Despite the open borders where millions of low wage workers and parasites pour across into the US, we still see 1-unit housing starts plunged -7.4% YoY in June as The Fed continues tightening.
Multifamily starts actually fell worse than 1 unit starts. 5+ unit starts were down -11.56% MoM. Multfamily permits were down -13.52%.
And it just isn’t little girls that Biden is creepy about (like the family member we all keep our kids away from), Biden is creepy towards adult women too! These guys, like most normal people, aren’t digging Old Joe’s creepiness.
The Federal Reserve, an organization that even George Orwell would find outrageous, is a Minsky Moment Machine!
A Minsky Moment refers to the onset of a market collapse brought on by the reckless speculative activity that defines an unsustainable bullish period. Minsky Moment crises generally occur because investors, engaging in excessively aggressive speculation, take on additional credit risk during bull markets.
And since Covid and the Great Monetary Expansion to fight it helped creates massive inflation and helps the 1% get wealthier and wealthier. BUT as M2 Money growth slows, the 1% are losing their position as top dogs in the economy. Not by much (see pink circle), but a little.
And The Federal Reserve helps create the monetary expansion through low rate policies, fueling credit and asset bubble expansion. Greenspan, Bernanke and Yellen were the masters at creating a Minsky Moment (named after Hymen Minsky, the late Washington University of St Louis economist).
Then we have the latest bit of bad news. US Industrial Production year-over-year of -0.43% as M2 Money growth evaporates.
After The Fed’s insertion of massive monetary in 2008, continued stimulus until the second massive stimulus burst in 2020, unfunded liabilities of pension funds have worsened. Another possible Minsky Moment created by the Kafkaesque Fed. Kafedesque??
The Fed’s Powell: Let’s play a game … and make the 1% even wealthier!!!
The Fed. The beauty of failure. When the economy starts failing, The Fed goes wild.
Yes, one of the cornerstones of Bidenomics is the massive expansion of (impractical) electric vehicles (or EVs). You know, those mondo expensive cars that run out of power after a couple of hundred miles requiring a lengthy recharge (kind of makes long distance trips the domain of Internal Combustion Engine (ICE) cars.
But as Biden/Congress spent trillions on green energy (massive subsidies for anything green), we noticed that 1) inflation hit 40 year highs and 2) The Fed intervened to raise rates. So, now we see that 60-month auto loan rates are now around 7.36%, up 74.4% under “Middle Class Joe.”
And we see used EV prices collapsing like a week-old soufflé.
Speaking of green energy fraud, here is the leader of the green energy fraud movement, John F’ing Kerry. Aka, Heinz Planes Grifter.
What screams may come! Actually, the aftermath of excessive monetary policies under Bernanke, Yellen and Powell are coming home to bit the big banks.
Interest expenses at big US banks are rising much more quickly than interest income. Across the six largest US banks, interest expenses are set to climb to roughly $78.7 billion from $15.5 billion in the same period last year.
There is still $8.3 Trillion in monetary stimulus sloshing around the monetary system.
As The Federal Reserve is poised to continue it inflation-fighting crusade, the US economy is rapdily approaching DEFLATION. US Producer Price Index FINAL DEMAND fell to 0.1% YoY in June.
Bidenomics, the combination of insane monetary stimulus and insane directed Federal spending towards going green at all costs, is running out of steam. M2 Money growth was last measured to be -4% YoY and the US Dollar is down -8.2% since September 2022.
As M2 Money growth has stalled, we are seeing inflation cool a bit. Core inflation YoY is now down to 4.8% (still >2x Fed target).
The good news? REAL average hourly earnings YoY is finally positive for the second time under Bidenomics. It is now 1.2% YoY. Too bad rent CPI, typically the largest expense for Americans, is still up 8% YoY.
The Taylor Rule, given 4.8% core inflation, gives us a Fed Funds Target rate of 10.42%. So, yes, it looks like Powell and the Gang have more work to do.
I am anxiously waiting for the US inflation report tomorrow, so I am just looking at the US Treasury yield curve, mortgage rates and cryptos today.
The US Treasury 10Y-2Y yield curve stumbled (just like Biden and Bidenomics) to -91.166 basis points as the turnaround in M2 Money growth has stalled. Bankrate’s 30Y mortgage rate is up to 7.37%, that is UP 156% under Bidenomics.
Bitcoin is down today. At least Solana is up.
Since November 3, 2022, the US Dollar Index is DOWN -9.68%, Gold is UP 18.55% and Bitcoin (Elizabeth Warren’s latest obsession) is UP 51.11%.
Bidenomics relied of massive Federal spending thanks to Covid and massive monetary expansion. This led to the highest inflation in 40 years (Bidenflation). But now The Fed is slowing M2 Money growth into negative territory and hiking their target rate.
The result? Bank credit growth has crashed to 0.5% YoY. In other words, banks are no longer expanding credit for the first time since the aftermanth of The Great Recession and Financial Crisis of 2008/2009. Of course, Washington DC bailed out their bestest buddies, the banks, while middle America suffered.
As America loses steam under Biden and The Fed, 41+ countries have signed on to the BRICs gold-backed reserve currency. Unlike the USA with its fiat currency (backed by Babbling Biden and Janet “The Midget Marxist” Yellen), this reserve currency will be backed by gold.
Confounded Interest - Anthony B. Sanders 
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