrew Weissmann, Nancy Pelosi, Susan Rice, and Adam Schiff, with Barack Obama hovering somewhere backstage, commanding this-and-that …

 

Biden Will Likely Be Worse Than Obama. The Left Must Lead The Backlash, Or The Right Will.

And from all appearances it looks like Biden is going to be worse.

Unlike Obama, Biden did not campaign on hope and change, he campaigned on opposing the socialist inclinations of Sanders progressives and an aggressive foreign policy of planetary domination. He assured rich donors that nothing will fundamentally change under his presidency and his transition team is full of corporate sociopathswar pigs and propagandists. Biden has been a corporatist warmongering authoritarian throughout his entire career, and as his mental capacity continues to deteriorate he will function as nothing more than an empty vessel for his establishment handlers to advance their most pernicious agendas through. The empire has not gotten less desperate since Obama was in office, it has gotten more desperate.

If I prove right about this, the Biden administration will generate backlash just like that which arose in response to the Obama administration, and that backlash will be more severe than its previous iteration. This is absolutely guaranteed. You can only oppress, neglect and enrage a population so much before the discontent begins to grow.

 

Biden Rounds Up the Usual Suspects

Surprise! President-elect Joe Biden isn’t listening to progressive voices in his party. Instead, he’s been rounding up the usual suspects for his cabinet and staff. Turns out, progressives, that if you give your support and vote to a Democratic establishment tool like Biden without making firm demands, you won’t get anything in return. Who knew?

Here are a few good articles on Biden’s staff and cabinet:…

 

Oligarchic Gaslight In America's Twilight

If the billionaires who own the place want their failing state to turn an even bigger profit for them, their first task is to ensure that the superfluous population keeps fighting among themselves instead of punching up at them, their real oligarchic enemy.

 

There is evidence, actually

Rudy Giuliani gave examples of voter fraud during his presser at RNC HQ

Call me crazy for taking the man with hair dye dripping down his cheeks seriously, but I think it would be unfair to dismiss Rudy Giuliani. Amusingly shambolic he may be. That doesn’t mean he is wrong. The media has been claiming since the election ended that President Trump’s claims of voter fraud are ‘baseless’ and ‘without evidence’. That just is not true. The President’s lawyer gave examples of it during today’s press conference at the Republican National Committee headquarters in Washington DC. But everyone is too busy mocking him to pay attention.

 

Making Sense Of The News About Sidney Powell

Currently, I believe this election was marked by epic fraud. You cannot convince me that Biden, who got 5 or 6 people to his rallies, as opposed to the 52,000 or so at Trump’s rallies in Pennsylvania, ended with more votes than Obama.

Nobody ever said proving this fraud would be easy (or, sadly, even possible). I’m treating unfolding like an epic novel with a surprise ending. I just wish I knew whether it was going to be a happy or a tragic ending.

 

Wisconsin, Like MI, GA, PA and VA, Caught Doing the ‘Drop and Roll’ Too — Once Biden Gained Lead with MASSIVE Vote Dumps, The Rest of Votes All Possessed Same Biden to Trump Vote Ratio – THIS IS IMPOSSIBLE!

 

Statistically suspicious votes put Biden in the lead


 

Look at this in Michigan!



Look at this in Wisconsin!



The Pentagon and the CIA Are in Charge of Foreign Policy

 

New York Times Job Listing Shows How Western Propaganda Operates

People who are only just beginning to research what’s wrong with the world often hold an assumption that mainstream news reporters are just knowingly propagandizing people all the time. That they sit around scheming up ways to deceive their audiences into supporting war, oligarchy and oppression for the benefit of their plutocratic masters.

Once you’ve learned a bit more you realize it’s not quite happening that way. Most mainstream news reporters are not really witting propagandists–those are to be found more in plutocrat-funded think tanks and other narrative management firms, and in the opaque government agencies which feed news media outlets information designed to advance their interests. The predominant reason mainstream news reporters say things that aren’t true is because in order to be hired by mainstream news outlets, you need to jack your mind into a power-serving worldview that is not based in truth.

…. In order to get a job at the New York Times, you need to demonstrate that you subscribe to the mainstream oligarchic imperialist worldview which forms the entirety of western mass media output. You need to demonstrate that you have been properly indoctrinated, and that you can be guided into toeing the imperial line with simple attaboys and tisk-tisks from your superiors rather than being explicitly told to knowingly lie. Because if they did tell you to knowingly lie to the public to advance the interests of the powerful, that would be propaganda. And propaganda is what what happens in evil backwards countries like Russia. Mainstream establishment orthodoxy is essentially a religion, as fake and power-serving as any other, and if you want to work in mainstream politics or media you need to demonstrate that you are a member of that religion.

 

Do Trump Supporters Live in an Alternate Universe?

 

How 'Western' Media Select Their Foreign Correspondents

Did you ever wonder why 'western' mainstream media get stories about Russia and other foreign countries so wrong?

It is simple. They hire the most brainwashed, biased and cynical writers they can get for the job. Those who are corrupt enough to tell any lie required to support the world view of their editors and media owners.

They are quite upfront about it.

Here is evidence in form of a New York Times job description for a foreign correspondent position in Moscow:

 

 

Quotes of the Week:

 

The only reason to use voting machines is to allow cheating.”

 

Tweets of the Week:

 

D.T. Cochrane: "What matters is not the size of the debt ... but whether we can look back with pride, knowing that [it] exists because of the many (mostly) positive interventions that were taken on behalf of our democracy." Kelton

Debt since 1947: $15T

Military outlays since 1947: $18T