Bloom Off The ESG Rose? WEF’s ESG Sustainability Push Is Waning (Issuance Of Sustainability Linked Loans Down 80% In US)

Huey Lewis and the News said it best about ESG goals: “The elites want a new drug.”

The World Economic Forum (WEF) is a leading pusher of the ESG drug, pushed by the elite class intending to control the world. Unfortunately, numerous American politicians and influencers have attended the Davos meetings and have openly praised the WEF and its leader Klaus Schwab.

ESG refers to the environmental, social and governance information about a firm. There is growing evidence that companies that take their environmental and social responsibilities seriously perform better financially. This has naturally made investors sit up and take notice.

ESG investing, or sustainable responsible investing (SRI), uses this information about a company to inform investment decisions that prioritize all stakeholders.

Here’s how the Forum’s partners are leading the switch to stakeholder capitalism.

There are 3 pillars to ESG and sustainable investment. This reminds me of the 10 pillars (or planks) of Marxism. So ESG is Marxism with a different name, but the end result is the same. Big government control.

But all is not well with WEF’s ESG drug distribution. In fact, ESG flows into socially consious funds were a big thing during Covid (2020) and the first year of Biden’s Reign of Error. But ESG flows slowed sharply in 2022 and seeing net outflows in 2023.

Issuance of sustainability linked loans is down 80% in the US.

US borrowers are retreating en masse from the world’s second-biggest ESG debt class.

The $1.5 trillion market for sustainability-linked loans, in which borrowing is tied to environmental, social or governance goals, has seen an overall slowdown in volumes this year as both interest rates and greenwashing fears rise. But nowhere has the decline been as precipitous as in the US, where the number of new sustainability-linked loans is down 80% from a year earlier.

But ESG is still relatively popular in Europe, Middle East and Africa (orange). But taste for ESG is waning around the globe. But the selection of Biden as President in the US marked a surge in ESG -tied loans in 2021 and 2022 (not to mention the insane levels of spending out of Biden and Congress, much tied to the sustainability, green energy fantasy.

Loans with terms tied to borrower’s ESG goals have fallen worldwide.

Several states (largely blue states like California, Minnesota, Illinois, and Colorado have pro-ESG laws) while several states have anti-ESG laws (largely red states like Montana, Idaho, North Dakota, Kansas, Utah, Indiana, Arkansas, Florida, and West Virginia).

And of course, global warning may not be as dire as John Kerry and Greta Thunberg say.

WEF’s Klaus Schwab about to get sniffed by his 80-year old puppet, Joe Biden. In fact, Biden is singing “I’m your puppet.”

Here is Hunter Biden welcoming the Green Energy fairy and all the trillions in misallocated spending it brings.

NOT Born Under A Bad Sign! Housing Starts Are Down -4.2% YoY As M2 Money Growth Dies (Illegal Immigration Outpaces US Births, But Supply Not Keeping Pace)

Under Biden’s Reign of Error (or green economic transformation), the US has seen over 8 million illegal immigrants enter the US which is a far greater number than births in the US. In other words, Americans apparently are NOT being born under a bad sign. Hence, the US is seeing the demand for housing increase. But …. housing start were DOWN -4.2% YoY in October.

Housing Starts:
Privately‐owned housing starts in October were at a seasonally adjusted annual rate of 1,372, the October 2022 rate of 1,432,000. Single‐family housing starts in October were at a rate of 970,000; this is 0.2 percent above the revised September figure of 968,000. The October rate for units in buildings with five units or more was 382,000.

Building Permits:
Privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,487,000. This is 1.1 percent above the revised September rate of 1,471,000, but is 4.4 percent below the October 2022 rate of 1,555,000. Single‐family authorizations in October were at a rate of 968,000; this is 0.5 percent above the revised September figure of 963,000. Authorizations of units in buildings with five units or more were at a rate of 469,000 in October.

Total starts were down 4.2% in October compared to October 2022. And starts year-to-date are down 11.3% compared to last year.

