Author: Steve Tee
Powell’s Speech yesterday was certainly hawkish and the same script being spewed upon. Trying his very best not to push the US economy into a recession, despite the fact that internally, inside America’s economy and money machine, things are looking ugly. Declining inflation was a key word mentioned by Powell during his speech, which caused S&P500, DJIA and Nasdaq 100 to spike rigorously as investors turned bullish. Powell’s speech might give the impression that US is drifting away from a potential crash, but I am still not convinced.
In a CNN Business report, Bank of America’s CEO (2nd largest bank in America) is preparing for a possible US debt default. Janet Yellen echoed on this message in CNBC report, stating “Failure to raise US debt ceiling would lead to economic and financial catastrophe”. Seem like they just have no other way out, except for increasing the debt ceiling so that US government can take on more debt, to pile on top of its already existing US$31 Trillion national debt, to sustain themselves. Job market may see growth but US credit card debt jumps 18.5% and hits record of $930.6 Billion. A study done by NerdWallet found that American’s personal debt tops $16 Trillion and average debt load hits $165,000 per household, as reported by WECT News6. Let that sink in for a moment.
Again, nothing convincing that will suggest a bullish Dollar, and a bullish American economy in the mid and long term. Ukraine now suggested Joe Biden to impose sanctions on China and India, because they are supporting Putin’s war chest by purchasing its cheap energy. You think the situation may have gotten better, think again. Zelensky is pulling in the world’s 2 largest producing countries with highest population count, into the picture. This looks like provocation at its finest. Why is this happening? Many reasons perhaps. To cause ruckus inside the potential BRICS+ nations 2 strongest member, to disrupt trade of India and China with US, scare tactic so that China and US do not continue buying cheap energy from Putin, exhaust Putin’s ability to fund its troops and battalion and etc. The world view of 2023 is not looking any better than 2022.