In a CNBC “Squawk Box” interview of Steven Mnuchin, the next Treasury Secretary, Steve brought up the idea of creating a super-long bond. The debt is so enormous that the only way to deal with it is to extend the payback date when a significant portion of that debt becomes due. Steven Mnuchin told CNBC…
Pension funds in the US could be close to a collapse. There is an estimated $1.9 trillion shortfall in U.S. state and local pension funds because of low-interest rates and a sideways US stock market. Even stocks falling overseas is a problem for pension funds.
Credit Suisse published the chilling chart below on the funding (Read More….)
The US national debt just broke above $19.5 trillion. Both Democrats and Republicans are to blame, but it is important to note that President Obama and Democrats increased the national debt more than all President’s before combined.
George Bush exploded the national debt by $3 trillion in response to an imploding economy and 911. (Read More….)
Foreign countries are dumping US debt at an alarming pace. Foreigners dumped $54.2 billion in US Treasury bonds in just the last four weeks.
Since the start of 2016, foreign countries have sold more than $177.7 billion in US Treasury bonds, bringing the total to $2.827 trillion, the lowest amount of Treasuries held by (Read More….)
The overwhelming number of financial reports on the economy last week showed that the U.S. economy is continuing to slow.
The Federal Reserve has put markets on notice that they will be hiking rates by the end of the year. The Fed is not expected to hike rates next week at their September 21, 2016, (Read More….)
In 2016, foreign countries have dumped a shocking $192 billion worth of U.S. Treasury bonds. This dumping of bonds is the biggest selloff of U.S. debt since 1978.
China, Japan, France, Brazil and Colombia are the leading countries that are dumping U.S. debt.
U.S. Treasury bonds are the safest investments in the world. Countries often (Read More….)
The Markit PMI report on the UK shows manufacturing in the UK falling below the 50 mark.
Factory input prices have spiked higher as a result of the pound devaluation.
Folks this is a textbook definition of stagflation which is persistent high inflation combined with high unemployment and stagnant demand in (Read More….)
I’m scaling into a short small caps TZA position this morning. There is not real buy-side conviction volume which suggests the huge upward move at market open today is nothing but short covering.
The other tell that something is not right about this huge upward move at market open is how the bond market (Read More….)