Presidential tweets caused markets to swing back ‘n forth, ending the day lower. Earlier in the afternoon, stocks rallied off the news that the President was feeling better and not exhibiting any symptoms of COVID-19. This rally was only later to be reversed by yet another tweet, whereby the President ordered his representatives to end the negotiations with the Democrats on another spending bill – stocks sold off massively. This is an interesting turn of events, as earlier the President was praising the economy and stock market – only to tweet out the stoppage of further spending that the stock market has been hoping for over the last several weeks. Also interesting is the fact that only a few days ago, the President was telling Congress to get their act together to pass another spending bill. Furthermore, the President a couple of weeks ago during a press conference at the White House, called out Republicans to go for the, “big one,” with respect to another spending bill – claiming that it (the money), all comes back to the USA anyway. Now while the President has stopped the negotiations, he is claiming that another spending bill will be passed after he wins his re-election. So, is the President holding this money as ransom?
We know through various surveys that nearly 50 percent of US households are broke. And we know that some 30 to 40 percent of small businesses have claimed that if they do not receive further assistance from Congress that they will not be able to last through the end of the year. These figures do not count the number of small businesses that have already closed their doors for good. Now make the logical connection(s), without further governmental assistance, many more small businesses will be forced to file bankruptcy and/or liquidate, which will result in further layoffs, which in turn will lead to lower demand for various goods and services throughout the economy, thus causing further downward pressure. This is in stark contrast to how the President notes that the economy is on a fast track to recovery. Then, coincidentally today, we have Jay Powell, Chairman of the Federal Reserve, making comments that without further spending by Congress, the economy may face tragic outcomes. This is some of the strongest language that the Fed Chair has used to stress the need for further fiscal measures. So – somebody is not telling us the truth. On one hand, the President says everything is fine and further spending can wait and/or isn’t needed; and on the other, we have the Fed Chair claiming that major risks exist to the economy/markets if further fiscal actions are not taken.
The Kapital News believes that this house of cards economy is on the verge of collapse. We have consistently been against both fiscal and monetary efforts to “bolster” the US economy and markets since the very beginning and even before they were enacted. There is no free lunch and the costs associated with these efforts will be felt for at least a generation. Meanwhile, any short-term “positive” effects that these measures may have brought have already run its course. Note that some $9.6 trillion has been spent from Federal/State/Local governments and this is where we are: some 26.5 million Americans still claiming unemployment insurance, permanent job losers at 3.8 million, a level not seen since 2013, median duration of unemployed at levels not seen since 2012, tens of millions of evictions waiting in the wings, a countless number of bankruptcies and insolvencies, and with it massive layoffs. So, no, this is not a strong economic recovery. This is simply an attempt by government and central bank figures to keep this mirage of an economy afloat – and in the interim it is decimating small businesses and middle-America – and the true costs of it all have not even been realized – yet. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Elections #Inflation #Gold #Silver #USA #Liberty #Revolution #EndTheFed #BananaRepublic #Jobs #Recession #Depression #GE #Boeing