US Credit Rating at Risk of Fitch Cut on Debt-Limit Impasse (Even Japanese Yen Is Whipsawwing)

What happened to Biden? He used to be a “reasonable” Senator (reasonable for a racist Democrat, that is), willing to negotiate with the opposition on budgetary issues and the debt ceiling. Now we have “Progressive Joe” who is acting like crazy Progressive Congresswoman Pramila Jayapal from Seattle. {Aka, Seattle’s Worst!} But his newly found Progressive identiy is leading down a terrible path. Rating agencies are putting the US of credit watch because of Biden’s newly found Progressive back bone. (Progressive means progressing towards full blown Communism).

Ratings company warns on worsening political partisanship
US AAA ratings on review with negative implications at DBRS

The tension around the US debt-limit negotiations ratcheted up after Fitch Ratings warned the nation’s AAA rating was under threat from a political standoff that’s preventing a deal.

Fitch may downgrade its assessment to reflect the increased partisanship that is hindering a resolution despite the fast-approaching so-called X date, it said, referring to the point at which Washington runs out of cash. It moved the US to “rating watch negative” under its classification. Meantime, DBRS Morningstar placed the US ratings of AAA under review “with negative implications.”

Markets have been showing increasing nervousness over the standoff, with Treasury-bill yields slated to mature early next month surging past 7%, while the S&P 500 Index has declined for two days. Economists project a US default could trigger a recession, with widespread job losses and a surge in borrowing costs.

Fitch’s warning “underscores the need for swift bipartisan action by Congress to raise or suspend the debt limit and avoid a manufactured crisis for our economy,” said Lily Adams, a spokesperson from Treasury.

Biden’s childish refusal to reduce his insanely huge budget (crammed with pork for large donors and Progressives) is causing ripples to be felt overseas. Look look at the Japanese Yen.

Pramila Jayapal, Joe Biden’s intellectual soulmate.

Biden Won’t Default, US Dollar Sinking, Gold Up As Fed Shrinks M2 Money, Cryptos Down (Yellen Running Out Of Money To Spend)

I have gotten a flood of emails and text messages asking about what happens if Biden defaults on the US debt. In short, Biden has made a career out of spending money, as has Speaker McCarthy. They both have an incentive to raise the debt ceiling, but whether it is cuts to Biden’s insane budget (higher than Covid-era spending) and wants to raise taxes on the middle class to pay for it. McCarthy wants a trimmed budget (aka, back to pre-Covid spending levels) and NOT raises taxes. They will eventually agree somewhere in the middle (US Congress member Pramila Jayapal will be outraged, but then again, she is ALWAYS outraged like Senator Elizabeth Warren) and AOC.

The Federal Reserve has taken a brief respite from fighting inflation that they helped cause. But with $188 TRILLION in unfunded entitlements promised by politicians, The Fed will undoubtedly start buying assets again (aka, QEInfinity) and the debt ceiling will keep being raised. In essence, the DC merry-go-round is broken and politicians will keep pushing it around until it collapses.

For the moment, The Federal Reserve is reducing M2 Money (green line). With it, the US Dollar (blue line) has declined. Gold (white line fever) is on the rise along with The Fed’s effective funds rate.

WTI crude is up over 1% this AM. And gold is up 2.29%. Heating oil is up 3.56%.

Face it, I have no confidence in Treasury Secretary Janet Yellen, one of the biggest propronents of MMT (modern monetary theory or borrow and spend without consequences). Yellen is NOT making lose my blues.

Cryptos are down this morning across the board.

Wasting Away Again In Bidenville! Core Inflation Rate UP 244% Under Biden, Food UP 46%, Gasoline Prices UP 60%, Rental Growth UP 268% As Biden/McCarthy Negotiate

The US middle class is wasting away in Bidenville. While Climate Envoy John Kerry threatens to seize farms in the name of … climate change? The moral hazard problems associated with farm seizures boggle the mind.

So, everyone keeps talking about the debt ceiling and the fact that America is about to run out of money. How did we just find $375 million dollars AGAIN to ship on over to Zelenskyy?

Biden and McCarthy met on the debt ceiling and nothing has been resolved. They both represent the BIG donor class and big Pharma, big defense, big tech, big media, big tech, anything that is big runs Congress and the Administration. So of course they will finally agree to raise the debt ceiling and continue their insane spending on the donor class.

As of right now, there is no deal to raise the debt limit. Biden wants to raise the already insane and irresponsible Federal budget. McCarthy wants no new taxes. Who will cave in this game of chicken? My guess is that McCarthy will cave. Biden may whip out the 14th Amendment to bypass McCarthy and Congress, but this makes Biden a dictator (which would suit him fine, but would be a horrible precedent).

