Crypto News Daily

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[Crypto News Daily @CryptominingU]

@texasrunnerDFW Housing bubble would only occur with massive job loss where people would lose their homes as they couldn’t pay their mortgage. Supply is too low as interest rates prevent people from moving into new homes

[The Kobeissi Letter @KobeissiLetter]

Permanent job losses in the US are now rising at recession-like rates.

The number of people reporting permeant job losses was down 50% in 2022.

Now, it's at 20% and quickly rising as shown below.

Permanent job losses are rising at the same pace seen in 2007.

Meanwhile, jobs reports continue to crush expectations and a record 447,000 Americans hold 2 full time jobs.

What's happening in the labor market?

[Crypto News Daily @CryptominingU]

@HeavenScent88 Said Every dictator ever

[Crypto News Daily @CryptominingU]

@Travis_in_Flint Not sure who you hang out with but this has been talked about for months not at this point.

FYI we already have the draft it’s called “selective service”. Just need to activate it

[Jason Ai. Williams @GoingParabolic]

BREAKING NEWS 🚨 Michael Saylor says a spot #Bitcoin ETF will 10 x to 100 x the price of Bitcoin.

That’s $270k to $2.7M per bitcoin.

[The Kobeissi Letter @KobeissiLetter]

For those keeping track, US debt just jumped by another $40 billion in one day.

We are now at $33.55 trillion in Federal debt, just 25 days after it hit a record $33 trillion.

At the current pace, the US would add $1 trillion in Federal debt every 45 days.

Since 2008, the US has added $24 trillion in Federal debt, rising to 3.8x what it was in January 2008.

Total US debt is now officially up more than $2 trillion since the debt ceiling crisis "ended."

But, under the new bill, the debt ceiling is effectively uncapped until January 2025.

How high will US debt be in January 2025?

[The Kobeissi Letter @KobeissiLetter]

US crude oil production just soared to a new record high of 13.2 million barrels per day.

To put this in perspective, the US was producing 12 million barrels per day at the start of 2023.

That's a 10% increase in production year-to-date alone.

We are finally seeing higher production levels than the previous high of 13.1 million barrels per day pre-pandemic.

Is more US production the solution to the current energy situation?

[matthew sigel, recovering CFA @matthew_sigel]

@BillAckman Don't forget that the Biden administration just gave Iran, Hamas' principal backers, $6B.

[Crypto News Daily @CryptominingU]

@mmpadellan POTUS, White House and his personal accounts constantly attack Republicans. Doesn’t seem very unifying to me.

[The Kobeissi Letter @KobeissiLetter]

This is incredible:

Orange Juice prices are rising so fast they just hit their limit-up threshold and were halted.

Since the 2020 low, the price of orange juice is up a massive 315%.

This year alone, orange juice prices have jumped by 105%.

Meanwhile, Live Cattle prices are up 125% since 2020 and Olive Oil prices are up 130% since last year.

What does it mean when food prices outperform hedge funds?

[Joseph Brown @heresyfinancial]

The Reverse Repo facility has seen $1 trillion drain out in just the last 6 months

What happens when it runs out?

Its important to remember what this account is for, and where this money came from in the first place 🧵👇🏼

When all the money printing started in 2020, this account was not in use. But the money printing flooded the banking system with deposits.

Whenever a dollar is spent, it goes from one bank account to another.

When a dollar is in a bank account, it is a liability for the bank. They “owe” this dollar back to you, and it costs them money to hold it. They have to do something to make money with it. So they buy an asset so that they have an asset to offset their liability.

From March 2020-March 2021, banks didn’t have to worry about this. They were not required to offset these liabilities. But starting in April 2021, that temporary suspension was lifted, and they had to get assets again.

If banks had gone out to buy up assets with these trillions of dollars, it would have pushed short term rates negative. There would have been too much demand and not enough supply for short term government debt.

So the Fed opened up the reverse repurchase facility so that banks could get their collateral straight from them instead of the open market.

The fed knew they would have to make the facility attractive enough, or else there would be no reason to use it. So they started offering a yield on any cash that came in: 0.05% higher than the bottom end of the fed funds rate. Just enough to make it enticing.

So banks got the collateral they needed and also got a tiny percentage paid on their cash straight from the fed.

As inflation fears roared, the fed started aggressively raising interest rates. But there were still trillions of dollars from the money printing that needed to be kept out of circulation.

So the fed had to keep raising rates on the reverse repo facility as well. This kept a floor under short term rates so that it would only leave for a sufficiently higher yield.

We are now seeing that play out. Government borrowing has accelerated so rapidly, that short term yields are now attractive enough for cash to leave the safe haven of the risk-free fed reverse repo, and get lent to the government instead

The more the government borrows at the short end of the curve, the more cash will leave the reverse repo facility.

And once it’s empty, the government will need a new slush fund to borrow from.

At about $1.3 trillion left in the facility, it may seem like this is a long way off. But just 6 months ago in April, this facility had $2.3 trillion in it.

So we’ve seen $1 trillion leave this facility in the last 6 months, and there is only $1.3 trillion left.

And government borrowing is accelerating.

There will be many unexpected consequences of this acceleration in this out of control deficit spending, but one consequence is very predictable.

Much, much higher rates.

[Crypto News Daily @CryptominingU]

@Voice4Unity @jeransom33 @Lawanjr1 @OccupyDemocrats How many convictions?

If someone accused you of murder but you didn’t do it. Went to court for it and then was found not guilty. Would everyone still be entitled to call you a murderer?

It’s why in this country you are innocent until proven guilty.

[Crypto News Daily @CryptominingU]

@mmpadellan It was your party trying to shut it down to fund the Ukraine.

https://t.co/qyYpJlzVXI

[Crypto News Daily @CryptominingU]

@mmpadellan @DefiantLs Didn’t take long. In this article, investigation shows the Democrats where holding out on passing to ensure we kept funding the Ukraine. What do you have to say about that?

https://t.co/qyYpJlzVXI

[Crypto News Daily @CryptominingU]

@mmpadellan @DefiantLs here is a great one to screenshot because un a few years Brooklyn will flip when the democrats are voting to shut down the government.

Swear this man runs purely on emotion.

[Crypto News Daily @CryptominingU]

@JoeBiden You were supposed to be a foundation for unification of our country. If Congress is split this badly then you did a poor job in leading.

[Benny Johnson @bennyjohnson]

@POTUS Don’t worry guys, billions of taxpayer dollars will still be flowing to Ukraine!

[Crypto News Daily @CryptominingU]

@AaronParnas In other words he makes it less affordable for people to acquire and train properly with weapons to legally defend themselves. This only affects lower and middle class. Not the rich. Crime will increase further in the coming years from this shortsighted action.

[Crypto News Daily @CryptominingU]

@AaronParnas School shootings have gone up dramatically after banning guns from schools. Because murders don’t follow the law and lawful people do.

[Crypto News Daily @CryptominingU]

@KobeissiLetter You mean they are going to do rate cuts improving the economy just enough for the elections?