In YoY terms (change since one year ago), shows housing starts declining with dying M2 Money growth.

Starts have been down year-over-year for 16 of the last 18 months (May and July 2023 were the exceptions), and total starts will be down this year – although the year-over-year comparisons are somewhat easier in Q4.

The Thrill Is Gone? US Industrial Production Plunges In October As Auto-Maker Strikes Hit (But Also Federal Stimulypto Has Worn Out)

The thrill has gone from all the BIG spending bills from Biden.

After its surprising bounce last month (on a seasonally-adjusted basis, because it crashed NSA), US Industrial Production was expected to decline 0.3% MoM in October. It was worse – down 0.6% MoM from a downwardly revised September print (from +0.3% to +0.1%). October’s decline is the worst since Dec 2022 and the YoY drop of 0.8% is the worst since the COVID lockdowns. AND Federal stimulypto is wearing off (M2 Money growth surge peaked in February 2021, but has slowed into negative growth starting in August 2022.

Notably, once again, the non-seasonally-adjusted industrial production tumbled more than then seasonally-adjusted data…

Source: Bloomberg

On the manufacturing specific sector, consensus was for a 0.4% drop MoM but it was considerably worse, dropping 0.7% MoM (and September’s print was revised down from +0.4% to +0.2% MoM). That is the biggest MoM drop since March and biggest YoY drop since the COVID lockdowns.

That is also the 8th straight month of YoY declines for Manufacturing production.

Source: Bloomberg

Output was weighed down by a 10% plunge in motor-vehicle production as the annualized rate of car assemblies dropped to 9.22 million units, the least since February 2022. Excluding parts production, autos and trucks production fell 16.5% MoM – the biggest drop since the COVID lockdowns…

Source: Bloomberg

Starting in September, the United Auto Workers union authorized targeted strikes against the Big Three Detroit automakers, disrupting production at the companies and at their suppliers. The UAW reached tentative agreements with management in late October, laying the groundwork for a rebound in factory output in November.

So theorteically, we should see bounce back next month. Unless demand – as WMT hinted at – has fallen off a cliff.

Fiscal Inferno! US Debt Hits $33.7 Trillion With Unfunded Promises Hitting $211.7 TRILLION, $629k Per Citizen! (REAL Hourly Compensation Has DECLINED By -5.1% Under Bidenomics)

We are currently in a fiscal inferno under Biden/Yellen.

And US Treasury Secretary Janet Yellen is just a girl who can’t say no … to big government spending.

In fact, Congress and the Biden (mis) Administration are spending like the proverbial drunk sailors in port. US national debt is up to $33.7 TRILLION. That transates to $259,103 per taxpayer. With US debt to GDP of 138%!

Now, HERE IS THE REAL BAD NEWS! Unfunded promises that politicians made to Americans (Social Security, Medicare, Medicaid, etc.) now stands at $211.6 TRILLION. That equates to $629,000 per citizen. Maybe that should be the deal at the southern border: all immigrants must pay $629,000 for admission!

And the Federal budget deficit keeps on getting worse.

The budget deficits under Biden/Yellen have been the worst in history. So much for Biden whispering “Bidenomics is working!”

Rents in the US remain unaffordable to many.

And Yellen, our nation’s financial consigliari, hasn’t said much about the dire decline in income tax receipts.

But Biden’s favorite country China, a classic top-down command economy like Biden and Yellen love,

On Sunday, President Joe Biden tweeted, “Right now, real wages for the average American worker is higher than it was before the pandemic, with lower wage workers seeing the largest gains. That’s Bidenomics.” That’s right, Joe! Except real hourly compensation has DECLINED by -5.1% under Biden.

Smells Like Fed Spirit! Homebuilder Confidence Fall To 34 In November Due To High Interest Rates … But 2024 Should See A Decline In Mortgage Rates

Its beginning to smell like Fed spirit! As the 2024 Presidential election rapidly approaches, The Fed will be pressured into lower interest rates to haul Biden’s befuddled and corrupt ass across the finish line. Or his replacement, Greasy Gavin Newsom. (Leaving an oil slick in his wake).

