Yes, one of the cornerstones of Bidenomics is the massive expansion of (impractical) electric vehicles (or EVs). You know, those mondo expensive cars that run out of power after a couple of hundred miles requiring a lengthy recharge (kind of makes long distance trips the domain of Internal Combustion Engine (ICE) cars.
But as Biden/Congress spent trillions on green energy (massive subsidies for anything green), we noticed that 1) inflation hit 40 year highs and 2) The Fed intervened to raise rates. So, now we see that 60-month auto loan rates are now around 7.36%, up 74.4% under “Middle Class Joe.”
And we see used EV prices collapsing like a week-old soufflé.
Speaking of green energy fraud, here is the leader of the green energy fraud movement, John F’ing Kerry. Aka, Heinz Planes Grifter.
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.
In June, the White House revealed a new public relations campaign called “Bidenomics” to define President Biden’s economic agenda ahead of the 2024 presidential election cycle.
“I don’t know what the hell that is, but it’s working,” Biden stated at a June 17 rally in Philadelphia, begging the question, is it actually working?
NO!!!!
Americans, particularly middle-class ones, have been crushed in the inflation storm. They’ve been battered by two years of negative real wage growth, forcing many to quickly draw down on savings while using credit cards in a high-interest-rate environment to make ends meet.
Washington DC saw a spike of 30% YoY in homelessness. Chicago at 82.2% YoY!
Bidenomics, a marketing ploy to sell trillions in monetary and fiscal stimulus for green nonsense. Highly directed, not bottom-up (or middle-out?) as Biden gloats.
New Bidenomics slogan! We helped move families from polluting houses into the fresh air and sunshine!!! Win, win! Living La Vida Bidenomics!
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.
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.
As Bidenomics (why Biden would brag about massive inflation in energy, food and shelter is beyond me), lurches forward, we have another shred of lousy economic news: US mortgage purchase demand fell -19% from the previous week and is how down -53% under Bidenomics).
Mortgage applications increased 0.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 7, 2023. This week’s results include an adjustment for the observance of Independence Day.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 19 percent compared with the previous week. The Refinance Index decreased 21 percent from the previous week and was 39 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 19 percent compared with the previous week and was 26 percent lower than the same week one year ago.
Yes, mortgag purchase demand is down a staggering -53% under Bidenomics (another word for the next best thing to Socialism which is Federal control of where the trillions are spent). Economic traffic led by The Keystone Kops.
Here is the rest of the data. Mark Zandi will look at the seasonally adjusted data, I look at the raw or non-seasonally adjusted data.
On a different note, I watch “Sound of Freedom” last night. A tremendous film highlighting the problem of pedophelia and child sex slavery in the US and Latin America. Very, very moving. Biden should be ashamed for cancelling Trump’s anti trafficking program.
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%.
Bidenomics relied of massive Federal spending thanks to Covid and massive monetary expansion. This led to the highest inflation in 40 years (Bidenflation). But now The Fed is slowing M2 Money growth into negative territory and hiking their target rate.
The result? Bank credit growth has crashed to 0.5% YoY. In other words, banks are no longer expanding credit for the first time since the aftermanth of The Great Recession and Financial Crisis of 2008/2009. Of course, Washington DC bailed out their bestest buddies, the banks, while middle America suffered.
As America loses steam under Biden and The Fed, 41+ countries have signed on to the BRICs gold-backed reserve currency. Unlike the USA with its fiat currency (backed by Babbling Biden and Janet “The Midget Marxist” Yellen), this reserve currency will be backed by gold.
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.
Confounded Interest - Anthony B. Sanders 
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