Connect with us

Uncategorized

The Barbarians Are Threatening Us!

The Barbarians Are Threatening Us!

Published

on

The Barbarians Are Threatening Us! Tyler Durden Tue, 10/13/2020 - 22:20

Authored by Alastair Crooke via The Strategic Culture Foundation,

Now, as we enter the final month of the U.S. election, the expected climax to long-buried animosities is at hand. It is unlikely to be brief or decisive. The internal convulsions of the U.S. however, are one thing. But the implosion of social trust in the U.S. is radiating out, and its effects are radiating out across the globe. If the imprecarity of our times – compounded by the virus – is making us nervous and tense, it may be because we intuit that a way-of-life, a way-of-economics, too, is coming to its end.

The fear of social upheaval sows distrust. It can produce the spiritual state that Emile Durkheim called anomie, a feeling of being disconnected from society; a conviction that the world around one is illegitimate and corrupt; that you are invisible – a ‘number’; a helpless object of hostile repression, imposed by ‘the system’; a feeling that nobody is to be trusted.

Russian nineteenth century literature, including novels by Dostoevsky, chronicled how such feelings amongst the children of the Russian well-to-do could evolve into burning hatred. This hatred extended to nail-bombs hurled into smart cafés, in order “to see how the foul bourgeois will squirm in death agony”.

The West’s post-war era largely was defined by the ‘Woodstock’ generation: an era in which the rich (white) 20% of the globe lived in a consumer paradise of choice and over-consumption, whilst the 80% non-white, did not. That generation lived at a period of relative cultural cohesion and social stability – and rarely was called upon to make sacrifice or to endure hardship. It was the era of one ‘easy-decision’ after the other, building up to an ethos that put personal liberty above every other value, including social obligation.

The emerging generations of today, David Brooks argues in The Atlantic, “enjoy none of that sense of security. They grew up in a world in which institutions failed, financial systems collapsed, and families were fragile. Yet human beings need a basic sense of security in order to thrive, as the political scientist Ronald F. Inglehart puts it: their “values and behaviour are shaped by the degree to which survival is secure””.

The values of the Millennial and Gen Z generations that will dominate in the years ahead are the opposite of Boomer values: not liberation, but security; not freedom, but equality; not individualism, but the safety of the collective; not sink-or-swim meritocracy, but promotion on the basis of social justice...

Distrustful people try to make themselves invulnerable, armour themselves up in a sour attempt to feel safe... start to see threats that aren’t there.

Brooks does not fully elaborate, but he is hinting at a key generational schism that is little appreciated: Millennials and Gen Z still look to (a reformed) politics for solutions, but some in the successor generation, Gen X, simply want to burn-down the system wholly.

Here is the point: For the rest of the world – that 80% (with few exceptions) – there never was a stable post WW2 era of effortless over-consumption or institutional stability (except for a tiny slice of co-opted élites). For many, it was an era racked by conflict, personal, financial insecurity, and violence. Is it any surprise then, that their national consciousness became transformed? That new norms and beliefs, new values for what is admired and disdained arose? Power was renegotiated mostly amidst severe civil convulsion, not the calm of settled society.

Former Indian Ambassador, MK Bhadrakumar, writes:

“The disintegration of the former Soviet Union in 1991 was a geopolitical disaster for Russia. But the watershed event, paradoxically, prompted Moscow and Beijing, erstwhile adversaries, to draw closer together, as they watched with disbelief the United States’ triumphalist narrative of the end of the Cold War, overturning the order they both had regarded, despite all their mutual differences and disputes, as crucial for their national status and identities.

“The Soviet collapse resulted in great uncertainty, ethnic strife, economic deprivation, poverty, and crime for many of the successor states, in particular for Russia. And Russia’s agony was closely observed from across the border, in China. The policymakers in Beijing studied the experience of Soviet reforms, in order to steer clear of the “tracks of an overturned cart.”

“[Soon after, Xi Jinping spoke about the former Soviet Union]: In December 2012, he spoke of “political corruption,” “thought heresy,” and “military insubordination” as reasons for the decline of the Soviet Communist Party: “One important reason was that ideals and beliefs were shaken.” In the end, Mikhail Gorbachev just uttered a word, declaring the Soviet Communist Party defunct, “and the great party was gone just like that. In the end, there was not a man brave enough to resist, no one came out to contest (this decision).”

“A few weeks later, Xi revisited the topic and reportedly said … there was a complete denial of Soviet history, denial of Lenin, denial of Stalin, pursuit of historical Nihilism, confusion of thought; local party organisations were almost without a role. The military was not under the Party’s oversight. “In the end, the great Soviet Communist Party scattered like birds and beasts. The great Soviet socialist nation fell to pieces. This is the road of an overturned cart! …”

“In Xi’s words, “The Soviet Communist Party had 200 thousand members when it seized power; it had 2 million members when it defeated Hitler, and it had 20 million members when it relinquished power … For what reason? Because the ideals and beliefs were no longer there.”

