Bill Holter’s Commentary
The bank index has crashed 10% in the 2 1/2 days of trading after the Fed meeting…wasn’t the Fed about as dovish as possible? Washington, we have a major problem!
U.S. Runs Largest Monthly Budget Deficit On Record In February
March 22, 2019
The numbers: The federal government ran a budget deficit of $234 billion in February, the Treasury Department reported on Friday, the biggest monthly shortfall on record.
It was wider than the $215 billion recorded in February 2018, as spending rose 8% while receipts climbed 7%. Previously, the largest monthly deficit was $231.7 billion in February 2012.
The release of the February figures was later than normal due to the 35-day shutdown that ended Jan. 25.
What happened: Total spending was $401 billion in February while the government took in $167 billion.
Drivers of spending in February included agriculture and transportation programs. The Treasury said individual withheld and payroll taxes climbed 5% in the month. Refunds dropped 10% in February, a month in which the Congressional Budget Office notes the share of total refunds paid varies from year to year.
Jim Sinclair’s Commentary
QE TO INFINITY.
The Fed Has Given Up: Get Ready for More QE
March 21, 2019
The Federal Reserve’s Federal Open Market Committee on Wednesday voted unanimously to keep the federal funds rate unchanged. Overall, the FOMC signaled it has made a dovish turn away from the promised normalization of monetary policy which the Fed has promised will be implemented “some day” for a decade. Although the Fed began to slowly raise rates in late 2016 — after nearly a decade of near-zero rates — the target rate never returned to even three percent, and thus remains well below what would have been a more normal rate of the sort seen prior to the 2008 financial crisis.