Ep. 281 – A Debt Fueled Market

The Kapital News
The Kapital News
Ep. 281 - A Debt Fueled Market

When we analyze US and rest of the world corporate debt and benchmark this against the Wilshire 5000 total market full cap index, we see a near 1 to 1 relationship. Thus implying that stock market performance is strongly linked to debt growth. This is no surprise to us here at The Kapital News, but it’s always interesting to see this data represented graphically. (We will do a video presentation on this as well). When one understands that debt is growth from the future being brought to the present, one must then ask the question, where will the future growth come from? This is the question at the heart of this central bank and debt expansion experiment. The Kapital News expects the fallout to be detrimental for generation(s). This also gives rise to outlandish and unsustainable valuations in the stock market. Market cap to US GDP is currently around 148% – levels not seen since the height of the dot-com bubble. Again, how long can this be sustained on a growing mountain of debt and currency creation?

In other news, President Trump has a major decision to make by 2 December as this is the deadline for him to sign the bipartisan Hong Kong Human Rights Act into law. Will he do it and risk upsetting the Chinese and thus a Phase 1 trade deal? Or will he cave and not sign it because he’s more concerned with the stock market as opposed to standing up for American values and human rights? Also coming due is a decision centered around tariffs. Come 15 December, tariffs are expected to increase and be placed on additional Chinese goods. Decisions. Decisions. American values? Human rights? Or new highs in the stock market? What will the President decide? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Truth #Debt #Recession #EndTheFed #Stocks #Trade #Politics #USA #China #HongKong #Justice #Peace #Republic

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