Last month, as I saw... (Part 2.)

November 2022 - Global Economic news

First my disclaimer:

All writings expressed by me are solely my opinion. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of my opinion in newsletters for informational purposes only.

This is how I saw the things that happened in November…

The US market

People started to use way less gasoline as they’re running out of money (and credit). The consumption fell by more than 10% in just the last 3 months. To “fight” the inflation the FED raised the rates with another 0.75% which made the S&P 500 make its worst final 90 minutes and “The gap between 2-year & 10-year Treasury yields is the most inverted, the most negative, since the early 1980s.” by Lisa Abramowicz

As the interest rates go higher the US economy will kill itself with the ever increasing US debt. The $31 Trillion US debt interest payments size went vertically!

“We are entering a debt death spiral. Interest on the debt will double if they leave rates above 4% for about 3 years. All of the debt maturing rolls over at higher rates.” by Wall Street Silver

Clearly these steps of the FED QT program will break the economy. Soon either the economy will be thrown into deep recession or the QT will be ended and a new QE will be started. 

There is a 3rd way out of this if the FED is intentionally killing the current financial system to issue their new CBDC through the FedNow system. 

“We have an illusion of freedom. But governments all over the world are moving towards central bank digital currencies which would fundamentally strip away our civil liberties and potentially act as a conduit for social credit systems. We are sleepwalking towards this. “ by James Melville