Is The Economy Just Now Falling Apart

[valamhic]

Interest rates are about to skyrocket in my opinion but that quickly brings the real crisis and then the currency could crash, but so far, the dollar is getting stronger.

If they do government will go broke.

 

[Declan]

And quickly. The Federal debt yesterday hit $29.924 trillion dollars yesterday so 30 trillion could be reached even as soon as next week. The limit before it needed to be raised again is 31.4 trillion which will most likely not get us to the election.

What must happen soon is an bond auction where insufficient buyers show up.

 

[Declan]

The federal debt has just gone above 30 trillion dollars.
Next big economic report is Friday and the employment report.

 

[Declan]

I was talking yesterday to a person working for a small bio company. I was bemoaning the fact that I did not buy Moderna stock when I first heard of it and sell it at the top as it is down big time from the top.

 

[Declan]

Yesterday was an interesting day as the rate on the 10 Year Note(bond) hit 1.90. So at any moment next week we could surpass the big number of 2%. The debt above 30 trillion will quickly prove an albatross here

 

[Declan]

For one thing, it has alienated a large conservative segment. Exactly like Twitter.

 

[Declan]

With regards the debt, the maturity of the bonds has become shorter to grab lower yields needing to be paid by the government. So they must be rolled over in larger numbers.
Today we have 50 billion of three year notes being auctioned and buyers must show up and buy.

With the 10 year yield now at 1.95 at last look, it is only a matter of time before we see a very bad auction.

 

[Anderson]

Thor, who are you, as in what was your real name on Pish?

And why did you fall out with Dan?

That was David Ds, abusing my account Sir, I have no issue with Dan.

If anything we are both stock enthusiasts, wanting to make good money.

 

[Anderson]

There is a growing crisis within the world, debt is causing severe issues with inflation and people are starting to notice that they no longer have purchasing power and facing a mountain of debt.

 

[Declan]

The strong market yesterday was just because of Putin reversing. The interest rates are rising nearly every day, slowly but surely. So finishing the debt and continuing deficit is going to be a problem sooner rather than later.

 

[Declan]

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

It is not easy to follow that article. It is impossible to say what the gold price would be if it were repriced to pay the debt because we do not know if they even have the amount of gold they claim to have.

 

[Declan]

That was David Ds, abusing my account Sir, I have no issue with Dan.

If anything we are both stock enthusiasts, wanting to make good money.

Well said.

 

[Declan]

The oil price increase is a few days ahead of the gas price. So 4 dollars a gallon in Massachusetts will be well broken by the weekend.

Keep in mind that the price can be about 30c higher in some stations and completely different in different states.
Like 7 dollars in parts of California by Sunday.

 

[Declan]

Oil up 8 dollars a barrel now at over $104 for West Texas oil

 

[Anderson]

Oil is $110 a barrel, the release of backup stock yesterday did nothing to ease the price.

The ridiculous thing is that these sanctions will hurt the west just as much as it is hurting Russia, in fact if anything Russia is making a fortune on the back of the rise in Oil and Gas prices.

 

[Declan]

Wti closed at $111.40 up 8 dollars. The gas and petrol price is likely less than a week behind so it is going much higher.
There comes a point that it really hits driving. And it is already above 4 dollars at some stations here. 3.39 yesterday evening at Rock bottom Costco.

 

[Declan]

$114.29 a barrel now.

 

[Declan]

A bargain. I will report on the cheapest here later today

 

[Declan]

$3.79 yesterday at the cheapest regular station I saw.
Costco was likely 15c cheaper.
Certainly by Sunday, it will not be got less than 4. Imo.

 

[Declan]

$3.89 at the cheap station. 3.50 at Costco.