The Bureau of Labor Statistics (BLS) released some inflation data this morning and it came in “hotter” than the consensus – this is no surprise to The Kapital News. Inflation plus a stagnant economy equals stagflation and if the printing press and the out of control Congress and White House continue to beg, borrow, and spend money we don’t have, then hyperinflation may not be too far off into the future. Hyperinflation is already an issue in several countries around the world and is likely to become an issue for the several others over the coming months. The United State is not the exception nor are we immune to the devastating effects of inflation, especially in high percentages.
On a 12-month basis ending July 2020, the “All-items” category increased by 1.0 percent. Food increased by 4.1 percent. Energy declined by -11.2 percent. And medical care services rose by 5.9 percent. Lastly, the index for all items less food and energy increased 1.6 percent over the past 12 months. Recall that the Federal Reserve targets a 2 percent inflation rate and has repeatedly noted that they are comfortable with inflation going higher than 2 percent and being there for awhile. Jay Powell, Chairman of the Fed has also stated on separate occasions that he is not even thinking about thinking about thinking about raising interest rates. This is US dollar destruction and with it higher prices and lower standards of living will follow. This is a recipe for disaster and if you think the global protests and riots are bad now – you ain’t seen nothing yet.
Lastly, Joe Biden and Kamala Harris were together for the first time as Presidential and VP candidates. They gave a speech in Biden’s home state of Delaware where they praised each other, addressed several issues facing the nation, and attacked the Trump Administration. While The Kapital News does not endorse either of the two-party candidates, if Biden and Harris are able to stick to the script and the teleprompter(s), and continue to repeat what they said this afternoon and hold the tone, then the Trump campaign should be concerned. Net-net The Kapital News believes that this is a referendum on Trump and whether the American people want to give him another four years, as opposed to being excited about Joe Biden and his message. Many Democrats crossed the party line last time and many independents gave Trump a chance – will they do it again? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Gold #Debt #BananaRepublic #USA #Silver #Congress #Recession #Depression #Protests #Stagflation