Confounded Interest – Anthony B. Sanders
Financial Markets And Real Estate
After yesterday’s surprise ADP jobs report, I was expecting a better June jobs report. But alas, today’s job report was a disappointment. Only 209k jobs were added in June.
On the other hand, average hourly earnings YoY rose slightly to 4.4%. Too bad core inflation at the last reading was 5.3% YoY.
Here is the rest of the story:
Silver is up almost 2% this AM!
What is Bidenomics? It isn’t what Press Secretary Karine Jean Pierre thinks. She said Biden hates “trick down economics”. Instead, Biden prefers a Soviet-style command economy where The Federal Government spends trillions of dollars and directs where the money goes. We also have the Socialist Federal Reserve that relies on rate manipulation to achieve policy results.
A good example of Biden’s Soviet-style “Bidenomics” is his use of the Strategic Petroleum Reserve (SPR). Biden has now drained almost 50% of the SPR from when he was sworn in as President. And has drained the SPR for 14 straigth weeks to manipulate gasoline and diesel fuel prices in an effort to lower fuel prices ahead of the 2024 Presidential election. Watch Biden suddenly stop caring about fuel prices once he wins reelection!
After last week’s huge draw, expectations were for a smaller draw (which API showed last night), but the actual crude draw was smaller – just 1.5mm barrels. Stocks at the Cushing hub fell 400k barrels and products also saw notable draws..
At least we now know who left cocaine in the White House!
The good news (if true)? ADP announced that 497k jobs were added in June.
The bad news? A 497k print on jobs (many seasonal, it is summer!) almost guarantees that The FOMC (Fed Open Market Committe) will raises rates again at at the July meeting.
The 2-year Treasury yield is up over 10 basis points.
The 2-year Treasury yield is up 16.5 basis points.
Bticoin Cash is up 10% today.
I should have bought nickel!
Why is Biden sending Treasury Secretary Janet “The Marxist Midget” Yellen to China? A Treasury Secretary and former Federal Reserve Chair? Likely trying to convince China that our $32 TRILLLION AND GROWING national debt is not a problem, since China is the third largest holder of US Treasury debt (after The Fed and Japan). Note that China has decreased its holdings of US Treasuries by -25.6% since January 2018.
Hopefully, Yellen isn’t acting as a bag man for The Biden Crime Family. 10% for The Big Guy?? How much does Yellen get??
The closer we get to the 2024 Presidential election, the more the economy is slip slidin’ away.
As Powell and The Gang raise interest rates, the more the economy is … slip slidin’ away. US Manufacturers New Orders YoY in May declined -1.0% for the first time since Covid.
But as M2 Money growth slows, its getting late in the election cycle.
Too soon?
Happy 4th of July! Enjoy those burgers and hot dogs, at least until you consider that food prices have risen a staggering 49% under Biden’s Reign of Economic Error.
This is much worse than the quoted story that Fourth of July cookout costs 15% more since Biden took office. Broken out by components,
The only good news is that The Fed’s monetary stimulus growth is slowing. But don’t worry! Biden and Congress will keep introduce massive spending bills to avert a recession. Which will cause downline inflation.
My favorite hot dog place, Chicago’s Wolfy’s!
Its the 4th of July, American Independence Day from England, but under Biden and The Federal Reserve, Americans are DEPENDENT on debt and Federal spending. In other words, Americans are addicted to gov.
First, Bankrate’s 30-year mortgage rate index is up 150% under Biden. You can see the rapid rise in mortgage rates started with Biden (orange box). Meanwhile, the US Treasury yield curve (10Y-2Y) is the most inverted (negative slope) since 1981. Way to go, Joe!!
On the metals side, gold and silver are up slightly. (Go silver go!!)
On the crypto side, Polkadot is up 1.26% while Bitcoin is down -0.18%.
Memo To Fed: keep on printing! Why? US debt is currently $32.33 TRILLION with $192 TRILLION in unfunded Federal liabilties. That is 5 times the current level of debt!!
I was hoping that the week of July 4th would start off with fireworks, but we got bad news about the economy.
US factory activity contracted for an eighth month in June, slipping to the weakest level in more than three years as production, employment and input prices retreated.
The Institute for Supply Management’s manufacturing gauge fell to 46, the weakest since May 2020, from 46.9 a month earlier, according to data released Monday. The current stretch of readings below 50, which indicates shrinking activity, is the longest since 2008-2009.
The decline in the ISM production gauge, which also stands at the lowest level since May 2020, suggests demand for merchandise remains weak. The index of new orders contracted for the 10th straight month and order backlogs shrank, which may help explain a pullback in a measure of manufacturing employment.
The ISM gauge retreated to a three-month low and, at 48.1, indicates fewer producers adding to payrolls.
Many Americans continue to limit their spending on merchandise as they rotate to services and experiences. Others are simply tightening their belts as still-high inflation takes a toll on their incomes.
And then we have cardboard box shipments declining at fastest rate since 2008/2009.
At least Ethereum is up over 2% this morning.
And the US Treasury 10Y-2Y keeps on diving deeper into inversion.
Joe Biden, the face of Bidenomics.
Bidenomics is based on massive Federal spending and massive Fed monetary stimulus. But like all stimulus, it wears off. Such is the case with bank lending as The Fed raises interest rates.
US bank credit year-over-year (YoY) has stalled to a lowly 0.7% rate as M2 Money growth YoY increases slightly to -4%.
White House report signals openness to manipulating sunlight to prevent climate change.
Its figures. With the Socialist Federal Reserve manipulating interest rates and Biden/Congress spending like drunken sailors trying to manipuate economic growth, it makes sense that Biden wants to explore Bill Gate’s idiotic idea of blotting out the sun to prevent global warming.
Of course, Biden can hide at any of his 4 mansions and wear his Ray-ban Aviators to avoid the horror of his policies.
Yes, Resident Biden, our bumbling, corrupt “leader” said “We created more new jobs in two years than any president did in their entire term.” Of course, like almost everything that comes out of Biden’s mouth was a lie.
Actually, the US economy added 12.53 million jobs after April 2020 (Trump) while Bidenomics created took 2 1/2 years to add 12.56 million jobs. So, Biden took over twice as long to create jobs after Covid than it did under Trump. Simply opening the economy and schools produced that magical claim by Biden.
Then we have 25 consecutive months of negative REAL weekly earnings YoY.
And the 10Y-2Y Treasury yield curve is on a decidedly downward trend.
In other Hidin’ Biden news, Biden wanders off set as Nicolle Wallace wraps softball MSNBC interview.
Incredibly rude or just in advance stages of Alzheimer’s and/or Dementia. With his corrupt finger on the nuclear launch button.
The University of Michigan consumer survey results are out and there is good news! Sort of.
The UMich Buying Conditions for Houses rose to 47 in July! That is the good news. The bad news? It was at 142 in the last month before Covid and the economic/school shutdowns.
That is -67% lower than under pre-Covid Trump.
Nothing has been the same since Covid (aka, the Wuhan China Lab virus) where our corrupt politicians and lame street media (aka, government cheerleaders) show no interest in finding out what really happened.
Bitcoin cash is up 21.5% today.
Gold and silver are up today. Too bad I can’t buy nickel coins.
The Walking Dead’s Megan. The honorary symbol of Bidenomics.
Confounded Interest - Anthony B. Sanders 
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