“But where Putin and Xi Jinping come together… is their shared appreciation of China’s astonishing sprint to the ranks of an economic superpower. In Putin’s words, China “managed in the best possible way, in my opinion, to use the levers of central administration (for) the development of a market economy … The Soviet Union did nothing like this, and the results of an ineffective economic policy impacted the political sphere.”

David Brooks’ Atlantic essay is centred on America’s current collapse of social trust – trust, he says, is a measure of the moral quality of a society. His is, he says, an account of how, over the past few decades, America became “a more untrustworthy society... Americans today experience more instability than at any period in recent memory - fewer children growing up in married two-parent households, more single-parent households, more depression, and higher suicide rates”.

People today live in what the late sociologist Zygmunt Bauman called Liquid Modernity – all the traits that were once assigned to you by your community, you must now determine on your own: your identity, your morality, your gender, your vocation, your purpose, and the place of your belonging.

What Brooks does not address however, is how Americans’ distrust of each other, and for anyone other than themselves, being an empire, has impacted, more widely, on the geo-political order, and on perceptions of the proper management of economies – which in the case of Russia and China, are drawn from the experience of earlier convulsions of their own.

Distrust is spreading today faster than the Coronavirus.

Russia is de-coupling from Europe, because it no longer trusts Europe. A huge shift. Seventy-five years after the end of WW2, German militarism and nationalism is stirring — and its élites are once again targeting Russia:

“Berlin is ending the era launched by Gorbachev of a trusting and friendly relationship with Moscow. Russia, for its part, no longer expects anything from Germany, and therefore does not feel obliged to take into account its opinion or interests”, says the respected Moscow-based Carnegie bureau chief, Dmitri Trenin.

Russia is observing that Europe is in the process of constructing a western anti-Russian platform. The era that begun in the wake of the fall of the Berlin Wall seems to be expiring. Yet, is this shift not a reflection of Europe’s own insecurities and social distrust, more than of some ‘threat’ that is emanating from Russia?

It is Germany – and Europe – that is going through metamorphose: The EU is experiencing its own deficit of trust. Populist and skeptic parties are on the rise. Contempt for insiders and for the Brussels élites is spiraling, as is suspicion toward anybody who holds authority. And as Brooks points out, nervous leaderships are prone “to see threats that aren’t there”.

The EU is deeply engaged in the attempt to reinvent itself as the torch-bearer of liberal and liberal-market values (absent the U.S.). The EU “wants to be stronger, more autonomous, and firmer”. And President Macron tells Europeans “they must root their belonging” in such values. He is attempting to rally Europe against the coming ‘age of empires’, thereby postulating that Europe should become a sort of ‘empire’ too, to compete and survive in the coming clash of the economic and tech giants.

The problem for Russia is two-fold:

It was Samuel Huntington, who writing in his Clash of Civilizations asserted that “the concept of a universal civilization helps justify Western cultural dominance of other societies and the need for those societies to ape Western practices and institutions.

Well, firstly, Russia has for three centuries precisely refused the attempts to force her to ape western practices and institutions.

And the second is, does Europe exist now as a coherent, bounded entity? Clearly not. And that means that Germany paying more heed to the complaints and prejudices of states such as Poland. Europe must build cohesion, if it is to imagine itself as the up and coming ‘middle empire’. Hence Belarus.

Again, in a another sign of distrust ‘virus’ rippling its infection through the geopolitical space, this month, the Atlantic Council has highlighted how the ‘information space’ is allowing China to project the “China Story” - “i.e. to project [itself as] a positive image through storytelling in the media landscape, both domestic and abroad”. This is denounced as a cultural threat to the U.S. – the ‘threat’ of Chinese Discourse Power.

As U.S. convulsions and Covid combined tear down the credibility of the ‘old free market economics’ of Adam Smith and the Chicago School, is it any surprise that China’s and Russia’s own experience of economic and political turmoil has drawn them to the use of their central administration, rather than just markets, for the development of their economic enterprise ecosystem. Or, that they are messaging this approach to others.

Paradoxically the self-circulating, closed, national economy was, in any case, a western notion in the first place (should the Atlantic Council have not noticed).

In 1800, Johann Fichte published The Closed Commercial State. In 1827, Friedrich List published his theories of national economics which took issue with the ‘cosmopolitan economics’ of Adam Smith and JB Say. In 1889, Count Sergius Witte, an influential politician and Prime Minister in Imperial Russia, published a paper titled National Savings and Friedrich List, which cited the economic theories of Friedrich List and justified the need for a strong domestic industry, protected from foreign competition by customs barriers.

