US Unfunded Liabilities Total $217.63 Trillion While TOTAL US National Assets Equal Only $210 Trillion (National Debt Equals $35 Trillion And Growing Awfully Fast!) Unfunded Liabilities 6.23X National Debt!

This scene from the film “McCabe and Mrs. Miller” sums up our political plight quite nicley. Politicians spend like crazy to stay in power (Biden/Harris) are excellent examples). Politicians promises endless money, then shoot the economy. The US is broke and relies on printing money and boowed funds to stay afloat. Harris wants to raise taxes on everyone to fund her plans like even MORE emphasis of failed green energy schemes and endless foreign wars. I doubt if Harris could defend her spending plans in light of the US already $35 TRILLION in debt.

Even more worrisome if thev fact that DC politicians have promised entitlements (Social Security, Medicare, etc. totalling $217.63 Trillion. Or 623% higher than the rapidly increasing national debt.

Biden/Harris raised thr national debt by 25% in less than 4 years. And Harris wants to increase spending! Harris wants illegal immigrants put on Social Security and Medicare, further bankrupting those entitlement programs.

Let’s see Harris explain her indefensible budget (like raising taxes and not hurting economic growth).

Cacklenomics! Buying Conditions For Houses Hits All-time Low (High Mortgage Rates + High Home Prices)

Cacklenomics strikes again!

The University of Michigan consumer survey revealed that buying conditions for housing just hit an all-time low.

High house prices and high mortgage rates aren’t helping.

Purchase loan demand keeps dropping.

US Yield Curve Is Least Inverted 2 Years (Signal Of Impending Fed Rate Cut)

Shape of things. Thw Fed will likely cut rates shortly helping the flagging mortgage market

The US Treasury yield curve, of Jay Powell and The Blackhearts, .js the least inverted in 2 years, signalling an impending Fed rate cut.

The Fed loves manipulating interest rates!

US New Home Sales Fall In June As Homebuyer Confidence Crashes To Record Low (Biden/HarrisNomics or Cacklenomics)

From Zero Hedge.

After a disappointing dump in existing home sales in June, new home sales just confirmed the slowdown, dropping 0.6% MoM (notably below the 3.4% MoM expected) and also saw a major downward revision in May from -11.3% MoM to -14.9% MoM. That leaves new home sales down 7.4% YoY…

Source: Bloomberg

That shift dragged the new home sales SAAR down to 617k – basically unchanged since 2016…

Source: Bloomberg

While the median new home price rose in June, it remains below the median existing home price…

Source: Bloomberg

It appears the homebuilder subsidy fad is wearing off as mortgage rates show no signs of easing significantly…

Source: Bloomberg

Of course, none of this should be a surprise as homebuyer confidence has collapsed to an all-time record low…

Source: Bloomberg

Will cutting rates help?

Probably not. Bidenomics is now called Harrisnomics (or Cacklenomics) since Harris as VP was the tiereaker in the US Senate. So, she holds some responsibility for the outrageous, wasteful spending in Washington DC.

Is The World Souring On US Treasuries And The Fed? Biden/Congress Out Of Control Spending Is A Disaster (UNFUNDED Entitlements Promised By Federal Government Larger Than Total National Assets!)

Here is a chart of Non-commerciak net positions for US Treasuries, currently showing more bailing out of Treasury positions. Has the world sours on DC’s fiscal train wreck and The Fed?

Of course, budget deficits are a disaster with Biden/Congress spending like drunken sailors in port and showing no signs of letting up. The good news? At least a court struck down Biden’s illegal cancelation of student debt (a desperate attempt to win votes). That would have spiked the budget deficit.

As I pointed out yesterday, the UNFUNDED entitlements promised by the Federal government are now larger than that total national assets (business, household). In other words, if the US liquidated ALL assets, they couldn’t pay off the UNFUNDED entitlements. And good luck taking away the entitlements!

Nothing From Nothing! Conference Board Leading Economic Indicators Remains Negative At -4.8 YoY (US Unfunded Entitlements Now Exceed Total US National Assets!)

Nothing from nothing should be the slogan of Bidenomics.

Conference board’s leading economic indicators remains negative YoY at -4.8.

