Author: Author1

Assessment: Venezuela, Lebanon and now Turkey are modern day examples government and central bank overreach. Revelation 6:5-6 brings hyperinflation on a global scale …

Another day, another collapse in the Turkish lira, only this time there was a twist: as the hyperinflating currency implodes, Erdogan has finally had enough of the relentless pummeling, and is starting to shut down Turkey’s markets.

Third Seal: Scarcity on Earth

^“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. ⁶ And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”

But first, let’s back up: heading into Friday, the lira accelerated its historic descent, weakening past the 16 per-dollar mark for the first time ever, as the central bank’s pledge to end a four-month cycle of interest rate cuts on Thursday failed to convince investors that inflation can be brought to heel. That was just the start however, and the currency plunge only accelerated crashing as low as 17.14 just hours later, bringing declines this week to 17%. YTD the currency has lost more than half of its value!

As a reminder, the central bank yesterday cut its benchmark one-week repo rate by a further 100 basis points to 14%, its fourth reduction since September spurred by demands from President Recep Tayyip Erdogan to lower borrowing costs in the face of surging consumer prices as part of his batshit insane monetary policy Erdoganomics whose only possible outcome is the collapse of Turkey’s economy and hyperinflation. The resulting sell-off accelerated a 54% plunge in the currency so far this year as real rates fall further below zero with inflation now standing at an annual 21.3%.

Erdogan then responded to the economic pain caused by rising prices by ordering a 50% increase in the minimum wage next year, guaranteeing even more inflation as it will increase production costs that will see inflation accelerate by a further 2% to 8% next year, Erkin Isik, chief economist at QNB Finansbank, wrote in a note to clients.

In any case, once the lira plunged to 17, the central bank spent another billion or so intervening, its 5th intervention just in December. Needless to say, this intervention like all those preceding it, had a half-life of just a few minutes, and shortly after the USDTRY was trading back at just shy of all time highs.

And this is what the realization that hyperinflation has arrived and may not be good for stocks looks like.

Read More @ Zero Hedge HERE

The Fed’s hawkish statement and Powell’s modest ‘good cop’ effort left rate-hike odds all higher on the week with May 2022 now the most likely ‘liftoff’ for rates…

While stocks knee jerked higher on Wednesday, this hawkish shift ended up dragging markets lower on the week. Nasdaq was the week’s biggest loser; The Dow was the least ugly horse in the glue factory…

Defensive sectors dominated the week with Energy, Tech, and Discretionary the most hated…

Read More @ Zero Hedge HERE

Assessment: Both nations have been trying to remove the US dollar as world reserve currency for over a decade. The move appears to be Russian’s response to a series threats that the US could push to disconnect Russia from the Brussels-based SWIFT financial system. China would like to see the digital yuan, first of its kind, as world reserve currency …

Russia and China have agreed to develop shared financial structures to deepen economic ties in a way that will not be affected by pressure of third countries following talks between the top leaders, Russian media outlet RT reported on Wednesday.

The move will help both countries deter the threat of the US government’s long-arm jurisdiction based on the US dollar denominated international payment network, experts said.

“Then the sixth angel poured out his bowl on the great river Euphrates, and its water was dried up, so that the way of the kings from the east might be prepared” Rev. 16:12

Assessment: The bill written in the Senate is a lie. The CBO exposed that lie, and when it comes to deficit spending, it’s [adding] $3 trillion to the deficit …

The chances the Senate will pass Biden’s signature piece of legislation — his “Build Back Better” bill — are now close to zero. Senate Majority Leader Chuck Schumer (D-N.Y.) has “punted” the bill into March of next year, all but assuring its demise.

As NBC News commented after speaking with “four sources familiar with planning by … Schumer’s office,” “simple math” precludes the bill from reaching Biden’s desk.

When the righteous are in authority, the people rejoice;
But when a wicked man rules, the people groan. Proverbs 29:2

It’s all Senator Joe Manchin’s (D-W.V.) fault: Talks between him and Biden were going “very poorly,” so poorly in fact that they “have broken down” over the size, scope, and cost of the monstrosity. Part of the problem is that sections of the bill haven’t even been written yet in hopes that Manchin and the White House could come to some sort of compromise, allowing him to vote for it.

At the moment, however, Manchin remains firm: It’s too costly and will further increase inflation, which is now the No. 1 concern of voters. The death knell was rung by the non-partisan Congressional Budget Office (CBO), which reported on Friday that the BBB would increase the national debt by more than $3 trillion over the next 10 years, putting the lie to the claim by Biden that his plan would be “totally paid for” by generating additional taxes on the wealthy and the tax-avoiders. CBO didn’t buy it, and after its analysis reported the discrepancy.

Senator Lindsey Graham (R-S.C.) said last rites at Fox News:

Read More @ New American HERE