The short answer is yes! Free money is coming. But of course there is no such thing as a free lunch, so the effects of any such stimulus will be short-lived. Central banks and federal governments the world over are planning to coordinate massive rounds of fiscal and monetary stimulus. They intend to throw everything and the kitchen sink at these markets to keep them inflated – even more so than what they have been doing. Problem with this of course is multi-pronged, but one of the biggest is diminishing marginal returns. There will come a day when these stimulus efforts completely fail to work and the more attempts at stimulus we witness – the closer we get to this massive day of reckoning. What occurred last week in the global market sell-off is likely just a precursor of things to come. You cannot build an economy on a foundation of sand and expect everything to work out perfectly. All of the gains that have been experienced over the melt-up of the last several months were completely wiped out in a matter of only several trading sessions. So can free money work? Perhaps in the short-term. We did witness stock market “growth” through 2019 and early 2020 from it – so it is possible it will “work” again. But for how long? Especially since we know it really didn’t work – otherwise that massive sell-off would likely not have occurred.
Other news pertains to the continued spread of COVID19, especially in the USA and Europe. Even President Trump who only stated a few days ago that everything is fine, now admits that cases are very likely going to grow. Ah, alas, finally some truth. There are now over 100 confirmed cases in the USA and testing is expected to take place on a large scale over the next few weeks, so we imagine that the number of confirmed cases will rise drastically. We also discuss briefly the continuation of the locusts swarms that are ravaging much of Africa, the Middle East, and India. And lastly, we mention the state of the 2020 Presidential race. It’s Super Tuesday tomorrow so a lot will be learned and the number of candidates will be greatly diminished. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #COVID19 #Coronovirus #Politics #USA #EndTheFed #Gold #Silver #Oil #Bonds