Ripped From The Headlines, April 14, 2023
Argentina's 103% Inflation, More Junk Rated Companies Face Implosion, Bank Execs Took Tons Of Loans Before Crisis - Read, Share, & Subscribe - SherlocExposes.com
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Argentines, painfully accustomed to decades of spiraling prices, say that the current 102.5%-and-climbing inflation rate is on another level and is making it almost impossible to get by.
‘In my case, I have zero capacity to save,’ said Claudia Hernansaez, a publishing company employee.
‘I try to think that someday we're going to be better off. But the inflation we're living with today in Argentina is terrible. It feels like never before.’
The South American country is expected to announce March inflation data on Friday afternoon, with analysts polled by Reuters predicting an 8-month high 7.1% monthly rise. A central bank poll forecasts annual inflation to hit 110% this year.
That has hammered salaries and spending power, pushed up poverty to near 40%, and dented the popularity of the ruling Peronist coalition, which is facing likely defeat in general elections slated for October.
Now every trip to the supermarket is a reminder of the country's inflationary crisis, the worst since 1991 and the end of a period of hyperinflation. Retiree Juan Tartara said prices spiked with each weekly visit to the store.
‘Sometimes food increases 10% or 15%,’ he said. ‘In one year, beef went from around 1,000 pesos ($4.66) or 1,200 pesos to 2,800 pesos.’"
“The prospects of U.S. companies with significant leverage or rated several notches below investment grade have turned bleaker in recent months, credit-rating firms say, and default rates for junk-rated companies could more than double by early next year.
While highly rated companies are proving largely resilient during the post-pandemic economic turbulence, businesses with lower credit ratings and floating-rate debt are increasingly struggling with steep increases to debt-servicing costs and a possible recession as the Federal Reserve continues interest-rate hikes. What’s more, still-steep inflation and softer demand are also expected to erode some companies’ profit margins, the ratings firms said.
‘What triggers a default is becoming more relevant in 2023, because everything is kind of worsening,’ said Christina Padgett, head of the leveraged finance practice at Moody’s.
“Not long before the Federal Reserve began lifting interest rates to tamp down inflation, regional banks across the US reported a surge in lending to a group of well-connected people: their own directors, officers and major shareholders.
The trend continued through all of last year, reaching almost $10 billion by the end of 2022, according to a Bloomberg News analysis of data submitted to federal regulators. That was 12% more than a year earlier and represented the largest annual jump in lending to insiders, along with their related interests, in at least a decade.
What’s more, some of the biggest increases were at firms that have recently failed, or are now struggling amid the worst banking crisis since 2008. Among the regional banks that said they more than doubled the amount of credit to insiders last year were Silicon Valley Bank, Western Alliance Bank and First Republic Bank.
None of the lenders or their officers, directors or major shareholders has been accused of wrongdoing. The banks have said they extended credit on similar terms to insiders as they did to other clients. And lending, more broadly, at regional banks was up during the period. Some of the reported increase in insider loans was new borrowing, while some was the result of changes on boards, in executive suites and among top shareholders.
Still, the recent industry turmoil has put a spotlight on stock trading and borrowing by people with power over banks because such transactions can be an indicator of questionable governance.”
”False Positive” Friday, Ripped From The Headlines. Things To Ponder:
“Don’t Worry About That Inflation… You Don’t Need To Be Alive Anyway!”
Yep, your government overlords love you…
Like they love a bowl of vomit…
You’ve heard about Argentina’s issues with inflation for years, including their near Mad Max-style breakdown back in 2001.
But there’s something else happening this time…
This time, Argentina isn’t alone…
The UNITED STATES is running a similar path…
And that’s REALLY scary.
If you don’t follow USDebtClock.org, this would be a good time to start doing so:
What you’ll see is that our Debt to GDP ratio is completely out of whack, and is higher than our total ability to produce…
Do you know what that means?
We’re headed for an Argentina-style experience in the US.
Brace. For. Impact.
“Hey, We’re Just Making Everything Up, But Just Play Along… What Could Go Wrong?”
For the people making up the game, not much…
For you? EVERYTHING.
There’s a sick game of financial musical chairs going on, and debt is completely out of control…
That means there are a ton of “Zombie Businesses” out there, waiting for someone to shoot them in the head so that they can’t infect anything else…
The problem is banks, “business analysts,” and other jackals are making up things to keep these frauds going for as long as they can, to extract whatever they can…
Then, there’s Moodys…
The comment from the long-time rating agency speaks volumes for the state of business and finance around the world today:
‘What triggers a default is becoming more relevant in 2023, because everything is kind of worsening,’ said Christina Padgett, head of the leveraged finance practice at Moody’s.
Oh my…
They said the quiet part out loud: EVERYTHING IS KIND OF WORSENING.
If the bomb diffuser lady is running, you should try to keep up.
“You Can’t Have A Loan, Peasant! Get Out Of The Way While I Get My Loan!”
That’s how the banks feel about you, dear friend…
If you’re a regular reader of Ripped From The Headlines, you’ve heard this before. But if you’re new here, this may come as a shock to you:
BIG BANKS ARE YOUR MORTAL ENEMY, DON’T KEEP YOUR MONEY SAFE, AND WANT YOU TO GO BROKE AND DIE.
We’ll have to beg your pardon for being direct, but time is short, and you need to understand this.
As the entire banking system was headed down the tubes, insiders at banks were getting everything they could before things went sideways…
At your expense…
All while knowing it would come up later, but you’d be too distracted or misinformed to do anything about it.
Well, now you’re informed!
Don’t let them keep doing this to you.
You know your foe now… get to work!
What Does This Mean?
It means you’re in a deadly game of musical chairs…
And you’re the patsy at the poker table…
Except in this game, you don’t lose just your pride or a few bucks…
You could be completely wiped out, and dependent on a system that has plans to “eliminate your pain…”
Kind of like they do in Canada…
You know what that means.
Why Should I Care?
Because this is going to be your future if you don’t do something about it:
You are going to save yourself.
You should care.
What should I do?
Study EVERYTHING you can find on parallel and alternative economies.
Prepare to implement it.
If you are blessed to have means, start thinking about what you, your family, and your community are going to need, and how commerce will happen in a super local economy.
Tell people about what’s happening. Don’t argue, SHARE. Let them see it for themselves, then get them to subscribe to this newsletter.
Now.
Your future, and their future, depends on it.
James Wesley, Rawles, publisher of SurvivalBlog.com has put together a “bookshelf” list of key things you should have. CLICK HERE to access the list.
Plus a recap of the 50 things you should have handy to barter.
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