Too Much Debt? Harris Proposing $1.7 Trillion In Spending Despite The US Begin $35+ Trillion In Debt And $218+ Trillion In Unfunded Liabilities (National Assets Of $213 Trillion Less Than Unfunded Liabilities Of $218+ Trillion)

Too much debt? Kamala Harris doesn’t think so. She is proposing economic policies costing $1. 7 trillion without sufficicent offsets. Harris is putting the US on the path to default, following numerous other badly managed nations, like Ukraine and Greece. And much of Latin America.

The US is already at $35+ trillion with unfunded liabilties totalling $218+ trillion. Of course, the Biden Administration is attempting to cut Medicare for seniors and raise the price while handing out unlimited benefits to illegal immigrants.

In July, Ukraine avoided defaulting on $20 billion in loans by reaching a preliminary agreement with private creditors.

.Given the financial burden of war, the country suspended interest payments on international debt over the last two years, which was set to expire on August 1, 2024.

Without this new debt restructuring, this default would have ranked among the 10 largest in recent history. The last time Ukraine defaulted on its debt was in 2015, after Russia’s invasion of Crimea.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows the largest sovereign debt defaults since 1983, based on data from Moody’s via Aswath Damodaran.

The Top 10 Sovereign Debt Defaults

Below, we show the biggest sovereign debt defaults between 1983 and 2022:

Greece’s $264.2 billion default in 2012 stands as the largest overall, unfolding when the country was mired in recession for the fifth consecutive year.

The country defaulted again just nine months later, making it the fourth-largest ever. Leading up to the crash, Greece ran significant deficits despite being one of the fastest-growing countries in Europe. Furthermore, in 2009, the newly elected prime minister revealed that the country was $410 billion in debt—substantially more than previous estimates.

With the second-highest default recorded, Argentina failed to repay interest on $82.3 billion in foreign debt in 2001. Like Greece, it is a repeat offender, defaulting numerous times since independence in 1816. Today, Argentina is the largest debtor to the International Monetary Fund, despite being Latin America’s third-largest economy.

Following next in line is Russia’s 1998 default on $72.7 billion in loans, coinciding with a currency crisis that erased more than two-thirds of the ruble’s value in a matter of weeks. That year, several other countries including Venezuela, Pakistan, and Ukraine defaulted on their debts after the Asian Financial Crisis of 1997 spurred instability in global financial markets.

Just as 1998 saw a wave of defaults, 2020 was a year marked by major debt upheavals. Due to the pandemic and collapsing oil prices, it was a record year for sovereign defaults, reaching seven in total. Among these, Lebanon, Ecuador, and Argentina saw the largest defaults amid deepening fiscal pressures.

Harris is just another free-spending politician who will eventually lead the US into default. But at least Harris/Walz exude joy.

At least Harris/Walz haven’t adopted (stolen) the phrase “Work makes one free”.

Krugman’s Grossly Misleading Inflation Victory Declaration … BUT Purchasing Power Of US Dollar Is Down -16.5% Under Biden (Food Prices UP 21%, Home Prices UP 34%, Used Car/Truck Prices UP 17.7%)

Call it Washington DC soullessness.

Back in 2023, Socialist Paul Krugman declared that “the war on inflation is over!!! “We” won, at very little cost.” I love when elitists claim “We won!” since clearly 99% of Americans lost since food, housing and car prices up are double digits under Biden.

The problem is that food, energy, shelter, and used cars/trucks are a huge part of Americans consumption basket.

Under Biden, food CPI is up 23%. Home prices are up 34% and used cars/truck prices are up 17.7%.

A note to Paul Krugman, YOU may have won, but the rest of Americans lost. Consumer purchasing power of the US Dollar is DOWN 16.5% Under Biden.

Here is where we stand under Bidenomics.

Ask Joe if he cares.

Mortgage Purchase Applications Rise 3.3% Since Last Week, But DOWN -10% Since Same Week Last Year (Goin’ Down!)

Mortgage application increased on the latest survey from the Mortgage Bankers Association, but mortgage purchase application are still down compared to one year ago.

Mortgage applications increased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 12, 2024.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4 percent compared with the previous week. The seasonally adjusted Purchase Index increased 5 percent from one week earlier. The unadjusted Purchase Index increased 6 percent compared with the previous week and was 10 percent lower than the same week one year ago.

