In this week’s weekly wrap up we discuss the Democratic National Convention, our thoughts on the upcoming Republican National Convention, and continue our commentary on the economic data and structural issues facing this country. Stay diversified, stay vigilant, and stay with The Kapital News. #DNC #RNC #Economy #Gold #Silver #BananaRepublic #EndTheFed #Liberty #Revolution #Protests #USA # 2020 #Recession #Depression #Congress #Debt
Tonight concluded the Democratic National Convention with Joe Biden accepting the nomination and giving remarks before the country. His tone and speech were consistent with his most recent messaging, being that of unity and hope for the future and attempting to drive out the divisiveness across the country. As has been the case throughout this convention, there has been the attempt to show Biden as an empathetic, down-to-earth, average “Joe.” This may very well prove successful as it does draw stark contrasts between Biden and Trump. While his speech hit several key points and was delivered rather well, The Kapital News does not believe that this was Mr. Biden’s shining moment. However, with a consistent and persistent message of a calm and steady hand coupled with empathy for everyday Americans, this may be effective enough to end up in the White House. Next week, the RNC will have their week to highlight the Trump Administration and the Republican Party’s platform and vision. Do not forget that both of these conventions are three-ringed circuses offering the same “solutions” to the same problems and we’re supposed to believe that this time is going to be different…wake up!
Initial jobless claims for the week ending 15 August are unfortunately again above that psychological 1 million figure. Due to the various government programs in place and attempts to keep people on payroll, whether there was demand for their services or not, created a major distortionary effect in the jobs market (amongst others), which makes it difficult to get a true picture of the employment landscape. Nevertheless, this figure is clearly in the wrong direction and this does not take into consideration the various moratoriums that are still in effect, nor the millions of evictions waiting in the wings, nor the massive wave of insolvencies that will ensue once funds are exhausted and moratoriums are lifted. Stay diversified, stay vigilant, and stay with The Kapital News. #DNC #Biden #Economy #2020 #Recession #Gold #Depression #Jobs #Bailouts
Day two of the Democratic National Convention had a number of prominent speakers from former Secretaries of State, Colin Powell and John Kerry, former Secretary of Defense, Chuck Hagel, former Presidents Carter and Clinton, and lastly, the keynote speaker was Jill Biden, wife of Joe Biden. We witnessed a similar tone and continuation of strategy that was present during day one of the convention.
The Democrats appear to be attacking President Trump head on while leaving the Republican Party out of their line of sight. This may prove beneficial as the Dems attempt to recruit as many Republicans as they can, and/or at the very least attempt to appeal to Independents who don’t want to continue to hear the divisiveness between the two parties. If one key argument is that Joe Biden can unite the country, then there’s at least some logic to keeping the attacks focused on Trump as opposed to the Republican Party.
For day three of the convention the heavy-hitters will be VP candidate, Senator Kamala Harris, and President Barack Obama. Despite the amount of political “talent” that may be present during the D’s and R’s conventions, remember that it’s all a smoke and mirrors show. A further attempt to divide and conquer and pretend that either party represents the answer(s) to the many issues plaguing the nation. This is ridiculous on its face as these two parties have been the cause of so many of these very issues and simply perpetuate them and make them worse. Please remain focused on the core structural issues that we discuss here on a daily basis. Stay diversified, stay vigilant, and stay with The Kapital News. #DNC #Economy #2020 #Recession #Depression #Gold #Protests #Liberty #Revolution #BananaRepublic
With the additional $600 weekly benefit having come to an end, many questions remain as to what happens next? For many, this may have been the only income received over the past several months. For others, the $600/week was additional income on top of what they may have been receiving from their State’s unemployment office. In addition to this Federal assistance expiring, there are also serious concerns pertaining to what can be considered the eviction moratoriums. A couple of months ago, The Kapital News discussed experts projecting some 20-28 million Americans could be evicted in the coming months. Now, an analysis from the Aspen Institute suggests that it may be closer to 30-40 million Americans facing evictions in the coming months. For context, some 10 million Americas were evicted over a couple of years in the midst of the GFC. In addition to the expiring unemployment benefits and moratoriums, hunger is also a major concern. With surveys put out by the Census Bureau and others stating that some 30 million Americans are underfed and/or concerned about where their next meal will come from.
