We’ve been saying it out loud for a while here at The Kapital News, but now it’s official – the United States of America has turned into a banana republic. During today’s press conference, Jay Powell, Chairman of the Federal Reserve, made it known that now is not the time to worry about deficits and the national debt. Wrong sir! Now is exactly the time to be more concerned and vigilant with respect to deficits and debt levels. Nonetheless this was his message. This is in stark contrast of course to what he has been telling Congress over his recent bi-annual briefings – where in fact Powell has been warning Congress to get a grip when it comes to the deficits and growing national debt.
This too in and of itself is laughable because the Fed holds the keys to keeping Congress in check by informing these politicians that the Fed is not going to be there to buy Uncle Sam’s US Treasuries. The Fed could easily do this which would translate into higher borrowing costs which should make the Congress more hesitant to spend, but of course the Fed is not going to do this. No, no. They would much rather facilitate this insanity, this fraud, and this out of control spending. So, yes, this is why the USA is now officially a banana republic. Simply just print the money and purchase whatever assets you want to whatever degree you want with little to no oversight or accountability. I weep for my country and for the vision that our Founding Father’s had for this nation. This is a true travesty and barely a word of protest from any politician of any party nor from the Trump Administration to the President himself. No checks. No balances. Just money printing and fiscal “stimulus” from a government that is broke, but for borrowing trillions and trillion of dollars. There is no free lunch and the costs of this irresponsibility, criminality, and unethical conduct will be truly costly – especially the everyday American.
In other news we discuss the first print of GDP for Q1 2020, which came in worse than expected at -4.8%. This is the largest contraction since the GFC. It should also be noted that the US didn’t begin its major lock-down until March – the final month of the quarter. So this simply tells us what we already knew and have been discussing for months – that the US economy was slowing down prior to the onset of COVID19. Despite this news, poor housing data, and announcements from Boeing, Lyft, and Uber, that they will be cutting their staffs by 10%, 17%, and 20% respectively, stocks still continued their march higher. Perhaps this is on the back of the news announcement from the biotech company, Gilead Sciences, that once again is stating that their treatment for COVID19 is looking positive. Recall, this is the same company that did this a week ago. Isn’t it highly coincidental that this news story broke at the same time a worse than expected GDP number came out? They don’t even care anymore – they flaunt the fact that the game is rigged right in the open. Welcome to the banana republic. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Recession #Debt #EndTheFed #USA #Depression #Oil #Gold #Revolution #Protests #Inflation #Deflation