The annual interest expense on US debt is literally moving in a straight line higher, now at $1.1 TRILLION.
To put this in perspective, less than 3 years ago the annual interest expense on this debt was $450 billion. That's a 144% jump as total US debt has surged by over $11 TRILLION since 2020. Even in 2008, at the peak of the Financial Crisis, annual interest expense was just $450 billion. As interest rates surge and debt levels hit record highs, the US paying the prices for decades of deficit spending. Money is not "free" anymore... Source: BofA, The Kobeissi Letter
How is it possible? Below is the number of initial filings for unemployment insurance.
Five of the last six weeks, the exact same number. Effectively the same number in the last 11 weeks, except for the holiday weeks (President's Day and Easter). As highlighted by Jim Bianco, how is this statistically possible? --- Consider The US is a $28 trillion economy. It has 160 million workers. Initial claims for unemployment insurance are state programs, with 50 state rules, hundreds of offices, and 50 websites to file. Weather, seasonality, holidays, and economic vibrations drive the number of people filing claims from week to week. Yet this measure is so stable that it does not vary by even 1,000 applications a week. Just the number of applications incorrectly filed out every week should cause it to vary more than this...
Is the US stock market becoming THE world stock market?
Source: Sam Ro
"Make America Great Again" by Joe Biden
Micron $MU is set to receive over $6 Billion in chip grants from the 🇺🇸 to help pay for domestic factory projects - Bloomberg Source: Bloomberg, Evan
The 10-year US Treasury yield (blue) is marching back towards its high last October.
Recall that - at the time - US Treasury announced that it would issue less longer-term paper, which is what stopped that rise. That card has now been played and yields are rising again... Source: Robin Brooks
Did you know that the US is the only G10 economy where the latest core inflation print surprised to the upside?
Source: Goldman Sachs, TME
The "East-West divide" in one cartoon.
China is dumping their US Treasury debt and buying hard assets. Many other countries around the world are doing the same. Source: WallStreetSilver
The 10y annualized return of US Treasuries has dropped to a 65-year low of 0.6%.
The 2020s era of war, protectionism, fiscal excess, scarce energy/housing/labor killed the 4 decades-long bond bull market. Source: BofA; HolgerZ
