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The Coming Financial Sentinel Event


MyLadiesDaddy
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I doubt many people will understand the severity of this action. BOE has just told the world how much/little pain that Central Banks are willing to tolerate before pivoting. 

Get ready for the greatest Hyperinflation in the history of humanity. 

 

 

To Calm Markets, Bank of England Will Buy Bonds on ‘Whatever Scale Is Necessary’

The purchases are designed “to restore orderly market conditions,” the central bank said, after days of turmoil that followed the government’s plan for sweeping tax cuts and higher borrowing.

 

https://www.nytimes.com/2022/09/28/business/economy/bank-of-england-bonds.html

 

This article is part of our Daily Business Briefing

The Bank of England is taking steps to intervene in the financial markets after the announcement of an economic growth plan spooked investors.
Credit...Maja Smiejkowska/Reuters

By Eshe Nelson

Reporting from London.

 

The Bank of England intervened forcefully on Wednesday to relieve days of market turmoil after the new government’s fiscal plans sent borrowing costs soaring and the British pound sinking to record lows.

In an extraordinary intervention, the bank said it would undertake large-scale purchases of British government bonds in the coming weeks. In addition to bringing down interest rates, the move helped buoy the pound, whose weakening has added to the nation’s inflation worries.

“The purpose of these purchases will be to restore orderly market conditions,” the central bank, which is independent of the government, said in a statement. “The purchases will be carried out on whatever scale is necessary to effect this outcome.

After the announcement, stocks on Wall Street registered their first gain in more than a week. British stocks closed up slightly.

 

Bond and currency trading has been roiled since the new Conservative government of Prime Minister Liz Truss announced last week that it would seek to bolster economic growth by cutting taxes, especially for high earners, while spending heavily to protect households from rising energy costs.

The program has drawn criticism from political rivals and many economists, partly because of the extensive borrowing it will require at a time of rising interest rates and high inflation.

The International Monetary Fund, which works to foster global financial stability and monetary cooperation, signaled its alarm on Tuesday when it urged the government to reconsider its plans. It characterized the program as “large and untargeted” and said it was likely to worsen inequality.

But Treasury officials have given no indication that the government will reverse course, deflecting responsibility for the disruption in markets onto Russia’s war in Ukraine.

 

The Ukraine war and inflation have created challenges for governments and central bankers around the world this year, but the pound has performed particularly badly. Its recent declines make it one of the worst performers against the dollar.

Since the start of the year, the pound has declined about 20 percent against the dollar and about 6 percent against the euro.

Compounding the situation, the government’s sweeping fiscal plan — presented without an independent fiscal and economic assessment — sent investors fleeing from British assets. Traders inferred that the central bank would be forced to raise interest rates quickly, which pushed up short- and long-term borrowing costs, because the economic plans seemed likely to stoke economic demand and add to inflationary pressures.

The sell-off in British assets since Friday, when the government’s plan was announced, has particularly affected bonds with long maturities, the Bank of England said.

 

"Were dysfunction in this market to continue or worsen, there would be a material risk to U.K. financial stability,” it said in a statement. This would lead to a reduction of the flow of credit to businesses and households, it added.

It said bond auctions would take place from Wednesday until Oct. 14. The intervention has also forced the central bank to pivot off its intended course of selling bonds next week, after it bought them to support the economy through the pandemic.

The yield on 10-year British government bonds on Wednesday climbed as high as 4.59 percent — the highest since 2008 — before the central bank’s statement. This week, 30-year yields exceeded 5 percent for the first time since 2002.

After the announcement, bond yields dropped sharply, with the 30-year yield falling by more than a percentage point to just below 4 percent.

 

We’ve seen a dramatic reversal, but this is hardly a well-functioning market,” said Richard McGuire, a strategist at Rabobank. “There’s very thin liquidity,” making trading difficult, he added.

Mr. McGuire, who has been a fixed-income strategist for nearly two decades, said he had not seen anything resembling the recent moves in British debt outside of “something phenomenal” like the eurozone debt crisis a decade ago.

