Friday, July 3, 2020

How Bad Is The $1.3 Trillion Spending Bill? Rand Paul DESTROYS The Bill In Most Epic Tweetstorm Ever

0

from Silver Doctors:

Rand Paul has called out the hypocrisy and total disgrace of the Federal government’s spending bill. What Rand puts on blast is downright shocking…

So yesterday the Senate passed the $1,300,000,000,000 spending bill.

Senators were given “just hours” to read all 2,200 pages.

So without further dado, and we wish this could be some sort of Friday Humor post but it’s really not funny at all, here’s Senator Rand Paul’s epic lashing out at the Federal Government:

China’s Empty Threat of Dumping its US Treasuries

by Wolf Richter, Wolf Street:

“We are looking at all options.”

In an interview about the trade sanctions that President Trump is throwing at China and at Corporate America – whose supply chains go through China in search of cheap labor and other cost savings – Ambassador Cui Tiankai defended the perennial innocence of China, as is to be expected, and trotted out the standard Chinese fig leafs and state-scripted rhetoric that confirmed in essence that Trump’s decision is on the right track.

Speaking on Bloomberg TV, he also trotted out all kinds of more or less vague and veiled threats – such as, “We will take all measures necessary,” or “We’ll see what we’re doing next” – perhaps having forgotten that China and Hong Kong combined export three times as much to the US as the other way around, and the pain of a trade war would be magnified by three on the Chinese side.

STRONG DAY FOR GOLD AS IT RISES $23.30

by Harvey Organ, Harvey Organ Blog:

SILVER IS UP 19 CENTS/CARNAGE IN GLOBAL MARKETS WITH THE DOW DOWN 424 POINTS AND THE NASDAQ DOWN 174 POINTS/CHINA RETALIATES WITH THEIR TARIFFS ON USA GOODS/LIBOR-OIS SPREAD BLOWS OUT TO 58 PTS INDICATING SCARCITY OF DOLLARS: HUGE PROBLEMS THROUGHOUT THE WORLD/TWO MORE REPLACEMENTS AT THE WHITE HOUSE/MORE SWAMP STORIES FOR YOU TONIGHT

The Budget-Busting $1.3 Trillion Spending Bill That Was Just Passed By Congress Is A Betrayal Of The American People

by Michael Snyder, The Economic Collapse Blog:

I don’t know if I even have the words to express how disgusted I am with the omnibus spending bill that was just rushed through Congress. Members of the House of Representatives were given less than 24 hours to read this 2,232 page monstrosity of a bill before they were expected to vote on it, and so obviously nobody was able to read the entire thing before the vote was held. This is the kind of thing that Democrats were greatly criticized for in the past, but now it is Republicans that are doing it. The Republican Party is supposed to stand for limited government, and this is yet another example that shows how badly broken the system in Washington has become.

I am running for Congress in Idaho’s first congressional district, and I want to make it exceedingly clear that I would have voted against this bill. In addition to fully funding Planned Parenthood, this bill also funds a whole host of other liberal priorities. But other than an increase in military spending, conservative priorities are almost entirely ignored by this bill.

The FEDERAL RESERVE’S Hands Are Increasingly Tied… Here’s Why:

Will the Fed’s 0.9% equity capital balance sheet limit QT?

by Dan Kurz, DK Analytics.com:

It really is absurd, isn’t it, the Federal Reserve cabal’s balance sheet? 0.9% equity capital or debt that is 111x equity. A closer and broader look (and a follow-up of sorts): That leverage spells huge Fed exposure to rising bond yields/falling bond prices. Same bonds’ durations — how long it takes for an investor to be repaid the bond’s price determined by the bond’s total cash flows — are particularly lengthy given (artificially) low interest rates and the associated lofty valuations or “bubbles.” Those bubbles, or valuations divorced from constructive capital preservation and sound return prospects, are thanks to nearly a decade of globally-orchestrated financial repression that has pushed bond yields to historic lows, in the process eviscerating price discovery and thus free market capitalism-based pricing.

In the ultimate financial deformation, as of January 2018, globally speaking there was over $7trn in negative yielding “Frankenstein” bonds; in other words, creditors who are PAYING for the right to lend their money to debtors! Those bonds’ twilight zone valuations stand to be crushed by a sustained rise in interest rates given their extreme valuation sensitivity to rising interest rates; call them “zero-coupon bond bastard cousins,” i.e., bonds were YTM would move to zero from a negative return!

Trump Will Use the “Nuclear Option” on Trade

by Jim Rickards, DailyReckoning:

What we have seen so far are just the opening shots of the coming trade war. Think of it as the Battles of Lexington and Concord that opened the Revolutionary War. Much larger tariffs and penalties are waiting in the wings.

Trump will soon receive a report under Section 301 of the Trade Act of 1974. That report has been almost a year in preparation and will reveal that China has stolen over $1 trillion in U.S. intellectual property.

Section 301 of the Trade Act of 1974 is the “nuclear option” when it comes to trade wars.

I don’t want to get too deeply in the weeds here, but Section 301 gives the president broad authority to impose sanctions and penalties. The president will have a completely free hand to impose billions of dollars of damages if not more on China.

Trump could receive this report within days or weeks. Regardless, it is coming soon.