Core Inflation Rate UP 244% under Biden, Food UP 46%, Gasoline Prices UP 60%, Rental Growth UP 268%. What a disaster under Biden’s Reign of Error.

But at least the Biden family are getting wealthy beyond comprehension. Isn’t that Ashley Biden in the blue?

All Quiet On The Default Front As Biden Dithers The Night Away And Regional Bank Stocks Decline On Fed Tightening

Like the famous novel “All Quiet on the Western Front,” its “All Quiet on the Default Front” as China Joe and Speaker McCarthy are set to meet again. In short, Biden wants to raise taxs on middle class and McCarthy wants to return Federal spending to pre-Covid levels. Sure, Biden throws around the Bernie Sanders’s tax on millionaires and billionaires line, but they know that M&Bs have professional accounts and lawyers to protect them while the middle class has Turbo Tax and H&R Block.

In any case, markets are calm (the calm before the storm?) although I think Biden WANTS to default and blame Republicans ahead of Biden’s reelection. The media will mindlessly repeat DNC talking points. So Biden is covered. After all, he says it isn’t his fault (although it is 100% Biden’s fault if America defaults because of his reckless budget and insane ramblings).

Let’s look at regional banks and the US Treasury SHORT curve: 2Y-3M. Notice that regional bank stocks have gotten demolished as The Fed tightens.

US Treasury cash balance remains dangerously low as Biden and Yellen dither the night away.

Bankrupt Biden. The US, not the Biden pay-to-play family.

I wish we could seize all the Biden family assets if Old Joe defaults. Or at least make Hunter Biden take care of his child Navy and let the poor child get rich off the Biden name.

Yellen Doubts US Could Still Pay All of Its Bills by June 15 (Treasury Cash Balance Drops To Dangerously Low $57 Billion As M2 Money Growth Crashes)

Its May 21st and Biden still refuses to budge on paring back his massively bloated budget of green energy payoffs. Yet Biden laughingly stated it isn’t his fault if the US defaults on its debt. It is absolutely 100% Biden’s fault and he should be impeached if he fails to meet Republicans half way.

(Bloomberg) Treasury Secretary Janet Yellen said the US is unlikely to reach mid-June and still be able to pay its bills, underscoring the urgency of the White House reaching a deal with Republicans to raise the debt limit.

“Well, there’s always uncertainty about tax receipts and spending,” Yellen said on NBC’s “Meet the Press” on Sunday. “And so it’s hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15 while being able to pay all of our bills is quite low.”

Biden and McCarthy have been at an impasse since January over raising the government’s $31.4 trillion borrowing limit. The Treasury has been deploying special accounting measures since January to stay within the statutory ceiling.

“On June 15, there are tax payments that are made that are substantial,” Yellen told NBC. “But early June, I interpret as before that, and it would be very difficult to get to that date.”

This is coming from the former Federal Reserve Chair who raised interest rates once while Obama was President, then raises rates 8 time after Trump won the election.

Surprisingly, cryptos are down today despite Biden’s incompetence and Yellen’s dire warning. Atleast TRON is up!

Yes, Yellen is the same person who raised interest rates just once under Obama, then 8 times after Trump was elected. And Yellen is the same person who said inflation was transitory, yet remains elevated. Yellen is truly The Deep State’s fuiancial manager.

Babbling Biden! The US Budget Deficit Remains Higher Than Before Covid (Biden Lying … Again) Lagarde Trusts in US Common Sense to Avert Catastrophic Default

Joe Biden is the worst public speaker of any President in history. Here is “Babbling Biden” lying about the great reduction in Federal budget deficit.

First, Biden didn’t “balance the budget” liked he claimed at Hiroshima. In fact, the Federal budget deficit, while improving, is still worse than it was before the 2020 Covid economic shutdown.

Biden, Schumer and Yellen are ignoring the $187 TRILLION in UNFUNDED entitlements promised America, even though Biden keeps threatening to halt Social Security payments if Biden and Yellen default on the debt. No discussion of the runaway train of entitlemennts.

I love this Bloomberg headline: “(ECB’s) Lagarde Trusts in US Common Sense to Avert Catastrophic Default.” Has Lagarde actually talked to Biden, Harris or Yellen? America’s REAL 3 Stooges??

Here is a video of Joe Biden tackling the debt ceiling.

Gov’t Gone Wild! Biden Refuses To Cut Bloated Budget, Cory Bush’s $14 TRILLION Reparations Demand (US Dollar DOWN -21% Since Sept 2022 While Bitcoin UP 41%, Gold UP 21%, Silver UP 28%)

This is truly the new version of “Girls Gone Wild!” except this time it is elderly politicians in Washington DC acting like demented children. Biden will not budge on spending cuts with the debt limit soooo close to the point of no return. But Biden may not budge since he has the corporate media spewing hate against Republicans nonstop.

