Ray Dalio, the founder of the world’s largest hedge fund is back in the news with a warning about the current economic and political environment. He remains consistent in his argument that the widening wealth and income inequality is going to come to a head and with it, major financial, economic, and political hardships. We agree. Where we differ is when Mr. Dalio claims that money printing needs to continue and interest rates need to remain at low levels. In our view, this is completely wrong and is not a solution, but rather the problem. The distortions caused by money printing and low interest rates are not even fully understood because any type or correction that occurs is quickly glossed over like it never even happened. Remember Q4 of 2018. And it’s continued ever since and now the Federal Reserve is really putting the pedal to the metal and despite this we’ve barley breached through the most recent highs on the major indexes. The law of economics and of free market capitalism need to take root and need to be allowed to do their work. This will likely translate into quite high interest rates and the subsequent collapse of many companies across sectors. So be it. The party has to come to an end and if you’re afraid of the hangover, then you never should’ve started drinking. What more money printing and lower interest rates is akin to is saying current generations get to have all the fun and younger and future generations not even in existence have to pay the bill and feel the effects of the hangover. This is not moral or ethical. But it’s exactly what’s been happening and will likely continue.
The White House has finally come to grips that its main spokesman, President Trump, is not doing a great job with this whole impeachment thing. And so, they are bringing on a couple of people to help with the defense and messaging. It’s about time. As we’ve noted, given the transcripts that have thus far been released, it is not looking good for the President’s argument. This does not mean that the President is going to be removed, but rather his messaging has not been good enough. However, given what has come to light over the last few days, the President is going to need a strong and convincing message because there was definitely some questionable actions that have take place and most of it is centered around his personal attorney, Rudy Giuliani. This is a spy novel and soap opera wrapped up all into one. We told you things were going to get interesting. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Impeachment #Justice #Capitalism #Truth #Peace #Recession #EndTheFed