Juneteenth Report. SFE Vaults, Japan Bank Dumping US Bonds, US Budget gap Jumps to 2 Trillion.
SFE Silver Vaults dropped to Record Low June 13th to 676,180 kg
Today they are down to 659,185 kg
We must remember that we are now in the final collapse of the current monetary system. Since 1971 all currencies have lost 97-99% in real terms which means GOLD! The final 1-3% fall (100% from now) will take place in the next 3-8 years. So, yet another currency system will be laid to rest. - Egon von Greyerz
end of that section
Unrealized Losses
Japan's Norinchukin Bank to sell $63bn of U.S. and European bonds
Norinchukin Bank, Japan's main financial institution for agricultural, forestry and fishery cooperatives, plans to sell more than 10 trillion yen ($63 billion) of its holdings in U.S. and European government bonds during the fiscal year ending March 2025. This move aims to stem losses stemming from its bets on low-yield foreign bonds, a primary cause of its deteriorating balance sheet, and lower the risks associated with holding foreign government bonds.
The bank now expects a net loss of around 1.5 trillion yen for the current fiscal year, three times its previous estimate of over 500 billion yen. The exact value of bonds sold and final loss figure will depend on market conditions.
Norinchukin's CEO Kazuto Oku acknowledged the need for a drastic management change, stating the bank will "decrease interest rate risk and expand investments into assets that assume corporate and individual credit risk." The planned bond sales represent between a fifth and sixth of Norinchukin's portfolio, which totals around 56 trillion yen.
The bank has been hit hard by valuation losses, logging 1.77 trillion yen in such losses for the past fiscal year compared to 946 billion yen the previous year. It is also considering raising 1.2 trillion yen in fresh capital to shore up its financial health
CBO Jacks Up US 2024 Budget Gap Forecast by 27% to Nearly $2 Trillion
The nonpartisan Congressional Budget Office (CBO) significantly revised its estimate for the 2024 US budget deficit, projecting a 27% increase to nearly $2 trillion. This serves as a stark warning regarding the unprecedented trajectory of federal borrowing.
The CBO's updated projections, unveiled in Washington on Tuesday, reveal a deficit of $1.92 trillion in 2024, up from $1.69 trillion in 2023. This new estimate is over $400 billion larger than the CBO's February forecast.
Key Factors Contributing to Deficit Increase
The CBO attributed the worsening 2024 forecast to the following factors:
President Joe Biden's student loan forgiveness plans, which added $145 billion in red ink.
The congressional bill enacted to aid Ukraine, Israel, and Taiwan, which boosted discretionary spending by $60 billion.
A $70 billion reduction in the estimated amount the Federal Deposit Insurance Corporation will recoup from payments made to cover bank failures in 2023 and 2024.
An increase in estimated Medicaid spending.
These trends overrode revenue increases that the CBO expected from higher economic growth than projected a few months ago. The office now anticipates a 2% increase in GDP in the fourth quarter of calendar 2024 over the same period of 2023, up from February's 1.5% forecast.
CBO projections are based on current legislation, including an assumption that the $95 billion foreign-aid package enacted in April will now add $95 billion, plus inflation each year, in discretionary spending going forward
end of that section
Got Silver?
Got Gold?
To appreciate the number 2 Trillion
If you total all the people who went to a NFL game last season the total is *19,000,000 (19 Million)
It would take NFL seasons of total seats across all teams (19 million) to reach 2,000,000,000,000
So, 2 trillion divided by 19 million is approximately 105,263.16.
*the total NFL attendance for the 2023 season was a record-breaking nearly 19 million fans attending games across the league.
Citations:
https://finance.yahoo.com/news/cbo-jacks-us-2024-budget-180000516.html
https://finance.yahoo.com/news/yahoo-finances-look-000000816.html
https://finance.yahoo.com/news/5-best-article-rewriter-article-000200354.html
https://finance.yahoo.com/research/stock-forecast/CAVA/
https://consent.yahoo.com/v2/collectConsent
https://finance.yahoo.com/video/diversify-away-ai-trends-change-140816777.html
https://asia.nikkei.com/Business/Finance/Japan-s-Norinchukin-Bank-to-sell-63bn-of-U.S.-and-European-bonds
https://www.tradingview.com/news/reuters.com,2024:newsml_L1N3IH00P:0-japan-s-norinchukin-bank-to-sell-63-bln-of-us-european-government-bonds-to-stem-losses/
https://www.nippon.com/en/news/yjj2024061801097/norinchukin-bank-to-sell-up-to-10-t-yen-of-u-s-european-bonds.html
https://www.bloomberg.com/news/articles/2024-06-18/norinchukin-bank-to-sell-63-billion-of-bonds-to-stem-losses?srnd=financials
https://finance.yahoo.com/news/norinchukin-sell-63-billion-sovereign-124008692.html