Something to keep in mind for 2024?
Source: Michel A.Arouet
This level was last seen during the Financial Crisis
9% of bonds are due to mature within the next 2 years. High interest rates will make it harder to refinance. Source: Game of Trades
French and German economies are slumping
Source: Bloomberg
Turkey’s central bank hiked its key interest rate to 40% on Thursday
The lira was trading at 28.766 to the dollar following the news, slightly stronger against the greenback. The rate increase was double economists’ expectations, who had forecast a 250-basis-point hike. The move was seen as a continuation of the bank’s attempt to combat high inflation and a falling lira. Inflation in the country came in at a whopping 61% in October Source: Bloomberg, CNBC
The "bad (macro) news is good (market) news" in one chart
Source: Michel A.Arouet, Bloomberg
Interest rate on credit card debt has risen to 21.19%
To put this in perspective, this rate was at 14.56% in early 2022. That’s a 6% + jump in less than 2 years. Current levels have NEVER been seen in over 25 years. This is happening at a time when credit card debt has crossed the $1 trillion threshold. To make things worse, personal interest payments have crossed $500 billion. Source: Game of Trades
German growth forecasts for 2024 have been cut following the budget chaos after the Constitutional Court declared govt's spending plans unconstitutional
The consensus now expects GDP growth for Germany of just 0.4% for the coming year. Source: Bloomberg, HolgerZ
The US government collects about $2.5 trillion per year in personal income taxes. Of that about $1 trillion per year (40%) is being consumed by interest on the national debt
Interest on the debt is growing as old cheap debt matures and gets refinanced at the new higher rates. Plus new debt added every year. Within a few more years, at this pace, 100% of personal income taxes will be going to pay interest on the US national debt. Source: E.J Antoni, WallStreetSilver, BEA
