Debt Ceiling

Here's Why (And How) The Government Will "Borrow" Your Retirement Savings

The bottom line is that government needs more money. Lots of it. And there is perhaps no easier pool of cash to "borrow" than Americans’ retirement savings. $7.3 trillion in US IRA accounts is too large for them to ignore. And if you think it’s inconceivable for the government to borrow your retirement savings, just consider the following...

Total U.S. Debt Surpasses $19 Trillion; Rises $8.4 Trillion Under President Obama

Two months ago, when we calculated that the US would need a new debt ceiling of $19.6 trillion to last until after Obama's tenure, we may have been overoptimistic: since the hard limit of $18.15 trillion which was raised at the end of October, the US appears to be growing its debt at a far faster pace than we had originally expected, and according to the latest public debt data, as of the last day of January, total US debt just hit 19,012,827,698,417.93.

"China 2016 Is US 2008" Felix Zulauf Warns "The Outcome Of A Major Yuan Devaluation Would Be Disastrous"

"China is to the current cycle what the US housing market was for the Global Financial Crisis in 2008. It will take years to correct the excesses that were built up in China... the consequences of a weaker yuan would be disastrous...If China devalues, all the other countries in the region will follow suit which will lead to a global deflationary shock. There is a real chance of a bigger correction than many investors realize..."

China Matters

Over the past few days we have repeatedly heard the following statement: "China isn’t that important as it is only 7% of the U.S. economy." While that may be a true statement in relation to the economy, it is a far different matter when it comes to the financial markets. With financial markets so closely correlated, what happens in China has a direct and immediate impact on U.S. markets.

Trader Psychology Is Reversing, Scotiabank Warns Market Is "Ripe For Volatility Spikes"

Market psychology established in recent years is reversing. Market volatility is rising and will remain pervasive for a while as psychology, the change in direction of Fed policy, and the increases in general uncertainties, will all conspire to shape an environment ripe for sharp spikes in volatility which will be further amplified by rickety market liquidity.

Safe On The Sidelines - 405 Days And Counting

The S&P 500 closed at 2052 on November 18,2014. That was 405 days ago, and despite the rips and dips in the interim the broad market average has gone nowhere.

U.S. Total Debt Soars By $674 Billion In November

While we can account for the jump of $339 billion in November total debt, which is the result of the "debt ceiling" accrued debt recognition, what is unclear is how in the remaining 4 weeks of November, the US managed to add another $335 billion in total debt, bringing the total increase for the month of November to a whopping $674 billion, and total US debt to a record $18.827 trillion.

Bullish Hopes, Bearish Signals

There is little evidence currently that the rally over the last couple of months has done much to reverse the more "bearish" market signals that currently exist. Furthermore, as noted by Jochen Schmidt, the current market action may be more indicative of market topping process. Not unlike previous market topping action, the markets could indeed even register "new highs," as witnessed in both 2000 and 2007 before the major market correction begins. This is typically how "bull markets" end by providing false signals and sucking in the last of those willing to "buy the top." The devastation comes soon after.

The Most Devious Liars In The Room

There were a few different stories coming out over the last few days that reveal the true nature of government and the apparatchiks who use disinformation, devious machinations, fraudulent accounting, and taxpayer money to cover up their criminality, lies, and the true state of the American economy. The use of government accounting tricks to obscure the truth about our dire financial straits is designed to keep the masses sedated and confused.

How The Fed Has Backed Itself Into A Corner

The Fed is weighing the negative consequences of a strong dollar on corporate profits vs. unleashing inflation on the electorate, pressuring long term interest rates. We will soon see which negative scenario they favor and why.