JPMorgan CEO Jamie Dimon just said the American 🇺🇸economy is still booming and inflation may not go away so quickly
Source: Evan on X
Just in 🔉 Reuters sources: China's leading legislative body weighs approval of new fiscal package exceeding 10 trillion yuan ($1.4 trillion dollars) on November 8
Sources: China intends to approve raising new 10 trillion yuan debt through special treasury and local government bonds in upcoming years. fiscal plan to allocate 6 trillion yuan for local government debt and up to 4 trillion yuan for idle land and property acquisition. China could unveil enhanced fiscal measures if trump secures U.S. presidency.
🚨US FEDERAL DEBT IS SKYROCKETING🚨
The US public debt just hit another RECORD of $35.8 TRILLION. In less than a month, the total debt SPIKED by $700 BILLION. This is $23 BILLION A DAY. To make things worse, these forecasts assume lower interest rates over the next year... Source: Global Markets Investor
The US public debt situation is going to get worse:
US net interest payments as a share of GDP are expected to reach a record 4.6% next year. That would more than DOUBLE World War 2 levels and exceed the all-time highs seen in the 1990s. This is also much higher than net interest as a % of GDP in all 38 OECD countries. Countries with relatively high interest such as Greece, Ireland, Spain, and Portugal are expected to reach interest-to-GDP ratios that are HALF the size of the US. To make things worse, these forecasts assume lower interest rates over the next year. Source: The Kobeissi Letter, OECD, Tavi Costa
⁉️IS THE US DOLLAR RESERVE CURRENCY STATUS STRENGTHENING⁉️
The US Dollar share in global payments jumped to 49% in 2024 the highest since 2012. This is up from ~40% at the beginning of 2022. The Euro share has plummeted to ~21%. The US dollar fall does not look so imminent. Source: Global Markets Investor
Japan is the perfect example of the failure of Keynesian policies.
More government spending only generates more debt and stagnation, and with years of printing, the yen keeps depreciating. Graphs JP Morgan and Bloomberg thru Daniel Lacalle on X
👉 A very important chart about global liquidity...
While the fed is still in qt mode (it has decreased the size of its balance sheet by $200B between May and September), the PBOC is in qe mode having increased its balance sheet by $560B between May and September... Ne-net liquidity is increasing. With global central banks cutting rates at the most aggressive pace since the pandemic and with the PBOC expanding the size of its balance sheet almost 3x more than the Fed is reducing it, it will be interesting to see the consequences on inflation + on gold, silver, etc. Source chart: Jeff Weniger
⁉️WHO OWNS THE US PUBLIC DEBT⁉️
~33% of the $35.7 trillion federal debt is held by government funds, including Social Security and the Fed. Over 25% is owned by foreign governments with the most held by Japan and subsequently China. ~15% is held by mutual investment funds. Source: Global Markets Investor