The central bank’s statement on Wednesday had echoes of a promise in 2012 by Mario Draghi, then head of the European Central Bank, to do “whatever it takes” to save the euro, which had come under severe pressure in the markets.

The intervention in Britain came after a central bank committee had warned of the risks to Britain’s financial stability from disruption in the government bond market. There had been concern about how the sharp rise in bond yields would affect pension funds, which tend to be large holders of long-dated government bonds.

 

At issue was a strategy used by liability-driven investment funds, which manage some pensions and have £1.5 trillion in assets. As bond prices plummeted, the investment funds needed to provide more collateral and were forced to sell bonds to raise cash, cementing losses. With so many funds trying to sell bonds into an illiquid market, there was the risk of a downward spiral in prices of government bonds — leaving funds that used this investment strategy potentially insolvent.

The bank said it would buy bonds with maturities of 20 years or more and be willing to buy up to £5 billion per auction. On Wednesday, it bought just over £1 billion worth of bonds.

“The Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for U.K. households and businesses,” the bank’s statement said.

The speed of the rise in bond yields had also disrupted Britain’s mortgage market, with some lenders pulling offers on new mortgages because they had become too difficult to price.

 

“A decision by the government to scrap some of the tax cuts, or to cut spending sharply, would help to alleviate the stress in” currency and bond markets, Samuel Tombs, an economist at Pantheon Macroeconomics, wrote in a research note. “But its actions to date have eroded confidence among global investors, which cannot be easily restored. Accordingly, a painful recession driven by surging borrowing costs lies ahead.”

The market turmoil and the central bank’s intervention reveal the extent to which the government’s plans are at odds with the bank’s monetary policy goals. The government is trying to quickly generate economic demand, while the bank is trying to cool it to lower inflation. Consumer prices rose nearly 10 percent in August from a year earlier, putting the inflation rate at levels unseen since 1982.

On Tuesday, Huw Pill, the chief economist of the Bank of England, said the government’s fiscal plans would be met with a “significant” response by officials at the Bank of England, who are scheduled to meet again in early November. Markets are betting that interest rates will rise above 5 percent early next year, from 2.25 percent.

Just last Thursday, the central bank said it would initiate its plan to sell bonds back to the market — a process called quantitative tightening — as it tried to end the long era of easy money in its fight against inflation. It had insisted there would be a “high bar” for the bank to deviate from the plan, which would over the next year reduce its holdings of bonds by £80 billion through sales and redemptions, to £758 billion. On Wednesday, the bank said it was postponing the start of sales until the end of October.

 

Even as the bank tried to differentiate between Wednesday’s effort to ensure financial stability and the bank’s monetary policy stance, the intervention risks worsening the confusion in markets about the central bank’s goals, Mr. McGuire said.

Among the questions, he said, are: “Are we trying to contain inflation? Are we pushing back against a fiscally expansive government? Are we undertaking quantitative tightening?” Or, alternatively: “Are we doing the opposite? Are we adding to the inflationary pressure? Are we simply going to keep buying more bonds?”

The lack of clarity, he said, “doesn’t seem to be a positive in terms of the outlook for U.K. assets.”

Eshe Nelson is a reporter in London, where she writes about companies, the British economy and finance.

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On 9/17/2022 at 9:58 AM, MyLadiesDaddy said:

 

OH, and Silver WILL rise to @ $1250 an ounce with Gold @ $10,000. This is documented by our own government. You just have to know where to look. 

Furthermore, this will happen via a revaluation "OVERNIGHT".

 

MyLadiesDaddy, please tell me where to look, where it's documented by the government about future silver and gold prices.

I have been trying to convince my family to buy some gold and silver, but they think I'm nuts.  They refuse to do it.

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18 hours ago, Floridian said:

 

MyLadiesDaddy, please tell me where to look, where it's documented by the government about future silver and gold prices.

I have been trying to convince my family to buy some gold and silver, but they think I'm nuts.  They refuse to do it.

I feel your pain. 

I've tried several times to warn everyone but most think I'm going insane. 

I even had to prove to my brother in law that in the state of Kansas Silver and Gold is legal tender. In other words you can even pay for things with Silver and Gold. 

