Posted on 03/31/2022 4:53:48 AM PDT by Browns Ultra Fan
Alarm!
There is a massive divergence between the collapsing US Treasury 10Y-2Y yield curve and the near-term forward spread. The near-term forward spread is the difference between the implied interest rate expected on a three-month Treasury bill six quarters ahead and the current yield on a three-month Treasury bill.
As we already know, the 10Y-5Y yield curve has inverted signaling a coming recession.
This divergence between the Treasury yield curves and the near-term forward spread is occurring as US inflation hits the highest rate in 40 years.
Now President Biden is considering “Releasing the Kraken!” That is, releasing a huge amount of crude oil from the nations Strategic Petroleum Reserve (SPR) in order to combat inflation. If the purpose of Biden’s executive orders were to limit fossil fuel production and consumption, why doesn’t Biden simply rescind his executive orders and allow the construction of the Keystone Pipeline?
(Excerpt) Read more at confoundedinterest.net ...
The problem is you can only tap the SPR so many times before the caverns are physically destroyed.🙄
Depleting the oil reserve is a horrible idea when you lack production capability. It just makes us more vulnerable to foreign powers and puts America at risk. Time to open up production for a long term solution rather than these short term fixes designed to provide some relief just prior to national voting.
Look at the 2s to 3mo for a more accurate outlook. 2s/10s is nothing to sneeze nor panic at. Recession? yes, small. Inflation, yes, increasing, supply issues? yes, getting better......but its gonna hurt until we can get the commies out of the white hut.
Browns Ultra Fan : " Biden is trying to destroy the country.
What else would he open the Mexican border when employers have jobs that already can't be filled?
(My Comment): He is stuck on appealing to the 'wants' of the small progressive wing that got him into office, rather than the financial 'needs' of the country.
His support staff is "stuck on being being stuck" and has no idea of innovation or change.
Thank goodness that he doesn't need a "Confidence Vote" in a parliament order to continue, as they do in many international countries.
Comments ?
Deplete the emergency fuel reserves when you’re on the possible brink of WWIII?
Will the brilliance of the Democrat Party never end?
“Huge” oil release is a drop in the bucket against inflation.
President Biden is considering .....releasing a huge amount of crude oil from the nations Strategic Petroleum Reserve (SPR) in order to combat inflation.
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And then what are we supposed to do when the Eurasian war spreads to our shores? The strategic reserve’s intent has always been for unforeseen circumstances, not for bailing out a president who makes bad choices.
2s/10s is nothing to sneeze nor panic at.
Hasn’t a recession hit at about 6 mos following, every time this has happened, previously?
Nothing Trump can’t fix, though ;-)
The Ruble Regains 100% Of Its Loss After Russia Invaded Ukraine, Why?
When Russia invaded Ukraine on February 24, it took 84 rubles to buy 1 US dollar.
On March 7, it took 131.2 rubles to buy 1 US dollar.
That’s a 36% decline in the rubble vs the US dollar.
The ruble is now back where it started on February 24.
Russia still trades oil and gas with Europe
Russia halted currency trades
Russia enacted stock market restrictions
Of Russian exporters, Russia demanded 80% of euros and dollars be traded for rubles.
Russia threatens to stop exporting key commodities including aluminum, natural gas, fertilizer, rare earth minerals, etc., driving up prices and the need to stockpile.
Sanctions cannot take away Russia’s natural resources.
The Fed can print dollars, it cannot print commodities. Likewise, the ECB can print euros, it cannot print commodities
Two False Reasons People Key On
Russia demands payment in rubles
Gold-backed ruble
Twelve and Three-Word Summations
A twelve-word synopsis of the above is Misguided Souls Still Do Not Understand This Simple Truth: Sanctions Don’t Work
The last three of those twelve words emphasize the key point.
Meanwhile, Biden Doing Everything Possible to Drive Up the Price of Oil, Some of It’s Illegal
Finally, US Sanction Policy Drives China Into Russia’s Loving Arms.
China is the big winner in global sanction policy.
https://www.zerohedge.com/markets/ruble-regains-100-its-loss-after-russia-invaded-ukraine-why
Reminds me of the concept of “Selling your birthright for a mess of pottage”.
Yes, that’s been obvious from his first day in office and every subsequent action.
The maximum withdrawal rate is 4.4 million barrels per day, which is less than the 6.1 million barrels per day imported during 2021.
Releasing the reserves is a one-time deal. Won’t solve any problem. I’ll bet they do it right before the elections, thinking that the brain-dead public will be fooled.
He made us energy dependent. That is all we need to know.
Not just a president making bad decisions. In 2020 Trump tried to fill the reserves when oil was cheap, only to have the Democrats thwart him arguing he was only trying to help the oil companies. The Republicans have to tie these bad policies to the Democrats as a whole.
It’s not a stupid idea for a Party that wants the US to lose a war.
Think about the reparations we’d have to make to China and the size of the payoffs their US agents would get.
1M barrels a day for 180 days is a drop in the oil bucket! Thank GOD these stupid dems don’’t realize that and their BS plan going up to the elections are doomed for failure!
And that is why the dems are trying to destroy as much of the nation while they can! They are insidious!
The Saudis use to pump to help the friendly incumbent presidents. Now, they laugh at this dribbling idiot. They aren’t going to help a chomo who is ensuring Iran will be nuking up in the very near future.
A depression must be closer than what the stooge crew thought now in the turn all dials and pull every lever to slow it down.
What could go wrong with a rigging Moe?.
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