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So much for the oft-repeated canard that “no one is above the law”.

“In the coming years expect dollar debasement, debt restructuring or both.” America’s government is on its way to bankruptcy, argues Jeffrey Gundlach in a guest essay econ.st/3VImpoi 👇

The 21st Century is just about 25% over….let’s make the most of the next 25%!

State and local governments are announcing their intention to nullify Federal law in the days ahead. What year is this, 1862 ?

Karen Bass, the “Mayor of Los Angeles”, needs to resign effective the day before yesterday.

Gavin Newsom, the “Governor of California”, needs to resign today.

Wide swathes of Pacific Palisades are burned to the ground. Malibu by PCH too. The “rebuild” process will shape the future of Los Angeles.

Sadly, but as expected, Newsom actually spoke of the rebuilding process as a way of “reimagining LA 2.0” Gavin, we have had more than enough of your “reimagining”.

Fed Day tomorrow. Most predictable “no change” in recent years. The Fed’s “dual mandate” will be the focus of Powell’s presser. Should be more than ever since there is now a tension between those two mandates. Per usual, doing CNBC with Scott Wapner immediately following

There are basically two camps now regarding US Government spending. One that benefits from the systemic multi trillion dollar deficit funded circular financing scheme and one that wants that slush fund to stop.

It is not an option, it is essential: Without reducing spending the United States will go bankrupt. Cut, baby, cut!

No, US bond market credit spreads are not “well contained.” Since year end, the extra interest Junk Bond companies need to pay to borrow vs the US Treasury have increased by 140 basis points. I predicted this in an interview with Scott Wapner the day after the last Fed meeting.

The Dow Jones Industrial Average, the S&P 500 and the NASDAQ are now, with the present futures market openings, negative in price change year-over-year.

The 2 year UST yield now sits at exactly 3.5%, suggesting the Fed Funds rate is at least for now viewed to be 75 basis points too high. Yet I do not see a single cut any time soon, unless the losses in risk assets greatly increase.

When public markets experience a sharp decline, like now, it is nonsensical to think private markets are a harbor in the storm. Yet I have heard this absurd assertion twice in the past week. “Don’t worry, we’re not down”. Sure.

The 30 year US Treasury yield is going vertical.

Halfway through fiscal year 2025, the U.S. Budget deficit increased by $1.3 trillion. So we are up to a $2.6 trillion annual rate. That rounds up to an incredible 9% of GDP. The fit is hitting the shan.

Who is still funding Tim Walz?

Treasury yields have been rising on a trend basis while the dollar has been falling on a trend basis. This paradigm’s likely emergence, and the reasons behind it, have been described many times in my 5webcasts and media appearances.

A rise in the 30 Year US Treasury yield to above 5.18% would take it to a new eighteen year high.