When I told my Boss, who's highly intelligent and a millionaire, he didn't even know it was legal to actually own it. 

But when the financial world collapses they'll ALL be at our doors begging for help. 

 

So here's the link 

 

NATIONAL DEBT CLOCK

 https://www.usdebtclock.org/gold-precious-metals.html

 

On the bottom right of the page is the Silver to Gold ratio. Again that's the supposed value of Silver if we were on a Gold Standard. 

And if your family members still don't believe just ask them, if they aren't planning on returning to a Gold standard when everything falls apart why are they tracking the value of Silver and Gold for a Gold standard? 

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https://www.marketwatch.com/story/credit-suisse-whats-going-on-and-why-its-stock-is-falling-11664788464

 

Credit Suisse: What’s going on, and why its stock is falling

Referenced Symbols

Length4 minutes
 

Credit Suisse was trending for all the wrong reasons this weekend, as social media was in a frenzy debating whether one of the 30 global systemically important banks would collapse altogether.

The bank did open its doors on Monday. The bad news was, its shares CSGN, -8.48% CS, fell 11% at the open to a new record low, and have dropped 59% this year.

The market that has really caught the attention of traders is that of credit-default swaps. Those are effectively bets on whether a debt issuer will survive. The 5-year credit default swap widened on Friday to 250 — not an unusual level for a company, but high for a major bank, and Credit Suisse’s worst level since 2009. (UBS’s UBS, -1.09% 5-year credit-default swap was 126, and Goldman Sachs GS, -1.03% was 143, according to data from IHS Markit. The government of Switzerland’s 5-year CDS was at 7.)

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I have longed believed that Credit Suisse would be the first domino to fail in this financial collapse. The ramifications of this fall will be more devastating than the Lemans collapse in 2008 by far. 

 

Expect the Fed to reverse policy and return to quantitative easing. Thus creating a complete loss of faith in the markets. 

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Something  BIG is about to happen. I've NEVER seen the Silver to Dollar ratio fall so fast. Friday it was $1224

And now it's $990. 

Gold was $9,000 and now it's $7,292.

 

And Congress just printed hundreds of Billions for the new budget. These ratios should be skyrocketing, not falling. 

And I also think the cat is out of the bag. Silver jumped nearly $2 dollars today and Gold prices are up too. 

 

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Now we're going to be hearing the "DEPRESSION" word a lot more. 

 

 

UN urges Fed to pause interest rate hikes on global recession fears

Higher interest rates represent an 'imprudent gamble,' UN agency warns

https://www.foxbusiness.com/economy/un-urges-fed-pause-interest-rate-hikes-global-recession-fears

 

The Federal Reserve and other major central banks risk triggering a painful global recession followed by a period of stagnation with such aggressive interest rate increases, a United Nations agency warned Monday. 

In its annual report on the global economic outlook, the United Nations Conference on Trade and Development (UNCTAD) said the interest rate increases and austerity policies in wealthy nations represented an "imprudent gamble" that risked backfiring, particularly on lower-income nations. 

"There’s still time to step back from the edge of recession," UNCTAD Secretary-General Rebeca Grynspan said. "We have the tools to calm inflation and support all vulnerable groups. But the current course of action is hurting the most vulnerable, especially in developing countries and risks tipping the world into a global recession."

The agency estimated that a percentage point increase in the Fed's benchmark federal funds rate reduces the economic output in other wealthy nations by about 0.5%, and in poor countries by about 0.8% over the next three years. Lower-income nations will already see economic output tumbled by about $360 billion over the next three years as a result of the Fed's rate increases so far this year.

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On 2/6/2021 at 3:13 PM, MyLadiesDaddy said:

The National Debt Clock  tells us that the actual price  of Silver is over $4800 dollars

I started this thread on February 6th 2021. And everything I claimed in my original post has happened or is happening now. 

But understand in the financial world things take time.

Yet just 21 months ago the dollar to Silver ratio was $4800. Today it's been lowered to $989. Thats light speed in the world of economics. Either the Fed is destroying dollars or someone has discovered a boat load :pirateship:  of above ground Silver. 

 

OOOORRRRR, The ratio is being manipulated just like EVERYTHING else in the financial world. 

