by mark000
The September/October window has high potential for the horror show to begin IMO. The global markets, financial system and economy will experience simultaneous heart attacks, leading to (or because of) super negative geopolitical developments.
US Treasury Market Hits All-Time High of $25 Trillion in July
This is a great example of how the debt “doom loop” is playing out. When we go into recession; which is expected in the 3rd or 4th quarter; tax receipts will drop significantly. The treasury will need to borrow more money to fund the difference…hence issue more treasuries. The deluge of treasuries hitting the market will force rates higher…causing the treasury to issue more treasuries….etc, etc, etc. I think China, Japan and others are finally seeing that this game is about to end. Stock piling gold and other commodities and slowly dumping treasuries. This will not end well.
Hedge Fund Guru Bill Ackman Bets Against US Treasuries, Expects 30-Year Yields To Surge To 5.5%
Billionaire hedge fund manager Bill Ackman is shorting long-term U.S. Treasuries, specifically targeting the 30-year maturity. His prediction: yields could skyrocket to 5.5%.
It is the least affordable to buy a car ever, per CNBC: pic.twitter.com/l2OgboKARm
— unusual_whales (@unusual_whales) August 5, 2023
I thought the recession was over? 😏 https://t.co/WhVF3VhMau
— Financelot (@FinanceLancelot) August 5, 2023
The fact that the Bank of Japan must intervene to mitigate the rising cost of debt caused by a marginal shift in interest rates starkly underscores the enormity of the current debt problem.
Let there be no doubt: this situation is not exclusive to Japan.
The Fed, ECB, BOE,… pic.twitter.com/sKPyUZV6jv— Otavio (Tavi) Costa (@TaviCosta) August 5, 2023
World Food Prices Jump Most In 18 Months https://t.co/gg0KqMmgcx
— zerohedge (@zerohedge) August 5, 2023
Great visualization of the Regional Bank Crisis pic.twitter.com/f5QKM2JmFo
— Win Smart, CFA (@WinfieldSmart) May 6, 2023
GLOBAL 🌎 CREDIT
DOWNGRADES $HYG $JNK $BKLN $SRLN pic.twitter.com/bG41r5KT4u— Win Smart, CFA (@WinfieldSmart) August 1, 2023
Another Big Chinese Property Domino Is Wobbling
As Americans’ ‘Surplus’ Pandemic Savings Diminish, US Economy’s Soft Landing Could Be at Risk
The “excess savings” accumulated by American consumers during the COVID pandemic are rapidly depleting. These funds, a result of substantial government support, peaked at $2.1 trillion in August 2021, but have dwindled to around $500 billion by spring 2023. This trend could hinder the U.S. economy’s potential for a soft landing amidst the ongoing fight against inflation by the Federal Reserve. The rapid drawdown indicates a more substantial role of these dollars in boosting demand in the U.S. economy over the past year compared to other advanced economies.
Sign for The Global Economy: World’s Most Valuable Company Apple Faces Longest Sales Drop in Decades
Apple Inc. has reported its third consecutive quarter of falling sales, predicting similar outcomes for the current period due to a widespread slump affecting demand for phones, computers, and tablets. This could lead to the longest streak of declines in twenty years for the world’s most valuable company. Apple shares dipped, risking the loss of its historic $3 trillion valuation. The challenging environment is due to rising interest rates and inflation
US Government To Borrow $1Trillion in Q3 As Deficit Widens and Debt Servicing Costs
The US government is set to borrow $1.007 trillion in Q3, a considerable rise from the previous estimate of $733 billion, due to increasing fiscal deficit and dwindling cash reserves. The federal deficit has surged by 170% to $1.39 trillion in the nine months through June. Spending outstripped income, with $4.80 trillion spent against $3.413 trillion in generated revenues. The US pays 2.76% interest on its debt, the highest in over 11 years. Despite these, Fitch retains the US’s AAA rating, but places it on negative watch due to fiscal and debt trajectories.