John Rubino – Macroeconomic Forces Moving General Markets, Commodities, And Precious Metals
John Rubino, Founder of the Dollar Collapse website and editor of his newsletter over at Substack, joins us for discussion on the macroeconomic forces moving the general markets, commodities, and precious metals in both the near-term and longer-term.
We start off discussing the expected resolution of the debt ceiling charade, the recent messaging from the Fed about pausing the rate hikes at their next meeting, how higher interest rates are still tightening market conditions, the conflicting data on the health of the consumer, weakness in commercial and residential real estate, muted GDP growth, the piling of investors in mega-cap tech stocks and AI stocks, and how corporate earnings are misaligned with what we are seeing in the market prices. These kinds of trends as we move toward a contracting economy, and possible recession, should continue to be a boon for gold, and eventually to other hard assets like silver and copper.
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US Banks Report Biggest Capital Outflow In 40 Years
June 1, 2023
“Banks in the US saw total deposits decline by a record 2.5% in the first quarter of the year, the Federal Deposit Insurance Corporation (FDIC) reported on Wednesday. The outflow was the largest recorded by the FDIC since it started collecting such data in 1984.”
“According to the report, US banks lost $472 billion in deposits during the January-March period, marking the fourth consecutive quarter of industry outflows. The decline was primarily from uninsured funds, the FDIC said, noting that insured deposits actually increased by $255.1 billion, or 2.5%, amid the failures of several regional banks.”
https://www.rt.com/business/577283-us-banks-record-deposit-outflows/
Fall of American Empire And Descent Into A New Dark Age
The Burning Platform – 05/31/2023
“At our current rate of debt accumulation, it takes only one month to reach $160 billion. In 2020 and 2021 it only took 20 days to accumulate $160 billion. The national debt in 2007 was $9 trillion, up from $5.6 trillion in 2000. Today it stands at $31.8 trillion. Interest on the national debt will approach $900 billion this year, exceeding defense spending.”
“Walker warned about our debt ratios skyrocketing when the baby boomers retired. Well, the debt to GDP ratio has doubled from 62% in 2007 to 124% today, and most boomers can’t even afford to retire. U.S. unfunded liabilities total $188 trillion. Personal debts total $25 trillion, with $1.8 trillion of student loan debt and $1.3 trillion of credit card debt. The fiscal irresponsibility of our government and its citizens is breathtaking, unsustainable, and ultimately fatal to our empire. Walker may have been early, but he certainly was not wrong.”
IMF Says Fed Will Have to Remain Tight at 5 ¼ to 5 ½ Rate Until Late 2024; Warns of “Unpredictable Consequences” to Banks
Pam Martens and Russ Martens – Wall Street On Parade – May 31, 2023
If the Fed funds rates remain tight at 5.25%-5.5%, then as John Rubino pointed out in the interview above, it is also going to have a major effect on the real estate sector, auto sales, business loans, and municipalities and governments rolling over debt at much higher levels than they had just for the prior dozen years. This will serve to keep tightening market conditions and reduce consumption, which will then filter into corporate earnings. The next year or two are going to be fascinating to watch unfold.
The fancy rates The Fed has delivered must be paid by all, the government, business, and the public. When you throw one person out of work two other jobs that depend on his income are lost. Each bankruptcy, each suspension of payments, and each reduction of the economy affects other concerns. DT
Natural Gas Prices Plunge Further Amid Rise In U.S. Stockpiles
By Tom Kool – Jun 01, 2023
If Nat Gas prices keep collapsing, I’m going to add a 3rd gasser into my portfolio.
JPM Again … http://www.wallstreetonparade.com
Trader Ferg – Uranium Price is Going to Go Bonkers Soon!
CapitalCosm – Jun 1, 2023 – Uranium, Coal, Oil #video
Don’t even have to look. Phony employment #s facilitating continued theft of the Treasury. Account continues walk down. Took back Thursday at open.
Emerita is getting the rug pulled out after announcing a financing, got a stink bid in. DT
Stink Geez! LOL! DT
EMO never on the rug. LOL
One of them dregs, excellent prospect if you like average dow, all the way to zero.
I see the end of world getting more and more into view with this market rally. Gold seniors not bud considering gold’s antics.
Maybe time to add gas again, my UNG down a tad from last low. Pretty soon will be free.
Emo hit hard on financing. Trolls disapproved of financing at low stock price (which also appears part of the 1.5 year price draw down). Price has gone roundtrip with 100% reversal. Not sure if Fibonacci is at fault, but I have a text into him. No response yet. I particularly asked him about since when is 100% retracement included with the 38.2% and 61.8% that he uses in his forecasts. I also sent the text to JPM and asked whether any of their inside traders needed money for Disneyworld. Within 38.2 seconds my phone blew up and in 61.8 seconds my TV went dead.
I added Emo 10,000 @.2827 or there a-bouts.
I had a bid in for 29 cents CDN, I guess I will just have to wait a bit longer. DT
With Emo, .29 may not be all that bad of a bid. Someone or some group has had it in for Emo for over a year. It could be because of all the politicians, gov employees, etc that may go to jail over anzacollar …. Or a short squeeze of specs in Mar of 2022, or some group that wants Emo to fail for their known resource or a hostile takeover minimum price level….
Who knows but the attack has been consistent and downward and contrary to fundamental investing. Any illogical price is a possibility.
The number of jobs created in May is up but so is the unemployment rate, don’t you just love statistics. Fiddle Faddle, Fiddle Faddle! DT
FREAKY FRIDAY…………….. AGAIN…………..
And the REPUBS…… go down in defeat……..like all political liars…
Add another $4 TRILLION
They still should audit the Fed to determine where the money actually goes. It would help in the blame game.
Heck , If they did an audit……. everyone would be caught with their pants down….
NEVER GOING GO HAPPEN………
Brixton, BBB, woohoo!;-) This one is a keeper… I hope there is a chance to substantially increase my position in the next week or two.
… Weekly one year…
BBB: what caused that move. I saw where HHorseman posted something?
The Storm Before The Storm
June 1, 2023 by Michael – The Economic Collapse
“I really don’t know anyone that would argue that the U.S. economy is in great shape right now. Inflation is out of control, large companies are conducting mass layoffs all over the nation, the housing bubble is starting to implode, and more homeless encampments are constantly popping up in our major cities as poverty spreads like wildfire. But this isn’t the main event. I am calling this “the storm before the storm”, because the truth is that this new economic crisis is still only in the very early chapters. Unfortunately, much more suffering is on the way, and our country is not going to be able to handle it.”
“According to Challenger, Gray & Christmas, the number of job cuts that employers announced in May 2023 was 287 percent higher than the number of job cuts that employers announced in May 2022…”
“U.S.-based employers announced 80,089 cuts in May, a 20% increase from the 66,995 cuts announced one month prior. It is 287% higher than the 20,712 cuts announced in the same month in 2022,”
— according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
“It would be one thing if the month of May was some sort of a statistical anomaly, but it wasn’t. In fact, for the first five months of 2023 the number of job cuts is up a whopping 315 percent compared to the same five months last year.”
“Take a few moments to reflect on that number. Other than during the lockdowns of 2020, we haven’t seen anything like this since 2009.”
https://theeconomiccollapseblog.com/the-storm-before-the-storm/