NOW WHY ON EARTH WOULD THEY DO THAT? 

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11 hours ago, MyLadiesDaddy said:

I started this thread on February 6th 2021. And everything I claimed in my original post has happened or is happening now. 

But understand in the financial world things take time.

Yet just 21 months ago the dollar to Silver ratio was $4800. Today it's been lowered to $989. Thats light speed in the world of economics. Either the Fed is destroying dollars or someone has discovered a boat load :pirateship:  of above ground Silver. 

 

OOOORRRRR, The ratio is being manipulated just like EVERYTHING else in the financial world. 

NOW WHY ON EARTH WOULD THEY DO THAT? 

NOW WHY ON EARTH WOULD THEY DO THAT? 

 

When I tell my son the same thing he always asks" Who is they?"

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  • 2 months later...

So many people willing to keep their head in the sand. All the while the most vicious financial storm in history is coming. 

 

 

US suffering from the second biggest home price correction of the post-WWII era

55% of Americans say they cannot afford to buy their home in today's market, according to the CATO Institute 2022 Housing Affordability National Survey

 

The U.S. housing market is experiencing its second-biggest home price correction of the post-World War II era.

 

 

The U.S. housing market is experiencing its second-biggest home price correction of the post-World War II era.

Macro Trends Advisors founding partner Mitch Roschelle attributed the massive correction to Americans' uncertainty for the markets and their "uneasiness" regarding the economy. He explained on "Varney & Co." Friday that the "shoe to drop" would be if the nation starts to see a rise in unemployment, which could cause a "leg down" in the housing market.

 

"A couple of things are going to cause it to turn in the opposite direction, meaning home prices are going up. One is certainty. And when you don't know if interest rates are going to go up or not. I think that is what is driving a lot of people away from buying because they just don't know if rates are going to be cheaper in two months, and they're just going to wait," Roschelle explained to FOX Business' Ashley Webster.

 

 

And the other thing is uneasiness regarding the economy. And I think the shoe to drop there would be if we start seeing layoffs, and we start seeing unemployment starting to rise, I think that could be something that causes a leg down in the housing market in a big way."

 
home for sale

A 'For Sale' sign sits in front of a home on the market as the country experiences its' second-biggest home price correction in the post-World War II era. (iStock  / iStock)

"Roschelle's comments come following the massive power shift happening in the real estate market. Arguing that the power has "completely shift[ed]" away from the sellers, further "constraining" the nation's struggling housing supply. 

"Right now, I would say it's a buyer's market. I think the power has completely shifted from seller to buyer. Doesn't mean you don't see some bidding wars because again, I think statistically across the country, we're at 3.3 months supply. So that's still relatively low," Roschelle said.

 

"So, if there's a house that hits the market that's perfect, and it ticks all the boxes for buyers and there are buyers out in the market, I think you could see sporadically bidding wars, but mostly, you know, it's one or two people chasing that house. And we're not seeing that. We're not."

In addition to the real estate markets' supply and demand problem, the average home price is expected to plummet from its pandemic-induced peak.

According to Fortune.com, housing prices in the United States in October 2022 are 38.1% above March 2020 levels. Roschelle predicts that the average home price will have to drop by 10% to 15% from its peak in 2022.

 

"My 10% to 15% [prediction] is from the peak in 2022, that where we land in terms of average home prices being down 10 to 15%. Which if we're talking about the stock market, it would certainly be seen as a correction, but not a bear market. The thing to remember is that from February 2020, home prices went up as much as 40% to where we are today," the housing expert explained. 

 
home for sale

FILE - In this April 1, 2020 photo, a "For Sale" sign stands in front of a home that is in the process of being sold in Monroe, Wash., outside of Seattle. (AP Photo/Elaine Thompson, File) (AP Photo/Elaine Thompson, File / AP Newsroom)

 

 

 

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https://www.foxbusiness.com/economy/bank-of-america-customers-report-disappeared-money-accounts-zelle-issue

 

Bank of America customers report 'disappeared' money from accounts after Zelle issue

A Bank of America spokesperson said there was a 'delay in posting Zelle transactions'

Bank of America customers lit up social media on Wednesday with complaints that Zelle transactions weren't being processed and money was missing from their accounts. 

