The Treasury’s numbers are in for June and they’re not good. First things first. The BLS jobs data is just BS.
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Liquidity Trader – US Government Revenues
Analysis of real time Federal revenues as they signal economic activity and likely changes in Treasury supply. Resulting market strategy recommendations. 8 reports each month. Click here to subscribe. Now published at Lee Adler’s Liquidity Trader.
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Liquidity Trader - US Government Revenues
The Virus Is the Economy
by Lee Adler • • 0 Comments
Common sense says that as case numbers increase, tax collections would fall and vice versa, REGARDLESS of whether governments imposed lockdowns. So my expectation was that as governors across the country lifted restrictions, case numbers would rise, and tax collections would fall.
Well here we are.
Liquidity Trader - US Government Revenues
These Real Time Charts Show US Economy Contracting Again in June
by Lee Adler • • 0 Comments
This data tells us exactly what the big picture is right now, while Wall Street economists are still scratching their asses and trying to figure out what the government statistician manipulated data will be and will mean. And the first report from that government data is still 13 days away.
Liquidity Trader - US Government Revenues
Long Live the Dead Cat Bounce – It’s Dead
by Lee Adler • • 0 Comments
The Monthly Treasury Statement for May confirms that the economy rebounded during the month, but more recent data through last week suggests that the rebound has already expired. Signs of renewed weakness come when the numbers are still far from a full recovery. The economy is beginning to weaken again, starting from weakness.
That’s relevant because it means that the Federal government will need to continue to issue massive amounts of debt. It may not be quite as much as in March and April, but it will still be at least double past peak levels.
We also know that the Fed has sharply cut the amount of that debt that it is directly absorbing or financing.
Here’s what this means for your investing strategy.
Liquidity Trader - US Government Revenues
Here’s Why A Recovery Narrative Will Be Catastrophic for Markets
by Lee Adler • • 0 Comments
To the degree that it’s true, the idea that the US economy is recovering is a catastrophic notion for the financial markets. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction…
Liquidity Trader - US Government Revenues
You Have No Idea How Bad This Really Is
by Lee Adler • • 0 Comments
In normal times, the Federal Government has a revenue windfall in April, and runs a large surplus for the month. Revenues are typically at least 140% of outlays. Even more in good years.
Revenues covered just 24% of outlays in April. We borrowed 76 cents of every dollar the Federal Government spent last month.
We knew this was coming. The questions now are how long it can last, when it will start to recover, and whether it might get worse.
Liquidity Trader - US Government Revenues
Federal Budget Deficit Hit A Trillion A Month in April
by Lee Adler • • 0 Comments
The Federal deficit hit $1 trillion in April. That’s a cool 1,500% increase year to year. That’s for one month. Here are the current horrible numbers, along with the immediate outlook, and what it means for stocks and bonds.
Liquidity Trader - US Government Revenues
Expecting The Worst and Getting It
by Lee Adler • • 0 Comments
We expected the worst, and we’ve gotten it. But that does not mean that things will get better. The revenue trends had been strong. Now they’re awful, and spending is unimaginable. How can this be sustained? In this report, I’ll show you the data, and discuss how to handle what’s to come.
Liquidity Trader - US Government Revenues
Fed Monetizes While the US Burns
by Lee Adler • • 0 Comments
Federal tax collections are collapsing but the US Treasury now has $827 billion in cash in its bank account at the Fed. This is double the previous highest level ever. This money has all come via debt sales over the past week. Follow the money. Find the profits!Liquidity is money. Regardless of where in the…
Liquidity Trader - US Government Revenues
Already Soaring Federal Outlays are About to Explode and Boy Is That A Problem
by Lee Adler • • 0 Comments
Even before COVID-19 the trend was clear that the Treasury would need to keep borrowing money hand over fist. Now the deficit will explode. This is a hideous problem for financial markets in this condition.