Worried? What if I told you that the promises of unfunded entitlements from the Federal government now exceeed the TOTAL national assets of the US??

Way to go, Joe! But he had plenty of help from Congress.

Something Stupid! Biden Proposes Rent Control Of 5% Annual Cap Rent Increases

President Biden was expected yesterday to propose a cap of 5% on annual rent increases for tenants of major apartment landlords, and he did. Whether it can happen is something else.

As the White House communicated on Tuesday, the administration is looking for Congress to pass legislation for landlords with more than 50 units in their portfolios, that being the proxy for institutional owners, although it would also affect private investors, family offices, and others that might own at least that many units. According to administration calculations, the total pool would cover 20 million rental units.

The law would then give landlords a choice. They could either restrict annual rent increases to no more than 5% a year or they would forfeit the ability to take fast depreciation of rental housing. There would be an exception for new construction or “substantial renovation or rehabilitation.”

So, Biden is dusting off the old Jane Fonda/Tom Hayden Santa Monica, CA rent control scheme.

I am guesing that this will not pass the House, but will probably pass in the Confederacy of Dunces: the US Senate.

Going Down! US Producer Prices Rise At Fastest Pace In 15 Months As Services Costs Soar (Buying Conditions For Housing Hit All-time Low!)

We’re going down!

After May’s MoM deflationary impulse (thanks to a plunge in energy costs), June was expected to see a modest 0.1% rise (and we have seen energy prices starting to rise again). Sure enough, headline PPI printed HOT at +0.2% MoM (and May was revised higher), pushing the YoY print up to 2.6% (well above the 2.3% expected)…

Source: Bloomberg

That is the highest PPI since March 2023.

Core PPI rose by 0.4% MoM (double the 0.2% exp), sending the YoY price rise up by 3.0% (also the hottest since March 2023)…

Source: Bloomberg

The jump in PPI was driven by a resurgence in Services costs as Energy remains deflationary (for now)…

Source: Bloomberg

The June rise in the index for final demand can be traced to a 0.6-percent increase in prices for final demand services. In contrast, the index for final demand goods decreased 0.5 percent

Perhaps worse still, the pipeline for PPI (intermediate demand) is accelerating…

Source: Bloomberg

On the housing side, buying conditions for housing tanks to all-time low.

MBA Purchase Applications (Demand) Drops 13% YoY (Demand Keeps Falling Under Biden)

That’s the way Biden likes it! Dependence on the Federal government. The MBA data is adjusted for Dependence Day.

Mortgage applications decreased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending July 5, 2024. Last week’s results included an adjustment for the July 4th holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 20 percent compared with the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index decreased 19 percent compared with the previous week and was 13 percent lower than the same week one year ago.

The Refinance Index decreased 2 percent from the previous week and was 28 percent higher than the same week one year ago.

Mprtgage prepays fell less than daycoiunt.

But on;y high-coupn GNMAs prepayments sped up.

Finally, most out-of-the-money loans are now fully seasoned.

And a bigger wave of refi-eligible Ginnies are cpming up! So watch out if Powell and The Gang lower rates. Prepayment boogie!!

58% expect a new refi wave to start in 2025.

US Economy Slowing Like Biden, Down To 1.7% (According To Hot ‘Lanta Fed), Mortgage Payment As % Of Income Near Highest Since Early 1980s

Hot ‘Lanta! Or perhaps COLD ‘Lanta! And despite what Biden says, thiere isn’t an economic revival.

Yes. everyone can see the mental decline in President Biden and he should be in a nursing home. While he vows to run for President against Donald Trump, can you imagine what he will be like in 2 years? Let alone another 4 years??

Speaking of decline, GDP growth estimates are plummeting: The most recent Atlanta Fed estimate for real US GDP quarterly growth in Q2 2024 is down to 1.7%.

This estimate is down from 4.2% seen in mid-May and from 2.2% seen on June 28th.
If this estimate turns out to be correct it will be the 2nd consecutive quarter of GDP growth below 2.0% after Q1 2024 GDP of 1.4%.

Housing hasn’t slowed across the board … yet. But with mortgage payments as % of income near the highest since the early 1980’s, it will eventually slow down.

There is only one way out. CEASE Bidenomics and the crazy spending and debt and deficits!