 

I almost lost my mind when I saw $2,000 was missing from my account," one customer posted on Twitter Wednesday morning. 

Another customer tweeted that Bank of America "magically disappeared a large Zelle transaction that HAD ALREADY POSTED.

 

 

 

Bank of America acknowledged that there was a problem with processing Zelle transactions, but said that it was resolved later on Wednesday

 

We did have an issue where there was a delay in posting Zelle transactions. It was resolved earlier today, so that all the transactions are showing in people's accounts," Bill Halldin, a spokesperson for Bank of America, told FOX Business. 

         
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ATM customer at Bank of America

A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, U.S. (Reuters/Brian Snyder/File Photo / Reuters Photos)

CUSTOMERS CONNED ON ZELLE APP LOSE THOUSANDS: HOW TO PROTECT YOURSELF FROM BEING SCAMMED

Zelle, a peer-to-peer payment processor that is available through more than 1,700 financial institutions, said that the "issue was not the result of any issues with the Zelle Network.

 

We understand that a Zelle Network financial institution may have experienced issues processing some of their customers' Zelle transactions, which has now been resolved," a Zelle spokesperson told FOX Business. 

 

Sen. Elizabeth Warren, D-Mass., a member of the Senate Committee on Banking, Housing, and Urban Affairs, criticized Bank of America and Zelle on Wednesday, saying that they "are apparently failing customers again.

 

 

 

 

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https://www.zerohedge.com/markets/market-goes-haywire-dozens-nyse-trading-halts-open-after-technical-glitch

 

Market Goes Haywire With Dozens Of NYSE Trading Halts At The Open After "Technical Glitch"

 

BY TYLER DURDEN
TUESDAY, JAN 24, 2023 - 11:25 AM

Update 2 (11:15am ET): The NYSE says it is continuing to investigate the “technical issue” that caused wild stock swings at the market open Tuesday as dozens of large-cap stocks suddenly plunged or spiked during the broken opening auction.

According to the New Jersey-based New York Stock Exchange, "impacted members may consider filing for Clearly Erroneous or Rule 18 claims"  adding that "In a subset of symbols, opening auctions did not occur. The exchange is working to clarify the list of symbols."

* * *

Update (9:52am ET). According to the NYSE, as of 9:48am, all systems are back to normal, although that is an understatement in a market where nobody knows what the correct opening price is! We are still waiting for the NYSE to give a detailed explanation of what caused this latest "broken markets" episode.

NYSE%20status%20uopdate.jpg?itok=QytauHa

While it is still unclear what was the "technical glitch" that sent the world's biggest companies into a multi-trillion market cap rollercoaster, Bloomberg reports that "a wave of sell orders targeting financial services stocks swept across American equity exchanges at the open of trading Tuesday, sending companies including Wells Fargo & Co. and Morgan Stanley to brief but sharp plunges from which they mostly quickly recovered."

 

Santa's note;

This is strangely similar to what happened last yr in the Nickel Market.

And if further shows without question that NOTHING in the financial 

system is legit. The powers that be are not going to let go of the reigns 

ever. Nevertheles, I believe that they are going to break everything and 

loose control of it all. 

After closing Monday at $45.03, Wells Fargo fell as low as $38.10 before bouncing back, while Morgan Stanley plunged to $84.93 after ending at $97.13 on Monday.

wfc%20FnPyyB9XwAE_j46.jpg?itok=5LWtpKHv

That may be accurate, it's not comprehensive as virtually every NYSE-listed stock was slammed at the open, only to rebound powerfully before tumbling once more. Indeed, as noted below,

other impacted stocks included the likes of Walmart, McDonald’s and Exxon.

These stocks saw drops of at least 12% before they were halted.

Their moves have now rebounded to less than 1% in either direction.

Separately, at least 40 S&P 500 Index stocks were hit with trading halts. 

“It’s a little concerning,” Oanda senior market analyst Ed Moya told BBG. “These are not your typical meme stock, easily manipulated companies, these are Morgan Stanley, Verizon, AT&T, these are some of the giants.”

