Ep. 360 – A Barrel of Problems

The Kapital News
The Kapital News
Ep. 360 - A Barrel of Problems

A follow-up discussion on the oil and gas markets as well as how the exact opposite scenario may unfold with respect to gold and silver. These markets are crazy to say the least – a direct result of a decades plus asinine economic experiment that is in the process of unraveling. Congress is ready to pass another spending bill of nearly $500B and we expect that more will be coming in due time. Most of this will be an extension of the forgivable loans program to small and mid-sized companies to assist during the COVID19 lock-downs. However, we anticipate several states around the country are getting ready to line-up, if they haven’t already, to seek assistance from the Federal government. This is laughable as the Federal government is out of money as well – but hey, at least they have access to a printing press via the Fed. In addition, or perhaps in tandem with a states’ spending bill, that of infrastructure spending will also be a part of the “assistance.” The US deficit for FY2020 is already projected to hit nearly $4T and we expect this to be surpassed as even more government and Federal Reserve packages and facilities are announced.

We provide a brief update to the President’s recent call to suspend temporarily, immigration into the USA. We also note how the CDC Director is mentioning that a second wave of COVID19 is likely and that it may be worse than the first wave – since a second wave is likely to strike in tandem with the seasonal flu season this coming winter. As we have been predicting, the IMF (International Monetary Fund), is now seriously contemplating debt forgiveness, especially for third-world countries. They are also considering a near $1T loan package to assist several countries – this will not be enough funding to stave off what is coming. On a central bank note, global money printing just over the past few months has totaled nearly $23T. To put this into context, the GDP of the United States is just over $20T.

And lastly, but definitely not the least or final of problems, is that of a potential “hunger pandemic.” This is what the United Nations is now discussing and preparing for as COVID19 continues to make its way around the world and the health and economic damage that it is leaving in its wake. Given the economic downturn, especially regarding commodities prices, which many third-world and emerging economies are heavily dependent, is now dealing another blow that may lead to the starvation of millions around the world. Again, as The Kapital News has been discussing for months, many of these same countries were protesting prior to COVID19. Now that the environment on multiple fronts is even worse, what do you think these people are going to do now? These protests are not transitory – they are history in the making. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Oil #Gold #USA #Debt #Recession #Bailouts #Depression #Business #Russia #SaudiArabia #China #Protests #War #Peace

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