The Refinance Index increased 0.5 percent from the previous week and was 11 percent higher than the same week one year ago.

Bidenomics, a massive subsidy to the political donor class, but heartless towards the middle class.

US Housing Starts Collapsed In March – Biggest Drop Since COVID Lockdowns (1-Unit Housing Starts Decline)

Come feel the noise! After steady growth in 1-unit housing starts under Trump, housing starts have been eratic under Biden despite the foreign invasion force of millions … of low wage workers.

The roller-coaster ride in housing permits, starts, and completions in the last few months is set to continue today… and ‘surprise’ they did. After a big (+10.7%) surge in February, Starts crashed 14.7% MoM in March (massively worse than the 2.,4% drfop expected). Building Permits also plunged (-4.3% MoM vs -0.9% exp)…

For context, this is the largest MoM drop in housing starts since the COVID lockdowns…

Source: Bloomberg

It was a bloodbath across the board with Rental Unit Starts plummeting 20.8% MoM…

Source: Bloomberg

That pushed total multi-family starts SAAR down to its lowest since COVID lockdowns…

The plunge in permits was less dramatic and driven completely by single-family permits down 5.7% to 973K SAAR, from 1.032MM, this is the lowest since October. Multi-family permits flat at 433K

Intriguingly, while starts and completions plunged in March, the BLS believes that construction jobs surged to a new record high…

Source: Bloomberg

Finally, just what will homebuilders do now that expectations for 2024 rate-cuts have collapsed?

Source: Bloomberg

One thing is for sure – do not trust what homebuilders ‘say’ (as NAHB confidence jumped to its highest since May 2022 at the same time as housing starts crashed)…

Source: Bloomberg

If they build them, will homebuyers come?

Source: Bloomberg

Simply Unaffordable! One Reason Biden Is Losing The Youth Vote: Unaffordable Housing (Mortgage Rates UP 160% Under Biden, Home Prices UP 32.5%)

One reason that America’s youth is disgusted with Bidenomics is skyrocketing prices, particulalry housing. (simply unaffordable). Thanks to awful economic policies, home prices are up 32.5% under Biden and 30-year mortgage rates are up a whopping 160%! Good luck buying a home with a part-time job.

The bad news is that the 10-year Treasury yield rose to 4.53%, the highest since November 2023. This means that mortgage rates will rise even further.

Yes, rising rates AND home prices are daunting to part-time job holders.

Of course, Biden and Powell want to addicted to gov.

Doctors, doctors (Yellen and Brainard), we’ve got a bad case of unaffordable housing.

Funky Cold Joe Biden! Inflation Comes In HOT For 4th Consectutive Print (Core Inflation Hotter Than Expected At 3.8% YoY)

Funky cold Joe Biden is his reaction to inflation caused by his outragous spending. His legion of sycophants are now saying inflation is a good thing or don’t notice it. But Biden will never stop spending .

Coming into today’s CPI number, which followed three previous red-hot inflation prints, we said that it’s time for a “miss” (the first of 2024) not because the data demands it – on the contrary, prices continue to rise at a frightening pace – but because a dovish CPI print today would be the last opportunity for the Fed to set a timetable for a rate cut calendar ahead of November’s election.

Well, you can wave goodbye to all that, because we just got the 4th consecutive “inflation beat” in a row…

… with supercore inflation coming in blazing hot…

… thanks to a boiling inflation print which saw every single CPI metric coming in hotter than expected – was a shock, not because it reflected reality, but because it effectively sealed Biden’s fate because as Bloomberg’s Chris Antsey writes, “obviously, this is very bad news for Joe Biden… we’re approaching the point where high inflation is bound to still be in voters’ minds when they head to the polls, regardless of how the price figures come in over summer.”Easy financial conditions continue to provide a significant tailwind to growth and inflation. As a result, the Fed is not done fighting inflation and rates will stay higher for longer.”

It’s about to get even worse: recall today we have a $39 billion 10-year auction which is already being dubbed “sloppy” and a definitive break of 4.5% could easily extend if underwriting dealers are left holding the bag. As it stands, the 10yr has popped above the 4.5% parapet. Ian Lyngen at BMO Capital Markets says:“We expect the setup to the auction will break 4.50% in 10-year yields with ease.”

