by pentoport | Sep 8, 2020 | Commentary
September 8th, 2020 The Fed has now officially changed its inflation target from 2% to one that averages above 2% in order to compensate for the years where inflation was below its target. First off, the Fed has a horrific track record with meeting its first and...
by pentoport | Aug 11, 2020 | Commentary
August 11, 2020 Bankrupt Balance sheets The US National debt has now soared to 130% of GDP; that $26.6 trillion equates to around 1,000% of Federal revenue. Our government will add $4 trillion to that dung pile this year alone, which is an incredible 20% of GDP. The...
by pentoport | Jul 20, 2020 | Commentary
July 20, 2020 The monthly U.S. budget deficit for June 2020 was a heart-stopping record $864 billion. For reference, last year’s deficit for all of fiscal 2019 was just under $1 trillion. In other words, the June deficit was almost as much as the entire amount...
by pentoport | Jul 13, 2020 | Commentary
July 13, 2020 We can all be very confident that there will be no change to monetary policy for a very, very long time. But there is a fiscal cliff coming—and indeed has already begun. It is clear that Mr. Powell is all-in on his unlimited QE and ZIRP. And, that he is...
by pentoport | Jun 29, 2020 | Commentary
June 29, 2020 We start this week’s commentary with some rather depressing news from Reuters: The ratio of downgrades to upgrades in the credit ratings of leveraged loans has spiked to a record level, five times above that hit during the last global financial...
by pentoport | Jun 22, 2020 | Commentary
June 22, 2020 The Fed mistakenly believes it can control the rate of inflation with relative ease. While it believes it is far easier to fight a rising rate of inflation than deflation, it is still completely convinced the puppet strings of extant price levels rest...
