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Perfect storm for 2019 recession

The House’s passage of the debt agreement is likely to jolt stocks into a relief rally, but how long can the new mojo drive the market up before relief from the political battle that held stocks back in May gives way to the enormous downdraft coming from hundreds of billions of dollars in new Treasury issuances the government will be making?

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You’ve heard the warnings many times from every direction. In fact, it is almost all you hear right now: default is a serious threat if the debt-ceiling is not raised: “The White House warned a US debt default will cause stocks to plunge 45% and will crash the US into a deep recession” and “JPMorgan warned that just getting close to the default scenario could create a market panic.”

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Fed Up Yet?

Posted May 15, 2023 By David Haggith

You would think the Fed wanted housing to become as overpriced as possible, having supported the market with $2.575 trillion in purchases of mortgaged back securities on its balance sheet to keep those securities flowing through with very low yields. That translated downward, of course, to very low mortgage rates, which the Fed sustained throughout […]

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The Fed’s fight has become much more complex this month. Inflation is fighting back harder all of a sudden, while the US debt ceiling is putting bond markets and banks at considerable risk by driving bond yields up even faster than the Fed was doing. This extra thrust is happening just as the Fed was trying to end its rate increases and even as additional banks are poised to collapse from the already-high bond rates. The situation appears to be cascading into a nuclear market meltdown.

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Fedbucks Coming to a Theater Near You This Summer!

Posted April 25, 2023 By David Haggith

We are nearing the time in early summer when the entertainment industry rolls out its new blockbusters and flops. June is also that time when the Fed had said it will roll-out its own special feature (and likely future box-office flop) — the platform that will likely be used as part of its eventual central bank digital currency …

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Cover art for "Home Deus," the Hebrew edition of a book by Dr. Yuval Noah Harari

The experts in AI admit they know almost nothing about how the artificial intelligence they have created will go about proceeding with any designated program because it is self-programmable. It takes on a life of its own. Some developers have claimed it is already nearly godlike and reaching for divinity. Some say it cannot be stopped. Some even warn their own experiences with it demonstrate that it is sentient and malicious or evil.

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Last week, I wrote about an AI computer named “Chaos” that was actively trying to destroy all of humanity with a command to run continuously … as is in never allow itself to be shut down. I published the story because it was happening right after more than a thousand CEOs and experts had warned the world this could actually happen soon.

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Elon Musk Portrait Painting Collage by Danor Shtruzman (https://creativecommons.org/licenses/by-sa/4.0)

Last month Elon Musk and many other billionaires and developers of Artificial Intelligence alarmed the world with a claim that all development of AI must be immediately halted, or it will quickly kill us all! It turns out there is more to the story than met the eye …

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The Fed Never Sees it Coming! They Just Cause it!

Posted April 6, 2023 By David Haggith

Even though the Fed was specifically chartered to help protect the US from massive economic collapses like we experienced in The Great Depression and to protect banks from major bank runs like banks experienced in the Great Depression, the Fed never sees these things coming. Not only does it fail to see them coming even […]

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We can now actually see with visual metrics what it looks like when the Fed keeps pushing against a badly broken job market that keeps pushing back. Because it doesn’t understand the broken labor market, the Fed is killing us.

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Katelynn & Jordan Hewlett, AP, CC BY-SA 4.0 , via Wikimedia Commons

Ever since last summer Zero Hedge has been pounding the “Fed pivot” fantasy as if it is going to happen — almost as if they want to entice the stupid stock market to keep chasing the fantasy. When it became obvious the Fed was steaming ahead with its inflation battle, ZH backed off a little….

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The Senate Inquisition Fried the Bank Regulators Over EASY

Posted March 28, 2023 By David Haggith
Picture of old government liberty bond

Pull up a lawn chair to watch our head regulators get their butts chewed off by a congress that has let the Fed slide on regulation for years. In this grand game of CYA, the inquisitors tread artfully because they are as much responsible for oversight failures as the regulators.

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