Ep. 122B – Easy Money + Impeachment

The Kapital News
The Kapital News
Ep. 122B - Easy Money + Impeachment

Central banks continue to cut rates or signal that in all likelihood that they will be doing so shortly. Of course there are a few “odd-balls” out there who are remaining steady or even increasing rates, but for all intents and purposes, the major global central banks are in the midst of a new easing-cycle. This easing-cycle is likely to continue as fundamental economic numbers around the globe continue to show stress in the system and an overall slowdown. The latest to cut rates is the Reserve Bank of Australia, which cut their rates by 25 bps to a new record low of 0.75% and signaled more easing if conditions warranted. We are also witnessing a stronger US dollar, which we imagine is likely to persist on a relative basis. This can have serious consequences for emerging markets that are reliant on commodities, which are likely to weaken in price with a rising US dollar. Further, these countries tend to have significant debt obligations that are priced in US dollars. These economies are then therefore hit on multiple fronts. First, their major commodity exports are hit due to falling prices. Secondly, it now takes more of their domestic currencies to purchase US dollars that are needed to meet their debt obligations that are priced in US dollars. This can cause economic and fiscal stress for these economies. As we look for a catalyst that can truly send markets lower, it may very well come from the emerging market space, if these current trends persist. In the form of a debt default, sovereign wealth fund shortfall, or a major corporation going bankrupt in one of these countries. These are not certainties, but most definitely possibilities. Continuing with our analysis and discussion regarding the impeachment inquiry and the whistleblower’s complaint – we continue to stress the importance of patience. Our goal here is to seek and find the truth and allow for justice to be served no matter who may be involved. It’s a divided country and it’s Left vs. Right. We need the process to proceed and for the facts of the case to be made known so Americans can make an informed decision. This is a sad day for the Republic, but our Constitution provides for checks and balances, and so once again, despite the uncertainties, our Constitution is standing the test of time and serving as a guide throughout this process. Let us pray that the truth and justice are found and administered. Stay diversified, stay vigilant, and stay with The Kapital News. #Impeachment #Whistleblower #Money #Truth #Justice #Peace #Economy #Politics #Recession #WakeUpAmerica #EndTheFed

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