Protests coming to a theater near you is something that we have been saying here for months. They have unfortunately, finally arrived. While we thought the catalyst would be more from the economic side of the ledger as opposed to the social side of the ledger, it appears that the recent tragic death of George Floyd, in Minneapolis, at the hands of police officers, is the trigger. Nevertheless, given the combination of COVID-19 lock-downs, economic hardships, social inequities (perceived or real), political divisiveness, and this event in Minneapolis, the stage was set for massive riots and protests to take center stage. Let us pray for a peaceful solution and resolution, but we imagine there will be more storm before their is the calm. We also expect global protests to pick up as well.
The Federal Reserve Chairman, Jay Powell, today during an interview admitted that the Fed has crossed some red lines – but he used the pandemic to justify their recent, continuing, and future actions. It is no longer behind the scenes. It is no longer, “pay no attention to the man behind the curtain.” No! It is in your face! And nobody seems to notice and nobody seems to care. The Fed is buying up everything. The federal government sanctions such actions and bails out major industries as well. Meanwhile, 40 million Americans have been laid-off over the past 10 weeks, a countless number of businesses have closed for good or are on their way there, and yet the stock market is near all-time highs once again. These actions by the Fed and the government are all but guaranteeing a prolonged economic contraction that is likely going to push us into the Greatest Depression.
President Trump this afternoon made comments in the Rose Garden in response to a number of issues. However, the main focus was on China and their recent legislation that encroaches on the autonomy of Hong Kong. Of course, as reported earlier this week, the US no longer recognizes the autonomy of Hong Kong. This point was reiterated by the President, with very little else thrown into the mix. The President informed the world publicly that should China pass this bill, that it would be met with a strong response from the United States. This does not appear to be a strong response. And to no surprise, the markets rallied on this news because they were selling off earlier in the day expecting a “strong” response – but they got a weak one instead. Yes, the President added a few other items, such as withdrawing from the World Health Organization (WHO), and mentioning some restrictions of Chinese students to US universities, amongst a couple other minor points. Yet, given this weaker response now begs the question, how will China and other major global players react to the President’s remarks? Will they feel empowered and emboldened to do more? One can only bluff so many times at the table before the other players start picking up on it, especially once they know you’re bluffing. So either play the “strong-man” role and follow through, or don’t. Because the outcomes and the stakes are too great. Peoples’ lives and livelihoods are not a game. The President also did not make comments on the protests during his remarks, nor did he take questions from the press, as was expected. There is simply a lack or leadership and this is a global problem. This weekend is going to be quite interesting to say the least as are the coming months. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Protests #USA #Riots #Depression #Recession #Debt #Bailouts #Gold #Silver #Peace