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??
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 the sad headline of the day (other than pure chaos on the Mexican border) is that NO RENT IS BEING PAID ON 20% OF ALL US OFFICE SPACE! And small banks hold 70% of commercial real estate loans!
Things are so bad, in fact, that 26 Empire State Buildings could fit into New York City’s empty office space, as occupancy in the city is hovering around 50% of prepandemic levels,
As The Fed momentarily pauses rate hikes, office vacancy rate just hit an all-time high. Another Biden first!! And the NCREIF office property index falling as The Fed tightens.
Treasury Secretary Janet “The Evil Hobbit” Yellen is a Statist. She can only think of an all powerful central government calling the shots since the private sector and individual liberties are something to be eliminated.
Yellen has mostly declined to spell out what her department would do if Congress fails to raise or suspend the debt limit before the Treasury finds itself unable to cover all the government’s obligations.
Back in Mordor on The Potomac, President Joe Biden and House Speaker Kevin McCarthy postponed a meeting on the debt ceiling set for Friday. People familiar with the talks said the postponement was a sign that staff-level talks were yielding progress.
Biden and congressional Republicans have been locked in disagreement for weeks over raising the US federal government’s $31.4 trillion borrowing limit. GOP leaders have demanded promises of future spending cuts before they approve a higher ceiling. Biden has jinsisted on a “clean” increase, with budget talks kept separate.
Now what no one in our lame pro-government media or Congress or Administration has said is the a US debt default does NOT necessarily mean that the US walks away from its debt. Very likely, China and Japan, our two biggest foreign debt holders, will insist on debt restructuring so that the US pays some fraction of debt owed, like 80%.
But foreign debt holders are a relatively small percentage of US debt holders. The Federal Reserve is the largest single borrower, thanks in part to Yellen who has formally Federal Reserve Chair,
Of course, financial entities like Vanguard, Blackrock and Fidelity are the largest holders of US debt. Since pensions invest heavily with these enetitites, the Federal government would restructure the debt rather than outright default.
US CDS 1Y continues to remain high as Biden/Yellen/Schumer play chicken with the lives of the American middle class while the political donor class is clamoring for endless spending and wealth transfers.
Remember, Biden, Yellen and Schumer all Statists and believe that their job is growing Federal government to wear it is all powerful and their donors get billions in subsidies and wealth transfers. You don’t think green energy subsidies make any common sense, do you? Wind turbines (aka, whale and eagle killing machines) are ineffective. We need nuclear power but Progressives fear nuclear power as much as they have Donald Trump.
Another dismal economic report under “Middle class” Joe Biden.
April’s inflation report is out and … it sucks. Core inflation (CPI less food and energy) remains elevated at 5.5% YoY, much higher than The Fed’s target rate of 2%. Even worse, US REAL average weekly wage growth is negative again at -1.1% YoY, negative growth for the 25th straight month.
Turns out that core inflation is higher than overall inflation. 4.9% YoY compared to core of 5.5% YoY.
Despite the hot core inflation report, Fed Funds Futures are pointing to declining rates over time.
While the US middle class is getting screwed, The Biden family are raking in millions …. from China.
California just did what Slow Joe Biden and Senate Majority Leader Chuckles Schumer are threatening to do. Biden and Schumer still refuse to negotiate (allegedly) sending the US Federal government careening towards a staggering debt default. The source of both California and US Federal government fiscal problems? Out of control government spending, aka, government gone wild!
In any case, California borrowed approximately $20 billion from the federal government to cover unemployment benefits during the pandemic, and with Gov. Gavin Newsom’s recent decision to not pay it back, employers are now saddled with the expense, according to experts.
“The state should have taken care of the loans with the COVID money it received from the government in 2021,” Marc Joffe, policy analyst at the Cato Institute—a public policy think tank headquartered in Washington, D.C.—told The Epoch Times.
In the proposed 2023–2024 budget, $750 million was allocated to start paying down the loans, but Newsom made changes to the plan in January and withdrew the funding.
The Epoch Times’ request for comment from Newsom’s office was not returned on deadline.
The decision leaves businesses in the state responsible for the loans—as mandated by federal regulations—so the federal unemployment tax rate of .6 percent is set to increase by .3 percent annually, starting in 2023, until the loan is extinguished.
“California is just not really an employer-friendly state,” Joffe said. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”
Twenty-two states borrowed money for unemployment insurance from the federal government during the pandemic, with all but four—California, Colorado, Connecticut, and New York—paying back their debts.
California owes the most, by far, with approximately $18.6 billion outstanding as of May 2, followed by New York’s $8 billion, Connecticut’s $187 million, and Colorado’s $77 million, according to U.S. Treasury Department data.
The discrepancy in amounts borrowed and owed by states lies in the different approaches to managing the pandemic, with California’s stricter lockdown causing unemployment to remain higher and longer, according to experts
And CA CDS 1Y is tame (only 31), the CDS curve over a longer time frame looks miserable.
Now, Gruesome Newsom only default on Covid-related loans. The California municipal bond market is huge and CA has defaulted on those loans …. yet.
Speaking of insane fiscal “management,” a repartations plan in California could cost billions.
California’s reparations task force, which first convened nearly two years ago, has given the final approval to a list of recommendations on how the state may compensate and apologize to Black residents for historical discrimination. “Reparations are not only morally justifiable, but they have the potential to address long standing racial disparities and inequalities,” Representative Barbara Lee (D-CA) said during a weekend meeting. The proposals now go to state lawmakers to consider reparations legislation and a final sum, which some economists could cost the state upwards of $800B, or almost 3x the state’s annual budget.
To be initially eligible, applicants must be a descendant of Black people who were in the country by the end of the 19th century, thouqh there are not yet details on how the payments would be funded. Age, state residence, and other factors will also play a role in determining compensation.
There is the rub – how does California finance the reparations? Raise taxes (unfair to people who never did anything wrong to blacks)? Borrow billions? Given that Newsom just defaulted on loans to California might mean that there will be relucatance to lend CA billions more.
CA Governor Gavin “Slick” Newsom. The Defaulter In Chief of California.
Some are marvelling that M2 Money VELOCITY (GDP/M2) is rising as if this is a miracle. It isn’t. Under Biden, public debt has increased by $3.7 trillion. But as The Fed pulls back and M2 Money growth slows, M2 Money Velocity is rising. But still below historic levels.
Doctor, doctor (Yellen). We have a bad case of excessive and wasteful Federal spending and debt.
China doesn’t have to invade the US. Biden, Schumer and Jeffries are destroying the country on their own.
While Biden is bailing out banks and Ukraine (and taking bribes from China), I am struggling to buy a bottle of wine.
This is last data dump for mortgage demand (applications) before Biden’s idiotic woke mortgage policies go into effect (taxing those with good credit to subsidize those with lousy credit) take effect. I call this Bolshevik Biden’s Mortgage Market.
Mortgage applications decreased 1.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 28, 2023.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.4 percent compared with the previous week. The Refinance Index increased 1 percent from the previous week and was 51 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 32 percent lower than the same week one year ago.
Drifting into darkness, we have the West getting battered with my old hometown of San Francisco leading the pack at -10% YoY with Seattle down -9.3% YoY.
You know things are bad out west when Cleveland, Detroit and Chicago are gaining ground in prices. And Miami was up 10.8% YoY.
Confounded Interest - Anthony B. Sanders 
You must be logged in to post a comment.