The $1.9 trillion spending bill was signed today by President Biden, even though it was expected to be signed on Friday. The White House claims that checks/direct deposits may begin to go out as early as this weekend. Meanwhile on Wall Street, the major indexes made all-time highs, apparently happy to see another $2 trillion that we do not have being borrowed, printed, and thrown into the system. However, this sort rally of calls into question the recent narrative of investors and traders rotating out of tech names and growth stocks and into value plays, because tech stocks rallied big during the trading session. Again, we note how this is one of the shortest rotations ever. Of course we also argue that this is and was a bogus narrative to begin with. The real narrative is all about liquidity. So long as this relationship remains positive, meaning more liquidity equals higher equity prices, then this will continue. However, nothing lasts forever and once this relationship breaks, and it will, it will be utterly devastating.
In other news, the initial jobless claims report was released today, and another 712,000 Americans filed an initial claim for the week ending 6 March. The prior week’s figure was revised higher by 9,000 to now stand at 754,000. These numbers still remain well above the numbers seen during the GFC, which saw 650,000 for a couple of weeks. As we are now in the second week of March, this means we have been experiencing initial jobless claims worse than the depths of the GFC for one full year! All persons claiming some form of unemployment insurance for the week ending 20 February, stands at 20.1 million. This represents a week-over-week increase of nearly 2.1 million and gives us a de facto unemployment rate of 14 percent. This is more than double the official unemployment rate at 6.2 percent and 40 percent higher than what the Federal Reserve claims is the real unemployment rate, which is closer to 10 percent. Any way you want to look at it, this is not a good picture. All of this structural unemployment and underemployment is occurring while the country spends and has spent several trillions of dollars. So it begs the question, where is all the money going? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Spending #USA #Liberty #Inflation #Gold #Silver #Commodities #Oil #Leadership #EndTheFed #bananarepublic #FireCongress