It seems like the global economy is in a tough spot. There are a lot of problems, like conflicts and debts, and it’s affecting how things are going. People aren’t feeling too confident about it, especially in developed countries where things might even get worse.
Well, folks, it’s no secret that our debt situation is pretty dire. Back in the day, some folks said it was okay to borrow a lot because interest rates were low. But now, with our national debt soaring past $33 trillion and interest rates on the rise, we’re feeling the consequences. It’s putting a lot of pressure on our budget, and our economy is feeling the heat. It’s like the warnings from before are coming back to haunt us, and our past financial decisions are starting to catch up.
This is the worst Treasury bear market of all time (from BofA). pic.twitter.com/w2W553n4m9
— zerohedge (@zerohedge) October 7, 2023
Multifamily Serious Delinquency 📈 pic.twitter.com/vVY5TAX8W9
— Win Smart, CFA (@WinfieldSmart) October 5, 2023
Inflation? What inflation?
🔥🔥🔥 pic.twitter.com/5dDl2iuGy3— Wall Street Silver (@WallStreetSilv) October 7, 2023
JUST IN: Total US debt jumped by $500 billion in just 18 days after hitting $33 trillion, according to Zerohedge.
To be exact, total US debt is now at $33.513 trillion.
This means the US has added $28.5 billion in debt PER DAY for 18 consecutive days.
That's $1.2 billion per… pic.twitter.com/gP3l73smvU
— The Kobeissi Letter (@KobeissiLetter) October 7, 2023
#recession … #StockMarket Bubble edition
The similarities to 2008 keep piling up! t.co/tNpETexGZm pic.twitter.com/kyFEzXbcGp
— Invariant Perspective (@InvariantPersp1) October 7, 2023
The recent drop in equities seems to be nothing more than a correction for now.
However, it is hard to see a case for a sustained drop in treasury yields in these conditions.
Perhaps this gap is the new normal.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 7, 2023
September Jobs Report May Be Last Good One Before Sharp Slowdown
The Global Recovery Is Failing
Global economic growth is stalling due to various short-term and long-term challenges, including geopolitical conflicts, high public debt, and aging populations. The Brookings-Financial Times TIGER index reveals a broad weakening in economic activity. Despite earlier positive financial market indicators, global confidence is declining. Developed economies face stagnation or potential recession. Conversely, emerging markets like China and India exhibit more resilience and growth.
The Debt Crisis Is Getting Real
Despite warnings, pundits like Matt Yglesias in the mid-2010s encouraged excessive government borrowing due to low-interest rates. Under subsequent administrations, this led to the U.S. national debt surging past $33 trillion. Today, as U.S. Treasury bond yields skyrocket, the reckoning is apparent: skyrocketing debt rollovers strain the federal budget, and the economy teeters. Ignored cautionary advice now jeopardizes our financial stability; the past’s fiscal irresponsibility is catching up.
We Are Entering the Time of the Economic Undead
Signs of an impending financial downturn are emerging, highlighted by the behavior of the yield curve. While some experts remain unconvinced of a looming recession, rising Treasury yields and falling bond prices suggest economic instability. Recent data shows a decline in job creation and market volatility. The shift towards higher interest rates could trigger financial and economic crises, particularly impacting the housing sector. The era of low interest rates and monetary stimulus appears to be ending