Economy

Sanctions against Russia have horribly backfired as OPEC+ decided today to cut 2 million barrels per day, despite pleas from Biden, while China has completed a move to weaken the petrodollar.

China just finished successful live tests of it’s mBridge system, for international exchange in the new e-yuan. The test was completed cross-border with the UAE, Thailand, Hong Kong and China.

The Saudis, who ignored Biden’s calls in March, had been eyeing yuan-based oil sales to China as opposed to the exclusive sale of oil in U.S. petrodollars since 1974. Signing deals with China also allows the Saudis to more easily bypass any possible future Western sanctions.

Biden had campaigned on turning Saudi Arabia into a “pariah” state.

Also today, Russia side-stepped Western sanctions, signing a new fuel deal with the Taliban for agricultural goods and access to precious minerals.

Russia could also have a new customer in the Philippines, whose President Marcos Jr. announced he is considering buying Russian fuel and fertilizer.

What does it mean? Dollar devaluation and more price increases.

Enjoy the rest of Obama’s third term.

FLASHBACK 2020: Democrats kill low price oil buy for U.S. strategic reserve

RELATED: Democrats block amendment to prevent U.S. oil sales to China | Biden sends five million reserve barrels to China

VIDEO ABOVE: Tom Luongo explains geopolitics as a seven-player Go game, and we’ve hit an inflection point.

Now for Some Memes…

Thanks to the Biden-Administration-created runaway inflation, this is one of the worst years in the history of the bond market.

The Bloomberg Aggregate Bond Index or The Agg (shown above) is used by investors to measure the performance of the U.S. bond markets, including U.S. Treasuries, highly-rated corporate bonds and mortgage-backed securities.

The thick black line is 2022 so far, while the previous 25 years are in color.

“Nothing remotely close like this has happened before.”

Jim Bianco, Bianco Research

This bond market is worse than 1980, which scarred bond investors for a generation, according to Jim Bianco, of Bianco Research.

The Wall Street Journal reports it might not be time to give up on bonds, noting that at least nine past periods have been worse adjusted for inflation.

Meanwhile, Blackrock, the wokest and largest asset management firm in the world, continues buying up single-family homes.

Read more: US Treasury yield curves between three years and ten years flatten, with two inversions. That’s not good.

See more toons from the talented Lisa Benson.

Charts courtesy Jim Bianco.

This is not investment advice. Go ask the “Big Guy.”