Today’s Nuggets
Megabanks Have Trillions of Dollars Off-Balance Sheet
The U.S. Job Market is Tanking - Recession Signal?
Oil is Topping Out!
U.S. Dollar is Shrinking as the Global Reserve
Real Estate Hits All-Time Highs?
The American Dream Now Costlier?
Japanese Yen Hits Thirty-Year Low
Why Governments Love Stealthy Inflation
U.S. Billionaires’ Effective Tax Rate Now Lower than Working Class?
This is the monthly macro roundup. You cannot look at crypto without looking at macro. Unfortunately, there is some ugly stuff ahead that I am afraid I have to share.
It is always important to expect the best and prepare for the worst.
Sometimes, a picture says it all and this one captures the big problem ahead.
While this focuses on the U.S., it is simply a microcosm of what is happening around the world.
Note: I share U.S. charts because this is the most detailed data I track.
This chart shows the linkage between increased government spending and financial market dynamics, which is very important. High levels of government expenditure - particularly when financed through increased debt - flood the market with bonds, reducing their price and increasing yields. Conversely, the finite nature of hard assets like Bitcoin will increase the supply.
The key point is that the private Treasury is expected to increase by at least $2.4T by 2024.
JPMorgan Chase, Bank of America, and Citigroup's Citibank have a combined $7.427 trillion of off-balance sheet financing.
This is the exact scenario that brought about the Great Financial Crisis in 2008-09.
Will history repeat?
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