It is effectively the flip-side to the coin of Adam Smith. Russians, such as Sergei Glazyev, have been thinking about such things for years – and especially, since Russia was expelled from the G8.

Finally, the salient question is: Are all this scattershot of expressions of distrust now reciprocated on all sides, something ephemeral? Are they simply a reflection of uncertain and disquieting times? Or, are we witnessing the build-up of explosive distrust? Explosive distrust is not just an absence of trust, or a sense of detached alienation – it is an aggressive animosity and an urge to destroy.

Recall the experience of explosive distrust building in pre-revolutionary Russia:

“Anyone wearing a uniform was a candidate for a bullet to the head or sulfuric acid to the face. Country estates were burnt down (‘rural illuminations’) and businesses were extorted or blown up. Bombs were tossed at random into railroad carriages, restaurants, and theaters … Yet, instead of the pendulum’s swinging back, the killing grew and grew, both in numbers and in cruelty. Sadism replaced simple killing”.

“And how did educated, liberal society respond to such terrorism? What was the position of the Constitutional Democratic (Kadet) Party and its deputies in the Duma (the parliament set up in 1905)? The party leader, Paul Milyukov, declared that “all means are now legitimate … and all means should be tried”. When asked to condemn terrorism, another liberal leader then in the Duma, Ivan Petrunkevich, famously replied: ‘Condemn terror? That would be the moral death of the party!’.

Well, explosive geo-political distrust is the belief that those states who disagree with you are not just wrong, but illegitimate and always threatening. They are the barbarians beyond the city walls.

Read More

Continue Reading

Uncategorized

Digital Currency And Gold As Speculative Warnings

Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution…

Published

on

Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution of the market into a “casino” following the pandemic, where retail traders have increased their speculative appetites.

“Such is unsurprising, given that retail investors often fall victim to the psychological behavior of the “fear of missing out.” The chart below shows the “dumb money index” versus the S&P 500. Once again, retail investors are very long equities relative to the institutional players ascribed to being the “smart money.””

“The difference between “smart” and “dumb money” investors shows that, more often than not, the “dumb money” invests near market tops and sells near market bottoms.”

Net Smart Dumb Money vs Market

That enthusiasm has increased sharply since last November as stocks surged in hopes that the Federal Reserve would cut interest rates. As noted by Sentiment Trader:

“Over the past 18 weeks, the straight-up rally has moved us to an interesting juncture in the Sentiment Cycle. For the past few weeks, the S&P 500 has demonstrated a high positive correlation to the ‘Enthusiasm’ part of the cycle and a highly negative correlation to the ‘Panic’ phase.”

Investor Enthusiasm

That frenzy to chase the markets, driven by the psychological bias of the “fear of missing out,” has permeated the entirety of the market. As noted in This Is Nuts:”

“Since then, the entire market has surged higher following last week’s earnings report from Nvidia (NVDA). The reason I say “this is nuts” is the assumption that all companies were going to grow earnings and revenue at Nvidia’s rate. There is little doubt about Nvidia’s earnings and revenue growth rates. However, to maintain that growth pace indefinitely, particularly at 32x price-to-sales, means others like AMD and Intel must lose market share.”

Nvidia Price To Sales

Of course, it is not just a speculative frenzy in the markets for stocks, specifically anything related to “artificial intelligence,” but that exuberance has spilled over into gold and cryptocurrencies.

Birds Of A Feather

There are a couple of ways to measure exuberance in the assets. While sentiment measures examine the broad market, technical indicators can reflect exuberance on individual asset levels. However, before we get to our charts, we need a brief explanation of statistics, specifically, standard deviation.

As I discussed in “Revisiting Bob Farrell’s 10 Investing Rules”:

“Like a rubber band that has been stretched too far – it must be relaxed in order to be stretched again. This is exactly the same for stock prices that are anchored to their moving averages. Trends that get overextended in one direction, or another, always return to their long-term average. Even during a strong uptrend or strong downtrend, prices often move back (revert) to a long-term moving average.”

The idea of “stretching the rubber band” can be measured in several ways, but I will limit our discussion this week to Standard Deviation and measuring deviation with “Bollinger Bands.”

“Standard Deviation” is defined as:

“A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of the variance.”

In plain English, this means that the further away from the average that an event occurs, the more unlikely it becomes. As shown below, out of 1000 occurrences, only three will fall outside the area of 3 standard deviations. 95.4% of the time, events will occur within two standard deviations.

Standard Deviation Chart

A second measure of “exuberance” is “relative strength.”

“In technical analysis, the relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can read from 0 to 100.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.” – Investopedia

With those two measures, let’s look at Nvidia (NVDA), the poster child of speculative momentum trading in the markets. Nvidia trades more than 3 standard deviations above its moving average, and its RSI is 81. The last time this occurred was in July of 2023 when Nvidia consolidated and corrected prices through November.

