Ep. 330 – Crisis of Credibility

The Kapital News
The Kapital News
Ep. 330 - Crisis of Credibility

There is no question that the world faces and is experiencing a crisis in credibility. It is one of the reasons why there are global protests that have been continuing for months and we also believe it is one of the reasons as to why we have been experiencing this most recent pull-back in global equities.

People the world over are sick and tired of being sick and tired and rightly so. And also rightly so, they are protesting and taking a stand for themselves, their families, and their respective countries. We have asked here on multiple occasions – what’s the truth?, who to believe? These questions exist and will persist because we are in the midst of a crisis of credibility. Add to the equation COVID19 and one can really start to appreciate the fact that many governments around the world want to keep the people in the dark and may be only releasing data that makes that respective government look good – but it’s not the truth.

This virus is now in over 30 countries. The number of countries and cases is likely to continue to increase for the foreseeable future. What makes a lot of this difficult to see is that the virus and subsequent cases grows in an exponential manner. This means it’s very slow in the initial stages – maybe only a handful of cases over the course of a couple/few weeks, and then all of a sudden there’s a massive uptick, which tends to be followed by a doubling every so many days thereafter. It is this exponential or explosive growth that is hard for the human mind to see, comprehend, and forecast. Nonetheless, this has been our reality going on for three months now – with no end in sight. We hope and pray that COVID19 is fully contained and stopped and that those who have the virus make full recoveries. Unfortunately, at least for the time being, we know this is not likely to be the outcome.

There is much uncertainty. COVID19 is a supply shock. COVID19 is a demand shock. Monetary stimulus is not a panacea. Fiscal stimulus is not a panacea. Hope is not a strategy. And the world is awash in debt and credit. This will not end well, but the cleansing in the markets is necessary. The question remains, is this a standard correction in a bull market, or has the everything bubble begun its burst? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Coronavirus #Recession #Gold #Silver #Oil #Bonds #Politics #EndTheFed #Peace #Truth

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