1) The U.S. currently has the worst debt to tax revenue ratio in its history.
Click here for the current Fed chart
2) The U.S. Dollar is coming off a 10 year high
On March 18th 2015 the USD was trading at 93.37
May 15th 2015 trading at 87.84
Or -5.9226% within the last 2 months
Click here for a current chart
3) U.S. interest rates are currently near all time historic lows
Click here for current Fed rate chart
4) The first U.S. rate hike in nearly a decade is on deck
5) Foreign investors currently hold 6.01 trillion in U.S. debt
6) Currency risk for these investors is more in one hour than annual yields.
7) Foreign investors in U.S. debt have lost over 355 billion dollars in the last 2 months as a direct result of dollar devaluation.
8) The Federal Reserve currently holds another 2.70 trillion in U.S. debt purchased with money it created with keypunch entries backed by no tangible asset or income flow.
Click here for a current Fed chart
9) Total personal and corporate U.S. tax receipts in 2014 were 1.84 trillion
Click here for a current Fed chart
10) The U.S. Budget deficit in 2014 = 789.5 billion
11) Total national debt for 2014 = 18.1414 trillion
12) National debt 2013 = 17.3519 trillion
13) 2008 national debt = 9.4375 trillion
14) Average annual budget deficit 2008-2014 = 1.4506 trillion
15) In 1984 the U.S. total national debt = 1.4107 trillion
16) U.S. National debt in 1970 = 389.14 Billion
17) Increase in the national debt since the U.S. went off the gold standard = 4,4562%
18) Increase in the price of gold since the U.S. went off the gold standard = 3,2855%
Click here for a current Fed chart
19) Total debt service cost in 2014 = $430.81 billion. Average 2014 interest rate = 2.37%
Click here for a current table
20) The majority of all U.S. debt is now fixed in durations of 10+ years
Average yield on this debt is 2.37%, 1954-2015 Average 5.10%
The U.S. has the worst economic fundamentals in it’s history
The U.S. has locked in fixed financing at 2.37% less than half the 1954-2015 average treasury yield of 5.10%
By keeping short term rates near zero those that needed any income were “sucked” into the longer dated U.S. Treasuries allowing the U.S. Treasury to lock in its debt service cost at the lowest rates in history for the longest average duration in history.
This could allow the U.S. to massively devalue the dollar with little or no impact on debt service cost as dollar devaluation and inflation engages.
The same investors who have endured the largest negative rates of return for the longest period in history now face the largest dollar and instrument devaluation in history.
Click here for current quotes
21) Monetization is the only solution (devalue the dollar)
Pre Monetization interest rate risk to U.S. budget deficits
Had the U.S not “fixed” it’s debt for the next 10+ years the coming interest rate hikes could be catastrophic.
The 2008-2014 average U.S. federal deficit was 1.4506 trillion or greater then the total national debt in 1984 of 1.4107 trillion.
Yellow = current treasury rate with debt service consuming -23.41% of total tax receipts
Red = 1954-2015 average Treasury rate with debt service consuming -50.28% of tax receipts
Orange what rates would be using BLS.GOV calculations from 1980, -92.88% of tax receipts
22) Through the creation of money backed by nothing “Quantitative Easing” increases money supply.
As more money chases after the same goods and services prices rise (inflation).
When prices rise so does tax revenue which I believe is the Fed’s ultimate goal, to have the same debt service cost from the fixed rate with potentially twice the revenue to service it.
The Fed chart below shows the direct correlation between M1 (money supply) in black and tax receipts in green.
Click here for a current Fed chart
23) Post monetization (after the Fed devalues the dollar against tangible assets)
U.S. Treasury debt is fixed for greater than 10 years the impact on debt service cost will be minimal with the increase in inflated tax revenue offsetting the increase in rates.
Yellow = current treasury rate with debt service consuming -11.71% of tax receipts
Red = 1954-2015 average Treasury rate with debt service consuming -25.14% of tax receipts
Orange what rates would be using BLS.GOV calculations from 1980, -46.44% of tax receipts
24) The first 4 trillion in monetization (m1 in blue) saved the housing market and further bank/mortgage failures (housing index in black) and tax receipts (in green).
Click here for a current fed chart
25) Aside from saving the banks that created the problem the U.S. Treasury saved over 1/2 a trillion per year in debt service at the cost of savers while the prime remained unchanged at 3.25%, at least Japan had the conscience to lower their prime to 1.20%.
According to the hard numbers generated by the Fed “Quantitative Easing” was the biggest economic failure in U.S. history and has now spread globally.
Countries that are copying this failed economic policy can now look forward to the same “results” the U.S. experienced shown in the Fed chart below.
Click here for current Fed chart
26) U.S. Debt to income, debt in red income in green
Click here for a current Fed chart
27) Debt to the employed U.S. population, debt in red all employees in green.
Click here for a current chart
28) Debt to earnings, debt in red earnings in green
Click here for current Fed chart
29) The U.S. numbers are beyond bad.
The damage U.S. economic and trade polices has done over the last 30 years to the U.S. economy are unsustainable and irreversible.
The unprecedented 10+ trillion dollar failure of 2008 through 2015 “Economic Stimulus” now threatens the U.S. dollars status as the world’s reserve currency.
The Chinese Renminbi is scheduled to become a world reserve currency in October of 2015.
30) Click here for the Renminbi report
31) Click here for the 1998-2015 performance for the Interbank currency programs
32) Click here For the Fed’s timing on rate hikes and one way we’re positioned to capture this move.
33) Our Structure
Front load = 0.00%
Management fee 0.00%
Incentive fee = 10.00% of net new high profits quarterly
To open a test account enabling you to get comfortable with our team
35) Clearing and Exchange Members for larger accounts
36) The world’s largest dollar volume exchange group
37) CME videos
38) Due Diligence and how funds are protected
39) Commodity Futures Trading Commission
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