Ep. 104B – War + Economics

The Kapital News
The Kapital News
Ep. 104B - War + Economics

Following the worst trading day of 2019 (so far), we witnessed some further selling in the Asian and European markets. However, the major US stock indices all rallied around 1%. A lot of the rally was near the end of the day’s trading session as James Bullard, President of the St. Louis Fed, stated that more rate cuts may be appropriate. In addition, Goldman Sachs, noted that they do not foresee a trade deal between the US and China taking place prior to the 2020 election (bad news is good news). In addition, they are also now projecting that the Fed will cut interest rates two more times in 2019. This is a dangerous game of expectations and anticipation of future rate cuts. We just had the Federal Reserve lower rates by 25 basis points and end quantitative tightening, and global markets just suffered their worst trading day of 2019. Clearly, the monetary addicts on Wall Street are looking for another “hit” from the Fed to keep the stock market up. If rate cuts and QE are the only thing(s) sustaining any semblance of economic growth and/or keeping the stock markets afloat – all we can say is look out below, in due time. In other news, we have National Security Advisor, John Bolton, in South America, following the signing of an Executive Order, applying “maximum pressure” to the Maduro regime in Venezuela. Bolton is warning nations who side and have sided with Maduro that should they continue their support, they are advised that if and once the American “stooge,” Juan Guaido is installed, that any debt payments will be in question, since those loans were made to the Maduro government. Basically, Bolton is saying to Russia and China that once Guido is installed as “El Presidente” that you’re not getting paid. We also have Defense Secretary, Mark Esper on a recent trip to Australia that is catching the eyes and ears of the Chinese. Whereby the Chinese are issuing a warning to the US – do not install missiles in our backyard. And last but not least – India and Pakistan are in the midst of a continued dispute over the Kashmir territory. What if anything, could go wrong? Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #WakeUpAmerica #Peace #PeaceNotWar #Economy #Politics

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