Powell’d! Interest Expenses Soar At Big Banks As Fed Tightens Money (The Fed Is Playing A Game)

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.

The Fed played a game. And is still playing!!

There Goes The Economy! US Producer Prices Approach Deflation With 0.1% Annual Rise (US Dollar Down -8.2% Since Sept ’22 As Fed Tightens The Noose) Silver UP >2% Today!

There goes the economy!

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.

The good news? Silver is up over 2% today!

And Bitcoin is up almost a percent today.

Speaking of the Biden White House ….

Core Inflation Cools To 4.8% In June >2x Target, REAL Wage Growth Finally Goes Positive (1.2% YoY) While RENT Inflation Still Roaring At 8% YoY (Taylor Rule Now Implies A Fed Target Rate Of 10.42%)

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.

US Treasury 10Y-2Y Yield Curve Stumbles To -91.166 BPS As 30Y Mortgage Rates Climb To 7.37% (30Y Mortgage Rate UP 156% Under Bidenomics) Since November 3, 2022, US Dollar Index DOWN -9.68%, Gold UP 18.55%, Bitcoin UP 51.11%!

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%.

Printin’ The Night Away! US Treasury Yield Curve (10Y-2Y) Still Inverted, But Less So At -86.616 Basis Points (Return Of Liquidity)

The Federal Reserve is printin’ the night away!

Yes, as The Fed printin’ the night away, the US Treasury yield curve (10Y-2Y) is still inverted, but at -86.616 basis points.

The 2 year US Treasury yield is down -8.2 BPS, the largest decline in the world … after Greece!

Greece? The fiscal wreck on the Aegean! Opa!!

Bidenomics In 3 Charts! Share of Total Net Worth Held by the Top 1% Near All-time High, 25 Straight Months Of NEGATIVE Real Wage Growth, 3 Straight Quarters Of NEGATIVE Net Worth Growth

Bidenomics, which Bumbling Biden can’t explain, and his Press Secretary Karine Jean Pierre only utters “top down was a failure, we are trying the opposite!” Sorry Karine, Bidenomics personifies top down economic (mis)management where DC picks winners and losers as opposed to the free market. Under Biden’s corrupt administation, it is more like an economic FLEA market. Where the fleas get crumbs and the 1% get all the steaks and champagne.

Bidenomics is a confluence of insane levels of Federal spending and horrid Fed monetary policy, particularly in reaction to Covid.

Then we have 3 consecutive quarters of declining household net worth. Meanwhile, the Obamas and Biden (and {Pelosi) get wealthier by the day.

Finally, we have 25 straight months of NEGATIVE REAL weekly wage growth.

When Biden incoherently explains Bidenomics, he is really saying that he hates tax cuts to generate economic growth. After all, Biden and the DC bureaucracy think your money belongs to them.

Recession: It’s Already Here! US Household Net Worth Growth Goes Negative For 3 Consecutive Quarters (Worse Growth Since The Great Recession And Financial Crisis)

To quote Bill Paxton’s character from Twister: “It’s Already Here!”

The feared recession, that is.

The year-over-year growth rate in Household Net Worth has been negative for 3 consecutive quarters, the worst growth since The Great Recession and Financial Crisis of 2008/2009.

Of course, the Biden family household net worth is off the charts. As is the household net worth for other Washington DC politicians like Nancy Pelosi (Communist-CA). And AOC (Communist – NY).

Bankrate’s 30Y Mortgage Rate Rises To 7.31%, Up 154% Under Bidenomics (Fed Likely To Continue Rate Hikes)

Bidenomics, the massive Federal spending spree that helped drive inflation to 40 year highs, is the most top-down Soviet-style command economy model imaginable.

As The Fed battles Bidenflation, the 30-year mortgage rate has now risen to 7.31%, a far cry from 2.88% when Biden was installed as President. That is a 154% increase in the 30-year mortgage rate under Bidenomics.

The architect of Bidenflation, Snow Biden.

Biden Drains Strategic Petroleum Reserve For 14th Straight Week (SPR Down -46% Under Bidenomics, Reg Gas Price UP 48%, Diesel Fuel UP 47%) Hunter In The West Wing With A Straw!

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!

ADP Jobs Added 497k In June! Almost Guarantees Another Rate Hike At July FOMC Meeting, 10Y T-Yield UP >10 BPS, 2Y T-Yield UP 16 BPS (Yellen Goes To China?) Bitcoin Cash UP 10%

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??