Ep. 354 – The Domino Effect

The Kapital News
The Kapital News
Ep. 354 - The Domino Effect

The dominoes have been in place for a long time and we have been discussing them since this podcast has been online. They cover every sector and facet of the economy. And isn’t it something to see the government and the Federal Reserve attempting to backstop most of these sectors – especially the big players? In short order, trillions have been given out to the major players, but when it comes to small and mid-size businesses (the heart of the economy), there have been delays and hurdles. Unfortunately, many of these smaller businesses will not return. And if we had a well functioning free-market, many of the larger firms would not return as well. This massive manipulation on behalf of central authorities to pick winners and losers is an embarrassment to the United States of America. This is not what we stand for. Yet nonetheless, this is exactly what is happening.

If you want to connect the dots for yourself or understand how so many of these dominoes will begin to fall, take these two data points into consideration. First, according to a government watchdog, they are expecting FY2020 to have a budget deficit of $3.8T! And we believe we are just getting started with the weakness of the US economy – so expect these deficits to get even bigger. And then there’s the recent research by Deutsche Bank that shows 22 million jobs were created in the US since the GFC, but according to DB’s projections, over the course of the last four weeks, 25 million jobs have been lost in the US! This is a staggering data point and really puts things into perspective. What this illustrates to us is how weak the “longest” expansion in US history really was. Most, if not all of these jobs, were the direct result of an asinine economic policy experiment that stole so much wealth from the future, and now, the piper is here to collect. So think about how the sectors of the economy are connected: airlines, hotels, restaurants/bars, entertainment, travel, tourism, energy, banking, insurance, retail, construction, manufacturing, housing/real estate, autos, etc and then hopefully you are able to draw logical conclusions of how devastating this will all be.

This was entirely foreseeable and has been discussed on this podcast for well over a year and what we alluded to in our book, The Cynic’s Guide to Investing, which was published in 2015. So for anyone to say that nobody could have seen this coming – think again and direct them to The Kapital News. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Bailouts #Debt #Depression #USA #Republic #Investing #Oil #Bonds #Gold

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