Lowering the mortgage rate will benefit the real estate market, which is currently been “Biden’d.” Due to inflation and The Fed’s mission to crush inflation.

High mortgage rates that approached 8% earlier this month continue to hammer builder confidence, but recent economic data suggest housing conditions may improve in the coming months.

Builder confidence in the market for newly built single-family homes in November fell six points to 34 in November, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This is the fourth consecutive monthly drop in builder confidence, as sentiment levels have declined 22 points since July and are at their lowest level since December 2022. Also of note, nearly the entire HMI data for November was collected before the latest Consumer Price Index was released and showed that inflation is moderating.

Mortgage rates will likely decline in 2024 as The Fed reverses its inflation-crushing policy for Presidential election interference.

And Morgan Stanley forecasts the Fed Funds Rate to plunge to 2.375%.

Joe Biden is 80 and not exactly the most energetic President that can inspire confidence.

Maybe the economy needs Viagra.

I really wish Biden would stop babbling about “his” approach to economic growth, a Chinese Communist approach of top down economic management.

Under Biden, Americans have seen a 17.6% price hike and a 3% pay cut. Inflation has averaged 5.9% — more than double the level of inflation under any of the last four presidents.

Biden’s Mortgage Market! Mortgage Purchase Demand Falls 0.3% Since Last Week And -12% Since Last Year, Stocks, Bitcoin Booming, Gold Enters Contango (Mortgage Rates UP 172% Under Biden)

Biden says he wants 4 more years to finish the job. Like killing off the mortgage market completely, Joe?

Mortgage applications increased 2.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 10, 2023.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.4 percent compared with the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index decreased 0.3 percent compared with the previous week and was 12 percent lower than the same week one year ago.

The Refinance Index increased 2 percent from the previous week and was 7 percent higher than the same week one year ago.

Of course, mortgage rates have been declining slightly over the past few weeks, but remain up 172% under Biden.

At least the stock market is booming after the inflation report signalled that The Fed is likely done with rate hikes.

On the gold front, we are seeing evidence of contango.

Bitcoin? Down a wee bit after a staggering rise in price over the past year.

Here is China’s Xi meeting with Biden’s likely replacement, “Greasy Gavin” Newsom and Newsom’s likely Treasury Secretary, Janet “Too Low For Too Long” Yellen. Newsom, Yellen and Xi all want havoc in America.

We WILL Get Fooled Again! Purchasing Power Of US Dollar DOWN -15% Under China Joe Biden (Top 1% Doing Great Under Bidenomics, Not The Middle Class)

Republicans elected Mike Johnson from Louisiana as House Speaker, then were surprised when Johnson agreed with big spending Senators McConnell and Schumer on Biden’s mega spendathon. Also, several Republicans voted with Democrats NOT to impeach Cuba Pete (Mayorkas) for allowing 8 million illegals to cross the southern border. Bottom line: the Biden Administration and Congress are closely held subsidiaries of the elite 1% and US large corporations. The middle class be damned! But we will get fooled again in every election.

Since Biden’s inaugration in January 2021, the purchasing power of the US dollar is down a staggering -15%.

Yes, under control of large corporations and the 1%, the economy is an economic wasteland. But the 1% are doing great under Bidenomics! With The Fed’s help of course.

Here is a chart of core inflation relative to M2 Money printing. Easy way to cool inflation … stop printing money!

Here is China’s Xi and America’s “China Joe” Biden.

Seriously, Biden has always been known as being stupid and corrupt. Now he has dementia. A PERFECT President for the 1% in their war against the middle class. Biden is the penultimate “useful idiot” with an emphasis on idiot.

Gimme (Inexpensive) Shelter! Shelter Inflation Over 3x Fed Target Rate At 6.7%, Transportation Services UP 9.2% (Mortgage Rate UP 172% Under Bidenomics)

Gimme (inexpensive) shelter!