NVDA chart vs Bollinger Bands

Interestingly, gold also trades well into 3 standard deviation territory with an RSI reading of 75. Given that gold is supposed to be a “safe haven” or “risk off” asset, it is instead getting swept up in the current market exuberance.

Gold vs Bollinger Bands

The same is seen with digital currencies. Given the recent approval of spot, Bitcoin exchange-traded funds (ETFs), the panic bid to buy Bitcoin has pushed the price well into 3 standard deviation territory with an RSI of 73.

Bitcoin vs Bollinger Bands

In other words, the stock market frenzy to “buy anything that is going up” has spread from just a handful of stocks related to artificial intelligence to gold and digital currencies.

It’s All Relative

We can see the correlation between stock market exuberance and gold and digital currency, which has risen since 2015 but accelerated following the post-pandemic, stimulus-fueled market frenzy. Since the market, gold and cryptocurrencies, or Bitcoin for our purposes, have disparate prices, we have rebased the performance to 100 in 2015.

Gold was supposed to be an inflation hedge. Yet, in 2022, gold prices fell as the market declined and inflation surged to 9%. However, as inflation has fallen and the stock market surged, so has gold. Notably, since 2015, gold and the market have moved in a more correlated pattern, which has reduced the hedging effect of gold in portfolios. In other words, during the subsequent market decline, gold will likely track stocks lower, failing to provide its “wealth preservation” status for investors.

SP500 vs Gold

The same goes for cryptocurrencies. Bitcoin is substantially more volatile than gold and tends to ebb and flow with the overall market. As sentiment surges in the S&P 500, Bitcoin and other cryptocurrencies follow suit as speculative appetites increase. Unfortunately, for individuals once again piling into Bitcoin to chase rising prices, if, or when, the market corrects, the decline in cryptocurrencies will likely substantially outpace the decline in market-based equities. This is particularly the case as Wall Street can now short the spot-Bitcoin ETFs, creating additional selling pressure on Bitcoin.

SP500 vs Bitcoin

Just for added measure, here is Bitcoin versus gold.

Gold vs Bitcoin

Not A Recommendation

There are many narratives surrounding the markets, digital currency, and gold. However, in today’s market, more than in previous years, all assets are getting swept up into the investor-feeding frenzy.

Sure, this time could be different. I am only making an observation and not an investment recommendation.

However, from a portfolio management perspective, it will likely pay to remain attentive to the correlated risk between asset classes. If some event causes a reversal in bullish exuberance, cash and bonds may be the only place to hide.

The post Digital Currency And Gold As Speculative Warnings appeared first on RIA.

Read More

Continue Reading

Uncategorized

Aging at AACR Annual Meeting 2024

BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging…

Published

on

BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals

Credit: Impact Journals

BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals

Impact Journals will be participating as an exhibitor at the American Association for Cancer Research (AACR) Annual Meeting 2024 from April 5-10 at the San Diego Convention Center in San Diego, California. This year, the AACR meeting theme is “Inspiring Science • Fueling Progress • Revolutionizing Care.”

Visit booth #4159 at the AACR Annual Meeting 2024 to connect with members of the Aging team.

About Aging-US:

Aging publishes research papers in all fields of aging research including but not limited, aging from yeast to mammals, cellular senescence, age-related diseases such as cancer and Alzheimer’s diseases and their prevention and treatment, anti-aging strategies and drug development and especially the role of signal transduction pathways such as mTOR in aging and potential approaches to modulate these signaling pathways to extend lifespan. The journal aims to promote treatment of age-related diseases by slowing down aging, validation of anti-aging drugs by treating age-related diseases, prevention of cancer by inhibiting aging. Cancer and COVID-19 are age-related diseases.

Aging is indexed and archived by PubMed/Medline (abbreviated as “Aging (Albany NY)”), PubMed CentralWeb of Science: Science Citation Index Expanded (abbreviated as “Aging‐US” and listed in the Cell Biology and Geriatrics & Gerontology categories), Scopus (abbreviated as “Aging” and listed in the Cell Biology and Aging categories), Biological Abstracts, BIOSIS Previews, EMBASE, META (Chan Zuckerberg Initiative) (2018-2022), and Dimensions (Digital Science).

Please visit our website at www.Aging-US.com​​ and connect with us:

  • Aging X
  • Aging Facebook
  • Aging Instagram
  • Aging YouTube
  • Aging LinkedIn
  • Aging SoundCloud
  • Aging Pinterest
  • Aging Reddit

Click here to subscribe to Aging publication updates.

For media inquiries, please contact media@impactjournals.com.


Read More

Continue Reading

Uncategorized

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

Published

on

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

Read More

Continue Reading

Trending