Tuesday’s transactions occurred in New York Stock Exchange-listed securities and took place on virtually every trading platform, including ones overseen by CBOE Global Markets and private venues reporting to the Finra trade reporting facility.

The start of trading in most American stocks involves a complicated but usually routine process called the opening auction, designed to limit volatility resulting from orders for shares that pile up before the start of the regular session. In it, a computer balances out supply and demand for a particular stock by establishing an opening price that can be viewed as the level that satisfies the largest possible number of traders.

Santa's question;

How is this not manipulation? 

How is it legal?

“We don’t have all the details yet, but what it looks like is that some stocks opened and were automatically or were erroneously triggered for limit up/limit down, which threw them into a halt status,” said Jonathan Corpina, senior managing partner at Meridian Equity Partners who typically works on the floor of the New York Stock Exchange.

“All of our phones are lighting up,” he said. “We’re trying to field calls from our customers and try to explain to them what happened, what’s going on and relay as much accurate information so they understand what’s happening. But as of now, things are still unfolding.”

* * *

It has been a while since we had a market-wide break.

Something snapped at exactly 9:30:00 am ET this morning when stocks opened for trading, only... they didn't, as instead hundreds of NYSE-listed stocks were immediately halted for trading after breaching circuit breaker limits...

2023-01-24_06-41-59.jpg?itok=10iydhXL

... which among others saw giga-caps such as Exxon, Morgan Stanley, Verizon, AT&T, Nike, and Wells Fargo tumbling as much as 11%...

unnamed%20-%202023-01-24T094414.182.jpg?

... while McDonalds traded down to $236.42 before rebounding to $268.32 - a $55 billion swing in market cap in seconds - before being almost immediately halted.

NYSE%20trading%20halt.jpg?itok=qQahOhv6

While it is unclear what the "technical glitch", as CNBC called it, in question was many stocks had abnormally large moves when stocks opened for trading, which triggered the resulting volatility halts.

It took several minutes for the circuit breakers to be lifted and for trading to return to something resembling normalcy although nobody knows if these prices are accurate or still affected by whatever glitch halted trading

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Shades of the Flash Crash of 1987.   I read today that the NYSE claims it was due to human error.  I don't believe in glitches.  That was a test of some sort.  Many of us follow XRP in the Crypto markets and it has had at least 3 major glitches in the last 9 months, the last one just a few days ago.  Coincidence?  I don't believe in those either.  

 

Thanks for the article and your thoughts LGD.   We are expecting some big things in the coming months, especially in the Ripple/SEC Lawsuit.   It's almost time to brace for whatever they have planned for us.  I'm not as dire as you are but I understand why you would feel that way.  We will have a terrible Red Flag event.  

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GDP report reveals ominous Great Depression warning sign not seen since 1932

Thursday's GDP report shows that real disposable income has fallen off a cliff

 

The latest numbers from the Bureau of Economic Analysis show that the U.S. economy grew by 2.9 percent in the fourth quarter of last year, and 2.1 percent for 2022. While the White House was quick to take credit for the state of the nation’s economy, they might want to think twice.

This latest report should have alarm bells ringing, not trumpets sounding.

That’s because economic growth is slowing down. Even the areas which contributed positively to gross domestic product (GDP) are not necessarily signs of prosperity. For example, business investment grew at only 1.4 percent in the fourth quarter, but that was almost entirely inventory growth. Nonresidential investment, a key driver of future economic growth, was up just 0.7 percent.

Meanwhile, residential investment fell off a cliff, dropping 26.7 percent as consumers were unable to afford the combination of high home prices, high interest rates and falling real incomes. No wonder homeownership affordability has fallen to the lowest level in that metric’s history.

 

But the growth in inventories, which accounted for half the GDP growth in the fourth quarter, is not a good sign, either. It is the result of businesses being unable to sell off existing inventories at current prices. Liquidating that inventory at discounts will mean lower profits, a further drag on future growth.

Q3 GDP data beats estimates. FOX Business' Cheryl Casone with more.video

GDP data better than expected in Q3

Q3 GDP data beats estimates. FOX Business' Cheryl Casone with more.

