It has become a world of extremes. Extreme stock market valuations. Extreme abuses of government powers. Extreme abuses of power by central banks. All of this and others, does not portend a solid economic recovery, nor a functional society. Quite the contrary, as has been seen even well before the onset of COVID-19 with the global protests as such an example. These will continue and they will increase. The protests are not transitory, but rather history in the making.
Another extreme was the US monthly deficit of $864 billion in June. For a little context, the federal government collects around $3 trillion for the entire year. So it should come as no surprise that we’re staring at a $26.5 trillion national debt and an annual budget deficit of nearly $4 trillion. And don’t forget, Congress is likely to pass another $1-2 trillion “stimulus” package before they go back on recess by the end of August. Where does the money come from? The printing press because Uncle Sam is broke. But the cost(s) associated with all of this “free” money will be nothing short of extremely expensive on so many levels. The likely outcome of inflation, stagflation, and potentially hyperinflation over the coming years. With it the higher costs of living and lower standards of living. With it the higher financial asset prices may rise (until they don’t), which will either have people buying at or near all-time highs or losing a significant amount of wealth if history repeats and there is a major correction in stock, housing, and other financial assets. The costs are real and more than just dollars and sense as people will lose their jobs, businesses, homes, vehicles, businesses, etc. This will having a lasting effect and is truly the real toll of generations of failed, flawed, and fraudulent policies. Let us just hope that through this, we can identify the root causes and adopt and implement the much needed structural changes that a free people should demand and deserve. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #BananaRepublic #USA #EndTheFed #Gold #Silver #Liberty #Protests #Revolution #Depression #Recession