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
The US Bond Market has now been in a drawdown for over 50 months, by far the longest in history.
Source: Charlie Bilello
⁉️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
🚨THE NUMBER OF ZOMBIE COMPANIES IN THE US IS SKYROCKETING🚨
43% of the Russell 2000 companies are unprofitable, the most since the COVID CRISIS. At the same time, interest expense as a % of total debt of the Russell 2000 firms hit 7.1%, the highest since 2003. Source: Global Markets Investor
Both the Goldman and the UBS "Republican victory" baskets are approaching all time highs as "Democrat victory" trades slump
Source: zerohedge
😱 The shocking chart of the day >>> The median value of US households’ stock portfolios has surged to $250k this month... 😱
This is twice as much as in early 2023... Middle to high income households enjoy a very strong "wealth effect" as both real estate and stock prices hit all time highs... Source: Stocktwits
BREAKING: The US money supply hit $21.17 trillion in August, the highest level since January 2023.
This also marks a fifth consecutive monthly increase for the US money supply. Over the last 10 months, the amount of US Dollars in circulation has jumped by a MASSIVE $484 billion. In effect, the money supply is now just $548 billion below a new all-time high. After a brief decline, the quantity of money in the financial system is surging again raising concerns about another inflation wave. Source: The Kobeissi Letter
⁉️WHO OWNS THE MOST SHARE OF THE US STOCK MARKET⁉️
US households own 38% of the total equity market, the most among other participants. This equals to roughly $33 trillion. This is followed by foreign investors and active mutual funds with 18% and 12% shares respectively. Source: The Kobeissi Letter