The good news is that The Federal Reserve finally cooled inflation.

Well, at least core inflation cooled to 4%, twice The Fed’s target rate.

At least The Fed is making progress. But on the housing front, shelter CPI is still up 6.7% YoY while transportation services are up 9.2% YoY. So, as long as you don’t have to rent or go anywhere, inflation looks good!

Shelter CPI is over 3x The Fed’s inflation target rate, despite mortgage rates being up 169% under Biden.

The 10-year Treasury yield cooled to 4.50% as investors see no further action from The Fed … at least until 2024.

Yes, investors forecast big cuts in interest rates in 2024 as the election approaches and The Fed attempts to push our befuddled, nasty Commander-in-Chief over the finish line. Instead of Mean Joe Greene (former Steeler great), we have Mean Joe Biden.

The US economy is still under the thumb of The Federal Reserve. Perhaps The Fed will annouce that the last rate hike was the last time. But you don’t have to be a fortune teller to know The Fed will be cutting rates like crazy as the election approaches.

At least California Governor “Greasy Gavin” Newsom cleaned up The Streets of San Francisco ahead of China’s XIe meeting with President Biden. Here is Biden singing his favorite song about China “If You’ve Got The Money, I’ve Got The Time.”

Fear The Talking Fed! Morgan Stanley Forecasts 315 Basis Point Cut In Fed Funds Target Rate In 2024 (Mortgage Rates Could Fall To 5.50% In 2024)

The Talking Heads at The Federal Reserve keep yammering about persistant inflation (which Yellen kept saying was transitory) and whether or not Fed rate hikes will be necessary to get infation to 2%.

Instead of muddling lectures (like by Atlanta Fed President Rafael Bostic) on Fed tightening to fight inflation, let’s address the elephant in the room (no, not Chris Christie or Hillary Clinton), but Morgan Stanley’s soft landing forecast of a Fed Funds rate cut from 5.50% today to 2.375% in 2024. This is a whopping 215 basis point cut!

Currently, the spread between the 30-year conforming mortgage rate and The Fed Funds Target rate is 1.981% of 198.1 basis points. While the better spread is the mortgage rate compared to the 10-year Treasury yield, I am going to use Morgan Stanley’s Fed Funds target rate forecast for 2024. Assuming the spread is constant, this results in a mortgage rate in 2024 of … drumroll … 5.50%.

In one sense, a 200 basis point decline in the 30-year mortgage rate would be welcome news to home buyers. On the other hand, Morgan Stanley is forecasting a soft landing and a rise in the unemployment rate to 4.3%, hardly good economic news.

So, fear the talking Fed. They are talking about fighting stubborn inflation while ignoring the slowdown forecast for 2024.

Bidenomics Breakfast! Orange Juice Prices UP 47% Under Biden (Even Though Food CPI Has Slowed To 3.69% YoY)

Even eating breakfast under Bidenomics is more expensive. Particularly if you like orange juice like I do. To save money, I am probably going to have to switch to nasty-tasting Tang.

Food CPI is up 3.69% year-over-year. The rate of growth in food prices is slowing. But do I trust BLS data on CPI? Of course not.

Orange juice prices are up 47% under Biden.

And we see that REAL GDP is growing at a slower rate than nominal GDP.

Tang is the taste I hate and I can get Vitamin C from a multi vitamin. But I just don’t like having government policies (or follycies) dictate my food consumption. Or auto choice (I refused to buy an electric car or pickup truck).

Speaking of Bidenomics, here is an interesting Zero Hedge story on “The Biden-Du Pont Nexus: From A Prestigious Golf Club To A Controversial Child Rape Plea Deal.” What is it with Delaware elites having sex with their children?? And why is NY AG Letitia James prosecuting Donald Trump when there has been no crime while she let’s Epstein’s clients who flew to have sex with minors (used to be illegal) off the hook?

But I feel good! After my breakfast of … Scotch Broth. OJ is just too expensive.