And on top of Biden’s outrageous budget, largely payoffs to progressive groups, Missouri Representative Cori Bush (D-of course) is demanding $14 TRILLION in slave reparations. Or what?? More BLM riots? Even California Governor Gavin “Gruesome” Newsom isn’t stupid enough to approve budgetary disaster like reparations.

But that is where we are in the US. A President who acts like a spoiled 12 year old bully, members of Congress like Cori Bush and AOC who think The Fed can just print trillions MORE and give it to preferred groups. Senator Diane Feinstein (soon to be replaced by a horrible human being in the person of Adam Schiff). John Fetterman, the next Bernie Sanders?? C’mon DC. A true ship of fools. And dangerous ones at that.

So since September 26, 2022, we have seen a fundametal shift in markets. The US Dollar is down -21% since September 26, 2022 while Bitcoin is up 41%, Gold is up 21% and Silver is up 28%.

Biden is sitting pretty, If McCarthy chickens out and agrees to Biden’s outrageous budget, Biden looks like a hero. If Biden defaults, the MSM media will blame McCarthy and Republicans, so Biden wins. No wonder Biden said he isn’t worried about the debt ceiling negotations. He wins no matter what, And we the 99% get screwed.

US Treasury Cash Balance Down To $68 Billion As Fed Crashes M2 Money Growth (Clock Is Ticking With One Day Of Spending Left!)

Yes, the clock is ticking on a possible debt default and Biden is off in Hiroshima Japan instead of negotiating with House Speaker McCarthy.

The treasury cash balance is only $18 billion away from Yellen’s minimum balance redline of $50 billion. That’s one day of spending in crazy spending Washington DC.

Battered By BidenInflation, 90 Million Americans Struggle Paying Bills As Credit Card Usage Spikes (Biden/Yellen/Schumer Dither As Debt Hits $32 TRILLION With $188 TRILLION In Unfunded Liabilities)

Reminder, the US already has $32 TRILLION in debt and politicians have promised $188 TRILLION in entitlement spending. yet we are sending billions to Ukraine, etc. Yet Biden is visiting Japan (hide your little girls, Hiroshima!) and Biden/Congress still haven’t solved the debt limit crisis and Biden’s insane budget yet. Meanwhile, Americans are suffering from Biden’s inflation (aka, Bidenflation) and bad economic policies.

A large swath of American consumers are facing financial hardship as they grapple with elevated living costs, record-high credit card use, and two years of negative real wage growth. This perfect storm could decimate financially fragile households in the next downturn. (Zero Hedge).

As many as 89.1 million American adults (or about 38.5%) were found to experience some form of difficulty in covering expenses between April 26 and May 8, according to Bloomberg, citing new data from the Household Pulse Survey. This is up from 34.4% in 2022 and 26.7% during the same period in 2021.

The rising trend is alarming but not surprising. Consumers have been battered by two years of negative real wage growth.

As wages fail to outpace the cost of living, many consumers have burned through savings and resorted to credit cards. The latest revolving credit data shows consumers appear to be ‘strong,’ but that’s only because they use their plastic cards more than ever to survive.

The Household Pulse Survey found struggling households were primarily based across West Coast and the South.

Compared with the same period last year, the survey found 2.7 million more households were relying on credit cards to cover expenses.

Consumers have record card debt and ultra-low savings rates and are paying some of the highest borrowing costs in a generation (the average interest rate on cards now exceeds 20%). This debt is becoming insurmountable for some as delinquencies rise.

And what we have now is new debit and credit card data published by the Bank of America Institute that shows not just spending slowdown for lower-income consumers, but also the upper-income cohort is finally starting to crack.

However, it is appropriate that Biden is visiting Hiroshima Japan where a nuke was detonated to help end World War II.. Biden is doing the same to the US.

US Leading Economic Indicators Tumble For 13th Straight Month, “Weaknesses Were Widespread”

The Conference Board’s Leading Economic Indicators (LEI) continued its decline in April, dropping 0.6% MoM (in line with the 0.6% decline expected).

The biggest positive contributor to the leading index was stock prices at 0.16
The biggest negative contributor was average consumer expectations at -0.26

This is the 13th straight monthly decline in the LEI (and 14th month of 16) – the longest streak of declines since ‘Lehman’ (22 straight months of declines from June 2007 to April 2008).

Let’s go Brandon! He needs to finish the job! Or destroying the US economy and making the US a vassal state to China.

And Washington DC bureaucrats eat pork!