Debt stopped buying economic growth, if it ever did in the first place, way back in 1982, but no one has seemed to notice.
Prosperity based on debt is not prosperity.
Debt draws forward prosperity, and then when you get forward, there's no prosperity there because you already made off with it.
It's like the polar explorer who starved and froze to death because he ate the food caches on the way to the pole instead of saving them for on the way back.
The 495 failures were a huge improvement over the 9,000 bank failures during The Great Depression of the 1930s, his specialty of study in the 1980s, experts said under their breath.
Rounding out the Unholy Trinity of Big Ticket Asset Inflation, Housing joins Stocks and Bonds in similar overvaluation territory in 2021 at about 84%.
In Feb 2012 when housing bottomed after The Great Financial Crisis, a previous inflation-adjusted Case-Shiller home price index chart no longer updated for present years showed that prices had fallen into the top range of US house prices which had prevailed throughout the post-war from the 1950s to the late 1990s. Mind you, the top range of those inflation-adjusted prices.
Thanks to Democrats and Republicans, including Bill Clinton and Newt Gingrich, the American Dream, the nest of the American future, was turned into a mere commodity in the late 1990s, to be churned in the markets for profit.
Long-suppressed long term interest rates have conspired with commoditization to produce valuations which have exploded, making houses unaffordable as nests, which is why your kid is still living in your basement.
The chart below shows the nominal price figures, on an average annual basis through 2021. The blow-off tops in 2022 are even worse (the index topped 308 in June), and are not shown because the year ain't over, and prices are falling.
At an average index level of 260 in 2021, prices were inflated from 141 in 2012 by about 84%, not far below the overvaluation of stocks and bonds at 90% and higher.
Full time as a percentage of civilian population in September was 50.3%, and for 2022 through September averaged 50.15%.
Not bad, considering.
The Fed will see little evidence in this figure that its interest rate increase policy is harming employment.
Stocks on Friday collapsed after a head fake to start the week to within 1.5% of the 52-week lows set a week ago.
Long term investment grade bonds and US Treasury securities also revisited lows from 9/27/22, coming within pennies of those benchmarks.
30-year yield for UST is back up to 3.86%. It was 3.87% on 9/27. At the beginning of 2022, yield was a paltry 2.01% by comparison.
UK gilts are experiencing the same action despite the Bank of England intervening to buy bonds.
The bond crisis is not over.
With yields soaring across the board no one wants to own the lower paying outstanding issues, which are legion, destroying their value.
But everything in the global economy is based on those, piled up in earnest after The Great Financial Crisis of 2008, and in orgiastic frenzy afterwards during the late pandemic.
Bond yields in 2022 are telling you that they are overvalued by 92%.
Stock market valuation is telling you a similar thing.
From 1938 through 2019 the median ratio of the S&P 500 to GDP is 81. In 2020 we averaged 154, or 90% overvalued.
This is the major deflationary headwind facing the world, the other side of the COVID-19 inflationary shock coin.
Push here, it comes out over there.
Modern central banking cannot escape this conundrum any more than the gold standard could.
The only thing the individual can do in this situation is to owe nothing and save everything, preferably in your hands.
Good luck.
Well yeah, they slowed from 315k, but that was EXPECTED.
The parasites who derive their main livelihood from the returns on financials are in a panic over Fed rate hikes designed to reduce inflation. Whether those will do that or not is beside the point.
This is all about their carry trade.
The Fed has been making cheap money available since December 2002 to restart the stock market and it has hardly stopped . . . until lately. The politics of inflation have finally caused the Fed to pivot on this long-standing policy, and they couldn't be more angry.
The top 10% borrow at cheap government rates and plow the money into private financial products which pay higher rates which the 90% have to pay. They prosper, gloriously, off the difference. But increase their cost of borrowing and you are diluting the gravy train.
Ever since the Fed started raising rates in earnest earlier this year, the rentiers have been trying everything they can to get them to pivot, without success.
This morning the hope was that a really poor employment report would get the Fed to back off, except the 263k figure beat expectations of 250k.
The Fed is likely to stay the course and keep raising rates.
CNBC paints this as slowing in keeping with the rentiers' rhetorical narrative aimed at the Fed, which has a dual mandate to maximize employment and maintain stable prices.
Never mind that the dual mandate is nuts since unstable prices exact a far greater cost on the people than unemployment ever does. Inflation doubling makes everyone pay 100% more for everything indefinitely, whereas unemployment affects fewer and is definitely cyclical.
And never mind the Fed has NO mandate to suppress interest rates, buy securities, and bail out the world.
But I digress.
You are being lied to and manipulated . . . constantly.
Because they can, and it works.
He's making matters worse, not better.
He's attributing statements to Putin which Putin did not make, which is the default practice for Democrats when speaking of their opponents.
A lot more is at stake than losing control of the US House and Senate in a few weeks.
Joe's irresponsible remarks risk real catastrophe from a deadly opponent.
Think what you will about Putin, Biden is a fool.
Nobody fucks around with a Biden, he says, the day after Saudi Arabia does just that, telling him to go pound sand.
The whole world knows he's a fool, which is perilous for the rest of us.
Basically a combination of demand for domestic electric power production, demand for LNG exports to Europe because of the Ukraine war, low inventories headed into the winter, and fear.
Prices have quadrupled.
And Biden is considering ending all offshore drilling.
We are so screwed by these Democrat clowns.
The cashless economy trend is not necessarily new, but it is gaining momentum, according to new research from the Pew Research Center.
The nonpartisan fact think tank found 41% of Americans say none of their purchases in a typical week are paid for in cash. That’s up from 29% in 2018 and 24% in 2015.
In contrast, 59% of respondents say they still pay for at least some of their typical weekly purchases in cash.
More.
Urgewald’s Schuecking told CNBC that since the 2015 Paris accord was signed, the global coal plant fleet had seen a net increase of roughly 157 gigawatts. That’s the equivalent of Germany, Russia, Japan and Poland’s coal fleet added up together.
The research found that 467 gigawatts of new coal-fired capacity were still in the pipeline worldwide. And, if realized, these projects would increase the world’s current coal power capacity by 23%. ...
China was found to be responsible for 61% of all planned coal power capacity additions and, perhaps unsurprisingly, the top four coal plant developers were found to be Chinese companies . . .. China Energy Investment Corporation was the world’s top thermal coal producer last year. This was closely followed by Coal India . . ..
I omitted Schuecking's temper tantrum parts of the story, here.
She is, predictably, a German environmentalist wacko who is also against nuclear power. Urgewald is full of crazy Karens just like her who agitate against corporations and try to get individuals like David Malpass of the World Bank fired because they don't mouth the right words like the Paris Climate Accord hypocrites do.
Urgewald is Exhibit A for the prospect of Germans freezing to death this winter.
Mean average temperature in Grand Rapids MI through September since 1892: 51.1F.
Orsted said the order applied to “unit 3 at Esbjerg Power Station and unit 4 at Studstrup Power Station, which both use coal as their primary source of fuel, and unit 21 at Kyndby Peak Load Plant, which uses oil as fuel.” ...
A few days before Orsted’s announcement, another big European energy firm, Germany’s RWE, said three of its lignite, or brown coal, units would “temporarily return to [the] electricity market to strengthen security of supply and save gas in power generation.”