Obviously, this is very bad news for Joe Biden. It’s still only April, and we’ll have another half-a-year’s worth of inflation reports before the election. But we’re approaching the point where high inflation is bound to still be in voters’ minds when they head to the polls, regardless of how the price figures come in over summer.

Joe Biden continues to act like a gangsta giving away student loan forgiveness despite being told no by the US Supreme Court. As I said, Funky Cold Joe Biden. But Biden’s gangstaism favors the top 0.5% of net worth people, not the masses.

As Biden gropes for more voters, claiming he was raised in Puerto Rican, Greek, Black, and every other race on the planet, he probably sings “Ride The White Horse” to The Presidency. Reminiscint of Hillary Clinton claiming she kept a packet of hot sauce in her purse when talking to a black commentator.

Biden versus Trump?

US Pending Home Sales Disappoint In January, Falling -6.82% YoY

I feel like the economy is fixing to die. At least the housing and mortgage sectors.

Pending home sales puked in January, tumbling 4.9% MoM (vs +1.5% MoM exp). This was made worse by a large downward revision for December (from +8.3% MoM to +5.7% MoM)…

Source: Bloomberg

That was the biggest MoM decline since August and dragged the YoY sales decline to -6.82%, tumbling back near record lows…

Source: Bloomberg

Realtors gonna realtor…

“This combination of economic conditions is favorable for home buying,” Lawrence Yun, NAR’s chief economist, said in a statement.

“However, consumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales.”

WTF are you talking about Larry?

Earlier this week, a gauge of US mortgage applications for home purchases fell for a fifth week, nearing its lowest level since 1995.

Who could have seen that coming? As rates surged once again…

Source: Bloomberg

The pending-home sales report is a leading indicator of existing-home sales given houses typically go under contract a month or two before they’re sold.

The index of contract signings decreased 7.3% in the South, the nation’s biggest housing market.

Pending sales also fell 7.6% in the Midwest, but climbed 0.8% in the Northeast and 0.5% in the West.

“Southern states and those in the Rocky Mountain time zone experienced faster job growth compared to the rest of the country,” Yun said.

“As a result, long-term housing demand is increasing more significantly in these regions. However, the timing and number of purchases will largely depend on the prevailing mortgage rates and inventory availability.”

Overall sales are expected to increase 13% this year, according to NAR’s economic outlook, but as the chart above shows, unless rates start tumbling soon, that ain’t gonna happen.

Simply Unaffordable! Home Prices In 575 Counties Show Housing Unaffordable In 99% Of Counties (Home Prices UP 33% Under Biden, Mortgage Rates UP 149%, Average Weekly Income UP 3% In January)

Simply unaffordable should be the campaign song for the upcoming election.

Housing under Bidenomics is simply unaffordable for many Americans since home price growth has outstripped average income for most Americans.

ATTOM Data Services examined the median home prices last year for roughly 575 U.S. counties and found that home prices in 99% of those areas are beyond the reach of the average income earner. And to add insult to injury, 30-year fixed mortgage rates just rose back above 7%.

Although the Attom data is from Q3 2023, not much has changed. Under Biden (and his HUD Secretary Marcia Fudge, Fed Chair Jay Powell, and Treasury Secretary Janet Yellen), I did manage to find TWO AFFORDABLE areas to live: Shreveport Louisiana and Midland/Odessa Texas. The housing market remains unaffordable for millions of Americans.

I am not surprised given that the Case-Shiller National home price index has risen by 32.7% under Biden while mortgage rates are up … 149%.

Here is a chart of home prices against M2 Money.

Doctor, Doctor (Yellen), please stop the insane spending and borrowing!

Washington DC’s Reverse Robin Hood Model: Steal From The Middle Class And Bottom 50% And Give To The Elites (The New Forgotten Man)

Robin Hood is a legendary heroic outlaw originally depicted in English folklore and subsequently featured in literature, theatre, and cinema. Traditionally depicted dressed in Lincoln green, he is said to have stolen from the rich to give to the poor. Politicians have created the new “Forgotten Man” by Amity Shlaes.

