Since the President wanted to sign executive orders to extend unemployment benefits and to suspend the payroll tax cut, among others, which is unconstitutional, we wanted to discuss the unfunded liability situation in the US. The payroll tax is responsible for funding the social security fund as well as that of medicare. Understand that at this juncture, the payroll tax cut is really just a suspension, meaning that the tax will have to be paid at a later date – by the tax deadline in 2021. This could prove to be a big shock to many people who may decide to spend the extra income as oppose to saving it. Of course, many employers will be hesitant to comply with this executive order since it is unconstitutional and because it will likely cause obstacles with respect to their bookkeeping. But hey, it’s an election year, so who cares about the details and the US Constitution?
In other news, we also discuss the decision by the Lebanese government today to resign their post. The weakest link of any chain is the first to break and the dominoes are set as we continue to see countries in economic collapse and others on the brink. The global protests and riots that were occurring prior to COVID-19 were not and are not transitory, but rather history in the making. They will continue and likely escalate as we continue through 2020 and beyond. The world is lacking leadership and direction. Governments are unaccountable and corrupt and central bankers are in a currency war to the bottom where the true costs of these fraudulent acts are borne by the people – and the lower on the income scale, the worse the effects. People around the world are sick and tired of being sick and tired, and thus we are witnessing history in the making with these global protests. Some are violent, some will turn violent, others will demand government resignations, others will overthrow their governments, civil war(s) may ensue, as wars between nations. Let us pray for a peaceful resolution, but if current policies are implemented, then we are sealing our fate to a dim future. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Debt #Gold #Depression #BananaRepublic #Silver #Bailouts #USA #Lebanon #Protests