US Going Bankrupt, Inflation Ticks Up, China Sides with Russia, Australia's Banks Going Cashless

Mortgage rates slightly increased this week to the highest level since November 2023:

• 30 year fixed-rate mortgages averaged 6.88% vs. 6.82% a week ago;

• 15 year fixed-rate mortgages averaged 6.16%, compared to 6.06% a week prior.

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As was predicted and consistent with January and February, March inflation increased more than expected.

The CPI index (it excludes food and energy costs), increased 0.4% in March from the previous month. With food and fuel included, inflation is at 3.5 percent, up from 3.2 percent in February.

Housing affordability is a crisis: inflation for renters was 5.7% while inflation for homeowners was 5.65%.

It's becoming clear that 3 rate cuts this year are too optimistic. Interest rate futures are pricing in a 75.4% chance of rates remaining unchanged in June; and a 50% probability that the Fed will keep rates as is the following month, in July:

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US adults now need a record $1.5 million on average to retire. Last year, in 2023, a typical person needed $1.3 million.

Possible depletion of Social Security Fund, as well as rising costs of living are forcing Americans to work longer as they are unable to save and invest.

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While US government is on a spending spree, US infrastructure has never been worse. According to Apollo, the average age for highways, streets and power facilities is nearly 30 years old, up by 5 years since 2000.

Without any significant domestic investments in sight (other than EV charging stations), this trend is likely to continue.

In the meantime, the US taxpayer money are funding the war in Ukraine and in Gaza:

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Treasury Secretary Janet Yellen traveled to China in order to complain about China’s capacity to manufacture products in a cost-effective manner and its toll on American workers. Yellen said the US will push China to change its policy.

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Sergey Lavrov, Foreign Minister of Russia, arrived to Beijing and was greeted by Xi Jingping. China dismissed Yellen’s claims, dismissing her threats of “consequences”. China vowed to continue trading with Russia and to develop closer ties.

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US national debt is rising by $1 trillion every 100 days, or approximately $100K per second.

It is expected to double in 8 years, rising from $20 trillion in 2017 to $40 trillion in 2025. Over the next decade, it can easily grow into a $54 trillion debt wall.

The interest on the US national debt is already at $1 trillion per year.