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MAGA: Any small issue with US debt and it'll be thermonuclear reaction
  • The amount due in the next 12 months is $7340 billions, or approximately 25.8 normalized monthly US budget revenues.

    Of these, $3995 billions will mature in the next 3 months - the normalized US budget income in 14 months.

    It present FED road looks like very thin hair, any error in balancing on it - and it'll be huge deflation and economic collapse or huge inflation and... economic collapse.

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  • Salaries dynamics in US

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  • FED balance reached important mark

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  • Reverse REPO records due to huge money excess in banks

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  • Things are really bad

    1. Over the past 12 months, the normalized monthly income of the US budget amounted to $ 309.8 billion, and expenses of $ 608.3 billion - or 196% of revenues.
    2. Adjusted for inflation, normalized budget revenues fell for 12 out of 13 consecutive months, with inflation starting to accelerate.
    3. The normalized US budget deficit is $ 298.1 billion, which is many times worse than the 2008 collapse.
    4. The size of the US debt pyramid increased from early September 2019 (when the Fed resumed QE) to December 2020 by $ 5716 billion, of which 52% of the increase was covered by the printing press.
    5. The long-term portion of the pyramid grew by $3124 billion over this period, with 73% being monetized by the printing press. In fact, the market for long-term T-bills ceased to exist and was replaced by the Fed's printing press.
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  • Quarterly federal budget deficit

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  • Prediction for 2025 from analytical firm dealing with defense sales (similar scenery assumed)

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    • US Population - down 70%
    • US Real GDP - down 91%
    • US defense budget - down 96%
    • US average individual salary purchase power - down 70%
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  • I've lost counting...how many trillion' s by now 6 maybe 8 like m&m's... They are not stupid but big corporations are to greedy to see the fall that is patiently awaiting...

  • President Biden plans to unveil a plan for American families - the second part of his multibillion-dollar Build Back Better program - ahead of his speech at the 28th Joint Session of Congress.

    The new measure is expected to require roughly $1 trillion new spending and about $500 billion in tax breaks.

    While details are subject to change, the initiative is likely to be fully funded by a new tax hike aimed at wealthy Americans and investors.

    Spending in the plan for American families may be split along the following lines:

    • $225 Billion in Paid Family and Medical Leave
    • $225 Billion in Child Care Support
    • $200 Billion for Universal Early Childhood Education
    • "Hundreds of billions" to finance education
    • "Other amounts" for nutritional assistance

    How soon it will all implode and break, no one knowns, but it is not much time left.

  • "The federal budget has entered an unsustainable path, debts are growing faster than the economy. This, by definition, means unsustainability. This does not mean that the current level of debt is unacceptable. It is not. Our ability to service debt is not in question.

    We will fix the budget situation in the future. This is best done when the good times are back, the economy is full-time, and taxes start flowing. Now is not the time to prioritize this issue. "

    US Federal Reserve Chairman Jerome Powell

  • Benefits

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  • Over the past year, as fiscal and monetary stimulus flooded the economy with cash, US stocks are up more than 75%. According to Wilshire, as of March 23, 95.9% of the more than 3,000 stocks included in the Wilshire 5000 total market index had an overall positive growth of 12 months. No other one-year period has come close to this since the end of February 2004, when 93% of shares had a similar 12-month rise.

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    Total number of Americans filing for jobless benefits fell back to just ove 18 million this week... but it's still 18 million and hasn't improved materially for four months...

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    Margin debt – the amount that individuals and institutions borrow against their stock holdings as tracked by FINRA at its member brokerage firms – is just one indication of stock market leverage. But FINRA reports it monthly. Other types of stock market leverage are not reported at all, or are disclosed only piecemeal in SEC filings by brokers and banks that lend to their clients against their portfolios, such as Securities-Based Loans (SBLs). No one knows how much total stock market leverage there is. But margin debt shows the trend.

    In February, margin debt jumped by another $15 billion to $813 billion, according to FINRA. Over the past four months, margin debt has soared by $154 billion, a historic surge to historic highs. Compared to February last year, margin debt has skyrocketed by $269 billion, or by nearly 50%, for another WTF sign that the zoo has gone nuts.

    https://wolfstreet.com/2021/03/17/stock-market-leverage-spikes-in-historic-manner-another-wtf-chart-of-a-zoo-that-has-gone-nuts/

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    Injections to keep stock market the only shining star are staggering.

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  • The American economy should not fear hyperinflation amid the recovery. The expected high volumes of spending after the pandemic, which the Americans have saved, will not be able to significantly raise prices up and lead to hyperinflation due to the fact that the Fed has been pursuing a policy to reduce inflation for many years "I don't think these effects have to be significant or persistent, and the real reason for this is that we have had decades of well-contained inflation expectations.

    Big warning.

  • Lot US based banks and companies won't make it past this exponential bubble

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