T-Dazzle! Inflation Crushing Households Under $60k, Russian CDS Indicating 99% Probability Of Russia Debt Default Over Next Year (WTI Crude UP 2%+, Wheat UP 3%+)

Confounded Interest ^ | 04/10/2022 | Anthony B. Sanders

[Browns Ultra Fan]

As we are painfully aware, The Fed’s exaggerated monetary flood combined with Federal stimulus spending has led to horrible inflation.

Yes, despite what government talking heads say, Federal stimulus increases demand for goods, the supply is generally slow to respond resulting in rising prices. Then government policies driving up energy prices also leads to highers prices. Throw in Federal Reserve monetary stimulypto and we have this chart from hell from Penn-Wharton. The chart shows that households earning less that $60,000 experience higher expenses due to rising prices than their gain in earnings.

Another chart from hell is the Russian USD Credit Default Swap (CDS) curve. It is spiking at over 20,000.

The one-year Russian CDS is currently at a whopping 20,336 indicating that there is about a 99% of a Russian default over the coming year. As someone who lived through the 1998 Russian credit default scare on Wall Street, this will send a shock wave through credit and Treasury markets.

Crude oil? WTI Crude is back to almost $100 per barrel while Brent Crude is at $102.78 per barrel. Wheat is up 3.22% thanks largely to problems related to Russia invading Ukraine (Europe’s bread basket) and a dismal Chinese wheat harvest.

Cryptocurrencies, the alternatives to the US fiat dollar, are rising (in particular, Bitcoin and Ethereum).

Of course, I have to finish up with the soaring 30-year mortgage rate.

Here are Treasury Secretary Janet Yellen and Transportation Secretary Pete Buttigieg trying to convince people that Treasuries are fantastic and to avoid alternatives to fiat currency like Bitcoin, Ethereum, Stablecoin or anything else.

[Browns Ultra Fan]

Biden and Powell continue to destroy the middle class as Communists tend to do. Leaving only the wealthy 1% and those dependent on government. Thanks for nothing O'Biden!!

[ncfool]

I have made seven figures invested in the stock market. But have yet to buy any crypto. I don’t understand it I would only buy it if it was super cheap. Currently it’s not. I do watch for swings if I got to 32,000 I might try to buy two coins. But then again I could’ve done that several times over the last 24 months.

I don’t buy treasury I mainly buy blue chip stocks I do have quite a bit in Amazon, Apple, and other flyers like that. The only time I tried to buy a SPAC or two I got burned. Personally I think buy-and-hold is the way to go and hopefully won’t need it for three or four years to live on.

[Graybeard58]

The chart shows that households earning less that $60,000 experience higher expenses due to rising prices than their gain in earnings.

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I’m alright for a while yet as a retiree, age 76, fortunately I don’t have to rely on S.S. as many people my age do. that piddling 5.9% raise that Biden likes to brag about has been eaten up long ago by S.S. premium increase, Medicare deductible increase and Biden’s inflation. He blames it all on Putin & Trump. PedoJoe is a worthless S.O.B.

[PastorBooks]

“I do watch for swings if I got to 32,000 I might try to buy two coins.”

If I understand correctly, Crypto is purchased fractionally so you don’t have to buy a “whole” coin.

[kiryandil]

The one-year Russian CDS is currently at a whopping 20,336 indicating that there is about a 99% of a Russian default over the coming year. As someone who lived through the 1998 Russian credit default scare on Wall Street, this will send a shock wave through credit and Treasury markets.

Russia has plenty of the West's "funny money" frozen in their accounts.

Any "default" will be caused by the Western grifters.

Meanwhile, Russia will have plenty of physical assets, while we have digital vapor.