We have been talking about it for weeks and now there appears to be an appetite from President Trump and the Democrats to work on another bailout program that incorporates the States and cities. Yet, now, after various spending programs in the trillions of dollars, Mitch McConnell, Senate Majority Leader, is now drawing a line in the sand when it comes to assisting the States. May it be known that The Kapital News is against all forms of bailouts. But isn’t it interesting that Wall Street and Corporate America can receive trillions of dollars within the blink of an eye from Senator McConnell, yet when the States ask for assistance, now hes’ all of a sudden concerned about debt levels and future generations paying for it. This is exactly what is wrong with our political system – amongst many other issues. Perhaps the States do not contribute to the Senator’s campaign fund(s) and is therefore of little significance to him? We digress. Some numbers that have been noted when it comes to “assisting” the States may amount to $500B and if including cities, this can be another $250B. So, just for the States and cities, we could be talking a near $1T spending program. Also note, as far as we know as of today, these figures are to make up for tax revenue shortfalls, pension plan assistance, and other responsibilities of State and local governments. Therefore, these figures are absent any major type of infrastructure spending, which has already been rumored to amount to nearly $2T! Where is all of this money coming from? Because Uncle Sam is as broke as a joke – which makes it ironic that broke States are asking a broke Federal government for assistance. So who comes to the “rescue?” That’s right, the Federal Reserve will have to continue its counterfeiting, oops, we mean, money printing operations. Just for a FYI – US national debt is $24.5T and the deficit as of now is $2.3T and expected to double – at least, by end of FY2020. Ain’t you proud to be an American?
We also continue our discussion of the oil markets, since history was made earlier this week when WTI went negative and settled at nearly -$38 per barrel. Well, this of course raises a lot of questions, and now Continental Resources, is asking the Chicago Mercantile Exchange (CME), to look into market manipulation. In their request, they provide a timeline of events which they argue gives the appearance of market manipulation and/or a flaw in a new computer model. Either way, these are legitimate questions and they require thoughtful and truthful answers. We will keep you posted as updates become available. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Oil #Bailouts #Gold #USA #Recession #Debt #Depression #Congress #War #Peace