These issues are structural and the massive amounts of spending, borrowing, begging, and printing has only kicked the can down the road for a little. Now the chickens are coming home to roost and the piper wants paid. But hey, don’t worry, because the Fed and the Congress and the White House via the Treasury Department are purchasing corporate debt of the world’s largest companies. So don’t worry where your next meal is coming from. Don’t worry about not getting that extra $600/week, and don’t worry about being evicted. You know why? Because our government is buying corporate debt of the world’s largest firms, among other “assistance” programs and bailouts. Billions and trillions to the bigs and corporations and screw the little guy. Welcome to your banana republic. #Economy #Debt #Bailouts #Jobs #Gold #BananaRepublic #Congress #USA #Silver
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
Today Democratic Party Presidential candidate Joe Biden announced his pick for VP, and it’s California Senator Kamala Harris. Sen Harris was a candidate for the Presidency on the Dem side, but failed to gain enough traction to win the nomination. Nonetheless, she has evidently earned the trust and confidence of Biden as she is now his running-mate. With this announcement, the Presidential race is now heating up. With only a few short months to go, it’s still a close toss-up as to who will win the Presidency in the opinion of The Kapital News. And if 2020 continues on its current trajectory, then a few short months may feel like an eternity and anything and we mean anything could happen.
Despite what the politicians themselves will tell you and what the mainstream media would have you believe – there’s really not that much of a difference between both sides. Yes, they’ll tell you otherwise. Yes, they’ll tell you how they’re different and one side wants to raise taxes and the other cut them. How one wants to handle foreign policy this way and the other side that way, etc… But understand and understand well that at the end of the day on a net-net basis we have to look at the results and the actions. And one administration after the next whether Republic or Democrat, in conjunction with Congress, have led us to a path of ruin. There is no major difference between the two-parties – they are virtually one-in-the-same. All you have to do is pay attention and put aside the party and put the country first. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #2020 #USA #BananaRepublic
Since the President wanted to sign executive orders to extend unemployment benefits and to suspend the payroll tax cut, among others, which is unconstitutional, we wanted to discuss the unfunded liability situation in the US. The payroll tax is responsible for funding the social security fund as well as that of medicare. Understand that at this juncture, the payroll tax cut is really just a suspension, meaning that the tax will have to be paid at a later date – by the tax deadline in 2021. This could prove to be a big shock to many people who may decide to spend the extra income as oppose to saving it. Of course, many employers will be hesitant to comply with this executive order since it is unconstitutional and because it will likely cause obstacles with respect to their bookkeeping. But hey, it’s an election year, so who cares about the details and the US Constitution?
In other news, we also discuss the decision by the Lebanese government today to resign their post. The weakest link of any chain is the first to break and the dominoes are set as we continue to see countries in economic collapse and others on the brink. The global protests and riots that were occurring prior to COVID-19 were not and are not transitory, but rather history in the making. They will continue and likely escalate as we continue through 2020 and beyond. The world is lacking leadership and direction. Governments are unaccountable and corrupt and central bankers are in a currency war to the bottom where the true costs of these fraudulent acts are borne by the people – and the lower on the income scale, the worse the effects. People around the world are sick and tired of being sick and tired, and thus we are witnessing history in the making with these global protests. Some are violent, some will turn violent, others will demand government resignations, others will overthrow their governments, civil war(s) may ensue, as wars between nations. Let us pray for a peaceful resolution, but if current policies are implemented, then we are sealing our fate to a dim future. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Debt #Gold #Depression #BananaRepublic #Silver #Bailouts #USA #Lebanon #Protests
Another month is in the books for 2020 and as such we have the July jobs report being released last Friday. Since we were away last week, we were unable to discuss the report. So today, we take the time to read the report in its entirety as we have been since the start of the pandemic with the April jobs report. A couple national and international political and economic stories are also discussed during this episode. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Recession #Gold #Bailouts #Silver #Depression #BananaRepublic
We discuss the Thursday data release since we were away during the last week. Therefore, we cover the typical initial and continuing claims data, the Fed’s balance sheet, and also discuss some national political stories. One such story pertains to Congress and the White House not being able to come to an agreement on another round of spending. They can give billions and trillions to corporations at the drop of a hat, but extend something for the people, and they just can’t get their act together. Don’t worry, they will pass something. However, in the interim as we wait, the President has taken it upon himself to sign executive orders that will extend unemployment assistance as well as to suspend the payroll tax. The President does NOT have the authority to do this. Yet the Constitution is rarely considered to begin with – so does anybody really care? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Gold #Bailouts #BananaRepublic
With another busy news week, we thought it prudent to go over some of the major points. Recapping the decision by the Federal Reserve, the GDP and jobless figures, and market performance rounded out the economic and financial news. While on the political front, we covered the disgraceful hearing of AG Barr earlier this week before the House Judiciary Committee, and briefly discuss Joe Biden’s upcoming decision as he announces his VP candidate next week. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Gold #Recession #Debt #Protests #Depression #Bailouts #Inflation #BananaRepublic #EndTheFed
