It’s no surprise to us here at The Kapital News, as the White House, Republicans, and Democrats seem to be willing to once again get together to discuss another round of spending. On one side we have about $2.4 trillion from the Democrats, and from the White House, it appears they’re willing to go as high as $1.5 trillion. Of course, it can be reasonably deduced that what the White House is willing to do – so too the Republicans. The Kapital News expects the number to come in at around $1.9 trillion. A compromise if you will, where the Dems can claim close to $2 trillion and the President and Republicans can live with it as long as the price tag begins with “1.” Despite what figure is agreed upon and when, we still have to face the music that we do not have the money! But that’s seemingly okay, because we’re constantly told that debts and deficits do not matter. We’ve also been told by just about every member of the Federal Reserve that Congress has to do more. Why? Are we not constantly being told that we are in the midst of a “super V” recovery – then why more spending? Collectively, through monetary and fiscal measures, several trillion dollars (that we do not have), were thrown into the system (courtesy of the banana republic printing press) – and this is as far as it has taken us. We still have millions of evictions waiting in the wings. We still have a countless number of bankruptcies and insolvencies on the horizon. With these, an untold number of layoffs and permanent job losers will likely ensue. We still have moratoriums on student debt payments – these debts still need to be repaid. And lastly, but not the last of it, are the commercial and residential real estate markets that will likely experience declines not seen since the GFC or worse. But, hey, it’s all free – right?
We also discuss the typical data releases reserved for our Thursday podcast. Initial jobless claims for the prior week came in higher than market expectations at 870,000. The prior week was also revised higher by 6,000 to 866,000 claims. However, in aggregate, all persons claiming some form of unemployment benefit(s), decreased by nearly 3 million, to now sit around 26 million. This is still an extremely high number. Yet, this is somewhat of a head scratcher as over the last two weeks, we have witnessed an increase of nearly 3 million, taking the total to around 29 million. And just like that, in one week, 3 million are off the rolls? Perhaps people have found jobs, but this would not be in agreement with the various surveys of small businesses, households, and announcements and actions being undertaken in larger corporations. So what’s going on? Is this some sort of counting error? Are people no longer qualifying for benefits? These are questions to ponder, and unfortunately, several months into this monstrosity of an economic experiment, we still do not have a full picture of the jobs market. This lack of clarity will continue. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #Debt #Inflation #Gold #Silver #USA #Recession #Depression #Protests #Liberty #Revolution #BananaRepublic #EndTheFed