However, politicians like Joe Biden, Chuck Schumer, Mitch McConnell are “reverse Robin Hoods” dressed in business suits (although Jamie Raskin D-MD is often seen wearing a bandana and John Fetterman D-PA is often seen in a hoodie and shorts). They instead enact policies that steal from the middle class and give to themselves and the donor class. How do you think that politicians like the Bidens, Obama, Clintons and AOC go in broke and emerge as multi-millionaires?

Part of the problem with the reverse Robin Hood model is the Federal Reserve itself. They helped punish the 99% with inflation due to excessive money printing. The share of total net worth held by the top 1% has exploded since The Fed’s rate cuts following the 2001 recession. The Fed has never lowered rates since to levels we saw prior to the 2001 recession, although The Fed is getting close.

Then we have the green energy hysteria (which like pornography excites the brain and distorts logical thinking). Wealthy donors have received a massive windfall (along with China) from Biden/Congress’s green energy spending (scam). The middle class and low-wage workers are now playing higher utility bills (sacrificial lambs on the altar of global warming … or cooling) along with seeing gasoline and diesel prices far higher than before Biden was elected. Gasoline prices are up 46.25% under Biden and diesel prices are up 55.6%.

I like this chart of the distribution of household wealth by income group. The top 1% (the elite Pelosi class, are getting wealthier and wealthier. The 90-99% group are doing well, but not as well as the top 1%. The bottom 50% (who the Washington DC elite class seems to have forgotten about)

Here is a table of the same data.

Then we have the exploding mortgage rates under Biden. Rates are up over 155% under Old Grandad Joe Biden. Another shot through the heart of the middle class. And Washington DC is to blame.

Speaking of Washington DC millionaire elites, I want to share this picture with you. Hillary Clinton is NOT Robin Hood but an example of a REVERSE Robin Hood.

Another Biden Program Bites The Dust! Ford Halts 2024 F-150 Lightning Shipments (Jan Car And Light Truck Sales Down -0.7% YoY As M2 Money Growth Remains Negative)

Another Biden program bites the dust, this time his big push to encourage everyone to buy an electric vehicle (EV). Meanwhile, Biden keeps going on vacation (as if he REALLY cares about middle America).

Cars and light trucks are seeing declining YoY sales in January (-0.7%) as M2 Money growth remains negative.

Automotive News was the first to report Ford Motor Co. halted shipments of all 2024 F-150 Lightning electric pickup trucks for an undisclosed quality control issue just weeks after slashing production volumes for the EV model due to sliding demand.

A Ford spokesperson did not explain the reasons behind the quality check, but shipments of Lightnings have been halted since Feb. 9. Even with shipments paused, production of the Lightnings continues at the Rouge Electric Vehicle Center in Dearborn, Michigan.

“We expect to ramp up shipments in the coming weeks as we complete thorough launch quality checks to ensure these new F-150s meet our high standards and delight customers,” company spokeswoman Emma Bergg wrote in a statement.

Last month, Ford announced plans to slash the Lightning production in April “to achieve the optimal balance of production, sales growth and profitability.”

The automaker (and many others, like Mercedes Benz) is recalibrating its electric vehicle strategy as the Biden administration plans to downshift the EV transition as demand plummets.

Thousands of auto dealers nationwide recently warned the ‘climate change warriors’ in the White House: the 2030 EV push is backfiring.

“Currently, there are many excellent battery electric vehicles available for consumers to purchase. These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots,” the dealers said.

They warned: “Already, electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”

A recent note by RBC analyst Tom Narayan said the EV slowdown is far from over:

“Key takeaways thus far from earnings season are that the EV slowdown is not showing any evidence of an inflection, Level 4 autonomy headwinds continue to persist, and fears over supplier inventory overbuild are likely overblown.

Analyst Adam Jonas at Morgan Stanley suggested consolidation is coming to the industry:

Given that Biden’s 2030 EV mandate is in full collapse, the downturn in the EV space will likely continue through the second half of this year.

Oddly, Biden’s push for chip manufacturing has worked (at least Nancy Pelosi made over $1 million on NVIDIA). I am so glad the Biden/Congress are making Pelosi even wealthier. /sarc

Biden and Pelosi, two honorary Venezuelan plutocrats.