For the First Time Since the Great Depression, U.S. Money Supply Is Shrinking

History Suggests This Spells Trouble for Stocks.

We’re witnessing history: the first meaningful decline in U.S. money supply in 90 years.

Volatility has been the name of the game on Wall Street since this decade began. Since 2020, the iconic Dow Jones Industrial Average, broad-based S&P 500, and growth-focused Nasdaq Composite, have bounced back and forth between bear and bull markets.

These wild fluctuations have left investors to question what’s next for stocks. Although there isn’t any one indicator that can, with 100% accuracy, forecast what’s to come in the short run for Wall Street, there are quite a few economic datapoints that have an uncanny track record of predicting short-term directional movements in the Dow Jones, S&P 500, and Nasdaq Composite. One such metric that should be raising some eyebrows is U.S. money supply.

History is being made before investors’ very eyes…

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The Greatest Debt Spiral In Human History – And It’s Now Terminal.

If you’re going to go out, you might as well go out in style. Our national debt stood at $31,467,639,287,894.39 at the start of June. It is now worth $33,476,530,987,617.43. That implies that in just three months, we have added nearly two trillion dollars to the national debt.

We are in debt trouble. Photo by Richelleg/canva

It is the largest single debt in our planet’s history, and it will never be paid off. Our debt spiral has reached its terminal point, and the only thing we can do now is prolong the suffering. We destroyed the beautiful future that our children and grandchildren were meant to have a long time ago, so what we do now doesn’t really matter.

What our leaders are doing to us is a crime against humanity.

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We Are Witnessing One Of The Greatest Financial Market Crashes In History Right Now

History is starting to repeat itself. In 2008, bond prices crashed before stock prices did. Here in 2023, bond prices are crashing again. In fact, we are currently witnessing one of the greatest financial crashes in U.S. history at this moment. Of course most Americans have absolutely no idea that this is happening. Most Americans don’t know anything about the bond crash that is causing a tremendous amount of fear in the financial community right now, and that is because the big news networks aren’t talking about it too much. But it is serious. Since the peak of the market, 10 year bonds are DOWN 46 percent and 30 year bonds are DOWN 53 percent…

Losses on longer-dated Treasuries are beginning to rival some of the most notorious market meltdowns in US history. Continue reading

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Gold Is Well-Positioned for When the Fed BREAKS Something

…and they BREAK something everyday!

The gold market may not be able to break out of its neutral trading channel around $1,950 just yet, but it is well positioned to benefit when sentiment turns, which could be sooner than some are expecting. Continue reading

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Is the Money in Your Checking Account Yours or the Bank’s?

When Silicon Valley Bank and other banks failed earlier this year, the debate over the sustainability of fractional reserve banking resurfaced. Under fractional reserve banking, banks keep only a fraction of customers’ deposits in reserve. The difference is bank credit, such as government debt, mortgages, business loans, and many other kinds of loans. This practice leaves the bank open to a run, in which panicky depositors attempt to withdraw their funds from the bank en masse but the bank doesn’t have the cash on hand. Continue reading

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New Warnings of Bank Collapse Surface Due to Massive Losses

Banks have now reported having more than $309 billion in unrealized losses for the second quarter ending on June 30 alone.

The FDIC reported that all 4,645 FDIC-insured financial institutions had $309.6 billion in unrealized losses on held-to-maturity securities.

According to Bank of America’s federal regulatory filing known as the Call Report, for the quarter ending June 30, 2023, it had $105.79 billion in unrealized losses on its held-to-maturity (HTM) securities, reports Wall Street on Parade. Continue reading

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The US Consumer is Starting to Crack

Even as interest rates skyrocketed over the past 18 months, a good job market and strong consumer spending kept the US economy moving.

This led to hope that a soft landing was coming, where the Federal Reserve could defeat inflation without millions of Americans losing their jobs.

However, there are growing signs that the strength of the US consumer is starting to crack. Continue reading

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The Kiplinger Letter: U.S. Banks Closed 3,000 Branches Last Year

Banks are closing branches faster than they’re opening new ones. U.S. banks closed over 3,000 branches last year while opening just 1,000. JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133. The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech. Continue reading

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Life In America Has NEVER Been More Unaffordable Than It Is Right Now

Our standard of living is being systematically destroyed, but for a lot of years many Americans didn’t fully understand what was taking place because it was happening so slowly. But now we have reached a stage where the purchasing power of our money is collapsing and the cost of living has become exceedingly painful. Thanks to our rapidly rising cost of living, the middle class is becoming “the impoverished class”, and the poor are increasingly being pushed out into the streets. If we do not find a way to turn these trends around, it won’t be too long before we have tremendous societal turmoil on our hands. Continue reading

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Are We Being Misled by Leading Indicators?

Leading Economic Indicators See Us on Cusp of Recession Yet Again

By many of the most reliable leading indicators of the U.S. economy, we are long overdue for a recession. Yet the economy stubbornly refuses to cooperate.

The Conference Board released its latest index of leading economic indicators on Thursday. It declined for the seventeenth consecutive month, dropping an additional 0.4 percent in August. That’s an acceleration of the pace of decline since July, when the index fell 0.3 percent.

The Conference Board’s index is a composite of ten so-called “leading indicators.” These are gauges of economic activity and sentiment that tend to move up or down several months before overall economic growth indicates an acceleration or a slowdown. Continue reading

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