More is never enough and more is coming to town. The Senate Republicans revealed their $1 trillion spending bill to “assist” the with pandemic response, while simultaneously attempting to appear concerned about the national debt and deficit. We would love to laugh, but it’s such a tragedy. With a nearing $27 trillion national debt with an annual deficit for FY2020 approaching $4 trillion, the Republicans are now becoming concerned? Give us a break. Now Congress will go back and forth between the House Democrats’ version and that of the Republicans’. One thing is certain, this is going to have a price tag of at least $1 trillion and we imagine it will be even higher once the ink dries.
Also taking place during the “week of more,” is the FOMC two-day meeting beginning tomorrow and concluding on Wednesday. The decision by the Federal Reserve will be made known Wednesday and Chairman Jay Powell will make remarks and take questions from reporters. An easing bias is likely to be signaled along with a continuation of the “whatever it takes” attitude that has now become the de facto motto of the Federal Reserve. Recall that the Fed’s balance sheet is around $7 trillion, which has exploded from $3.8 trillion (also an historically high figure), from only several months ago. With Congress continuing their beg, borrow, and steal operation, the Fed will become one of the only buyers in town for Uncle Sam’s junk debt, and as such, we expect the Fed’s balance sheet to continue its ascent to ever new highs.
The actions undertaken by governments and central banks the world over have started to make investors wary of fiat currencies and with good reason – they’re going out of style. In addition to the inflationary and currency destructive practices, there is also an onslaught of geopolitical risks. This combination is causing a flight to safety in the likes of gold and silver. Barring some major reversal of policies, the long-term bull market for gold and silver is now underway. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Gold #Recession #Silver #Debt #USA #BananaRepublic #EndTheFed #Bailouts #Jobs #Depression