Our typical Thursday discussion revolves around initial jobless claims, the Federal Reserve’s balance sheet, and M2 money stock. With respect to initial jobless claims, 712,000 Americans filed for the week ending 28 November. While this is below market expectations and a reversal from the prior two weeks’ upward trend, this number is still over 3x the weekly claims witnessed prior to the lockdowns and restrictions. It also remains higher that the numbers experienced during the depths of the GFC. And if The Kapital News is correct in forecasting a serious number of bankruptcies and insolvencies over the next two years, then these numbers will likely remain stubbornly high. The total of all persons claiming some form of unemployment insurance came in at 20.2 million for the week ending 14 November. While this is a decrease from the prior week of some 350,000, this still provides us with a 13.7 percent unemployment rate. This would be nearly twice the headline rate at 6.9 percent. Tomorrow, 4 December, is the first Friday of the month, and as such, the official jobs report will be released.
The Fed’s balance sheet increased from the prior week, but is slightly below its all-time high experienced a few short weeks ago. The current figure is $7.222 trillion. With respect to M2 money stock, another all-time high was also reached, now standing at $19.12 trillion. This is monetary destruction in our face. This is destroying savings, capital formation, and prudent investments. It is increasing the cost of living, decreasing living standards, fueling our debt binge, and creating malinvestments across the spectrum. It is breaking and distorting markets – this will not end well. These actions are not free. Quite the contrary, as they are proving to be very expensive and destructive. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Recession #Depression #Gold #Silver #Iniflation #EndTheFed #BananaRepublic #USA #Liberty #Revolution