Another positive contributor to the GDP number was net exports, which is simply exports minus imports. But the gain here resulted from a slowdown in international trade — hardly a sign of wealth for Americans. Instead, imports are simply falling faster than exports, which shows up as an increase in GDP.

The most troubling information in the GDP report is the precipitous drop in real disposable income, which fell over $1 trillion in 2022. For context, this is the second-largest percentage drop in real disposable income ever, behind only 1932, the worst year of the Great Depression.

To see why, imagine your hours have been cut back at work. You’re now earning $100 less a week, so you decide to reduce your weekly spending by $105. Your budget then shows a net increase of $5 left over at the end of the week. Your earnings are like exports, your spending like imports and the overall change to your budget is like net exports.

FOX Business host Stuart Varney argues Biden's economic remarks are a 'distraction from his document fiasco.'

So, even though you are worse off, just going by the change to your budget, you appear to be better off. That is exactly what happened with net exports in the GDP report.

 

 To keep up with inflation, consumers are depleting their savings and burning through the "stimulus" checks they received during 2020 and 2021. Credit card debt continues growing, while savings plummeted $1.6 trillion last year, falling below 2009 levels.

Fox Business' Cheryl Casone and Fox News contributor Michael Goodwin discuss the economy shrinking .06% in the spring on 'Mornings with Maria.'video

Final GDP reading confirms US economy entered recession in spring

Fox Business' Cheryl Casone and Fox News contributor Michael Goodwin discuss the economy shrinking .06% in the spring on 'Mornings with Maria.'

As consumers continue depleting cash reserves and borrowing costs are rising, the growth in consumer spending will keep slowing.

Since that accounts for roughly two-thirds of GDP, this doesn’t bode well for the economy.

Just how much pain is the consumer feeling? The average family has lost about $6,000 in annual purchasing power under Biden because prices have risen so much faster than wages. Higher interest rates have increased annual borrowing costs by $1,400, so that the average family effectively has $7,400 less in their annual budget. 

 

But that’s just the average. Someone trying to buy a median priced home today will have a monthly mortgage payment that is

80 percent higher than when Biden took office.

That means spending an extra $9,500 a year for the same house. It’s no wonder people are financially strapped and taking on second or third jobs in this economy.

placeholder

Meanwhile, federal nondefense spending grew 11.2 percent in the fourth quarter, another example of politicians feeding the federal budget while starving the family budget.

 

If you’ve ever driven a car that ran out of gas, you may have noticed the engine rev up right before stalling out. That seems to be what we are witnessing with the economy — an engine running on fumes, about to stop. 

Harvard economist Jason Furman shares his economic outlook for 2023, focusing on recession fears, the Federal Reserve’s agenda and geopolitical factors.video

 

Harvard economist Jason Furman shares his economic outlook for 2023, focusing on recession fears, the Federal Reserve’s agenda and geopolitical factors.

The last thing America needs is more taxing, spending and regulation by the federal government. Instead, we need to follow the winning formula laid out by President Ronald Reagan and Fed Chair Paul Volcker, which brought the economy back from stagflation. 

Reagan scaled back government while Volcker stopped the monetary manipulation and allowed interest rates to seek their natural level. 

Let’s hope we don’t have to relearn that lesson — because the tuition at the school of life isn’t cheap.

E. J. Antoni is a research fellow at The Heritage Foundation’s Center for Data Analysis and a senior fellow at Committee to Unleash Prosperity.

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What did President Trump say would happen if Bidden was elected?  Anyone who is old like me remembers Jimmy Carter.  Biden is worse, a lot worse because he has turned the Government over to people who are trying to harm America.  By any metric you use to measure well being in the US it has gotten worse under this President.  

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I've been watching the Silver and Gold ratio for several years now. When I first saw it Silver was at $4500 to 1 and Gold was at $35,000 to one. 

 

A few months ago I noticed that both ratios began falling. 

Then today I see this. 

 

Does anyone have an idea what is going on?

 

source 

U.S. NATIONAL DEBT CLOCK

 

image.png

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