Now Spain gets marked to market

Spain’s Government Is On The Verge Of Major Upheaval

The Italian problem already raised  Spanish rates 30 basis points. 

The ECB is the only real buyer when the US three month rate earns more than any Euro safe rate. The US taxpayer intends to pay  close to 700 billion a year  in interest charges, or something like 4% of GDP in interest charges for past bailouts.  This is the real number as far as we can see, saved only after devaluation.

The dollar is up some 20% since 2015, due to our willingness to borrow at these rates.  The emerging market currencies, Argentina, Turkey and Brazil; all being trashed.  Our trade deficit growing, which lowers GDP a half point after revisions.

We have not seen the final budget but given the size of the House defense bill, we will see another 15% increase in interest charges and Congress will stall on the budget, again.

Rising tensions in Europe and emerging market as reserve currency rates rise. National truckers strike in Brazil, increased cartel activity in Mexico, and anti Euro parties winning in Europe. Calizuela and Illinois trying to bridge the pension gap.